Home » Ram Sharan Mahat Among 5 Ministers in PRIA Scam

Ram Sharan Mahat Among 5 Ministers in PRIA Scam

CIAA files corruption case over Pokhara Airport costs

by Sophia Bennett

KATHMANDU, Dec 8 – Nepal’s Commission for the Investigation of Abuse of Authority (CIAA) has launched a major corruption case against 55 individuals, including five former ministers, over large-scale financial irregularities in the construction of Pokhara Regional International Airport (PRIA). The anti-graft body has sought recovery of Rs 8.36 billion and maximum prison terms for all accused.

The former ministers named in the charge sheet are Dr Ram Sharan Mahat, the late Post Bahadur Bogati, Ram Kumar Shrestha, Bhim Prasad Acharya, and Deepak Chandra Amatya.

Dr Ram Sharan Mahat, former finance minister, is accused of approving an inflated project cost on July 30, 2014, increasing the estimate from USD 169.69 million to USD 215.96 million. With VAT and contingencies, the final contract value reached USD 244.04 million. A contract was subsequently signed, and a loan application was sent to China Exim Bank with Cabinet approval. Senior Ministry of Finance officials, including then-chief secretary Somlal Prasad Sharma, are also implicated.

The late Post Bahadur Bogati allegedly bypassed the Public Procurement Act after no initial bidders qualified. Under his direction on July 15, 2015, the airport board allowed China CAMC Engineering Co. Ltd to proceed, despite its USD 305.12 million bid being nearly 85% higher than the original estimate. As Bogati passed away, his wife Ram Maya Bogati has been named a defendant.

Ram Kumar Shrestha is accused of abusing authority to approve decisions that led to the inflated project cost, reportedly based on a manipulated engineering report from November 25, 2013.

Bhim Prasad Acharya, former tourism minister, allegedly directed the Civil Aviation Authority of Nepal (CAAN) on April 6, 2014, to proceed with the Chinese contractor and later approved a USD 215.96 million loan from China Exim Bank on October 31, 2014.

Deepak Chandra Amatya is charged with endorsing the airport project under the EPC (Engineering, Procurement, and Construction) model on October 26, 2014, based on inflated costs and modified designs, enabling Cabinet approval.

Construction ran from August 2018 to December 2022, with USD 224.72 million paid to China CAMC Engineering. Investigators concluded USD 74.34 million was paid solely due to artificial cost inflation, providing undue financial gain to the contractor.

Other accused include CAAN Director General Pradeep Adhikari, jailed earlier for corruption in the Bhaktapur–Nalinchok Heliport project, and former National Inclusive Commission chair Ram Krishna Timilsina. Four former secretaries—Sushil Ghimire, Suresh Man Shrestha, Suman Prasad Sharma, and Bhes Raj Sharma—and former CAAN DGs Triratna Maharjan and Ratish Chandra Lal Suman are also charged.

The case follows a formal request from a House of Representatives subcommittee under the Public Accounts Committee, which identified serious irregularities during the airport’s construction.

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