Domestic Brief RNAC chief suspended
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ISSUE #26 (19 JAN 2001 - 25 JAN 2001)
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Hari Bhakta Shrestha, the controversial executive chairman of the Royal Nepal Airlines Corporation (RNAC), was suspended last week upon the recommendation of the Commission for the Investigation of Abuse of Authority (CIAA). The anti-corruption body has been probing the controversial Lauda Air jet lease by RNAC, which was done through direct negotiations despite a standing CIAA directive that all leasing be conducted through open competitive bidding. Shrestha had led the negotiations to lease the Lauda Air Boeing 767 that has been part of RNAC's fleet since 1 December 2000. The jet was leased for 18 months at $3,500 per flight hour, but there are allegations that other "hidden costs" have increased that figure to about $5000.
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