Nepali Times
Domestic Brief
Lauda Air deal


It appears that another deal by the Royal Nepal Airlines Corporation (RNAC) may be terminated after a sub-committee of the parliament's Public Accounts Committee (PAC) recently recommended its cancellation. The PAC sub-committee says the deal was "irresponsible and illegal" and has also recommended legal and departmental action against the officials responsible for the deal. The committee found fault with Royal Nepal's decision to lease a Boeing 767 from Austria's ailing Lauda Air through direct negotiations instead of seeking bids from suppliers through a global tendering process, and against the express instructions of the Commission for the Investigation of Abuse of Authority (CIAA). The commission has begun its own investigation into the leasing deal.

Investigations by the PAC have revealed that the aircraft to be leased does not belong to Lauda Air but to another company in Hong Kong not mentioned in the lease document. RNAC has already paid Lauda Air $1 million to guarantee the deal, which it stands to lose should the contract be cancelled.


LATEST ISSUE
638
(11 JAN 2013 - 17 JAN 2013)


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