Nepal's Anti-Graft Agency Charges 55, Chinese Firm in Pokhara Airport Scandal

Nepal's Commission for Investigation of Abuse of Authority (CIAA) has filed charges against 55 individuals, including five former ministers and 10 senior bureaucrats, alongside China CAMC Engineering Company. The charges, filed on December 7, 2025, allege that the state-owned Chinese firm and Nepali officials colluded to inflate the construction costs of Pokhara International Airport by NPR 8.36 billion ($74.34 million). The $216 million airport, inaugurated on January 1, 2023, has yet to host a single international scheduled flight, becoming a significant financial burden for the Himalayan nation.

The investigation by the CIAA and a parliamentary committee found widespread irregularities in the project, which was funded by a loan from China Exim Bank. The original contract for the airport was signed in May 2014 for $215.96 million, a compromise between the Nepal government's estimate and CAMC's initial higher bid. However, the chargesheet claims the approved cost was improperly manipulated to $244.04 million, leading to overpayments. This case represents the largest corruption scandal in Nepal's history, raising serious concerns about the country's ability to repay Chinese loans for infrastructure projects.

The Pokhara airport project has been a focal point of debate regarding China's expanding influence in Nepal, with a Chinese ambassador controversially branding it part of the Belt and Road Initiative (BRI). Transparency International Nepal's president, Madan Krishna Sharma, views the charges as a positive step against systemic corruption, which is often exacerbated by political instability and limited oversight of foreign aid. While the current non-political government has vowed a stern approach to corruption, historical patterns suggest that such cases often face prolonged court proceedings, making timely resolution a significant challenge.