Probe Panel Says decision of EPF, CIT to Invest in Wide-body Aircraft ‘Irresponsible’

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Probe Panel Says decision of EPF, CIT to Invest in Wide-body Aircraft ‘Irresponsible’

September 9: A sub-committee meeting under the International Relations Committee of the House of Representatives has concluded that the Employees Provident Fund (EPF) and the Citizen Investment Trust (CIT) invested irresponsibly for the purchase of two wide-body aircraft by Nepal Airlines Corporation.

EPF and CIT had each invested Rs 12.5 billion for the purchase of two Airbus jets by the state-owned airline company.

A report prepared by the sub-committee on the Procurement of Aircraft by Nepal Airlines Corporation has pointed out to serious lapses in part of the EPF and CIT to invest in an ailing airlines despite the government agreeing to become the guarantor.

The International Relations Committee had formed a 5-member probe committee on November 24, 2018 under the leadership of lawmaker Deepak Prakash Bhatta to investigate the wide-body procurement scam.

The report mentions that the irresponsible act of EPF and CIT to invest in the corporation has risked the savings of millions of citizens.

Nepal Airlines Corporation had taken loan from EPF and CIT to purchase the aircraft about a year ago.

The flag carrier of Nepal has not been able to repay more than one installment of loan so far.

The sub-committee report has said that the decision of CIT and EPF to provide such a massive amount of loan without studying the background of the organization, its history, financial well being, income and financial details has risked the amount of the citizens.

 

 

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