Nepal Airline's Chairman, Sugat Kansakar Jailed On Aircraft Purchase Corruption


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Nepal Airline's Chairman, Sugat Kansakar Jailed On Aircraft Purchase Corruption

By Bill Goldston

March 1, 2011 - A Nepal court has sent the former Nepal Airline's Chairman, Sugat Ratna Kansakar to jail after he failed to make bond on a corruption scandal that surfaced on the purchase of two Airbus aircraft. 

At a Public Accounts Committee (PAC) hearing, which is responsible for overseeing government expenditures to ensure they are effective and honest Kansakar has stated he had entrapped the government into the purchasing the aircraft and that government would have to pay the bill by signing a Memorandum of Understanding (MOU). The Memorandum of Understanding (MOU) was formalized at the Dubai air show for an Airbus A320 and A330 back in November 2009.  

Nepal Airlines, formerly known as "Royal Nepal Airlines", is an airline based in Kathmandu, Nepal. It is the government owned, national flag-carrier airline and operates more than 30 domestic and 7 international routes. Its main base is Tribhuvan International Airport, Kathmandu. 

Kansakar signed the MOU without authorization from the Nepal Government. The deal is worth over $258 million. The airline also put up a deposit of $750,000 which is none refundable. Nepal?s Public Accounts Committee has asked the Finance Ministry to block the purchase. Delivery of the two planes was scheduled for mid June 2011.

Sugat Ranta Kansakar Former Executive Chairman Nepal Airlines

?Nepal is well known for offering a wide range of leisure, cultural and outdoor pursuits with plenty to explore. We have seen tremendous growth in tourism over recent years and we want to capitalize on the A330s unique performance and range to offer direct services to our key long haul markets and to develop new ones thanks to the efficiency of the A320? said Sugat Ratna Kansakar, Executive Chairman of Nepal Airlines at the signing at Dubai air show.  

The court concluded that Kansakar signed the MOU without have financial resources in place to pay for the aircraft and failure to receive approval from the Finance Ministry. The court has placed Kansakar in Dillibazaar Prison. In 2005 the former chairman of Royal Nepal Airlines was jailed for massive corruption. 

Five other airline personnel await court trials. They are Deputy Managing Directors Raju Bahadur KC and Ganesh Thakur, Acting Director Gyanendra Purush Dhakal, Director Mayur Shumsher Rana and Acting Deputy Director Keshav Raj Sharma.


Nepal officially the Federal Democratic Republic of Nepal, is a landlocked country in South Asia. It is located in the Himalayas and bordered to the north by the People's Republic of China, and to the south, east, and west by the Republic of India. With an area of 56,827 sq mi and a population of approximately 30 million, Nepal is the world's 93rd largest country by land mass and the 41st most populous country. Kathmandu is the nation's capital and the country's largest metropolis. 

Nepal remains isolated from the world's major land, air and sea transport routes although, within the country, aviation is in a better state, with 48 airports, ten of them with paved runways; flights are frequent and support a sizable traffic.

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