NEA cooperating anti-graft body in transformer scam probe

Wed, Sep 19, 2012 12:00 AM on Others, Others,

KATHMANDU, SEP 19 -

Amid growing pressure, the Nepal Electricity Authority (NEA) management has submitted necessary documents to the Commission for Investigation of Abuse of Authority (CIAA) to probe alleged irregularities in the imports of the substandard transformers.

NEA officials said that the documents were handed over to the CIAA after a committee formed to take action against those involved in the import of substandard transformers failed to initiate action. The NEA board had formed the committee under the coordination of Upendra Dev Bhatta, general manager at NEA’s Distribution and Consumer Service (West) last Tuesday. Bhatta, however, had stepped down from the committee after he was embroiled into controversy for allegedly being involved in the import of the inferior transformers.

“After many high-rank officials were found to be involved in the scam, we concluded that the matter could not be settled internally. So, we submitted the necessary documents and our study reports to the CIAA,” said a member of the NEA management.

Earlier, the NEA management, wary about the CIAA investigation on the matter, had formed another internal committee to probe involvement of people who were in the previous committee led by board member Mohan Pant. The board has also authorised the committee to punish the guilty as per the legal framework.

In its report submitted to the NEA board on Tuesday, the Pant-led committee has said around 30 NEA officials, including authority’s Acting Managing Director Mahendra Lal Shrestha, general managers Upendra Dev Bhatta, Chiranjibi Poudel and Ganesh Prasad Raj, were involved in the import of substandard transformers. Pant said he had already sent the report to the CIAA for further investigation into the matter.

Similarly, Chairperson of NEA board Hari Ram Koirala has also sought clarification from acting MD Shrestha.

A CIAA source said that the anti-graft body has taken charge of the case and that it has already launched an investigation. The source revealed that the CIAA had been scrutinising documents forwarded by the NEA management.

The probe was launched six months ago after problems appeared in 4,657 transformers imported from China and Thailand in the last five years. The inferior transformers resulted in higher leakages and some of them became defunct early.

Over the period, the NEA imported transformers from a Thai company Sahabhant Electric Co Ltd and four Chinese companies—Shenyang Dongneng Electricity Equipment Co Ltd, Huwei Sunlight Electric Co Ltd, SVR Electrical Pvt Ltd and Sichuan Dongfang Transformer Co Ltd.

The first probe committee, formed under NEA board member Krishna Prasad Dulal in April, had concluded that the imported transformers were technically faulty and that the NEA officials were responsible.

Source: The Kathmandu Post