In the Nepal Trust scandal, former Prime Ministers Oli and Dahal are also under investigation

The Central Investigation Bureau (CIB) of the Nepal Police has launched a wave of investigations in the land-lease case of the Nepal Trust at Durbar Marg, reaching a point where a landslide is imminent.

In the lease case the CIB has arrested the Trust’s then Joint Secretary, Lekh Bahadur Karki, and senior police sources claim the case has the potential to drag in the two former prime ministers, K.P. Sharma Oli and Pushpa Kamal Dahal (‘Prachanda’). ‘In a few days, some major leaders could be arrested,’ said a senior source.

At the time when the lease-contract for the land was being issued, in Ashar (mid) of 2073 BS [≈ June/July 2016], Oli was Prime Minister and Shakti Bahadur Basnet was Home Minister. In Baishakh of 2074 BS [≈ April/May 2017], when the proposal was approved, Dahal was Prime Minister and Bimalendra Nidhi was Home Minister.

Although the decision to lease the land was taken at the joint-secretary level, police investigation officials claim there was collusion by the Trust’s trustees and chairpersons. According to the Nepal Trust Act, at that time the Prime Minister served as the Trust’s ‘Patron’ (sansthapak) and the Home Minister as its ‘Chairman’.

The Trust’s board approved the proposal to lease 1 ropani 14 aana of land at Durbar Marg on Saun 28 (≈ mid-Aug) of 2071 BS [≈ August 2014]. Almost two years later the Trust issued a public notice to invite bids for the lease.

Although six companies submitted proposals, senior officials claim the criteria were set up so that Thamserku Trekking Pvt. Ltd. (under the Yeti Holdings) would win the contract. Evidence has been found implicating the Trust’s then Patron (Oli and Dahal) and the then Chairmen (Home Ministers Basnet and Nidhi) in the deal.

Thamserku initially proposed NPR 626 million for the lease but later sent another letter denying it had made that offer. It submitted a much lower revised proposal, which the Trust apparently accepted. The second-placed competitor, Sakha Steel Industries, proposed NPR 622.4 million and a JV of Adrisia‑Lionz JV proposed NPR 262.8 million. Ultimately the lease was settled at NPR 140 million with Thamserku — a deal that caused the government an estimated loss of about NPR 500 million.

The Nepal Trust was established in 2064 BS [≈2007/08 AD] to manage property formerly owned by King Birendra Bir Bikram Shah Dev and his family. Most of its assets are leased to companies under Yeti and related holdings.

Previously, in the lease case of the Gokarna Forest Resort land, former Prime Minister Oli and the then Defence Minister Ishwar Pokharel were mentioned.

A senior CIB officer said that various documents in this case are being studied seriously and that the investigation is expected to reach its conclusion soon.