Following initial investigations, CIAA has directed NFC to totally halt the land selling process. It also instructed NFC to sell the land only at the prevailing market price and not to reopen the bidding process without first assessing the market price. [break]
The NFC had decided to sell the government land at Birtamod of Jhapa district at a rate ten times less than the prevailing market price.
According to CIAA, the total price of the land at the prevailing rate comes to be around Rs 44 million. But NFC awarded the tender to the housing company to sell the land at a meager Rs 4 million, causing losses worth Rs 390 million to the government.
Though the seller and buyers were found to have followed a due legal procedure, the CIAA objected to the decision citing under-evaluation of the land.
“No one is allowed to embezzle state property even by meeting legal procedures,” reads the CIAA´s decision paper. It said the evaluation process was completely wrong and it could cost the government dear. It said the NFC decided to sell the land based on a six-year-old evaluation.
Nepal Food Corporation halts process to sell 20 ropanis of government land in Birtamod of Jhapa at a price 10 times less than the prevailing market price
“We scrapped the tender as the land was evaluated at a price 10 times less than the prevailing rate,” said Ishwari Paudyal, spokesperson for the CIAA, adding, “Our timely action has prevented a possible embezzlement of a huge amount.”
Paudyal said the CIAA decision was based on a report prepared by a Jhapa CDO-led committee which concluded that the land was evaluated at a price 10 times less than the current price.
“The NFC cannot sell the land at a price less than the current price just because it followed the legal process while awarding the tender,” Paudyal, added, “The intention behind the transaction was corruption."
CIAA had initiated in-depth investigation into the matter after seizing all related documents. According to CIAA, the housing company, while giving clarifications to the commission, had expressed commitment to purchase the land as per commission´s decision.
NFC General Manager Hari Narayan Shah said the rate of the land was increased during the time of evaluation. “That incident occurred before I came to the NFC. “However, I found CIAA´s decision appropriate and I have directed officials under my office to act as per the commission´s decision.”
Shah said that the entire process to sell the land has been scrapped.
The CIAA had also scrapped the purchase of 70 ropanies (35,616 square meters) of land by Nepal Oil Corporation (NOC) on suspicion of embezzlement of Rs 350 million in the transaction some six months ago.
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