Monday, September 11, 2006

CIAA Not to Act Against Promoters of Fulbari Resort

The Commission for the Investigation of Abuse of Authority (CIAA) recently decided not to initiate action against the promoters of the Pokhara-based Fulbari Resort for alleged bank default case.

The CIAA has taken the decision stating that there was no ground to say that it was a corruption case as the Nepal Bank Limited, the Rastriya Banijya Bank, the Nepal Industrial and Development Corporation and the Employees' Provident Fund Office invested in the resort.

The banks and the financial institutions have provided Rs 1. 81 billion and now the Resort have to pay Rs 3.64 billion with interest.

The Chief Executive Officer of the Nepal Bank Limited J Craig McAllister had filed a complaint in the CIAA demanding recovery of more than Rs 3.64 billion from the promoters of the Fulbari Resort including its promoters Pyush Bahadur Amatya about three years ago.

"There was no ground to say that the investment is in wrong place as the promoters have already given the guarantee for the bank and financial institutions," the text of the CIAA decision states. The text also said that the lead partner of the investment bodies Nepal Bank Limited had already filed a case in the Debt Recovery Tribunal seeking recovery of the loan, thus there was no need to initiate action under the Corruption Control Act 2002.

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