Wednesday, November 20th, 2024

Amid political transition, Nepali Army trying to purchase 27 APCs from China opaquely



KATHMANDU: The Nepali Army (NA) has requested the Ministry of Defense for the procurement of what has been termed “sub-standard” military equipment from China.

Despite finding the previous procurement of armored personnel carriers useless, NA forwarded a proposal to the government for the procurement of 27 Armored Personnel Carriers (APC) from China.

However, the government is yet to give a nod to the NA’s proposal.

It may be noted that the Nepal Army has been facing a series of irregularities allegations in the procurement of defense equipment from China through a private company by bypassing the government-to-government (G2G) procurement process.

According to  sources, an official from China’s North Industries Group Corporation Limited (NORINCO) company visited Nepal before the November 20 election and held talks with the concerned ministers and high-ranking defense officials on the issue.

NORINCO is a company that develops mechanized, digitized and intellectualized equipment for the Chinese Army.

By making the specifications of the tender suit only the companies close to him, there has been a “political game of corruption” by accepting the technical proposal only for those companies close to Karki.

It is also a company that claims to be the “main force” in contributing to China’s Belt and Road Initiative (BRI) and the development of civil-military integration.

It should be noted that the NA has been procuring military equipment from China despite being aware of the fact that China provides sub-standard equipment.

It may also be recalled that as many as 63 Armored Personnel Carriers (APC) that the NA received in 2019 to be used for UN Peace Missions were found to be ‘evidently useless’.

The Chinese APCs, which have been brought for peacekeeping purposes, including by the NA, in the worn-torn areas have been ‘technically’ ineffective to protect from rocket-propelled grenade (RPG) attacks, NA personnel have complained.

The APCs bought from China were not used and were merely ‘stored’ at the Chhauni-based army barrack.

Before the November 20 elections, a team including Zhou Kusi, Asia Pacific Business Manager of the Chinese defense company NORINCO, visited Nepal.

After the Nepali Congress-led government adopted a policy of not depending only on Chinese defense equipment and purchasing various military equipment from other countries, the Chinese team came to Nepal and gave lucrative offers to the Nepal government.

They enticed government officials with “commissions” of more than 20 percent, sources said.

After the government purchased over 4 APC forces with Mahindra Defense under Government-2-Government, the Chinese side started lobbying vigorously with the concern of losing their monopoly in Nepal’s defense.

Middlemen including Lokendra Karki, brother of Information and Communications Minister Gyanendra Bahadur Karki, who mostly lives in Singapore, lobbied for procuring equipment from China.

The purchase process was initiated after NA officials claimed that since the Cambodian Army was using the equipment of the Mahindra Defense in Mali, they can be used by the NA too.

Even though Nepal’s economy has reached a critical stage, middlemen close to China have increased their activities in large purchases.

It should also be noted that The NA made final preparations to buy two Russian Mi-17 helicopters from a third country ignoring the US blockade, but it was stopped after the information was leaked.

Russian officials are still discussing options for purchasing the helicopter.

In the same way, Chinese middleman Deepak Bhatta, who was set to buy arms and supplies for the Armed Police and Nepal Police, was stopped following intense pressure from the media.

Lokendra Karki, who has been engaged in contracting NA equipment for quite a long time is all set to proceed with the new procurement process.

Karki, who stays in Singapore most of the time, and arranges various major procurements, met the Chinese team before the election along with ministers, army officers and political leaders including his brother, Gyanendra Karki.

Although the decision was made during the time of the then Chief of Army Staff, Rajendra Chhetri, the procurement process of the helicopter and the ammunition plant that was supposed to be brought from South Korea has been delayed.

NA officials are meeting with representatives of various defense-related foreign companies for the purchase of ammunition plants.

The delay is happening due to the vested interest of the high officials of the NA and the political leadership.

The then Chief of Army Staff, Chhetri, took a huge commission and purchased defense equipment through Karki.

The deal to purchase the ammunition plant was stopped at the final stage two years ago after the price was set at twice the market price.

A high military source told Khabarhub that some elements and officials are set to revive the plan taking advantage of the current transition period.

Lokendra succeeded in grabbing the contract of the Fast Track worth about Rs 35 billion to the NA without any competition.

The political fluidity after the dissolution of the Parliament was greatly manipulated when some relatives of the then Chief of Army Staff Purna Chandra Thapa were included in the contract.

By making the specifications of the tender suit only the companies close to him, there has been a “political game of corruption” by accepting the technical proposal only for those companies close to Karki.

Karki succeeded in selecting only the Chinese construction company Poly Changda Engineering Company for the construction of the second phase.

Out of that, 21 companies were deemed ineligible for the competition and although the process was arranged legally under the instructions of the then Prime Minister KP Sharma Oli, there was manipulation in the bidding process.

The political fluidity after the dissolution of the Parliament was greatly manipulated when some relatives of the then Chief of Army Staff Purna Chandra Thapa were included in the contract.

Since the Commission for Investigation of Abuse of Authority (CIAA) cannot investigate the affairs of the NA, by making a fast track through the army, it has become a source of income for the ruling parties and power centers of Nepal.

Apart from Karki, middleman Deepak Bhatta, Umesh Shrestha and others who are close to China are active in such contracts.

Middlemen close to China have placed their close ones in the regulatory bodies as well as in the political and administrative aspects.

Publish Date : 12 December 2022 16:04 PM

Today’s news in a nutshell

KATHMANDU: Khabarhub brings you a glimpse of major developments of

Energy Minister Khadka holds meeting with FAO Country Representative

KATHMANDU: Minister for Energy, Water Resource and Irrigation Dipak Khakda

Former DIG Chhabi Lal Joshi brought to Kathmandu for further investigation

KATHMANDU: Former DIG Chhabi lal Joshi, arrested in connection with

Australian ambassador pays courtesy call on PM Oli

KATHMANDU: Ambassador of Australia to Nepal, Leann Johnston, paid a

Germany to provide Rs 1.46 billion grant to Nepal for power distribution project

KATHMANDU: The Ministry of Finance (MoF), on behalf of Government