KATHMANDU: The Commission for the Investigation of Abuse of Authority (CIAA) has filed a corruption case against eight officials, including former general managers, over large-scale embezzlement of clinker at Udayapur Cement Industry Limited.
The CIAA has concluded that a total of 38,769 metric tons of clinker were embezzled between fiscal year 2017/18 and mid-January 2021. According to the Commission, the total cost value of the missing clinker amounts to Rs 465.27 million.
In connection with the case, the CIAA on Sunday filed charges at the Special Court against the then General Manager, two acting General Managers, and other senior officials of the industry.
CIAA spokesperson Suresh Naupane said investigations found a significant discrepancy between clinker production and stock records at the industry.
Reports from the Ministry of Industry, Commerce and Supplies, as well as audits conducted by the Office of the Auditor General, showed unusually high consumption of clinker despite reduced production. Physical verification also revealed that actual clinker stock was far lower than recorded figures.
Extent of discrepancy
Fiscal year 2017/18: Shortage of 1,129 metric tons, valued at Rs 11.41 million
Fiscal year 2018/19: Shortage of 10,200 metric tons, valued at Rs 113.31 million
Fiscal year 2019/20: Shortage of 1,325 metric tons, valued at Rs 16.25 million
From mid-July 2020 to mid-January 2021: Shortage of 26,115 metric tons, valued at Rs 324.30 million
Spokesperson Naupane said the embezzlement occurred due to collusion and malicious intent of the then office-bearers. The accused are alleged to have misused public property, causing financial loss to the government and the cement industry.
A separate investigation committee under the Ministry of Physical Infrastructure and Transport had also confirmed abnormal discrepancies in the clinker-to-limestone ratio.
Claimed amounts
Surendra Kumar Paudel (former General Manager): Rs 124.72 million
Nawal Kishor Sah (former Acting General Manager): Rs 465.27 million
Mahesh Prasad Kafle (former Deputy General Manager): Rs 126.37 million
Sanjay Kumar Lal (former Head, Production Division)
Mahesh Prasad Shah (former Head, Store Division)
Rabi Chandra Paudel (former Head, Clinker Production Division)
Hari Prasad Adhikari (former Head, Cement Production Division)
Ram Bahadur GC (former Head, Sales Division)
The CIAA has demanded imprisonment, fines and recovery of the claimed amounts from all accused under Section 17 of the Prevention of Corruption Act, 2002.
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