Transformer scam under CIAA scanner

HIMALAYAN NEWS SERVICE

KATHMANDU: Commission for the Investigation of Abuse of Authority informed today that Nepal Electricity Authority had submitted to it all the documents related to the procurement of transformers on Tuesday.

Following the revelations of substandard transformers and formation of probe committees at the state-owned institution, the trade unions at NEA had lodged complaints with the anti-graft body.

NEA General Manager of Distribution and Customer Services of East region Chiranjivi Sharma confirmed that they had handed over the documents sought by CIAA. However, he denied providing details of the documents.

NEA sources said the documents voluminous and contained all the details of procurements and and payments made to the China-based Hubei Sunlight Electric Company.

Transformers worth US $ 160,200 were purchased from the company. Likewise, other transformers purchased from another Chinese company were found to have violated the specifications.

Tomorrow’s NEA Board meeting will discuss the report of a sub-committee on the scam. The committee is likely to come up with fresh directions to the NEA management on the transformer scam and other procurements.

Acting Managing Director Mahendra Lal Shrestha had said employees involved in the procurement, payment and inspection of transformers were under investigation.

Several transformers that were checked contained aluminium wire and not copper wire as specified in the purchase agreement. Aluminium increases power loss up to four times and also explodes, said experts.

Previous reports had recommended establishing a lab to test transformers and other electric equipment. However, NEA did not heed the recommendation, though it has caused loss to the tune of millions of dollars.