Fiscal Nepal
First Business News Portal in English from Nepal
KATHMANDU: The suspension of senior officials following corruption cases has plunged the Civil Aviation Authority of Nepal (CAAN) into deep uncertainty, with officials and staff increasingly afraid to take decisions or even sign routine files. The fear has begun to paralyze day-to-day operations at the aviation regulator, according to senior CAAN sources.
After the Commission for the Investigation of Abuse of Authority (CIAA) filed corruption cases involving billions of rupees, CAAN employees say a culture of risk aversion has taken hold. Officials now hesitate to process files, approve payments, or forward decisions, fearing that their signatures could later be used as grounds for corruption charges.
The CIAA recently filed a case over alleged irregularities in the construction of Pokhara International Airport, accusing those involved of artificially inflating project costs. The anti-graft body claimed losses amounting to NPR 8.36 billion, naming four serving CAAN officials in the case. Following the filing of the case, all four were suspended, triggering widespread anxiety within the institution.
“People have started searching for files they signed years ago,” a senior CAAN official told this reporter on condition of anonymity. “There is a fear that once you sign a document, you could end up in jail. If you don’t sign, work stops. If you do, there is fear of a corruption case. Staff are trapped between these two risks.”
According to CAAN officials, many employees are now reluctant to sign even routine administrative documents. Some have reportedly requested transfers rather than continuing in positions that require regular file approval. “Staff are afraid to work,” another senior official said. “They worry that any letter or file they sign today could later be interpreted as corruption.”
The CIAA action has already resulted in the suspension of Deputy Directors General Pratap Babu Tiwari and Hansraj Pandey, along with senior management officials Baburam Poudel and Dwarika Prasad Bhattarai. The impact of their suspension is now being felt across CAAN’s operational and administrative wings.
The situation worsened after Director General Pradeep Adhikari was also suspended in a separate corruption case, despite having only two months remaining in his tenure. Following his suspension, Mukesh Dangol has been assigned as Acting Director General. However, CAAN sources say the absence of a fully empowered Director General has further slowed decision-making.
“The acting director general himself is unsure how long he will remain in the post,” a CAAN source said. “He does not have the confidence or authority to push decisions aggressively. There is a fear that if a decision remains incomplete, it could later become a liability. As a result, only absolutely essential work is moving forward.”
According to officials, CAAN will not return to normal operations until a permanent Director General with full authority is appointed. The Ministry of Tourism and Civil Aviation is reportedly preparing to appoint a new Director General based on seniority within a week. Sources say that once the appointment is completed, operations may gradually return to their previous pace after CAAN’s annual anniversary events.
However, the CIAA’s aggressive intervention has also dampened interest in leadership roles. While sources say three individuals are lobbying for the Director General post, the overall appetite for senior management positions has declined sharply.
“Earlier, there used to be intense competition to become Director General,” a senior CAAN official said. “Now many are saying, ‘It’s better if I don’t get appointed.’ The fear of being targeted later is very real.”
CAAN has been under sustained scrutiny in recent months. Earlier, the CIAA filed a separate case related to alleged corruption in the construction of a helipad in Nalinchok, Bhaktapur, seeking NPR 135.7 million in damages against Pradeep Adhikari, six other individuals, and a construction company. Adhikari was suspended following that case.
In the wake of repeated suspensions, key international airports have also been left without permanent leadership. Tribhuvan International Airport and Gautam Buddha International Airport in Bhairahawa are currently operating under acting general managers. Acting Director General Dangol has assigned Rinjee Sherpa as acting general manager at Tribhuvan and Shyam Kishor Shah at Gautam Buddha Airport.
With senior officials suspended, leadership in limbo, and staff fearful of taking responsibility, CAAN now faces a deep governance crisis—one that threatens to disrupt regulatory oversight, airport operations, and major aviation infrastructure projects across Nepal.
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