CIAA instructs UTKHPL to recover Rs 352 million from Sinohydro

SinoHydorDOLAKHA, March 30: The Commission for the Investigation of Abuse of Authority (CIAA) has directed Upper Tamakoshi Hydropower Ltd (UTKHPL) to recover Rs 352.2 million from Sinohydro, the civil contractor of the mega project, after the Chinese contractor was found evading taxes worth Rs 350 million.

The constitutional anti-graft body issued the direction after it found that Sinohydro had sold cement, which it imported on tax subsidy for the project, to other projects.

Similarly, it was also not found showing income that it received from cost variation in its balance sheet to avoid tax.

“It has been found that Sinohydro evaded tax by not showing the amount that it earned from the cost variation in its income. The company was paid extra amount for extra works that was not stated in the project contract. But it has not showed such income in its balance with the intention of evading the tax,” reads a statement issued by CIAA.

CIAA has also instructed UTKHPL to recover custom subsidy offered to the contractor. The constitutional anti-graft body has concluded that Sinohydro sold huge quantity of Rashi Gold Cement, which was imported from India, to other companies.

On June 17 last year, Rasuwa Police impounded four trucks of Rashi Gold Cement that Sinohydro had sold to Sanjen Hydropower Project.

The investigation of CIAA found that Sinohydro had not showed its income from selling such cement to another company though it had acquired the custom rebate.

The government has been providing tax and custom subsidy to UTKHPL for the Upper Tamakoshi Hydropower Project as the project is being built as the national pride project.

UTKHPL reimburses the custom rebate to Sinohydro after it imports the construction materials from Birgunj Customs Office. UTKHPL later gets reimbursement from the Ministry of Finance through Department of Electricity Development.

Source : Republica