Transformation scam: Hubei rep moves apex court


    TransformerKATHMANDU: Hu Zheng Qiang, general manager of Hubei Sunlight Co Ltd, the controversial supplier of transformers to the Nepal Electricity Authority, has recently moved the Supreme Court against a Special Court order.

    Hu, who is in custody in connection with a scam linked to the purchase of transformers to the state power monopoly, filed a petition stating that the special court order demanding a bail of Rs 175 million for his release is illegal and unjust. He has sought apex court intervention for his release.

    Responding to his writ, the apex court asked the lower court to submit a written explanation. With its regular business closed due to Dashain, the lower court will take a decision on the case only after Dashain holidays.

    It should be noted that the court has already released another authorised Hubei representative, Zou Yi Tian, on Rs 15 million bail. On September 17, the Special Court had set bail for the release of NEA officials, who, the Commission for the Investigation of Abuse of Authority says, misappropriating Rs 411 million while purchasing transformers.

    On August 25, the anti-graft agency had started prosecution of NEA officials, including Managing Director Rameshwor Yadav, and the Chinese firm. Stating that top NEA officials have amassed Rs 318 million during the procurement process, CIAA has demanded a maximum of 12-year jail sentence, confiscation of embezzled amount and an equal sum as fine, as well as two-year jail term for the Hubei officials. The NEA and the Chinese firm had signed an agreement in 2008 for supplying 60 transformers. Hubei had supplied substandard transformers in cahoots with NEA officials.

    Source : The Himalayan Times