The Nepali Congress has demanded that the Public Accounts Committee convene a meeting to investigate the cancellation of the contract for the Sunkoshi Marin Diversion Multipurpose Project, a national pride project, as well as alleged coercion of officials and financial irregularities surrounding the decision.
Nepali Congress lawmakers Janak Raj Giri and Yogesh Gauchan Thakali submitted a formal request to the committee chairperson, demanding an immediate meeting to discuss and investigate the contract cancellation and issue necessary directives.
In their petition, the lawmakers alleged that the contract process for the construction of the project's headworks and powerhouse was canceled unlawfully and unexpectedly, despite having reached its final stage. They have demanded clarification of the legal grounds for canceling the contract on the eve of the scheduled opening of financial bids.
They said that an investigation was necessary to determine whether Section 3(2) of the Public Procurement Act, 2007, was invoked to cancel the contract without the objective grounds specified under Section 26 of the Act. The petition also calls for clarification of the legal and technical basis for attempting to apply retroactively amendments to the regulations introduced after the bidding process had already begun.
The lawmakers have also demanded an assessment of the financial implications for the project, including construction costs, completion timelines, and potential losses to the public treasury, resulting from the cancellation of the contract without opening the financial bids of technically qualified companies.
They have further called for an investigation into how the cancellation decision could affect the process of recovering compensation and forfeiting bank guarantees reportedly due following the termination of the previous construction contract with the Patel-Raman Joint Venture (JV).
The petition also raises serious concerns over alleged interference by the Prime Minister’s Office in matters falling under the jurisdiction of the Public Procurement Monitoring Office and the Public Procurement Review Committee.
Similarly, the lawmakers have sought an investigation into media reports alleging that the director general of the Department of Water Resources and Irrigation and the project chief were taken into police custody, held at the Prime Minister's Office, and pressured into canceling the contract.
Giri and Thakali have urged the committee to summon representatives from the Ministry of Energy, Water Resources, and Irrigation, the Public Procurement Monitoring Office, the Department of Water Resources and Irrigation, the project chief, officials from the agencies concerned, procurement and legal experts, and representatives of companies that participated in the bidding process for a hearing.
Invoking Rule 178 of the House of Representatives Regulations, 2026, the lawmakers have demanded that the committee exercise its jurisdiction to investigate and issue necessary directives concerning public procurement procedures, financial discipline, and the protection of public funds.
