NEA Forms Probe Committee Into Transformer Procurement, Former Chiefs Kulman Ghising And Hitendra Dev Shakya Come Under Review

The Nepal Electricity Authority (NEA) has established a high-level investigation committee to examine complaints related to transformer procurement, ongoing projects and other purchasing decisions made over the past decade.

The committee was formed during a meeting of the NEA Board of Directors chaired by Energy Minister Biraj Bhakta Shrestha. It will review procurement processes, project implementation and complaints received against the authority before recommending improvements within two months.

Among the decisions expected to be examined are procurement activities carried out during the tenures of former Executive Directors Kulman Ghising and Hitendra Dev Shakya, who together led the authority for most of the last ten years.

Committee To Review Procurement And Projects

The investigation committee will be coordinated by NEA Board Member Shambhu KC.

It will also include three independent experts in:

• Engineering and technical matters

• Law

• Public procurement

An NEA-appointed Deputy Executive Director will serve as the committee's member secretary.

The committee has been instructed to conduct a detailed review of:

• Past procurement procedures

• Ongoing projects

• Complaints submitted against the authority

• Administrative and technical shortcomings

• Recommendations for future reforms

Its report is expected within two months.

Why The Investigation Was Ordered

According to NEA Board Member Anshukiran Shahi, the authority has received numerous complaints concerning procurement decisions and project implementation over recent years.

He said the committee was formed to determine whether any irregularities occurred rather than to reach conclusions in advance.

Shahi stated that any further action would depend entirely on the committee's findings.

Transformer Procurement Among Main Focus Areas

One of the committee's key areas of investigation will be transformer procurement.

The NEA has received complaints alleging:

• Possible procurement irregularities

• Technical problems with transformers

• Transformers reportedly failing despite sufficient capacity

• Engineering concerns related to underground cable projects, including in Birgunj

Officials say these issues have generated significant public and administrative concern.

More Than 1,100 Complaints To Be Reviewed

According to NEA officials, the committee will examine approximately 1,151 complaints received through the Ministry of Energy's hotline and email system.

These complaints cover procurement decisions, project execution and technical issues raised by the public and other stakeholders.

The committee will assess each complaint before determining whether any procedural weaknesses or irregularities occurred.

Kulman Ghising And Hitendra Dev Shakya's Tenures To Be Examined

Because Kulman Ghising and Hitendra Dev Shakya led the Nepal Electricity Authority for most of the past decade, many of the procurement decisions under review were made during their respective tenures.

The committee is therefore expected to evaluate procurement and project-management decisions taken while both served as Executive Director.

However, the formation of the committee does not imply that either former official has committed wrongdoing. Its purpose is to independently verify complaints and determine whether any administrative, technical or procurement irregularities occurred.

Long History Of Leadership Changes

The authority experienced frequent leadership changes following Nepal's Second People's Movement, with executive directors often being replaced whenever governments changed.

Greater stability began in 2016, when Kulman Ghising was appointed Executive Director.

Under his leadership, Nepal achieved the widely recognised end of routine load shedding in the Kathmandu Valley during the 2016 Tihar festival.

Following the completion of his first term, leadership shifted several times between Ghising and Hitendra Dev Shakya amid changes in government, court decisions and administrative appointments.

The repeated leadership changes have influenced many of the procurement and project decisions that are now being reviewed.

Procurement Practices To Be Assessed

The committee is expected to examine several important questions, including:

• Whether procurement procedures complied with regulations.

• Whether purchased transformers met required technical standards.

• Why some transformers reportedly failed despite adequate capacity.

• Whether procurement planning matched operational needs.

• Whether engineering standards were properly followed during underground cable projects.

• Whether improvements are needed in future procurement policies.

The investigation is also expected to recommend measures to strengthen transparency, accountability and project management across the authority.

Findings Will Determine Next Steps

The committee's report will help determine whether additional administrative, disciplinary or legal action is required.

It is also expected to provide recommendations for improving procurement systems and project implementation to reduce the risk of similar complaints in the future.

For now, the committee's role is fact-finding. No conclusions have been reached regarding the allegations, and the investigation remains ongoing.