Kathmandu, June 21: Public Accounts Committee today instructed the government to cancel the decision to buy British Avro RJ 100 for the Royal Nepalese Army.

“Since the whole process of the proposed purchase is irregular and against the country’s laws, the Committee has decided to instruct the cabinet to end such irregularities and unconstitutional acts” the Committee stated in the decision drawn in today’s meeting held under the chairmanship of the Committee Chairman Subash Nemwang.

“The decision to purchase the plane is groundless and holds no significance. Besides, the decision was taken without any global tender as the common practice goes, nor is the process transparent,” the Committee said. “The government cannot guarantee such purchase except under the related laws.”

The agreement has not come into effect since the buyer has not deposited 50 per cent of the total cost of the plane as required by the deal, the Committee said.

The Committee reached the decision after consulting with the concerned ministries and the Army officials who were unable to defend the cause for the purchase at the meeting.

Finance Secretary Bimal Koirala informed the meeting that there is no legal provision that allows the government to guarantee such purchase except under “special condition.” He said that the purchase of RJ 100 does not qualify for the special condition.

Auditor General Bishnu Bahadur K.C. too shared the view that the process of the purchase was not as per the fiscal regulations. He said that there had been no detail analysis on the options regarding the purchase.

Defence Secretary Keshav Rajbhandari, while stating that the process followed legal provisions, said that the cancellation of the government’s agreement with the British Aerospace would defame the country and give way to doubt the cabinet decision and the government’s credibility. “This will also dishonour RNA.”

Before the general election in May last year, the government had decided to purchase the plane for RNA from British Aerospace at more than 2.25 billion rupees.

The decision came immediately after RNA sent a proposal to the government through Defence Ministry, and within a week after the purchase agreement was signed.