NEA board allows Hubei to replace 1,940 transformers

The board meeting of state power utility today decided to allow Hubei Sunlight Electric to replace substandard transformers that it had supplied to the Nepal Electricity Authority (NEA).

Immediately after the initial hearing at the Special Court’s against the NEA top guns, who have been under custody started today, the board decided to replace the substandard transformers.

Hubei Sunlight Electric has proposed to replace all the 1,940 transformers.

The NEA had purchased 1,995 transformers from the Chinese firm through two separate contracts in 2009 and 2010, and the substandard purchase cost the NEA some Rs 411.84 million.

Earlier last year, when the media reported the purchase of substandard transformers, the Chinese company had replaced 55 transformers.

The company had proposed the NEA to replace all the substandard transformers following the arrest of its two officials – Hu Zheng Qiang and Zou Yi Tian – on August 21.
A total of 27 NEA employees, including managing director are in judicial custody for procuring substandard transformers.

 The Supreme Court on September 17 directed Hubei to replace all the substandard transformers at the earliest and report to the court.

But it might take several months to replace all the 1,995 transformers as they have been installed in different parts across the country.

The suppliers had supplied transformers with aluminum wire instead of copper, which has increased huge power loss.

The CIAA has filed charge sheet against the NEA top guns for embezzling Rs 411.840 million demanding confiscation of equal amount of property as a penalty, apart from 10-year sentence for the accused.

The anti graft body has also asked for a two-year sentence for the representatives of the suppliers, apart from Rs 175 million bail from Hu Zheng Qiang and Rs 15 million from Zou Yi Tian.