233 “Basil loses his $240 million luxury villa in Malwana,” Colombo Telegraph, October 14, 2016, www.colombotelegraph.com/index.php/basil-loses-his-125-million-worth-luxury-villa-in-malwana/. Of the four countries, Bangladesh and Sri Lanka have the strongest administrative systems. However, both are hampered by domestic systemic gaps that make them vulnerable to foreign disruption. This includes the pressure exerted on institutions and the administrative apparatus by members of the establishment that prevents them from playing the roles for which they are intended. In Bangladesh, corruption and elite meddling have led to the weakening of the investment review and contract review system, resulting in non-transparent agreements with Chinese partners. In Sri Lanka, similar interference has helped entrenched elites, leading to inefficiencies, escalating costs and mismanagement of funds. Other cases of non-competitive contracts include the $2 billion, 1,200-megawatt budhigandaki hydroelectric project, which has been plagued by allegations of inadequacy. In 2017, the communist government in Dahal awarded the project to the state-owned China Gezhouba Group Corporation (CGGC). There was no tender and the agreement was signed with great fanfare in the presence of the Prime Minister and the Chinese Ambassador.269 Later that year, the new government, led by Sher Bahadur Deuba, rejected the agreement by the Nepali Congress after a parliamentary committee deemed it irregular and non-transparent. [270] However, when a Communist-led government with Oli at the helm returned to power in 2018, this decision was reversed and the project was again awarded to CGGC without a tender.
To summarize, the projects did not follow so much the national interest as the interests of the individuals and political parties in power at one time.271 In Sri Lanka, the former Rajapaksa government was accused of abandoning a state-run tendering process for several Chinese-funded projects ranging from road works to stadiums.163 When it came to power, The Sirisena government terminated oil contracts with several companies, including Chinese ones, because legal guidelines and bureaucratic processes had not been followed.164 The most serious allegations were reserved for CHEC Port City. Lawmakers claimed that the agreement with cheC had been kept secret for the project and that the Rajapaksa government had refused to share it even with parliament or the leader of the opposition.165 The area of the project was increased from 200 hectares to 269 hectares without giving any reason or making the decision public.166 Thus, rapidly growing relations with China have surpassed the limited bureaucratic capacity of the state. This makes it difficult to carry out an inter-agency consultative process that balances competing interests and takes into account all aspects of relations with China. China has also been using environmental cooperation and humanitarian aid and disaster relief (HADR) to improve relations with Nepal for several years. Within 24 hours of the devastating earthquake in April 2015, it dispatched a rescue team.91 Geologists and seismologists were then deployed to evaluate long-term measures.92 The solidarity demonstration culminated when Foreign Minister Wang Yi visited those displaced by the earthquake on an official visit.93 In addition to financial and human resources, China has contributed directly to reconstruction; for example, thanks to the reconstruction of the Durbar High School in Kathmandu, which she handed over in September 2020. The two countries also signed an agreement in 2018 under which China would provide Nepal with HADR equipment and help set up an earthquake monitoring project.94 The volume and scale of Chinese cash inflows – which rose from $116 million a year earlier to $220 million in foreign direct investment for the 2019-2020 fiscal year – have the potential to fuel corruption at the level of individual.262 Entries finance a number of projects. from government agreements to major infrastructure projects to private sector micro-enterprises. The problem of influence and corruption has occurred frequently, and Chinese actors have practically recognized it. For example, a Chinese company participating in a workshop at Fudan University said that “every political party, government agency, local interest group and other visible and invisible groups [in Nepal] must be paid.” 263 respondents suggest that corruption is prevalent even at the level of senior political leaders.264 71 “PM Miffed at Delay in Filing MCC Agreement,” Himalayan Times, April 15, 2021, thehimalayantimes.com/nepal/pm-miffed-at-delay-in-tabling-mcc-agreement. Supplementary agreements have also been signed with existing BOI companies operating in the fields of furniture, agro-industry, glass manufacturing and winter clothing manufacturing. In the Maldives, the transfer of power highlighted allegations of domestic corruption by the previous government.
In his negotiations with China to restructure the debt, Finance Minister Ibrahim Ameer accused the previous government of accepting bribes from contractors to keep contract prices high. [144] Solih stated that “the state coffers have lost several billion Rufiyaa … It is also influenced by the reality of public support for the relationship in the post-blockade period and China`s elevation to a viable development partner, especially after Nepal signed the BRI in 2017. There is a growing admiration for China`s growth history and speaks of China as a model of political and economic governance. The two countries have signed several agreements on legal issues, including border management, mutual legal assistance in criminal matters and cooperation at the level of prosecutors general. .