Kathmandu, Jan. 14 -- When the government launched a crackdown on contractors with dismal performance about eight months ago, under-performing companies with a number of road projects were expected to fall in line. But strong political connections of a majority of non-performing contractors have become the bane of the Department of Roads, the government agency authorised to initiate action against the defaulters.

Although the Division Road Office, Kathmandu was preparing to write to the banks to confiscate the advance payment guarantee (APG) issued by the financial institutions on behalf of the concerned contractors last month, the department aborted the plan after "receiving instructions from the higher authorities", sources at the road...