KATHMANDU: Nagarjun Municipality in Kathmandu has been accused of irregularities involving illegal staff promotions, forged documents in the procurement of goods and financial irregularities worth millions of rupees in development projects. A complaint has also been filed with the Commission for Investigation of Abuse of Authority (CIAA) over the matter.
According to a complaint filed by the Nagarjun Anti-Corruption Forum and documents obtained by Khabarhub, municipal officials, including acting mayor Sushila Adhikari and Chief Administrative Officer Ganesh Raj Aryal, have been accused of colluding to misappropriate revenue and influence the CIAA’s investigation.
CIAA raid and alleged attempt to alter records
According to the complaint, a CIAA team raided Nagarjun Municipality on Kartik 27, 2082 BS, and took away documents and prepared on-site records relating to transactions worth around Rs 30 million.
The complaint alleges that on the day of the raid, records from software that was no longer in use were concealed and new documents were subsequently prepared in an alleged attempt to influence the investigation.
It also states that the CIAA prepared an on-site record after finding only two air conditioners at the municipality’s Ward No. 2 Om Shanti Building, although payment had allegedly been made for four units.
The CIAA is also said to have sought details from then Chief Administrative Officer Shiva Prasad Rijal, Accounts Officer Anand Kumar Khadka and Ward Chair Thumraj KC, among others, as part of its investigation.
Promotion irregularities and alleged role of intermediaries
The municipality has also been accused of violating instructions from the Office of the Chief Minister and Council of Ministers of Bagmati Province regarding the promotion of employees.
According to the complaint, the Chief Minister’s Office had advised that employees promoted to the seventh level should complete five years of service from the date of promotion before being upgraded to the eighth level.
However, the complaint alleges that Accounts Officer Bijay Luintel and other engineers were promoted to the eighth level in violation of the prescribed rules.
The complaint filed with the CIAA accuses acting mayor Sushila Adhikari, Chief Administrative Officer Ganesh Prasad Aryal and intermediaries described as procurement experts of colluding in a setup to collect commissions worth millions of rupees.
Other alleged irregularities
Revenue leakage in waste collection: The municipality has been accused of collecting millions of rupees from households for waste collection while depositing only Rs 100,000 annually into the municipal account, with the remaining amount allegedly being distributed as commissions among elected representatives and contractors.
Public funds for private plotting: The complaint alleges that roads were constructed using public funds in ways that benefited private land plotting by relatives of acting mayor Adhikari and ward chairs. It also alleges that elected representatives and employees received foreign trips to Singapore and Thailand in connection with such projects.
Duplicate spending on O&M survey: In fiscal year 2024/25, a consultancy company was reportedly paid Rs 1.5 million for an organisational structure (O&M) survey. The complaint alleges that the report was not implemented and that another company was subsequently contracted for a similar purpose, resulting in misuse of public funds.
Audit irregularities and child labour allegations: The complaint also alleges that Senior Internal Audit Officer Prem Giri, who identified around Rs 1.1 billion in unsettled audit amounts during the internal audit for fiscal year 2024/25, was prevented from examining municipal records.
It further alleges that a child labourer staying at the residence of acting mayor Adhikari was sent home only after the issue drew criticism on social media.
The complaint submitted to the CIAA and National Vigilance Centre has also called for investigations into the bank accounts of the officials and employees named in
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