Rs 10.13 billion passport procurement corruption case filed, officials and foreign firms named

KATHMANDU: The Commission for the Investigation of Abuse of Authority (CIAA) has filed a corruption case at the Special Court, Kathmandu, over alleged irregularities in the procurement of the Electronic Machine Readable Travel Document System (EMRTDS) under the Department of Passport.

The anti-graft body has accused collusion with two German companies, Muhlbauer ID Services GmbH and Veridos GmbH, claiming that the bidding process was manipulated and contract terms were altered to favor them.

According to the CIAA, the irregularities caused an estimated loss of Rs 10.13 billion to the Government of Nepal. The commission has stated that public procurement rules were violated during multiple stages of the tender process.

The project was intended to modernize Nepal’s passport system with a more secure electronic format, but concerns over transparency had been raised by various stakeholders over the years.

Packages involved in the project

The procurement was divided into two packages:

1. Package 1: pre-enrollment, data management, and delivery system for EMRTDS
2. Package 2: personalization, quality control, and booklet production system for EMRTDS passports

Allegations

The CIAA has concluded that irregularities occurred from the initial bidding stage, including:

1. alteration of tender terms and specifications to benefit selected companies
2. evaluation conducted against approved criteria
3. improper recommendations and decisions
4. awarding of contracts and partial payments despite irregularities

Accused individuals

The Commission for the Investigation of Abuse of Authority (CIAA) has filed a corruption case at the Special Court against the following individuals over alleged irregularities in the passport procurement process:

1. Tirtharaj Aryal — Director General, Department of Passport
2. Sunil Kumar K.C. — Director (Information Technology)
3. Shatrudhan Prasad Sharma Pokharel — Former Director
4. Rabindra Rajbhandari — Former Director
5. Tulsi Prasad Acharya — Former Accounts Officer
6. Bipin Prasain — Computer Engineer
7. Somesh Thapa — Former Section Officer
8. Rajaram Dahal — Former Under Secretary (Law), Ministry of Foreign Affairs
9. Bheesh Prasad Bhurtel — Former Under Secretary (Accounts)
10. Pushkarraj Nepal — Former Under Secretary (Law)

The case has been filed against multiple officials, including senior officials from the Department of Passport and the Ministry of Foreign Affairs, such as former directors and IT and legal officers.

The CIAA has also named several foreign representatives linked to the two German firms, seeking recovery of Rs 18.44 billion in allegedly misused funds along with penalties under the Prevention of Corruption Act.

Officials said the companies and their representatives are being treated as accomplices and face penalties equivalent to principal offenders under Nepali law.

Further proceedings are underway at the Special Court.