CIAA files case against 18 in passport procurement, alleges over Rs 1 billion loss

KATHMANDU, June 23: A major corruption case filed by the Commission for the Investigation of Abuse of Authority (CIAA) over Nepal’s multi-billion-rupee electronic passport procurement project has brought fresh scrutiny to one of the government’s largest public procurement exercises, while leaving unanswered questions about the role of former Foreign Minister Dr Arzu Rana Deuba.

The anti-graft body on Monday filed a corruption case at the Special Court against 18 individuals, including senior officials of the Department of Passports, accusing them of manipulating procurement procedures to favour selected bidders and causing losses exceeding Rs 1.01 billion to the state.

Among those charged are Director General of the Department of Passports Tirtha Raj Aryal, Information Technology Director Sunil Kumar KC, former directors Shatrudhan Prasad Sharma Pokharel and Rabindra Raj Bhandari, as well as several former officials of the Ministry of Foreign Affairs and representatives of foreign companies involved in the tender process.

The case stems from the procurement of 6.4 million electronic passports and associated system management services for a five-year period—a project launched through an international tender in December 2024. The contract was eventually awarded to German firms Veridos and Mühlbauer, which secured contracts worth approximately Rs 6.55 billion and Rs 1.55 billion, respectively.

According to the CIAA, officials and company representatives colluded to alter bid specifications, manipulate evaluation criteria, and steer the tender process in favour of selected firms, in violation of Nepal’s public procurement laws. Investigators claim the alleged irregularities began at the very outset of the bidding process.

The procurement had attracted controversy long before the CIAA’s intervention. French technology company IDEMIA, which had supplied Nepal’s passports under a previous contract, repeatedly challenged the tender process after being excluded from the latest bidding round. The company lodged complaints with the Prime Minister’s Office, the CIAA, and other state agencies, alleging serious violations of procurement rules and claiming that irregularities worth more than Rs 1 billion had occurred.

Despite the signing of the contracts, implementation has yet to move forward. Work related to passport printing and system management remains stalled, prompting concern within both the Cabinet and the Office of the Prime Minister and Council of Ministers.

While the CIAA’s charge sheet names 18 defendants, one prominent figure remains outside the case—for now.

Former Foreign Minister Dr Arzu Rana Deuba, under whose tenure key decisions related to the procurement process were taken, has not been charged. The CIAA, however, has stopped short of clearing her.

The CIAA has decided not to immediately proceed with a case against former Foreign Minister Dr Rana and instead launch a separate investigation into the matter.

Following service of notice at her residence, the Special Court directed further examination of certain aspects of the case and ordered a separate inquiry involving Rana and others.

According to high-level CIAA sources, the decision notes that there may have been “possible acts of corruption in new procurement processes related to the incident and associated issues.”

Sources said a separate case file will be opened for the relevant documents, and an independent investigation will be conducted in accordance with the Special Court’s order. The Commission has taken this decision accordingly.

Earlier, during the investigation, the CIAA had served a notice at Deuba’s residence in Budhanilkantha and summoned her for questioning.

Former Minister Rana replied via email from Hong Kong, stating that she is undergoing treatment and is currently unable to appear. According to CIAA sources, her inability to appear for questioning and the content of her email response have not been recorded in detail in the case file.

Earlier, the CIAA had also inquired about the case with former Foreign Minister Narayan Kaji Shrestha.

Name	Designation	Claimed liability
Tirtharaj Aryal	Director General, Department of Passports Related story Police write to Department of Passport to revoke GB Rai's passp...	Jointly liable under group claim Rs 10.13 billion
Sunil Kumar K.C.	IT Director, Department of Passports	Jointly liable under group claim (NPR 10.13 billion)
Shatrughna Prasad Sharma Pokharel	Former Director	Jointly liable under group claim (NPR 10.13 billion)
Rabindra Rajbhandari	Former Director	Jointly liable under group claim (NPR 10.13 billion)
Tulsi Prasad Acharya	Accounts Officer	Jointly liable under group claim (NPR 10.13 billion)
Bipin Prasain	Computer Engineer	Jointly liable under group claim (NPR 10.13 billion)
Somesh Thapa	Section Officer, Ministry of Foreign Affairs	Jointly liable under group claim (NPR 10.13 billion)
Rajaram Dahal	Under Secretary (Law), MoFA	Jointly liable under group claim (NPR 10.13 billion)
Bhes Prasad Bhurtel	Under Secretary (Accounts), MoFA	Jointly liable under group claim (NPR 10.13 billion)
Pushkar Raj Nepal	Under Secretary (Law), MoFA	Jointly liable under group claim (NPR 10.13 billion)

2. Mühlbauer ID Services GmbH group

Joint liability: NPR 1,90,69,57,032 ≈ 1.90 billion

3. Veridos GmbH group

Joint liability: NPR 8,22,35,04,444 ≈ 8.22 billion

Additional recovery claim (all defendants)

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  NPR 18,44,08,887 (≈ NPR 184.4 million) — claimed as recovery of already spent funds from defendants collectively