Former FM Arzu Rana among 18 charged in Rs 10-billion passport printing procurement graft case

Alleged financial irregularities of Rs 8 billion

KATHMANDU, June 22: The Commission for the Investigation of Abuse of Authority (CIAA) has filed a case at the Special Court against former Foreign Minister Dr Arzu Rana Deuba, naming her as a defendant in an alleged financial irregularity related to the passport printing and system management procurement process.

According to CIAA sources, a total of 18 individuals have been made defendants in the case. The anti-graft body completed its investigation and registered the charge sheet at the court on Monday.

Among those presented to the court with the charge sheet are officials currently in judicial custody, including the Director General of the Department of Passports Tirtha Raj Aryal, IT Director Sunil Kumar KC, former accounts officer Tulsi Prasad Acharya, and Nepal representative of German company Mühlbauer Munindra Raj Malla, along with several others.

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The CIAA has concluded that irregularities worth around Rs 8 billion were involved in the passport printing procurement process.

In December 2024, the Department of Passports had invited international bids for the supply of 6.4 million e-passports over five years along with related system management services. On February 21, 2025, then Foreign Minister Arzu Rana Deuba formed a bid evaluation committee chaired by Director General Tirtha Raj Aryal.

A technical subcommittee consisting of IT experts led by Director Sunil KC was also formed.

Investigators allege that both committees, under ministerial influence, approved contracts for selected companies.

The contracts were awarded to German firms Veridos and Mühlbauer, with Mühlbauer receiving a package worth Rs 1.55 billion and Veridos receiving a contract worth Rs 6.55 billion. The Nepal representatives of the companies are also named in the case.

However, according to the report, the passport printing and system management work has not yet started despite the agreements being signed.

The procurement process has been under investigation following allegations that it violated public procurement laws. The Office of the Prime Minister and Council of Ministers had earlier directed the CIAA to investigate the matter.  The decision of French company IDEMIA to opt out of the bidding process has also attracted scrutiny.