Corruption-convicted civil servants lose jobs, but not always pensions

Nabin Pokharel, an under-secretary at Nepal's Ministry of Forests and Environment, was found dead at his residence on May 24, 2024, days after being convicted of corruption. Investigators recovered a suicide note, adding a tragic dimension to a case involving the procurement of equipment for the Security Printing Centre. Pokharel's conviction also led to the dismissal of Bikal Paudel, the former executive director of the Security Printing Centre.

The Special Court sentenced Pokharel to six months in prison and imposed a fine of Rs58.5 million, along with a recovery order for similar amounts. As a consequence of his conviction while still in active service, Pokharel was dismissed from his position, resulting in the immediate termination of his pension benefits. "He had only about a year and a half left before reaching his mandatory retirement age," a family member, who requested anonymity, stated. Because the conviction occurred before his retirement, current regulations allowed for his removal from office and the complete blocking of his pension.

This case brings a critical issue in Nepal's anti-corruption efforts to the forefront: a legislative imbalance concerning pensions for convicted officials. Under current legal interpretations, state officials convicted of corruption while actively serving forfeit their retirement benefits. However, there is no clear statutory framework to halt pension disbursements for officials convicted after they have retired. This creates a double standard, allowing individuals convicted of identical financial crimes to be treated differently based on their employment status at the time of conviction.

The structural division is evident in several major corruption cases. In the Sudan procurement scandal, involving irregularities in purchasing Armoured Personnel Carriers for a UN peacekeeping mission, three former inspectors general, Om Bikram Rana, Hem Bahadur Gurung, and Ramesh Chand Thakuri, had their convictions upheld by the Supreme Court in May 2023. Rana and Gurung had already retired when the Commission for Investigation of Abuse of Authority (CIAA) filed the case. Thakuri, though transferred from his police chief post, was still a serving official. Despite being convicted in the same case, Thakuri lost his pension because he was serving, while Rana and Gurung continue to receive theirs. A similar pattern was observed in the Lalita Niwas land grab case, where 131 individuals were convicted in February 2024 for illegally transferring government land.

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He had only about a year and a half left before reaching his mandatory retirement age.