Nepal corruption convictions: Some officials lose pensions, others keep them

In Nepal, a legal loophole allows some convicted officials to keep their pensions while others lose them, creating a disparity in anti-corruption enforcement. The consequence hinges on whether an official is convicted while still in service or after retirement.

Under current laws, officials found guilty of corruption while still employed are generally stripped of future retirement benefits. However, the law does not explicitly address pension forfeiture for those convicted after they have already retired. This means two officials committing similar corrupt acts can face vastly different financial repercussions based solely on the timing of their conviction.

This distinction has been evident in several high-profile corruption cases. For instance, three former Inspectors General of Nepal Police convicted in a case related to armored personnel carrier procurement saw differing pension outcomes. One, still in service during the legal process, lost pension eligibility, while the others, already retired, continued to receive their pensions. Similarly, in the Lalita Niwas land grab case, some of the 131 convicted individuals, including former public officials, retain their pensions because they had retired before their guilt was established, while others forfeited their rights due to being convicted while still serving.

Nabin Pokharel, a government under-secretary convicted of corruption, died by suicide shortly after his conviction. He was just a year from retirement and lost his pension eligibility due to the conviction while still in service. His family noted that his retirement was near, but the conviction meant he lost his job and the pension he would have received.

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His retirement was only a year or so away. But because he was convicted while still in service, he lost his job and the pension he would otherwise have received.