Passport procurement under scrutiny as antigraft body arrests four

Nepal's Commission for Investigation of Abuse of Authority (CIAA) has intensified its crackdown on alleged irregularities surrounding a passport procurement contract. The anti-graft body arrested Director General Tirtha Raj Aryal and Director Sunil Kumar KC on Tuesday. On Wednesday, Manindra Raj Malla, a Nepali agent for the German company Muehlbauer ID Services GmbH, and Tulsi Prasad Acharya, a former accounts officer at the department, were also detained. The Special Court has approved their custody for further investigation.

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Four people have been arrested in connection with the investigation.

According to Suresh Neupane, spokesperson for the CIAA, four people have been arrested in connection with the ongoing investigation. A CIAA source indicated that detailed investigations are underway against more than 35 individuals suspected of involvement in the passport contract irregularities. Siddhartha Thapa, the Nepali agent for another German company, Veridos, is reportedly absconding. An official stated that the suspects were taken into custody due to the risk of evidence destruction or flight.

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The suspects were taken into custody because there was a risk they could destroy evidence or flee.

The investigation is also examining the roles of senior officials from the Prime Minister’s Office, the Ministry of Foreign Affairs, the Ministry of Finance, and the Ministry of Home Affairs, who were involved in the contract process. Investigators have found indications that legal provisions may have been manipulated from the outset when the contract was awarded. Concerns have also been raised regarding the quality of the passports, with allegations that they did not meet contractual standards and that the contractor failed to ensure the agreed-upon functionality and reliability. Collusion between the awarded company and officials is also under examination.

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Investigations are also continuing into the roles of senior officials from the Prime Minister’s Office, the Ministry of Foreign Affairs, the Ministry of Finance, and the Ministry of Home Affairs who were involved in the contract process.

The CIAA has preliminarily estimated that irregularities amounting to nearly Rs8 billion may have occurred in the passport printing contract. Statements have been recorded from over 20 individuals associated with both the government and the involved companies. The Department of Passports had awarded the eMRTDS system contract, including passport procurement and printing, to German companies Veridos GmbH and Muehlbauer on June 6, 2025. Following the agreement, complaints were lodged with the CIAA and the Prime Minister’s Office, prompting the PMO to initiate its own investigation into the procurement process, which reportedly uncovered numerous anomalies.

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Investigators have found indications that legal provisions were manipulated from the outset when the passport procurement and printing contract was awarded.