Kathmandu, June 8
The Commission for the Investigation of Abuse of Authority (CIAA) has filed a corruption case against 18 individuals, including Sangita Pahadi, the Managing Director of Nepal Telecom.
The case was filed with the conclusion that corruption took place while extending a contract related to the maintenance of Nepal Telecom’s billing system.
Other defendants include Sunil Paudel, Pratibha Shrestha, Hemprabha Rampratap Karna, Nawal Chaudhary, among others. The case claims a loss of NPR 334,817,430.
The billing contract case
After discrepancies were found in a contract worth around NPR 3.15 billion awarded by Nepal Telecom without competition, the CIAA conducted a detailed investigation. According to the contract signed in December 2022, a company named Asia Info was set to receive over NPR 3 billion in payments over five years, with an annual payment of approximately NPR 650 million.
“Although a tender should have been called for a new billing system, the decision was made to continue with the existing system and extend the contract without competition. That led the Commission to initiate an investigation,” said an official. “After reviewing all documents, including decisions made by the board of directors, the case was filed.”
On January 8, 2023, the Nepal Telecom board of directors decided to sign a four-year Annual Maintenance Contract (AMC) with Asia Info, the company currently providing the billing system services.
The board also approved a proposal to extend the contract for an additional year if necessary.
A billing system is essential for the operation of telephone and internet services. When a consumer makes a call to another person, the connection is established via the billing system. If there is insufficient balance, the billing system restricts the user from making the call.
