Kathmandu, October 27
The Central Investigation Bureau (CIB) of Nepal Police has arrested four people over alleged fraud involving medical examinations required for Nepali workers travelling to Malaysia.
The bureau is investigating the case on charges of fraud and organised crime, following complaints that workers were charged fees exceeding the government-approved rate.
Those arrested are Kailash Khadka, 42, of Kageshwori Manohara Municipality-1 in Kathmandu; Rabindra KC, 40, of Changunarayan Municipality-9 in Bhaktapur; Prabin Tiwari, 42, of Gorkha Municipality-3; and Rampukar Tiwari, 45, of Malangwa Municipality-4 in Sarlahi.
CIB spokesperson and Senior Superintendent of Police Anupam Shamsher JB Rana said the arrests followed complaints that the accused had collected more than the prescribed fees.
“We arrested them and began an investigation after receiving complaints of fraud involving charges above the approved rate. We are still at the preliminary stage of the investigation,” Rana told Onlinekhabar.
The investigation was launched on the basis of a letter from the Office of the Prime Minister and a complaint filed by Development Ranabhat and others.
According to Rana, workers were allegedly charged an unauthorised “biomedical service charge” in the name of Macrotech Pvt Ltd, in addition to the government-mandated fee for medical examinations required before travelling to Malaysia.
More than 750,000 workers allegedly overcharged
An investigation officer said preliminary findings indicate that 750,988 Nepali workers had been defrauded through the medical examination process.
Investigators estimate that Rs 1.69 billion was transferred abroad from the proceeds of the alleged overcharging.
According to the officer, applications were submitted to Nepal Rastra Bank on 16 occasions seeking permission to send the money abroad, and the funds were transferred to Malaysia through 17 telegraphic transfers (TTs).
The investigation indicates that the transfers were made from an account at Laxmi Sunrise Bank to Bestinet’s account at Malayan Banking Berhad in Malaysia after approval from Nepal Rastra Bank.
The first transfer, worth approximately Rs 104 million, was made on February 27, 2020. The largest single transfer, approximately Rs 283 million, took place on December 26, 2022. The final transfer was recorded on May 22, 2024.
No further transfers abroad have been identified since then, although investigators say the collection of additional fees continued.
A CIB source alleged that the money had been transferred abroad unlawfully. An investigation officer also questioned whether Nepal Rastra Bank had approved transfers worth billions of rupees without adequately verifying the supporting documents.
Earlier investigation examined 36 medical institutions
The case had previously been investigated by a task force led by then Joint Secretary at the Ministry of Labour, Employment and Social Security, Upendra Paudel.
The task force raided 36 medical institutions and collected documents, preparing separate reports and case files for each institution. It recommended investigating the businesses involved for possible offences including fraud, organised crime, foreign exchange violations, money laundering and offences against the state.
The CIB is currently investigating the case under two charges. It has said additional offences could be included if further evidence emerges.
Under an agreement between the governments of Nepal and Malaysia, the costs of security screening and medical examinations in Nepal are to be reimbursed by employers to workers along with their first month’s salary. However, workers have reportedly not received these reimbursements, and the CIB’s investigation indicates that they may have been defrauded in this regard as well.
Alleged overcharging continued despite fee reductions
On December 19, 2025, the government reduced the medical examination fee for Malaysia-bound workers from Rs 9,500 to Rs 6,500. Despite the reduction, complaints of overcharging continued.
Sachin Chaudhary, 22, of Shivaraj Municipality-10 in Kapilvastu, filed a complaint alleging that New SOS HR Pvt Ltd, a manpower company, and Amitabh Buddha Medical Centre had charged more than the prescribed fee.
Earlier findings also suggested that the 36 medical institutions had collected additional amounts from workers while conducting examinations required for Malaysia-bound employment. The alleged extra charges varied according to the official medical examination fee, with workers reportedly paying substantially more than the approved amounts.
Investigators have also examined claims that the institutions issued VAT bills in the name of Micro Tech Pvt Ltd without authorisation, collecting Rs 3,164 per worker and depositing the money into the company’s accounts at Sunrise Bank and Mega Bank.
The investigation suggests that a network involving medical institutions and other businesses may have operated since 2013, allegedly overcharging workers and evading taxes and revenue.
Investigation report reportedly went missing from ministry
The CIB investigation gained momentum after the Office of the Prime Minister directed the bureau to investigate the case on April 15, 2026, following concerns over a report prepared by the Labour Ministry’s task force.
The task force had submitted its report to the ministry, but the document was reportedly missing from the ministry’s records.
The CIB wrote to the ministry twice seeking the original report but was unable to obtain it. The disappearance subsequently became public.
The task force comprised 16 members, including Labour Ministry officials Upendra Paudel and Lovaraj Joshi, two deputy superintendents of police and an inspector.
Investigators suspect that medical institutions involved in conducting examinations for foreign employment may have had a role in the report’s disappearance. The allegation remains under investigation.
After becoming labour minister in the government led by Sushila Karki following the Gen Z protests, Rajendra Singh Bhandari reduced the medical examination fee from Rs 9,500 to Rs 6,500 on December 19, 2025.
The CIB is continuing its investigation into the alleged overcharging, transfers of funds abroad and possible involvement of other parties.
