The Commission for the Investigation of Abuse of Authority (CIAA) has filed corruption charges against 16 individuals, including former Minister Mohan Bahadur Basnet, in connection with alleged irregularities in the procurement of Telecommunication Traffic Monitoring and Fraud Control System (TERAMOCS) technology by the Nepal Telecommunications Authority (NTA).
Although three former ministers and their respective secretaries were involved in the decision-making process, the anti-graft body has chosen to prosecute only Basnet in this high-profile case. Here is the explaination of the roles of those involved:
Mohan Bahadur Basnet – Former Minister
The procurement process began under the leadership of then-Minister Basnet, who discussed the annual budget and program of the NTA. The authority’s proposal was submitted to the Ministry of Communications, passing through various levels before reaching the then-Secretary Mahendra Man Gurung.
On September 8, 2017 (Bhadra 23, 2074 BS), Basnet approved the NTA’s annual budget. Notably, he inserted an additional clause directing the implementation of appropriate equipment and systems for international call monitoring and Voice over Internet Protocol (VoIP) control—commonly known as call bypass—effectively initiating the Teramocs procurement.
Gokul Baskota – Former Minister
During Baskota’s tenure, Rs 700 million was allocated specifically for the purchase of Teramocs technology. On October 24, 2018 (Kartik 7, 2075 BS), he approved this budget through a ministerial decision. After he became Minister of Communications and Information Technology under the KP Sharma Oli-led government, the procurement process gained momentum.
Although the NTA had initially requested Rs 250 million, Baskota approved Rs 700 million, allocating Rs 200 million for consultant selection and agreements, and Rs 500 million for service implementation.
Despite these actions, the CIAA did not file a case against Baskota, citing a “lack of evidence” that he had issued any direct orders or pushed procurement forward at any stage.
Gyanendra Bahadur Karki – Former Minister
Former Minister Karki approved a supplementary budget request from the NTA in 2021 (2078 BS), as the authority claimed a lack of funds despite an already approved budget.
On November 8, 2021 (Kartik 22, 2078 BS), then-Secretary Dr Baikuntha Aryal forwarded the proposal. Three days later, on November 11 (Kartik 25), Minister Karki signed off on it, paving the way for Rs 700 million to be used from the Rural Telecommunication Development Fund.
The reallocation of these funds—originally meant for rural telecom development—has drawn scrutiny. However, the CIAA decided not to prosecute Karki, stating that he merely advanced decisions already in motion and lacked direct involvement in procurement malfeasance.
Mahendra Man Gurung – Former Secretary
Gurung served as Secretary during two crucial decisions in the Teramocs procurement. First, when Minister Basnet inserted the procurement clause himself, and second, when NTA submitted its budget and programs.
Since Basnet acted independently in the first instance, the CIAA found no actionable involvement from Gurung. During the second instance, Gurung only forwarded the file for ministerial approval—insufficient grounds for prosecution, especially as Minister Baskota was not charged.
Dr Baikuntha Aryal – Then Secretary (Later Chief Secretary)
After a Supreme Court verdict cleared legal obstacles, Aryal actively moved to resume the stalled procurement by proposing a supplementary budget to implement the verdict. This proposal was later approved by Minister Karki.
Given that the CIAA spared Karki, it found no justification for filing charges against Aryal, stating insufficient evidence of his direct involvement in corruption.
Digambar Jha and Purushottam Khanal – Former NTA Chairpersons
Digambar Jha played a key role in introducing Teramocs under the guise of international call monitoring. He oversaw the authority’s decision to acquire the system, despite prior studies warning against such monitoring without a legal framework.
His successor, Purushottam Khanal, further advanced the procurement. During his term, overpriced and allegedly unnecessary equipment entered the country through customs. Both Jha and Khanal are now facing corruption charges for their roles in procurement and payment irregularities.
