Bara Post Office Embezzlement: CIAA Files NPR 5.35 Crore Corruption Case Against 6 Officials
13 May 2025, Kathmandu
A major case of financial misconduct has surfaced at the District Post Office in Bara. The Commission for the Investigation of Abuse of Authority (CIAA) has filed a corruption case against six individuals, including the former office chief.
Bara Post Office Embezzlement
They allegedly embezzled over NPR 53.5 million from the government-operated Hulak Bachat Bank, a financial institution under the Department of Postal Services.
Savings Records Manipulated
The CIAA found that the officials mishandled savings deposits collected from the public.
Though the transactions were written in passbooks and ledgers, they were not recorded in the official cash register. This allowed the accused to hide the actual cash flow and avoid formal banking procedures.
They kept the money outside the banking system and distributed it privately among themselves.
Main Accused and Allegations
The primary suspect is Jayalal Prasad Sah Kanu, then-chief of the District Post Office, Bara. He is joined by Adalat Prasad Kurmi, Bunni Prasad Yadav, Surendra Prasad Yadav, Sujit Kumar Sah, and former non-gazetted officer Baliram Prasad Kurmi.
According to CIAA records, the group began these practices in 2060 B.S. (2003 A.D.).
They continued misusing public funds for years without keeping proper records or depositing the funds into the official accounts of Hulak Bachat Bank.
Over NPR 53.5 Million Misused
The total misappropriated amount stands at NPR 53,564,279. This money came from individual savers who trusted their deposits to the Hulak Bachat Bank.
Instead of safeguarding these deposits, the accused used informal methods to record them and deliberately avoided formal deposit entries.
Their goal, as found by CIAA investigators, was to misuse public funds without detection.
CIAA’s Legal Action
After an extended investigation, the CIAA filed a corruption case at the Special Court.
The Commission is seeking prison sentences, monetary fines, and full reimbursement of the misused funds from each accused.
CIAA spokesperson Rajendra Kumar Paudel confirmed this action. “We demand prison terms, financial penalties, and recovery of the total amount lost,” he stated.
“These individuals caused serious damage to public trust,” he added.
Breakdown of the Fraud
The case reveals institutional failure at multiple levels. The officials used their access to bypass accounting standards and exploit system weaknesses.
They recorded entries only in passbooks and ledgers, but never entered them into cash registers or made formal bank deposits.
The misused money was never sent to the central Hulak Bachat Bank account. Instead, it remained off the books and circulated informally among the officials.
Oversight Failure by the Department of Postal Services
Hulak Bachat Bank functions under Nepal’s Department of Postal Services.
It is designed to offer secure and accessible savings options to citizens, particularly in rural and semi-urban communities.
However, this case shows a serious lack of oversight. The department failed to enforce internal audits and financial monitoring mechanisms.
As a result, officials continued the fraud for years without facing consequences — until now.
Public Confidence at Risk
The embezzlement has done more than cause financial loss. It has shaken public faith in a vital government service.
People, especially in rural areas, rely on Hulak Bachat Bank as a trustworthy savings platform.
When trusted government employees misuse public deposits, it damages more than just balance sheets — it damages hope.
CIAA’s Message on Accountability
The CIAA emphasized the need to hold public officials accountable. The Commission sees this case as part of a broader mission to protect public assets and restore public trust.
They have also called on other government agencies to review internal controls and report irregularities without delay.
By moving this case to the court, the CIAA aims to set a legal precedent. Corruption, especially involving public money, will face swift and strong legal consequences.
What Comes Next?
The Special Court will begin hearings soon. Legal experts suggest that the outcome could become a landmark case in Nepal’s fight against financial corruption in the public sector.
Meanwhile, the CIAA continues to monitor government-run financial services. Their goal is to prevent similar long-term fraud schemes.
This case sends a clear message: misusing public funds has serious consequences, both legal and ethical.
For more: Bara Post Office Embezzlement
