8th June 2025, Kathmandu
Nepal’s anti-corruption watchdog, the Commission for the Investigation of Abuse of Authority (CIAA), has filed a major corruption case against Sangita Pahadi, the current Managing Director of Nepal Telecom, and 17 other individuals.
CIAA Files Telecom Fraud Case
The CIAA moved the case to the Special Court on Sunday, accusing the officials of misusing authority in the procurement of Nepal Telecom’s convergent real-time billing system.
The commission is seeking Rs. 33 crore 47 lakh in damages. It has also demanded imprisonment and fines equivalent to the financial losses caused by the irregularities.
Billing System Deal Sparks Investigation
In 2078 BS, Nepal Telecom signed a deal with AsiaInfo Linkage Technologies Inc., a Chinese company, to upgrade its telecom billing and customer care system. The objective was to unify billing for all services — including GSM mobile, fiber internet, broadband, and leased lines — into a real-time digital platform.
The system was expected to enhance efficiency, improve customer service, and ensure accurate billing. However, CIAA’s investigation uncovered multiple violations and irregularities in the procurement process.
Annual Maintenance Costs Found Inflated
The original contract mentioned that the Annual Maintenance Charge (AMC) should decrease by 5% each year. Despite this, Nepal Telecom entered into an AMC agreement at Rs. 20.56 crore, far above the expected rate.
According to CIAA, this excessive cost violated the company’s internal policies, procurement guidelines, and the contract terms. The inflated deal resulted in a major financial loss to the state-owned telecom company.
Collusion And Policy Breach Alleged
The CIAA’s investigation revealed serious collusion among high-ranking officials. The officials allegedly ignored legal provisions and manipulated procurement decisions. These actions point to intentional misconduct and abuse of authority.
The commission determined that the billing system upgrade was not just a technical failure, but a deliberate act of corruption. The agency claims that the deal caused direct losses worth Rs. 9 crore 88 lakh, in addition to overall damages of Rs. 33 crore 47 lakh.
18 Accused In High-Profile Telecom Fraud Case
Alongside MD Sangeeta Pahadi, the CIAA has charged 17 other individuals. These include:
Sunil Paudel – Former Managing Director
Pratibha Baidhya – Then Chief Technical Officer
Rajendra Shrestha – Chief Financial Officer
Jhabindra Lal Upadhyay – Chief Operating Officer
Binita Shrestha – Director
Amul Pradhan – Then Acting Director
Devendra Khatriwada – Then Manager
Rajeev Kumar KC, Santosh Kumar Shrestha, Nawal Chaudhary, Mukti Prasad Aryal,
Hemprabha Ram Pratap Karna, Paramatma Bhattarai, and others
These individuals held key positions during the contract signing and implementation phases. The CIAA believes they played active roles in the flawed decision-making process.
Special Court To Decide The Fate
With the formal case registered, the Special Court will now handle this high-profile corruption case. The CIAA has requested maximum punishment under the law, citing not only the financial damage but also the impact on public trust and service delivery.
The case comes at a time when Nepal’s telecommunication sector is under increasing scrutiny. As a leading public enterprise, Nepal Telecom’s integrity is critical to both digital infrastructure and public service delivery.
Former MD Sunil Paudel Linked To Earlier Cases
This is not the first time Sunil Paudel has been linked to corruption. He has already faced multiple allegations in past telecom and ICT-related procurement cases. His recurring involvement raises serious concerns about leadership ethics and oversight in Nepal Telecom.
Why This Case Matters?
This case is one of the biggest telecom fraud scandals in Nepal. It not only reveals misuse of public funds but also questions the governance of state-owned enterprises. Public procurement, especially in digital transformation projects, must follow strict procedures. Any negligence or manipulation can cause heavy financial losses and weaken public confidence.
Moreover, the case highlights the need for transparency and accountability in ICT infrastructure investments. When digital systems become tools for corruption instead of development, the consequences ripple across the entire digital economy.
Conclusion
The CIAA’s filing against Sangita Pahadi, Sunil Paudel, and others marks a serious step in Nepal’s fight against corruption in the public sector. As the case proceeds in the Special Court, it will set a precedent for ICT governance, public procurement integrity, and executive accountability in Nepal.
For more: CIAA Files Telecom Fraud Case