Health Equipment Procurement Corruption
20th October 2025, Kathmandu
The Commission for the Investigation of Abuse of Authority (CIAA) has taken decisive action.
Health Equipment Procurement Corruption
It filed a significant health equipment procurement corruption case against fifteen individuals. The list of accused includes Dr. Sangita Mishra Kaushal, former Director of Health Services.
This action addresses a massive financial irregularity in the procurement of critical medical machinery. The anti-graft body is actively prosecuting this case in the Special Court.
The case targets thirteen staff members from the Health Services Department. It also names the supplying company, Maxim Incorporation, and its director, Sundar Bhusal.
The CIAA alleges that the accused intentionally inflated the prices. This collusion resulted in the purchase of five 3D mammography machines at more than double their actual market cost.
Massive Financial Irregularity Exposed
The Department of Health Services procured the five machines at a unit price of NPR 2.51 crore each. This brought the total cost to NPR 12.55 crore. With the inclusion of VAT, the final payment reached NPR 14.18 crore.
However, a rigorous CIAA investigation exposed a huge discrepancy. Customs documents obtained from Tribhuvan International Airport clearly revealed the actual purchase cost.
The cost was recorded as €4.5 million, which translates to approximately NPR 6.99 crore. This amount is less than half of the recorded purchase price.
This significant overpayment constitutes a major financial irregularity and a clear loss to the state coffers. The CIAA is demanding a full recovery of the embezzled amount.
Collusion and Manipulation of Estimates
The CIAA investigation unveiled a systematic collusion among the department staff and the supplier. Investigators found that officials actively manipulated the cost estimates for the equipment.
Three companies submitted rates for the purchase, but all evidence points towards an intentional scheme. Sundar Bhusal, director of Maxim Incorporation, who was also reportedly involved in another competing company, was allegedly part of the scheme.
He colluded with department staff in approving the grossly inflated costs. This manipulation ensured the contract went to the company offering the highest, non-competitive price. This pattern highlights a deep-seated lack of transparency in public procurement during a time of national health crisis.
The overpriced Italian-made 3D mammography machines were distributed to several major hospitals across the country. These institutions include BP Koirala Institute, Chitwan Cancer Hospital, Nizamati Hospital, Lumbini Provincial Hospital, and Narayani Hospital.
The machines are vital for tumor detection and other diagnostic purposes. While the equipment provides essential services, the method of its procurement has now come under severe legal scrutiny. The cost of these machines, meant to save lives, has now become a central point in a major corruption scandal.
Scrutiny on Public Health Procurement
This high-profile case highlights the alleged systematic health equipment procurement corruption prevalent during a period of high demand. The purchase occurred when Mohan Basnet was serving as the Health Minister.
Although the case primarily targets department officials, it places all procurement processes from that period under intense public scrutiny. The Dr. Sangita Mishra case serves as a powerful reminder of the urgent need for robust checks and balances in public spending.
It shows the commitment of the CIAA to actively pursue high-level corruption. The successful prosecution of such cases is critical for restoring public trust in government procurement systems, particularly in the health sector. This case is a crucial step towards greater accountability.
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