Chief Secretary and 11 Others Face Corruption Charges: See Nepal’s First Case Against a Sitting Chief Secretary

The Commission for the Investigation of Abuse of Authority (CIAA) has filed a corruption case totaling Rs386.7 million against Chief Secretary Baikuntha Aryal and 11 others, marking the first instance of such charges against a sitting chief secretary.

The case, registered at the Special Court, alleges corruption in the procurement and printing of excise duty stickers. Alongside Aryal, the defendants include high-ranking officials such as joint secretaries Ritesh Shakya and Tanka Pandey, under-secretary Ganesh Bikram Shahi, and section officer Rabindra Paudel. Former executives from the Security Printing Centre and other implicated parties from Print Cell Pvt Ltd are also named in the chargesheet.

The controversy stems from a tender issued by the Ministry of Communications and Information Technology in September 2022, which resulted in Print Cell Pvt Ltd winning a contract to print 433.2 million excise stickers at a significantly inflated rate of 89 paisa per piece. This rate contrasts sharply with the previous cost of 25 paisa per sticker, raising questions about the transparency and justification of the awarded contract.

The CIAA, in its investigation, alleges that Aryal, then Communications Secretary, and other officials bypassed normal procurement procedures to favor Print Cell Pvt Ltd, which received an advance payment of Rs50 million despite only being responsible for supplying sticker paper and ink. The Security Printing Centre, under Aryal’s oversight at the time, was expected to handle the majority of the printing work, significantly inflating costs.

“This case underscores the egregious misuse of public funds and breaches of trust at the highest levels of government,” stated a spokesperson from the CIAA. “We are committed to recovering the embezzled amount and ensuring accountability for all involved.”

Chief Secretary Baikuntha Aryal, automatically suspended upon the filing of the case, faces additional scrutiny for his role in other procurement irregularities, including the ongoing investigation into the Teramocs purchase case during his tenure as Communications Secretary.

The Special Court is set to begin proceedings following the CIAA’s demand for the recovery of embezzled funds, marking a critical juncture in Nepal’s efforts to combat corruption within its administrative ranks.

The positions of all 12 charged in the corruption case:

Baikuntha Aryal – Chief Secretary (at the time of filing the case, previously Communications Secretary)

Ritesh Shakya – Joint Secretary

Tanka Pandey – Joint Secretary

Ganesh Bikram Shahi – Under-Secretary

Rabindra Paudel – Section Officer

Bikal Paudel – Then Executive Director of Security Printing Centre

Bishnu Prasad Gautam – Then Accounts Officer

Harivallabh Ghimire – Then Section Officer

Shakti Prasad Shrestha – Then Consultant of the Security Printing Centre

Safal Shrestha – Then Director of the National Information Technology Centre

Keshav Sharma – Proprietor of Print Cell Pvt Ltd

Print Cell Pvt Ltd – Company