Corruption Now a Cross-Border Challenge, Says CIAA Chief Prem Kumar Rai

Chief Commissioner of the Commission for Investigation of Abuse of Authority (CIAA), Prem Kumar Rai, has raised serious concerns over the growing trend of cross-border corruption, stating that ill-gotten wealth is increasingly being siphoned abroad and laundered under legal cover.

Speaking during a meeting of the Committee on Strengthening Federalism and National Concerns under the National Assembly, convened to review the 34th annual report of the CIAA, Chief Commissioner Rai warned that corruption in Nepal has entered a new phase, with international dimensions.

“Corrupt individuals are now not just hoarding illicit wealth domestically — they are transferring money abroad, often to relatives and children, and in some cases, bringing it back disguised as remittance,” he said. “This clearly shows that corruption has internationalized, with the roots of financial misconduct stretching into foreign jurisdictions.”

Rai revealed that despite CIAA’s attempts to recover illegally transferred funds from countries such as the United Arab Emirates and Singapore, the efforts have been unsuccessful due to the absence of bilateral legal frameworks and mutual agreements. “Singapore had even expressed willingness to cooperate, but the lack of a formal agreement hindered the process,” he added.

Citing another case, he noted that a CIAA investigative team sent to Hong Kong to probe gold smuggling also had to return empty-handed for the same legal and diplomatic constraints.

Rai further disclosed that the United States declined to cooperate with Nepal in the investigation of the high-profile wide-body aircraft procurement scandal involving Nepal Airlines Corporation. The lack of international legal mechanisms and cooperation continues to limit CIAA’s ability to pursue corruption cases with global dimensions, he said.

During the meeting, some lawmakers criticized the CIAA, alleging that it was soft on powerful individuals and that its decisions were sometimes politically motivated.

In response, Chief Commissioner Rai firmly rejected the accusations, asserting that the CIAA operates with complete institutional independence and is not influenced by political pressure. “I do not know what may have occurred in the past, but under my leadership, there has been no pressure from above,” he stated.

Rai also refuted claims that the anti-graft body was letting “big fish” go free. “Often, the individuals involved in corruption do not disclose who pressured them — instead, they admit their own involvement,” he clarified.

According to Rai, the CIAA has received more than 29,000 complaints in the current fiscal year. However, he noted that a significant portion of these are filed by anonymous sources, which complicates the investigation process. “If we were to stop accepting complaints from unidentified individuals, the total number would drop sharply,” he said.

The remarks by Chief Commissioner Rai highlight the evolving nature of corruption in Nepal, as well as the institutional and diplomatic hurdles in tackling international financial crimes. His testimony underscores the urgent need for bilateral and multilateral cooperation to combat corruption that transcends borders and threatens national governance.