Fiscal Nepal
First Business News Portal in English from Nepal
KATHMANDU: Nepal Telecom’s plan to procure a new billing system, valued at approximately NPR 5 billion, faces uncertainty following a corruption case filed by the Commission for the Investigation of Abuse of Authority (CIAA) against Managing Director Sangita Pahadi Aryal and 17 others.
The CIAA’s charges, lodged at the Special Court on Sunday, stem from alleged irregularities in a prior billing system maintenance contract, casting a shadow over the ongoing tender process. Sources within Nepal Telecom indicate that senior officials involved in the new billing contract are now hesitant to proceed due to fears of further legal repercussions.
“The maintenance contract scandal has implicated the MD and several senior officials. The new billing tender, already controversial, is unlikely to move forward,” a Telecom source said. Aryal and nine other officials, including Chief Technical Officer Amul Pradhan, who played a key role in the new billing procurement, have been suspended pending the corruption case.
The CIAA alleges that a previous contract with Asia Info, worth NPR 3.25 billion, led to a NPR 33.48 crore loss, with NPR 7 crore traced to a Singapore account linked to a prominent politician’s son. The new billing tender, initiated on March 19, 2025, has attracted bids only from Chinese firms Huawei and ZTE.
However, Nepal Telecom’s management ignored a Supreme Court ruling and directives from the Nepal Telecommunications Authority (NTA) barring companies managing the core network from bidding on billing systems to avoid conflicts of interest. The NTA’s May 31, 2021, directive highlighted risks of data manipulation if the same company handles both systems, a concern echoed by Telecom’s consultant, Global Telco Consult (GTC). Despite this, Aryal allegedly tailored specifications to favor the Chinese firms, bypassing legal and regulatory guidelines.
Nepal Telecom’s outdated billing system, operated by Asia Info, causes an estimated 10% annual revenue loss due to inefficiencies. The CIAA’s intervention has exposed a pattern of contentious tender processes, with a previous attempt on March 1, 2024, deliberately mired in controversy—citing outdated US dollar rates and restrictive terms—resulting in only one bid from US-based CSG. That tender was canceled on October 6, 2024, after four extensions failed to attract competitive bids.
A senior Telecom official stated that the current tender, riddled with “lapses,” is likely to be scrapped. “The specifications were designed to exclude reputable billing providers. With the CIAA’s action, no interim leadership will risk advancing this flawed process,” the official said.
They recommended canceling the tender, issued on March 19, 2025, and restarting with transparent, fair specifications to attract credible vendors. As Nepal Telecom grapples with leadership suspensions and legal scrutiny, the modernization of its billing system remains stalled, threatening service efficiency and financial stability.
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