Nepal e-bidding scandal: Charges filed against 22 in tender manipulation and crypto transactions case

KATHMANDU: Nepal authorities have filed a case against 22 individuals in a major e-bidding manipulation scandal, with investigators uncovering allegations of unauthorized access to the government’s procurement system, organized cybercrime and cryptocurrency transactions linked to public contract rigging.

The case was registered at the Kathmandu District Court based on an investigation report prepared by the Central Investigation Bureau (CIB) of Nepal Police.

According to investigators, the accused allegedly gained unauthorized access to Nepal’s electronic government procurement (e-GP) system, manipulated tender documents before financial bids were opened, and altered bid details to unfairly secure government contracts.

Among those charged are Dibakar Deuja, a 33-year-old computer operator working at the Urban and Building Construction Project, Dhankuta branch, along with several contractors and construction company operators allegedly involved in the network.

The list of defendants includes operators and executives linked to multiple construction and supplier firms, including Thumka Nirman Sewa Pvt Ltd, Katuwal Construction, Shivom Suppliers, Gitanjali Construction, Shivansh Nirman Sewa, Visan Construction, Chapur Nirman Sewa, Kalika Construction, KBK Construction, Man Construction, Remit Infrastructure, SK Construction, Nandi Construction, Rising Peak and others.

Authorities said the accused face charges related to unauthorized access through electronic systems, organized criminal activity and illegal cryptocurrency transactions, locally categorized as “abhoutik mudra” or virtual currency-related offences.

How the alleged tender manipulation worked

The investigation began after complaints were lodged at Nepal Police’s Cyber Bureau in Bhotahiti, alleging unauthorized interference in the Public Procurement Monitoring Office’s e-Government Procurement (e-GP) system.

Officials alleged that tender documents were being modified before the opening of financial proposals, raising concerns about systematic contract manipulation.

After preliminary findings indicated a large-scale organized operation, the investigation was escalated from the Cyber Bureau to the Central Investigation Bureau (CIB).

Investigators claim that after tender submission deadlines expired, accused computer operator Dibakar Deuja allegedly accessed the procurement system illegally, reviewed competitors’ bids, and modified quotations to place preferred contractors at the lowest bid position, thereby increasing their chances of winning government contracts.

Police allege contractors would negotiate payments in advance, after which tender information was manipulated online to secure procurement deals.

Authorities describe Deuja as the key orchestrator of the scheme.

According to CIB, Deuja allegedly used programming tools, cloud servers and PHP-based techniques to hack the IMS server, create backdoor access, and manipulate procurement systems.

Investigators further claim he used a fake identity named “Jeevan Limbu” as an operator-manager to contact contractors via WhatsApp and email, negotiate payments and promise contract facilitation.

Crypto payments linked to scheme

The investigation also uncovered alleged cryptocurrency transactions linked to the operation.

Police said another accused, Bhaskarraj Aryal, a computer engineer, allegedly arranged payments through Bitcoin transactions, using contacts based in the United States for transfers, while settling balances in cash inside Nepal.

The discovery adds a new layer to the case, as Nepal maintains strict restrictions on cryptocurrency trading and digital asset transactions, which remain illegal under current regulations.

Key accused previously arrested in telecom hacking case

Authorities noted that principal accused Dibakar Deuja had previously been arrested on July 15, 2020 (31 Asar 2077 BS) in connection with a separate cybercrime case.

At the time, the CIB accused him of hacking Nepal Telecom’s mobile app server system, illegally using and selling telecom packages, and causing significant financial and reputational damage to the state-owned telecom company.

So far, 13 suspects have been arrested, while the remaining accused have been charged as absconding defendants, according to police.

The case is expected to intensify scrutiny of Nepal’s digital procurement system, cybersecurity vulnerabilities, public contracting transparency and crypto-linked financial crime risks.