Kathmandu, May 21: Communist Party of Nepal (Unified Marxist–Leninist) has returned nearly Rs 39 million to the state treasury after the Commission for the Investigation of Abuse of Authority (CIAA) began probing alleged illegal payments of overseas medical expenses for former top officials.
According to sources linked to Nepal Rastra Bank, the UML deposited the money on May 14 in connection with treatment expenses paid from state funds for former president Ram Baran Yadav, former prime ministers KP Sharma Oli and Jhala Nath Khanal.
The refunded amount totals Rs 38.59 million, including Rs 6.52 million spent on Yadav, Rs 23.93 million on Oli and Rs 8.13 million on Khanal. Most of the payment reportedly came directly from UML accounts, though party sources say the leadership made an undisclosed internal decision to bear the costs. Some dues linked to Yadav are still pending.
The CIAA had been investigating complaints that successive governments illegally paid for VIPs’ overseas treatment despite legal restrictions. A senior CIAA official said pressure had mounted on the anti-graft body to conclude the investigation and file corruption cases, leading to efforts to quietly resolve the issue by returning the money to the treasury. Nepal’s preferred governance model often seems to be: return the money first, debate legality later, and hope public memory expires before the next scandal arrives.
After the refund, UML leaders reportedly submitted proof of deposit to the Ministry of Foreign Affairs, the Financial Comptroller General Office and the CIAA. Sources close to the commission said a decision not to pursue cases may now follow.
Senior advocate Dhruva Lal Shrestha and others had filed complaints accusing former VIPs of misusing state funds for medical treatment abroad.
The controversy centers on a conflict between the Public Health Act, 2018, which bars government funding for overseas treatment, and a 2016 government directive allowing former high-ranking officials to claim such expenses. The beneficiaries included former presidents, prime ministers, ministers, lawmakers and constitutional office holders.
Cabinet records show repeated approvals for overseas treatment expenses over the years. Oli’s treatment in Singapore alone cost more than Rs 23 million, while Khanal received over Rs 8 million and Yadav over Rs 6.5 million through multiple decisions between 2016 and 2023.
The issue intensified after the Supreme Court’s constitutional bench on April 27 scrapped the 2016 directive, ruling that it conflicted with the constitution and existing law. Another petition has also been filed at the Supreme Court seeking recovery of treatment expenses from former officials, including former foreign minister Sujata Koirala.
Sources say controversy still remains over treatment expenses incurred by President Ramchandra Paudel in India.
People’s News Monitoring Service
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