Kathmandu, May 2: Nepal Police’s Central Investigation Bureau (CIB) has launched a probe into a large-scale scheme involving the alleged tampering of the government’s electronic procurement platform to rig contract awards.
Investigators say hackers exploited the Public Procurement Monitoring Office’s online bidding system by setting up fake websites designed to harvest sensitive bid information. Officials found that confidential data was accessed, and in some cases altered, during active procurement processes.
The probe indicates that an organised network gained illegal entry into the system, extracting details about bidding firms, their quoted amounts, and competing offers. Using this insider data, the group reportedly approached contractors and offered to “manage” tenders in exchange for hefty payments.
According to investigators, the perpetrators lured users to counterfeit versions of the official procurement portal, where bid information was unknowingly submitted. Contractors were later contacted through Gmail and WhatsApp and informed about rival bids. In return for tipping them off and manipulating outcomes, the group allegedly demanded millions of rupees.
Authorities have identified Diwakar Deuja as the key figure behind the operation. Previously convicted for hacking Nepal Telecom’s servers, Deuja is accused of breaching the procurement system and interfering with bidding procedures. He allegedly built credibility by revealing competitors’ bid figures and promising to adjust financial proposals to ensure contract wins.
Sources claim he charged between Rs 8 to 9 million per deal, often accepting payments in cryptocurrency. He is also suspected of distributing login credentials to facilitate unauthorised access to the system.
Under standard rules, financial bids cannot be modified once submitted. However, investigators believe the group bypassed these safeguards, allowing them to view and alter figures before official bid openings. This enabled selected bidders to undercut competitors and secure contracts.
Several contractors have come under scrutiny, including Bikram Pandey of Kalika Construction, Rishikesh Gauli linked to ADB-funded projects, and Prakash Dhungana of Kalpabriksha Construction.
Officials suspect that bid values in certain contracts were adjusted by three to five percent, leading to gains worth millions. The Asian Development Bank has reportedly halted some procurement activities after spotting irregularities.
So far, more than a dozen individuals have been detained, including representatives from multiple construction firms. They face charges under the Electronic Transactions Act and organised crime statutes.
Authorities now view the case as more than isolated wrongdoing. The incident has exposed serious vulnerabilities in the country’s procurement system, raising concerns over transparency, data security, and the integrity of public contracting.
People’s News Monitoring Service
Login to add a comment