Kathmandu, July 6: The Department of Passports has moved ahead with the passport procurement process even as a corruption case related to the contract remains under review at the Special Court.
The case was filed by the Commission for the Investigation of Abuse of Authority (CIAA), which alleged irregularities in the electronic passport procurement process. The anti-graft body arrested seven people, including Department of Passports Director General Tirtha Raj Aryal.
Acting on instructions from the Office of the Prime Minister and Council of Ministers, authorities detained the officials, who were later released on bail on June 29 following a court order.
Soon after their release, the department resumed the procurement process.
The Prime Minister’s Office had planned to terminate the German supplier accused of irregularities and hand the contract to another company. It had also held discussions with the Ministry of Foreign Affairs on the issue.
However, the ministry argued that the contract with the German company remains valid until July 18 and said the supplier should continue its work until then. It maintained that alternatives would only be considered if the company failed to meet its obligations after the deadline.
Based on the ministry’s position, the Department of Passports has proceeded with the implementation process. It said data migration and system upgrades have been completed, and passport services under the new system will become fully operational from July 13.
The department had earlier warned that the first three months after the system’s launch would be considered a stabilization period, during which technical glitches or delays in service delivery could occur.
Department spokesperson Deepak Banjade said the decision was taken after legal consultation.
“No one has instructed us either to continue or halt the process,” he said. “We have proceeded as part of the department’s regular responsibilities. Whatever decision the court makes later will be accepted.”
He said the department could not suspend its routine work simply because the case is pending.
“We are only continuing our regular operations in coordination with the Ministry of Foreign Affairs,” he added.
Officials said the department’s passport stock is running low, making it necessary to continue the procurement process.
“A passport is a highly sensitive public service,” a Foreign Ministry official said. “The government cannot afford to wait for the court verdict. The court will do its job, and we will abide by its decision, but essential services cannot be put on hold.”
On June 6, 2025, the department awarded a five year contract to German firms Veridos GmbH and Muehlbauer to supply electronic passports. Under the agreement, the new passports were to be issued from February 2026, but the companies failed to begin distribution on schedule.
The government has since extended the deadline until July 18, while the Special Court continues hearing the corruption case linked to the procurement.
The department says preparations for the new passport production and management system have been completed. The transition, described as Nepal’s largest ever technological system upgrade, involves migrating the personal data of about 10 million Nepali citizens to the new platform.
Earlier, the department had urged people who would need passports within the next six months to apply immediately, warning of temporary service disruptions during the transition.
As part of the migration, passport issuance will initially operate under a quota system.
Passport services at Nepali diplomatic missions abroad, district administration offices and area administration offices will remain suspended from July 8 to 10. Services at the Department of Passports in Kathmandu will be unavailable on July 9 and 10.
People’s News Monitoring Service
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