Special Court convicts former NTA heads, fines millions

KATHMANDU: Nepal’s Special Court convicted two former chairpersons of the Nepal Telecommunications Authority (NTA) on Thursday for irregularities in the procurement of consulting services for the Mobile Device Management System (MDMS). Digambar Jha and Purushottam Khanal were found guilty of mismanaging the tender process, alongside two companies involved in the deal. The verdict marks a significant step in addressing corruption within Nepal’s telecom sector.

The decision came from a bench of Justices Teknarayan Kunwar, Ritendra Thapa, and Bidur Koirala, who sentenced Jha and Khanal to one year and one month in prison each. The court also calculated a financial loss to the state—termed “bigo”—of NPR 58,014,828 (approximately $433,000 USD) and imposed fines matching this amount on the two former officials. The ruling exposes flaws in the NTA’s handling of a system intended to regulate mobile devices and curb illegal imports.

Two companies, Namaste Global Com Pte Limited Singapore and Numera, were also convicted as accomplices. The court found that Namaste Global illegally pocketed NPR 232,058,314 (about $1.73 million USD) in payments, while Numera was implicated in facilitating the irregularities. However, Numera’s representative Anuj Singh and Namaste Global’s director Kabindra Raj Malla were acquitted, escaping personal liability.

The case cleared several other NTA figures, including former senior director Anand Raj Khanal and 11 current employees: Dipesh Acharya, Surendra Lal Hada, Min Prasad Aryal, Achyutananda Mishra, Rewatiram Pantha, Sandeep Adhikari, Binod Chandra Shrestha, Surya Prasad Lamichhane, Pratixa Poudel, Vijay Kumar Rai Yadav, and Nirajan Koirala. Their acquittal ends a suspension period that had disrupted NTA operations, leaving three of its seven departments and seven of its 17 branches leaderless during the investigation.

Court findings painted a picture of systemic mismanagement. The NTA issued an Expression of Interest for the MDMS project before approving the tender’s cost estimate, a procedural breach. The justices ruled that the authority inflated the project cost unnaturally, paid an exorbitant price, and signed an unjustifiable contract. Standards for determining the cost were deemed questionable, with training expenses labeled arbitrary. “The procurement process lacked credibility,” the verdict stated, pointing to a loss of crores (tens of millions) of rupees due to delays in project implementation.

The court also criticized the disqualification of the top-ranked bidder over a conflict of interest, suggesting favoritism or incompetence derailed fair competition. The MDMS, meant to track mobile devices and curb gray market imports, has languished despite significant investment, costing the state dearly.

The convictions spotlight Nepal’s ongoing struggle with governance in public institutions. The NTA, tasked with regulating a telecom sector critical to the nation’s connectivity, has faced scrutiny before, but this ruling delivers a rare high-profile accountability moment. Jha and Khanal’s imprisonment could deter future misconduct, though the acquitted employees’ return may ease operational strain at the authority.

Legal experts see the verdict as a mixed signal. “It’s a win for transparency, but sparing so many involved raises questions about the probe’s depth,” said a Kathmandu-based lawyer, speaking anonymously due to the case’s sensitivity. The acquitted staff, reinstated after months of suspension, will resume roles in an agency still reeling from leadership gaps.

The financial penalties—NPR 58 million in losses and NPR 232 million in illicit payments—underscore the scale of mismanagement. Nepal’s government, already grappling with budget constraints, now faces pressure to recover these funds. Whether the convicted companies will pay remains unclear, as enforcement across borders (Namaste Global is Singapore-based) poses challenges.

Public reaction has been muted but critical. Posts on X following the verdict expressed frustration over wasted taxpayer money, with one user writing, “Crores lost, and the system’s still broken—typical.” Others noted the MDMS’s failure to launch, leaving Nepal’s mobile market vulnerable to smuggling.

The ruling may ripple beyond the NTA. Nepal’s Special Court, established to tackle corruption and economic crimes, has flexed its muscle here, potentially emboldening probes into other state bodies. The telecom sector, a lifeline for Nepal’s 30 million people, could see tighter oversight as a result.

For Jha and Khanal, the prison term caps a fall from grace. Both once helmed an agency pivotal to Nepal’s digital ambitions; now, they face jail time and hefty fines. The companies, meanwhile, may appeal, though their guilt as accomplices stands firm for now.

As Nepal pushes for economic growth—recently courting foreign investment from figures like Elon Musk—this case highlights the hurdles: corruption, inefficiency, and delays. The NTA must now rebuild trust and deliver the MDMS, a task made harder by its tarnished reputation.