Former Minister Vikram Pandey Arrested in Bid Rigging Scandal

Kathmandu. Rastriya Prajatantra Party (RPP) Vice-President and former minister Vikram Pandey was arrested on Baisakh 11. Pandey, who was the Minister of Urban Development in 2079 BS, is a director of Kalika Construction Pvt. Ltd. Pandey, a director of a 'A' class company in the construction sector, is accused of capturing billions of rupees in contracts by hacking the bidding system.

The preliminary investigation by the Central Investigation Bureau (CIB) concludes that unauthorized access was gained to the Public Procurement Monitoring Office's website, bid.gov.np, to alter contract details for Kalika Construction. The investigation found that the economic proposals of tenders were altered before they were opened, allowing the company to submit lower bids and secure the contracts.

Kalika is also involved in the expansion of the East-West Highway from Kakarbhitta to Lauhi. The road is being expanded to four lanes with loan assistance from the Asian Development Bank and investment from Nepal. The contract for the 45-kilometer road from Kakarbhitta in Jhapa to Kerkh in Kamal Rural Municipality has been awarded to Evercon-Kalika JV. Kalika Construction is working in a joint venture with Evercon, having secured the contract for 10.06 billion rupees.

Nicholas Pandey, president of the Federation of Contractors' Associations of Nepal, is Vikram's son. Nicholas, recently elected president, is the executive director of Kalika Construction. Police are also investigating Nicholas's involvement in the case of hacking the bidding system to capture contracts.

Sahadev Khadka, vice-president of the Federation of Contractors' Associations, is also under investigation. Khadka's company, Sagun Construction and Bhimeshwor Drilling Construction Service, is suspected of collusion in a contract with the Kathmandu Upatyaka Khanepani Limited (KUKL). Sagun Construction was set to take two packages of the KUKL pipe-laying contract in partnership with a Chinese company. However, KUKL has canceled some contracts following the preliminary investigation by the Public Procurement Monitoring Office and the CIB.

Khadka's Denial

Bidding system hacking case: KUKL claims not to have participated in any bid

Federation Vice-President Khadka had briefed then Home Minister Sudhan Gurung about the problems faced by contractors during an inspection of the Narayangadh-Butwal road section on Chaitra 30. Sagun Construction is undertaking road contracts with ADB loan assistance in Mugling-Naubise road, Tilottama Municipality, and Saina-Maina Municipality. Khadka has taken most of these contracts in joint venture with Ramesh Sharma's Sharma & Company.

The CIB is also investigating a contract awarded to Ashish Nirman Sewa. Rishikesh Gauli, director of Ashish Nirman Sewa, is undergoing medical treatment at Frontline Hospital in Old Baneshwor, Kathmandu. He is under surveillance, a CIB official told Ratopati. Following the start of the investigation, three packages of KUKL contracts worth four billion rupees, which Ashish was about to receive, have been canceled.

Bhishan Construction has also been found to be involved in capturing contracts by altering details. On Baisakh 11, the CIB arrested Tank Kumar Shrestha, director of Bhishan Construction Pvt. Ltd. Shrestha is a local of Nilkantha Municipality-3, Dhading.

The Bureau is also investigating a contract awarded to Bandana Bhagawati Nirman Sewa. Mukesh Panta, director of Bandana Bhagawati, is a general convention representative of the Nepali Congress. An investigation is underway into the contracts taken by Panta's company, a CIB official involved in the investigation told Ratopati.

Chapur Nirman Sewa Pvt. Ltd. has also been found to be involved in hacking and capturing contracts, according to the preliminary investigation by the police. Amrit Bohora, director of Chapur, has been arrested by the police. Bohora, 32, residing in Baniatar, Tokha Municipality-4, was arrested on Baisakh 11.

The CIB and Cyber Bureau team are investigating the case of hacking the bidding system and altering contract details. CIB's AIG Dr. Manoj KC told Ratopati that the investigation is being carried out under the Organized Crime and Electronic Transactions Act 2063. He stated, "We are looking into whether the contract details were altered through hacking or with the collusion of employees."

12 arrested

So far, 12 people have been arrested on charges of unauthorized access to the Public Procurement Monitoring Office (PPMO) bidding system and altering contract details. Divakar Deuja from Pakhribas Municipality-5, Dhankuta; Dharat Dhami from Bajhang; Sanjay Bhatt from Tanahun; Bhaskar Raj Aryal from Kathmandu-33; Sagar Katuwal from Hetauda; and Jiwan Kumar Das from Sunsari were arrested in the first phase.

Subsequently, former minister Vikram Pandey and Tank Kumar Shrestha, director of Bhishan Construction, were arrested. The CIB is investigating Swadesh Pokharel, a shareholder of Incon Pvt. Ltd., and Prakash Dhungana, director of Kalpavriksha Builders Pvt. Ltd., after their arrest. Rishikesh Gauli is in police surveillance at the hospital.