Former DDC Chairman Alleges Widespread Corruption, Blames Agriculture Ministry

Kathmandu. Former Chairman of the Board of Directors of the state-owned Dairy Development Corporation (DDC), Dr. Ved Bahadur Chhetri, has claimed widespread corruption in the institution. Speaking at a program organized by Sambad Dabali in the capital on Saturday, speakers also accused the Ministry of Agriculture of being primarily responsible for DDC's downfall.

Former DDC Chairman Dr. Chhetri asserted that the Ministry of Agriculture is mainly responsible for the institution, which was profitable until the fiscal year 2074/75, now incurring a loss of over 1.5 billion rupees. Dr. Chhetri complained that despite continuously drawing the attention of the Ministry of Agriculture and all state bodies from his tenure as chairman to the present time for the improvement of the institution, no one has listened.

He stated that he was even suspended when he tried to reform the irregularities and malpractices within DDC by resolving them at a policy level during his tenure as a subject matter expert from 2078 BS to 2080 BS and as Chairman of the Board of Directors from 2080 BS to 2082 BS. Chhetri alleged that 150 million rupees received from the Ministry of Finance for the 'Plant Upgradation' of the Kathmandu Dairy Distribution Project, Balaju, was misused, and the ministry has remained silent even after an investigation report was submitted.

Chhetri claimed that Sanjeev Jha was the General Manager when the irregularity of 150 million rupees occurred, and Jha still holds sway in DDC. DDC, fully owned by the state and established in 2026 BS, remained profitable until 2075 BS, but its current loss of 1.5 billion rupees is a very serious matter, Chhetri said. He questioned why the Ministry of Agriculture remains silent despite proven rampant corruption, irregularities, and malpractices, and why all bodies, including the Commission for Investigation of Abuse of Authority, the Vigilance Centre, and the Prime Minister's Office, remain silent despite complaints.

He stated that ministers including Mahendra Rai Yadav, Mrigendra Singh Yadav, Jwala Kumari Sah, Dr. Beduram Bhusal, Ramnath Adhikari, Madan Pariyar, and the incumbent Gita Chaudhary have ignored information about the institution's corruption and malpractices.

He said that the institution, which had a nominal loss of around 560 million rupees in the fiscal year 2078/79, now has a net trading loss of 1.5 billion rupees. Chhetri warned that the size of the loan based on existing stock provided by the Government of Nepal to ensure regular payment to milk farmers has reached 1.5 billion rupees, and if this situation continues, the day DDC closes down is near.

At the program, Vishnu Prasad Timalsina, General Secretary of the Consumer Interest Protection Forum, expressed concern that DDC's products are of higher quality than those of private sector milk producers, but the institution is on the verge of collapse due to managerial negligence. Timalsina, who is also a senior advocate, accused the state's indifference and the planned actions of DDC's management of discouraging domestic milk, despite Nepal being self-sufficient in milk.

He stated that the institution has reached a chaotic state due to practices such as forcing milk farmers to take 'milk holidays' by imposing a 'quota system' on one hand, and smuggling foreign milk on the other. He informed that despite filing complaints and lawsuits in various bodies including the Ministry, the Commission for Investigation of Abuse of Authority, and courts against certain actions by DDC management that conflict with private interests and violate regulations, no one has taken notice.

Similarly, former Board of Directors member of DDC, Phaneendra Tiwari, claimed that the Ministry of Agriculture is primarily responsible for DDC's downfall. He accused everyone of using DDC as a cash cow and alleged that even the so-called new individuals exhibit similar tendencies.

He lamented that although they were appointed during the tenure of former Agriculture Minister Beduram Bhusal, they received no support from any minister, from Jwala Kumari Sah to Ramnath Adhikari.

Tiwari accused Minister Gita Chaudhary of the Rastriya Swatantra Party government, which came to power with the slogan of eradicating corruption and establishing good governance, of not even granting them an audience and instead protecting the old corrupt individuals.