Terramax Procurement Scandal: Accused Point to Former Minister Basnet’s Role

Special Court Testimony Reveals Ministerial Directive Behind Deal

Hamrakura
Published 2025 Aug 14 Thursday

Kathmandu: Defendants in the Terramax technology procurement corruption case have claimed that the purchase process began only after a ministerial directive from the then Minister for Communications and Information Technology, Mohan Bahadur Basnet.

While recording statements before the Special Court, multiple accused said Basnet introduced additional programs and plans, instructing the Nepal Telecommunications Authority (NTA) to proceed. On 18 Asad 2074 BS, Basnet reportedly decided to install equipment for international call monitoring and revenue leakage control, which paved the way for the Terramax system.

NTA Executives Say Decision Was Policy-Based

The then NTA Chairman Digambar Jha and board members, including Tika Upreti and Dhanraj Gyawali, testified that the Terramax purchase was based on ministerial instructions, not an NTA proposal. They argued the board’s approval was merely “policy-based or theoretical.”

CIAA Alleges Abuse of Power and Deliberate Delay

According to the Commission for the Investigation of Abuse of Authority (CIAA), Basnet held the procurement file for over three weeks before moving it forward. The NTA board approved the program immediately after receiving the file, raising suspicions of irregularities. The CIAA charge sheet states Basnet “maliciously initiated corrupt activities using powers he did not have.”

Corruption Case Involves 18 Defendants, Over Rs 3.21 Billion at Stake

The CIAA has filed a corruption case against 18 defendants, including Basnet and top NTA officials, alleging a loss of over Rs 3.21 billion in public funds. The case involves:

-Mohan Bahadur Basnet — Former Minister, Nepali Congress Central Member

-Digambar Jha — Former NTA Chairman

-Dhanraj Gyawali, Tika Prasad Upreti — Former NTA Board Members

-Purushottam Khanal — Former NTA Chairman

-Several NTA directors and deputy directors

-Vanrise Solutions AAL (Offshore) and its CEO Zaman Anouti

-Connection Trade Link Pvt. Ltd. (Nepal), its Chairman Dilip Kumar Gurung, and Director Tej Prasad Kharel

Political Tensions Within Nepali Congress

The scandal has fueled tensions within the Nepali Congress. During a Central Committee meeting, Basnet allegedly threatened leaders, including General Secretary Gagan Kumar Thapa, after facing criticism. Member Ajaybabu Shiwakoti even suggested Basnet resign to “cleanse the party.”

The Special Court will now determine whether ministerial overreach and alleged collusion led to one of Nepal’s largest procurement scandals.



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