Corruption has long been a persistent and destructive force in Nepal’s political landscape. From the misappropriation of public funds to fraudulent land deals and refugee scams, many of Nepal’s high-ranking leaders and political parties have been directly or indirectly involved in serious allegations. Despite public outcry and damning evidence, these scams are often ignored, covered up, or diluted through legal loopholes and political maneuvering. As a result, accountability remains elusive, and citizens continue to lose trust in the government.
II. Historical Background of Corruption in Nepal
Nepal’s struggle with political corruption dates back to the early years of democracy. While the Panchayat era (1960–1990) had centralized control with little transparency, corruption grew more visible after the restoration of multiparty democracy in 1990. As political parties jostled for power, they also began to use state resources to build patronage networks. The end of the monarchy in 2008 was expected to usher in a new era, but instead, it gave rise to a highly fragmented political system with weakened institutions.
III. Why Corruption is Rampant in Nepal
Several factors have allowed corruption to flourish in Nepal:
- Weak institutions: Regulatory and oversight bodies lack independence and teeth.
- Political impunity: Powerful leaders use influence to suppress investigations.
- Lack of judicial enforcement: Courts are often seen as slow, biased, or influenced.
- Bureaucratic inefficiency: Red tape and discretionary power encourage bribery.
- Party financing: Political campaigns are funded through illicit or unaccounted-for sources, leading to quid pro quo arrangements once in power.
IV. The Wide-Body Aircraft Scandal
This multi-million dollar scam involved the procurement of two wide-body aircraft for Nepal Airlines. Investigations revealed massive irregularities in the bidding process, pricing, and technical evaluation. Political figures, including then Tourism Ministers and Civil Aviation officials, were suspected of receiving kickbacks. Despite investigations by the Public Accounts Committee, no significant punishment has been meted out to those involved.
V. Fake Bhutanese Refugee Scam
In one of the most shocking scams, hundreds of Nepali citizens were defrauded and issued fake refugee documents, claiming they were Bhutanese refugees to secure asylum abroad. This organized racket involved senior leaders from Nepali Congress and CPN-UML, including former ministers and secretaries. Although some arrests were made, many influential figures continue to evade justice due to political pressure.
VI. Baluwatar Land Scam (Lalita Niwas Case)
The Lalita Niwas land grab involved illegal transfers of government land to private individuals, including high-profile businesspeople and political leaders. Major figures from all three main parties—Nepali Congress, CPN-UML, and Maoist Centre—were implicated. Former Prime Ministers and senior bureaucrats allegedly facilitated the scam, yet legal proceedings remain delayed or stalled.
VII. Omni Group COVID-19 Procurement Scandal
During the early phase of the pandemic, the Omni Group received a lucrative contract to import medical supplies without going through proper tender processes. Allegations arose that the company had direct ties to ruling party leaders and that the supplies were overpriced and substandard. The incident exposed how even during a national crisis, political connections were prioritized over public safety.
VIII. Nepal Oil Corporation Land Purchase Scam
In this scam, Nepal Oil Corporation purchased land at inflated rates, far above market value, in various parts of the country. Politicians allegedly pressured officials to buy land from party-affiliated individuals or middlemen. The public and media exposed the scandal, but no top leaders faced legal action.
IX. Melamchi Water Project Mismanagement
The Melamchi Water Supply Project, launched over two decades ago, has been mired in delays, contractor issues, and alleged financial misappropriation. Despite receiving billions in foreign aid and national funding, the project’s progress has been dismal. Many suspect that politicians have been using the project as a cash cow, with frequent changes in contractors tied to political interests.
X. Key Political Parties Engaged in Corruption
No major political party in Nepal remains untouched by corruption scandals:
- Nepali Congress: Implicated in the refugee scam, Lalita Niwas case, and multiple procurement issues.
- CPN-UML: Linked with aircraft procurement, land scams, and misuse of government contracts.
- Maoist Centre: Alleged to have misused funds allocated to cooperatives and development projects.
Even new parties like Rastriya Swatantra Party have faced criticism over internal financial transparency, though on a smaller scale.
XI. Prominent Leaders Allegedly Involved in Scams
Several top leaders, including former Prime Ministers and senior ministers, have been named in corruption reports. Despite this, legal systems often shield them:
- Some have avoided prosecution by manipulating laws or lobbying judicial bodies.
- Others have returned to power despite serious accusations.
- The lack of convictions creates a cycle of impunity that erodes public trust.
XII. Role of Commission for Investigation of Abuse of Authority (CIAA)
The CIAA is constitutionally mandated to investigate corruption, but its record is mixed:
- It often targets mid-level officials while sparing powerful leaders.
- There are accusations that it acts selectively based on political pressure.
- Despite several high-profile reports, few cases have resulted in convictions of political elites.
XIII. Judiciary’s Role in Enabling or Blocking Accountability
Nepal’s judiciary is increasingly perceived as politicized:
- Many judges are appointed based on party quotas or affiliations.
- High-profile corruption cases often languish in courts for years.
- Rulings in favor of powerful defendants have raised concerns about fairness and independence.
XIV. Public Reaction, Protests, and Civil Society Activism
Public anger over unchecked corruption is rising:
- Protests such as #EnoughIsEnough and youth-led campaigns have gained momentum.
- Social media plays a crucial role in spreading awareness and demanding accountability.
- However, state responses often involve crackdowns, arrests, or attempts to discredit protestors.
XV. The Way Forward: Can Nepal Tackle Systemic Corruption?
To curb political corruption, systemic changes are essential:
- Independent oversight bodies must be empowered and insulated from political interference.
- Electoral reforms are needed to control illicit party financing.
- Judicial reform can ensure fair prosecution of political elites.
- Public pressure and civil society must continue to hold leaders accountable.
International actors, including donors and human rights organizations, can also help by conditioning aid on transparency and anti-corruption efforts.
Conclusion
Nepal’s democratic future is at stake as political corruption continues unchecked. From fake refugee documents to land scams and pandemic profiteering, political leadership’s involvement in corruption has not only gone unpunished—it’s often rewarded with re-election or party promotions. Without systemic reform and genuine public accountability, corruption will remain the country’s most dangerous obstacle to progress.