Corruption Scandal: CIAA Probes Multi-Million Rupee Medical Supply Deal with UNOPS

Kathmandu. In a move that could expose significant corruption, Nepal’s Commission for the Investigation of Abuse of Authority (CIAA) has launched a probe into a medical supply procurement deal with UNOPS, the United Nations Office for Project Services. The investigation centers on allegations that government officials bypassed domestic suppliers and inflated prices through a non-competitive agreement.

The agreement, signed in May 2021, involved the purchase of oxygen plants, concentrators, and generators for hospitals across seven provinces. However, questions have arisen regarding the involvement of UNOPS, bypassing Nepali government procurement procedures. Concerns focus on why essential medical supplies weren’t directly acquired from domestic vendors, potentially saving taxpayer money.

Highly Questionable Procurement Practices

According to investigative reports by Swasthya Live, the Department of Health Services (DoHS) had already initiated communication with the Nepal Electricity Authority (NEA) in February 2019 to obtain transformers at a competitive rate. However, the DoHS, led by the then-Director General Dipendra Raman Singh, opted to involve UNOPS, raising concerns about a potential conflict of interest.

Furthermore, the agreement with UNOPS allegedly allowed the agency to directly manage the procurement process without open bidding. This lack of transparency has fueled suspicion of price manipulation, with reports suggesting UNOPS may have procured equipment at inflated costs compared to those offered by domestic suppliers.

Millions of Rupees Potentially Misspent

The investigation by the CIAA delves into the use of over $4.5 million in loan funds for the UNOPS procurement. Experts believe this decision by Singh to bypass competitive bidding resulted in unnecessary financial burdens on the government.

Adding to the complexity, UNOPS has distanced itself from the agreement, with a representative known as Komal Karki deflecting responsibility. This raises further questions about the role of Karki, nicknamed the “UNOPS Mafia” within the agency.

Lingering Delays and Outstanding Payments

Despite the hefty price tag, the procurement process remains incomplete. The agreement stipulated a specific timeframe for delivery, yet crucial medical supplies haven’t reached designated hospitals. This delay, coupled with outstanding payments of over Rs 11 crore, suggests potential financial irregularities.

CIAA Investigation Offers Hope for Accountability

The CIAA’s intervention offers a glimmer of hope for holding those responsible accountable. The investigation not only focuses on the procurement process but also delves into the potential conflict of interest involving the DoHS’s International Coordination Division.

While the committee formed by the Ministry of Health to investigate the deal has raised concerns about impartiality, the CIAA’s independent probe offers a crucial opportunity to expose potential corruption and ensure Nepali taxpayers receive value for their money.

This case serves as a stark reminder of the importance of transparent and accountable procurement practices in the health sector. As Nepal strives to strengthen its healthcare system, ensuring ethical and cost-effective acquisition of medical supplies remains paramount.