Communications Minister Forms Study Committee After Questions Over Nepal Telecom’s Billing System

Kathmandu: The Ministry of Communications and Information Technology has formed a seven-member study committee after questions arose regarding the procurement contract for Nepal Telecom’s billing system. The committee, coordinated by former Secretary Maniram Gelal, was formed through a ministerial decision last Friday.

Gelal retired from the Ministry of Urban Development in Mangsir 2081 upon reaching the age limit. Other members of the committee include Joint Secretaries Gaurav Giri and Aadesh Khadka from the Ministry of Communications, and Joint Secretary Krishna Raj Pantha from the National Vigilance Center. Deputy Director Pradeep Paudyal from the Nepal Telecommunication Authority (NTA) and Nepal Telecom Manager Kamal Lamichhane are also part of the committee. Rajesh Kumar Thapa, Under Secretary for Legal Affairs at the ministry, has been appointed member secretary. 

The committee has been given 21 days to submit its report.

Nepal Telecom had called for bids for the billing system procurement on March 18, 2025. Huawei Technologies and Whale Cloud submitted proposals. On August 31, Telecom announced that Huawei was the only technically qualified bidder and set September 15 to open the price bid. However, due to the Gen-Z movement, the company postponed the process and issued a new notice, setting September 24 as the revised date.

Meanwhile, Jagdish Kharel was appointed Minister of Communications on September 22. Two days later, on September 24, Telecom again postponed the opening of the financial proposal, citing “special circumstances.”

According to ministry sources, Minister Kharel formed the committee to investigate after criticism surfaced that the billing contract violated a Supreme Court decision and involved procedural irregularities. The minister reportedly directed that the procurement process move forward only after the study committee’s report. Following this, Telecom indefinitely postponed the financial proposal opening.

Earlier, in response to a writ petition filed by Advocate Rita Karki and others, the Supreme Court had issued a directive order on September 10, 2024, requiring that the billing system procurement process ensure the protection of personal data and prevent conflicts of interest.

The verdict stated, “Any unauthorized access to the personal information of the general public is a serious violation of constitutional rights, including privacy, personal freedom, and dignity. Therefore, it is essential to ensure that the personal data of individuals under the network of the billing system manufacturer or seller is not accessed, and that no conflict of interest exists in the procurement process.”

Despite the court’s directive, concerns have been raised because Huawei, which currently manages Nepal Telecom’s core network, is also bidding for the billing system. Critics argue this creates a conflict of interest. Additionally, Huawei has been accused of submitting incomplete contract documents through the Public Procurement Monitoring Office (PPMO) system and providing them later to the evaluation committee to secure technical qualification.

Huawei, however, denies the allegations. Company representatives told Telecom officials that a conflict of interest arises only if the same vendor provides similar services to competing telecom companies. “Telecom itself mentioned conflict of interest in the tender documents as per the court order. The conflict applies only when the same vendor supplies billing systems to competitors. Otherwise, why would we be technically qualified?” a Huawei representative was quoted as saying.

Nepal Telecom’s current billing system, provided by Asia Info, has become outdated, causing frequent service disruptions and public criticism.

Earlier, on June 10, the Commission for the Investigation of Abuse of Authority (CIAA) filed a corruption case against former Managing Director Sangita Pahadi Aryal and others, alleging irregularities in the telecom’s billing maintenance tender.

 

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