Washington DC. New evidence has emerged regarding the Ncell scandal in the United States. While procuring legal advisory services to represent Nepal against the case filed by NCell, the Nepalese Embassy in Washington has been found to have paid the service provider almost half a million dollars more than the amount demanded by the firm.

Ncell had filed a lawsuit against the government of Nepal at the International Center for Settlement of Investment Disputes (ICSID) at the World Bank’s office in Washington DC. Ncell took the step after Nepal Government ordered the telecommunications company to pay more than NRs 61 billion for revenue. The case was filed in 2019 and the case number is ARB/19/15.

The decision for selecting the law firm to represent Nepal’s side, however, has been fraught with improprieties. Ex-Nepali ambassador to U.S Mr. Arjun Kumar Karki has been found to directly be involved in interposing his preferential law firm from the list of aspirants in violation with Nepal’s service procurement acts and regulations.

According to documents received by DC Nepal, without any competition or tender, 13 law firms were enlisted. A law firm enlisted in number 13 was selected within hours. Look at the document below.

Derains and Gharavi International was enlisted in number 13, which was represented by an attorney of Nepali origin, Khagendra GC, and his firm, Chhetry and Associates. The company was enlisted in number one in another list printed on the same day following the order of Ambassador Karki.

When documents were prepared for a contractual agreement with Derains and Gharavi International, Khagendra GC said that he would not be able to take the case. The reason the firm in number 13 was shifted to number 1 in such a rushed manner remains dubious.

Foley Hoag, a company enlisted in number 4 in the first list was then chosen next. According to documents received by DC Nepal through the Ministry of Law, it has demanded 1.8 million.

Dr. Surya Subedi, a lawyer of Nepali origin living in the UK and Professor of Law at the University of Leeds was representing the company. Khagendra GC had no connection with the company.

Look at the document below:

The company Foley Hoag had demanded $1.8 million but an agreement was signed for $2.3 million. It is not clear whether Dr. Subedi was aware of this increase in the deal amount.

According to a source from the Ministry of Law, the reasons for changing the list of 13 companies to 5 companies are unknown. The source revealed that they did so after repeated discussions with ex-law minister ShivamayaTumbahamfe and Ex-Nepali ambassador Karki.

Law Ministry Spokesperson Phanindra Gautam told DC Nepal that the listing was done legally and according to the experience, capabilities, and qualifications of the firm. Ex-law minister ShivamayaTumbahamfe also claimed the process has been completed in line with the existing laws and regulations.

While purchasing the services from the company, GC is said to be involved. After his involvement, $5million more was demanded to the initial $1.8million.

Given the illegal manner in which the contractual agreement was being planned, Economic Counsellor at Nepali Embassy in Washington Hom Kanta Bhandari refused to sign the document. Following his refusal, he was ordered to take a compulsory leave by ex-ambassador Karki. Karki then got the Military Attaché Brigadier Madhukar Singh Karki to sign the agreement.

Given that there is no provision for an Army Officer to get involved in any financial procurement involving the Embassy besides those within the military remit, Brigadier Karki’s involvement in this transaction certainly demonstrates massive improprieties. Also, it is highly unlikely that someone from the Nepal Army could be involved in such a crucial decision without the consent of then-Army leadership. Although DC Nepal has presented evidence regarding this case, no further investigation has been initiated against Ambassador Karki or Brigadier Karki.

Sources claim that Nepal Army leadership has assured Brigadier Karki that no action or investigation would be done against him and Army leadership has actually rewarded Karki with a National Defense Course opportunity. He is scheduled to leave Nepal shortly. He will be promoted as Major General immediately upon his return from the course.