A major corruption scandal has been uncovered in a cold storage construction project in Sammarimai Rural Municipality–5, Siddhanath, Rupandehi. The investigation by the Commission for the Investigation of Abuse of Authority (CIAA) has revealed widespread irregularities in the project.
The case highlights how officials at various levels—from provincial secretaries to ministry technicians and middlemen—collaborated in misusing state resources. As a result, the under-construction cold storage facility has been left incomplete, dysfunctional, and in a deteriorated condition.
The CIAA has charged more than 20 individuals, including former Lumbini Province Secretary Baikuntha Adhikari, technical and accounts staff from the ministry, consultants, and cooperative officials. They are accused of embezzling over NPR 7.19 million (7,197,980) by preparing falsified performance reports.
The cold storage project, initiated in the fiscal year 2019/20, had an estimated budget of around NPR 54.3 million. According to the agreement signed on May 28, 2019, between the ministry and Bhawani Self-Reliant Multipurpose Cooperative, the facility was intended to have a capacity of 500 metric tons. The ministry was to cover 75% of the cost, while the cooperative would bear the remaining 25%.
However, the investigation found that the consulting company was improperly assigned both the responsibility of preparing the Detailed Project Report (DPR) and evaluating it, leading to inflated cost estimates. The DPR was approved by the ministry, and the project was awarded without open competition, in violation of public procurement laws.
Additionally, payments were made based on false measurement reports and fake bills without proper verification of the actual construction progress.
At present, the project remains incomplete, dilapidated, and unusable, putting a significant amount of public investment at risk.
The accused individuals have been charged under the Corruption Prevention Act, 2002, with demands for imprisonment, fines, and recovery of the misappropriated funds. In cases where some defendants have already passed away, the authorities have sought compensation from their legal heirs as per the law.
CIAA spokesperson Suresh Nyaupane stated that strict action will be taken against those who misuse public funds and cause losses to the state.
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