Kathmandu, Dec 6:
Nepal is once again grappling with corruption allegations linked to major infrastructure and technology procurements involving Chinese companies. The latest dispute centres on Nepal Telecom’s (NT) plan to acquire a new billing system worth an estimated NPR 5 billion, a process now under scrutiny for allegedly favouring Chinese telecom giant Huawei.
Nepal Telecom invited bids for the system on March 18, and of the two Chinese firms that competed—Huawei and Whale Cloud—only Huawei cleared the technical evaluation. This immediately sparked suspicion that the tender specifications had been crafted in a way that only Huawei could fulfil. Huawei already manages Nepal Telecom’s core network, raising additional concerns over conflict of interest.
Whale Cloud was disqualified during the technical assessment, and although Huawei’s financial proposal was scheduled for opening on September 24, 2025, the process was halted shortly after Communications Minister Jagadish Kharel took office on September 22. Citing “special circumstances,” he postponed the opening indefinitely.
In response to rising criticism, the Ministry formed a study committee on October 30, led by former secretary Maniram Gelal, to investigate the allegations. The committee submitted its report on November 20. According to a report by Online Khabar, the findings suggest the bidding documents had been tailored to match the specifications of a particular model from a specific company—reportedly Huawei. An unnamed NT official claimed the report clearly highlighted this issue.
Despite the allegations, Minister Kharel indicated he would not obstruct the procurement process, signalling that Huawei’s financial bid could soon be opened.
This controversy comes months after Nepal’s anti-graft body prosecuted 18 officials, including former NT managing directors, over irregularities in a previous billing system contract involving another Chinese company, Asia Info Linkage Technologies.
The broader pattern of disputes extends beyond telecom. A parliamentary subcommittee recently exposed massive irregularities in the Chinese-built Pokhara International Airport, a USD 215.96 million project financed by China’s EXIM Bank. Nearly three years after inauguration, the airport struggles to attract airlines, raising fears it may become a long-term financial liability for Nepal.
With multiple high-value projects under scrutiny, concerns are mounting about governance transparency and foreign influence in Nepal’s public procurement system.
