CIB exposes serial e-procurement hacking

By A Staff Reporter,Kathmandu, May 2: The Central Investigation Bureau (CIB) of Nepal Police is investigating a major case involving alleged manipulation of the e-government Public Procurement Monitoring Office’s online bidding system to unlawfully secure government contracts.

According to the investigation, sensitive bid-related information was leaked through fake websites targeting the office’s online system, while financial proposals were also tampered with. 

Security officials investigating the scandal have discovered that confidential data was accessed and altered during the procurement process.

The CIB investigation reveals that an organised group obtained unauthorised access to details of participating companies, their bid amounts, and competitors’ offers. This information was allegedly used to contact contractors and “fix” tenders in exchange for money.

One of the CIB’s investigation officers on condition of anonymity said, the group created a counterfeit website resembling the government system to collect bid-related data. Contractors were then contacted via Gmail and WhatsApp, where they were informed of competitors’ bid amounts. The group reportedly demanded large sums of money in return for helping secure contracts, the sources said. 

According to the investigation, Diwakar Deuja was identified as the main suspect and mastermind behind this plotting. He had previously been convicted in a hacking case involving Nepal Telecom’s server system. Deuja, who was arrested in 2020 for illegally accessing and misusing telecom systems, is now accused of infiltrating the public procurement system and influencing tender processes.

Investigators say Deuja built trust with contractors by sharing competitors’ bid amounts, claiming he could alter financial proposals and guarantee contract wins. He allegedly charged between Rs. 8 and 9 million, often receiving payments through cryptocurrency. He is also reported to have provided login credentials, including usernames and passwords, to access the bidding system.

Under normal procedures, financial proposals cannot be changed after the bid closing date. However, the group allegedly used the unauthorized system to view and manipulate bid amounts before official opening, enabling them to undercut competitors and secure contracts.

Several construction entrepreneurs have also been linked to the case. Those under investigation include former minister and Kalika Construction operator Bikram Pandey, contractor Rishikesh Gauli associated with ADB projects, and Prakash Dhungana of Kalpabriksha Construction, among others.

Authorities suspect that in some contracts, bid discounts were manipulated by 3 to 5 per cent, resulting in gains worth millions of rupees. Sources also indicate that the Asian Development Bank (ADB) has suspended some procurement processes after detecting irregularities.

So far, the CIB has taken more than a dozen individuals into custody for investigation. Those detained include Sanjay Bhatt of Soli Thumka Construction Services, Sagar Katwal of Hamro Katwal Construction, Jivan Kumar Das of Gitanjali Construction, Anil Shrestha of Shivansh Construction, Tanka Kumar Shrestha of Bhisan Construction, Amrit Bohara of Chapur Construction Services, and Swadesh Pokharel, shareholder and accountant of Incon Pvt. Ltd. They are being charged under the Electronic Transactions Act and organised crime laws.

The scandal is now being viewed not just as financial misconduct by a few individuals, but as a major challenge to the credibility of the country’s entire procurement framework, raising questions about how secure transparency and fair competition truly are in government systems.