The Commission for the Investigation of Abuse of Authority (CIAA) on Friday filed a corruption case against six individuals, including Sunil Paudel, the then executive director of the National Information Technology Centre, over alleged irregularities in the procurement of “high-compute infrastructure” equipment.

According to the CIAA, the accused allegedly embezzled around Rs160 million during the fiscal year 2019-20 procurement process. The case was filed at the Special Court, with the CIAA seeking a recovery of Rs158.85 million and corresponding imprisonment and fines.

The defendants include former centre officials—director Saphal Shrestha, assistant director Ramesh Pokharel, computer engineer Ramsharan Gayak, and accounts officer Nim Bahadur Oli—as well as Arun Shrestha, chairperson and managing director of World Distribution Nepal Pvt Ltd, the company that received the contract.

CIAA spokesperson Rajendra Kumar Paudel said the officials invited tenders in collusion with the contractor. A cost estimate of Rs310 million was prepared and the contract was awarded to World Distribution Nepal for Rs306.56 million on January 29, 2020.

The commission found that the centre procured overpriced and substandard equipment, violating the original specifications and contract terms.

Paudel, then the executive director, has been named the main offender, and the CIAA has sought additional punishment for abusing his authority.

He is already serving a sentence in Dillibazar Jail after being convicted in earlier corruption cases.

The CIAA had arrested Paudel in 2023 and has since filed multiple cases against him, most of which have resulted in convictions. A case concerning Nepal Telecom’s billing system, however, remains sub judice.

Paudel, who was appointed managing director of Nepal Telecom shortly after leaving the Information Technology Centre, was later suspended and dismissed following his arrest.

Investigations revealed that he colluded in awarding technology-related contracts in both institutions, causing substantial financial loss to the state coffers.