The Commission for the Investigation of Abuse of Authority (CIAA), which is investigating suspected financial irregularities in the passport procurement process, has summoned former foreign minister Arzu Rana Deuba and representatives of two German contractors involved in the e-passport deal.

A CIAA team visited Deuba’s residence in ward 2 of Budhanilkantha Municipality and served a notice requiring her appearance for questioning. Ward chair Rajendra Shrestha said the commission served the notice in the presence of ward representatives on Tuesday, instructing her to appear within three days. The notice states she has been asked to appear at the CIAA office in Tangal, Kathmandu, for questioning in connection with corruption allegations.

Arzu has reportedly informed the commission via email that she would not be able to appear within three days. According to CIAA sources, she informed the commission that she is currently abroad for medical treatment and will not be able to appear within the given deadline.

She said she will cooperate with the investigation, but cannot return to Nepal immediately due to health reasons, according to a CIAA official.

Arzu and her husband, former prime minister Sher Bahadur Deuba, who is also under investigation on suspicion of money laundering, are believed to be in Hong Kong.

They had earlier written to the Department of Money Laundering Investigation, stating that they intend to return to Nepal within two months and asked authorities not to create obstacles that could prevent their return.

The CIAA has also summoned two German companies that won the passport contract, along with their representatives who signed the agreement. A notice published in the state-owned English daily The Rising Nepal on Thursday directed the companies to contact the commission as part of the investigation.

The firms named in the notice are Muehlbauer ID Services GmbH and Veridos GmbH. Their representatives have been asked to either appear in person or virtually. The notice warns that failure to comply would result in further legal action under prevailing laws.

According to the CIAA, the companies and their representatives have already been informed of the summons via email.

Under the agreement signed on June 6, 2025, the e-passport printing project was divided into two packages. Muehlbauer was responsible for pre-enrolment, enrolment, data management and delivery systems, while Veridos handled printing, procurement, quality control and packaging systems.

The CIAA has also summoned German representatives Gerhard Maurer and Pavle Rakic from Muehlbauer, and Fabiola Bellersheim and Florian Pacquelin from Veridos.

The commission has already arrested four individuals in connection with the case and continues its investigation after securing custody extensions from the Special Court.

Those arrested include former director general of the Department of Passports Tirtha Raj Aryal, Director Sunil Kumar KC, Nepali representative of Muehlbauer Manindra Raj Malla, and former accounts officer of the department Tulsi Prasad Acharya. Another Nepali representative, Siddhartha Thapa of Veridos, remains absconding.

CIAA sources said more than 35 individuals are under detailed investigation, while statements of over 20 officials and company representatives have already been recorded. Preliminary findings suggest irregularities worth around Rs7.75 billion in the passport procurement process.

Sources also said complaints regarding the contract had been lodged with both the Prime Minister’s Office and the CIAA, prompting government interest in the matter. A team from the Prime Minister’s Office reportedly inspected the Department of Passports and reviewed the stock and procurement conditions.

According to sources, Prime Minister Balendra Shah instructed CIAA Chief Commissioner Prem Kumar Rai and other officials at the Prime Minister’s Office to expedite the investigation, after which the probe was intensified.

The Department of Passports said the contracts were signed with Veridos for Rs1.60 billion and Muehlbauer for Rs6.15 billion. The German firms were required to deliver the first batch of passports within 240 days of signing the agreement, but failed to do so.

Due to delays, the former interim government led by Sushila Karki procured 700,000 passport booklets from the old supplier, a French company. The French firm IDEMIA—now known as IN Smart Identity France SAS has been printing Nepali passports since 2021.

A monitoring team from the Prime Minister’s Office concluded that the German companies were unable to print passports or transfer the required data systems. Officials at the Department of Passports said the remaining stock is only sufficient for around three weeks, warning of a potential shortage.

“As the agreement with the French company had already expired, we had informed Foreign Minister Shishir Khanal that a passport crisis was likely to emerge,” said a department official.

The German company had signed a contract to supply 6.4 million passports within five years. CIAA sources claimed that irregularities were committed even at the stage of awarding the contract. The commission said its investigation is also focused on concerns over the quality of passports and their accessibility under the agreement.

“We are also investigating whether the company that won the contract, acted in collusion, and failed to carry out work as per the agreement,” a CIAA official said.

After two German firms were implicated in the passport procurement case, German Ambassador to Nepal Udo Volz has sought a meeting with Foreign Minister Shisir Khanal. Volz’s request has already been received by the Foreign Ministry, but officials declined to disclose when the meeting will take place.

On Monday, Volz reached the Prime Minister Office seeking a meeting with the prime minister. He was reportedly made to wait for hours. An official at the PMO said the ambassador had arrived without an appointment and without observing due protocol.