The Department of Passports is all set to print and distribute the new passports procured from two German firms from next Monday despite intervention from the Prime Minister's Office and the Commission for Investigation of Abuse of Authority (CIAA).

Responding to lawmakers during discussions on the Appropriation Bill in the National Assembly on Tuesday, Foreign Minister Shisir Khanal said the Department of Passports would begin issuing passports under the new system next week.

The transition follows months of delay after the passport procurement process became embroiled in a controversy. Two German firms—Veridos GmbH and Muhlbauer ID Service GmbH—were awarded the multi-billion-rupee contract last year to supply passport booklets and the integrated passport management system, including hardware, software, biometric equipment and personalisation technology.

Implementation stalled after the CIAA filed a corruption case against 18 individuals, including representatives of the two German companies, over alleged irregularities in the procurement process. The issue later drew the attention of the Prime Minister's Office, further complicating the rollout.

Khanal said the government had postponed the transition because around 250,000 passport booklets from the existing supplier remained in stock when the current administration took office in March. Switching immediately would have resulted in a loss of around $2.5 million, at the rate of $10.13 per booklet, he said.

He also said the migration of personal data of around 20 million Nepali citizens to the new system required temporary suspension of passport services.

To facilitate the transition, the department has halted the collection of passport applications from Tuesday to Friday at the District Administration Offices and Nepal's diplomatic missions abroad. Services at the Department of Passports in Tripureshwar will also remain affected for two days.

Khanal said passport services could experience minor disruptions during the initial three-month "stabilisation period" after the new system goes live, but a dedicated technical team will remain on standby to resolve any problems.

Asked about the CIAA investigation and the corruption case pending before the court, Khanal said it would be inappropriate to comment on a matter that is sub judice. He, however, maintained that the government was implementing the contract in accordance with the agreement signed with the supplier.

The passport controversy also forced Khanal to cancel his planned visit to New York, where he was scheduled to attend the High-level Political Forum on Sustainable Development, organised by the Economic and Social Council, from July 7 to 15. A senior foreign ministry official said the minister decided to stay in Kathmandu as the passport issue demanded his immediate attention.

Meanwhile, lawmakers from the Rastriya Swatantra Party and the Nepali Congress demanded a parliamentary investigation into the passport procurement process, alleging large-scale financial irregularities.

RSP lawmakers Bikram Thapa and Khagendra Sunar and Nepali Congress lawmaker Janak Raj Giri urged the Public Accounts Committee to examine the procurement process and obtain all relevant documents from the Ministry of Foreign Affairs and the Department of Passports.

Calling the alleged irregularities a matter of national importance, Giri said the controversy involved issues of transparency, accountability and national security.

Sunar said delays in passport printing had caused significant hardship to citizens travelling abroad and called on the committee to determine the extent of losses suffered by the state and identify those responsible.

Thapa also urged the committee to closely scrutinise the procurement process and issue clear directives to the government over the delays and alleged financial irregularities.