KATHMANDU, Dec 2: Last week, the public faced significant difficulties as they were unable to access online passport forms and related services. The disruption, which lasted for a week, was attributed to a hacker attack and a virus infection in the software system, causing widespread inconvenience.
The Department of Passport under the Ministry of Foreign Affairs (MoFA) announced that it has managed to restore operations after extensive efforts.
In a notice issued on Thursday, the department informed that passport services would resume in all districts starting Friday. According to the department, operations have returned to normalcy in 201 units across all districts, including missions and the central office, as of Friday.
Sources allege that IDEMIA, the company managing the Department's software, intentionally created a technical issue and blocked the system under the pretext of a hacker attack as the tender notice for e-passports approached.
“It raises suspicions that they caused technical issues for an entire week, claiming it was due to hackers and a virus, only to resolve the problem two days before the tender notice was released,” said a government computer engineer. According to the engineer, the software system issues were resolved only after the Department’s tender notice, published on Thursday, appeared to favor IDEMIA.
Sources allege that IDEMIA, which has dominated Nepal’s passport printing and software management for over 15 years, has made significant efforts to secure a new tender. The company is accused of influencing the tender process by deliberately causing disruptions in the Department of Passport’s software system to gain a favorable position.
Technical experts from Idemia to examine software at passport d...
According to insiders, IDEMIA had previously increased its profits by printing additional passport variations beyond the scope of tenders. The department issued two tenders on Thursday, with a controversial provision in point 9 allowing a single company to be eligible for both tenders if it meets the criteria. Experts claim this provision seemingly favors IDEMIA, which currently manages the software system.
"This type of clause has never been included in such large-scale tenders before. The technical issues were likely orchestrated after the Department discovered irregularities in the information provided for software management and hardware integration," a government computer engineer said.
The engineer further said, “If the Prime Minister seeks clarification on this matter, any computer engineer in Nepal can verify what truly happened.”
Director General of the Department of Passport, Tirtha Raj Aryal, dismissed allegations linking the recent software disruptions to the tender process. He clarified that the tender issuance process is a lengthy procedure involving thorough discussions, technical evaluations, and adherence to regulations.
“The tender was issued following the established rules and cannot be connected to the software issue seen a few days ago,” Aryal said. He said that the recent tender is part of a new competitive process and unrelated to the existing software management.
Aryal also refuted claims that the current service provider, IDEMIA, deliberately caused the software issue. “There is no reason for the company to create problems. Such actions would tarnish their reputation, and if proven, they would face serious consequences, including blacklisting,” he said. Aryal reaffirmed that the company has a responsibility to maintain its credibility and adhere to its contractual obligations.
The recent passport software disruption has raised concerns over IDEMIA’s influence and transparency in the tender process. Sources allege that after the software issue surfaced, IDEMIA's Nepal representative, Siddhartha Pandey, leveraged the situation to pressure the Department. This reportedly led to the inclusion of a controversial clause—point number 9—in the tender document, allowing a single company to qualify for both tenders.
An employee at the Department said, “The tender was crafted to favor IDEMIA under unspoken pressure. The department appears to have succumbed to their influence, indirectly impacting public services. This can be seen as a subtle form of blackmail targeting the government.”
Compounding the controversy, the department failed to formally notify key agencies like the Cyber Security Center and the Information Technology Center about the issue. Instead, it informally sought assistance from a computer engineer. While technicians from both agencies offered informal support, they were reportedly denied access to IDEMIA's software system, limiting their ability to diagnose the problem.
A government computer engineer highlighted the lack of transparency:“Nepali engineers were not given access to IDEMIA's software system. Only IDEMIA employees, some of whom are Nepalis, had access.” Similarly, an employee from the Information Technology Center said, “Since we were not formally involved, we couldn’t investigate the issue or prepare a comprehensive report. Without access to the system, we could only provide limited insights.”
The employee further alleged that IDEMIA may have orchestrated the disruption to manipulate the government. “Blaming hackers for system failures without evidence and avoiding an investigation points to IDEMIA's attempt to pressure the government to secure favorable terms in the tender process,” the employee said.
IDEMIA's influence and monopolization in passport department
New revelations have intensified scrutiny over IDEMIA’s long-standing monopoly in Nepal's passport services. Reports suggest that IDEMIA financed a Europe trip for a dozen employees of the Department during the preparation of tender documents. The employees reportedly traveled to New Delhi, Paris, and the Czech Republic, returning to Kathmandu on September 23 via Vistara Airline.
Sources claim these trips were part of an effort to influence the tender process, allegedly providing perks to department employees. Director General Aryal said, “The employees went for training on the new system, with expenses covered by the company’s management and the Nepal government.” However, critics argue the trips were unnecessary and coincided suspiciously with the tender preparations.
In addition, high-ranking officials, including the Director General, reportedly visited Bangkok and the Philippines at the expense of companies participating in the tender. IDEMIA’s history of alleged favoritism and collusion has been highlighted by sources who accuse the company of exploiting its influence within the department to secure favorable terms for over a decade.
The Auditor General’s annual report previously flagged irregularities involving IDEMIA, including printing passports far beyond the quantities stipulated in tenders. This practice reportedly resulted in financial mismanagement through unauthorized variations. The allegations emerge amid a period of disruption in the passport department, where thousands of citizens seek passport services daily.
