KATHMANDU, May 17: The Telecommunications Traffic Monitoring and Fraud Control System (TERAMOCS) has revealed signs of corruption. It serves as an example of how political leadership at the government level pressures employees to make decisions on matters beyond their authority.
Exercising powers they did not possess, the then Minister Mohan Bahadur Basnet decided to implement a mechanism and system to control call bypass (VOIP) without consulting or seeking input from the employees or officials involved in the decision-making process.
After being approved on September 8, 2017, the file was kept on hold for nearly a month and was only processed on October 3, 2017 by the Secretary, who then issued an order to the Administration Branch the same day.
That same day, the Administration Branch, through Letter No. 77, gave approval to the Nepal Telecommunications Authority (NTA) for the annual program. Thus, a month later, the Minister, Secretary and Administration Branch exercised authority—which the Minister did not have—to grant approval for the annual program to the NTA in a single day.
An analysis of the time the file was on hold at the Minister’s office shows that during that period, the then NTA Chairman Digambar Jha submitted a proposal on September 17, 2017, recommending that the annual program for Fiscal Year (FY) 2017/18 include TERAMOCS, with a cost of Rs 3.25 billion, and that a decision be made to send it to the Ministry for approval. The NTA board forwarded the proposal on September 18, 2017, for a decision.
In the meeting held on September 25, 2017, the proposal was discussed, but no decision was made. Even after the Minister had decided to add the program, it became clear—based on statements from co-accused Dhan Raj Gyawali and Tika Prasad Upreti—that there was pressure from the Minister to have the decision made through an NTA board meeting. As a result, Minister Basnet was automatically implicated.
Despite the pressure, the board meeting did not make a decision. Consequently, Minister Basnet approved the file on October 3, 2017, and on the same day, correspondence was sent to the NTA. The next day, October 4, 2017, the letter was registered at the NTA, and the board meeting held on the same day decided to proceed with TERAMOCS-related work.
It appears that under the plan of then-Minister of Information and Communication Mohan Bahadur Basnet, a collective conspiracy with malicious intent was formed by the then NTA Chairman Digambar Jha and board members Dhan Raj Gyawali and Tika Prasad Upreti. This is evident from their orders, meeting agendas, proposals, decisions, and the procedural steps taken to advance the procurement process—all clearly outlined in the charge sheet filed by the Commission for the Investigation of Abuse of Authority (CIAA).
Teramocs Procurement Case: When will Karki and Basnet appear at...
Mohan Bahadur Basnet’s Statement:
During my tenure, not only was it published that telecom service providers were bypassing calls and committing fraud worth billions of rupees, but several individuals, including Bangladeshi national Rubel Choudhary, were arrested in connection with revenue fraud. Against this backdrop, I agreed to the policy proposal brought by the NTA with the objective of stopping revenue leakage and maintaining financial discipline.
It is the responsibility of the NTA to act in accordance with financial regulations and relevant laws. According to Section 20 of the Telecommunications Act 1997, the government can issue directives to the NTA, and the government itself can operate or facilitate telecom services. With the aim of addressing call bypass, preventing revenue leakage, and increasing revenue, I supported the policy proposal brought by the NTA.
Among the service providers, while the number of Ncell customers increased, revenue decreased. Due to a reduction of approximately Rs 21 billion in annual revenue in FY 2021/22 compared to FY 2017/18, it became necessary to implement this technology to identify the actual causes of the decline. For this reason, I supported the proposal.
I am aware of the constitutional provisions related to confidentiality, but the method I approved or directed to prevent telecom service providers from bypassing calls and committing fraud is entirely separate from that issue. Regarding the right to privacy, the rights of all individuals must be upheld. While a legislature can enact laws for specific purposes targeting certain individuals or groups, my consent to the NTA was solely related to preventing revenue leakage and was not connected to any infringement of privacy rights.
Gokul Prasad Baskota’s Statement:
The NTA operates under separate legislation and is an autonomous institution. Therefore, the Ministry does not have representation in the formulation of its policies, programs, and budgets. Except for matters that fall under government policy, the Ministry can only offer non-binding suggestions to the NTA.
I am aware of fundamental rights related to information and also have general knowledge of the Supreme Court’s ruling that no one, except through judicial authorization, can access personal information beyond what is defined by law. In FY 2017/18, the TERAMOCS program was already included in the government’s responsibilities, implying an obligation to continue the program.
I have stated to the parliamentary committee and elsewhere that TERAMOCS is not currently necessary. It was initiated only due to significant revenue leakage. However, the responsibility to analyze and implement laws and court rulings lies with the NTA. I did not issue any orders or directives contrary to court decisions or laws. Since the process had begun before my tenure, I only gave my consent as per the rules based on the proposal presented.
Gyanendra Bahadur Karki’s Statement:
The NTA is an autonomous body responsible for preparing its budget and programs. It is also responsible for ensuring the legality of those proposals. When officials under my supervision complete their checks and submit proposals, I am obliged to approve them. I am not an expert in this field and cannot imagine being involved in violating anyone’s fundamental rights.
As far as I recall, while approving the annual program and budget for FY 2021/22, it was mentioned that a supplementary budget would be presented after the full court verdict was received. My comments regarding compliance with rules and procedures were aimed at implementing that verdict.
When the supplementary budget was presented to me, only remarks related to budget implementation were submitted—these had already been approved before I assumed responsibility for the ministry. Throughout my political career, I have acted in the best interests of the country and have not been involved in any corrupt practices.
Dhan Raj Gyawali’s Statement:
I served as an NTA board member from July 3, 2012, to October 4, 2017. The NTA has a Chairman, Chief Executive, Management Head, and Board Chair. Due to revenue leakage from international calls, particularly VOIP calls, a sample audit program was included in the FY 2017/18 annual program to address the issue.
However, there was no board proposal to implement any specific system, including TERAMOCS. While the FY 2017/18 program was under consideration at the Ministry of Information and Communication, the matter was raised in board meetings on September 18 and 25, 2017.
The Chairman repeatedly emphasized the need to implement such a system, claiming the Ministry had issued directions. However, due to the lack of detailed studies, uncertainty regarding implementation by service providers, and concerns over potential privacy violations, the board did not approve the matter.
In a board meeting on October 7, 2016, a decision was made to implement the Supreme Court’s order of November 7, 2015, directing service providers not to provide call details without a court order and to coordinate with relevant bodies to draft legislation. In this context, the board did not approve the matter due to the absence of detailed legal provisions, as accessing personal data without proper legal procedures would violate constitutional rights.
I did not consent to or make decisions regarding any system allowing access to personal information. I only gave theoretical approval to a proposal to control VOIP call bypass based on the Ministry’s written instructions.
I made no decisions regarding the purchase of any specific system, including TERAMAX. I lack technical knowledge, and the board did not hold detailed discussions on the matter. The responsibility for studies and implementing the Ministry’s directives lies with the Chairman and management. As I lack technical expertise, I have nothing further to add. I have not acted against the Supreme Court’s order.
I was not involved in procurement or payment procedures. I did not approve any supplementary budget. I acted in good faith throughout the process, without any malicious intent or involvement in corruption. I am ready to present the facts wherever required and respectfully request that this matter, as submitted by the CIAA, be forwarded to the relevant court.
