KATHMANDU, JUNE 25 The tentative go-live date for Nepal's e-passport project has been slated for the second week of July, with implementation timelines understood to depend on the depletion of existing passport stock. According to official figures, approximately 550,000 passport booklets supplied by Veridos are currently stored in the Department of Passports (DoP) vault. According to sources at Ministry of Foreign Affairs (MOFA), the German Federal Foreign Ministry has summoned Nepal's Chargé d'Affaires in Berlin, Sagar Prasad Phuyal, to convey its concerns regarding the corruption case filed in Nepal against Veridos GmbH in connection with the Department of Passports' e-passport procurement project. According to sources, German officials strongly criticized the charges filed against Veridos, describing the allegations as baseless and expressing astonishment that no substantive evidence had been presented in the charge sheet. The German side reportedly stated that the case appears to be built largely on assumptions rather than demonstrable facts and questioned the basis upon which corruption allegations had been advanced against the company. German officials also reportedly expressed concern over what they described as the targeting of Veridos employees, arguing that the charges and accompanying publicity had caused significant reputational damage to the company and its personnel. The German side further sought assurances regarding the safety and security of Veridos employees scheduled to travel to Nepal in the coming week to support the implementation and go-live phase of the e-passport project. According to sources, German officials also warned that any premeditated termination of the existing contract could expose Nepal to substantial legal and financial risks. Germany reportedly conveyed that such a move could compel the affected parties to pursue compensation claims for contractual losses, damages and reputational harm. In response, Chargé d'Affaires Phuyal reportedly informed German officials that he would refer the matter to Nepal's Ministry of Foreign Affairs at the earliest opportunity. Bail hearing continues at special court Meanwhile, proceedings at Nepal's Special Court concerning bail applications filed by individuals charged in the case continued on Thursday. Sources at the court said arguments on behalf of Department of Passports Director General Tirtha Raj Aryal and Legal Officer Raja Ram Dahal have concluded. Hearings relating to six additional Department officials, as well as businessman Manindra Malla, were still ongoing at the time of publication. The hearings have attracted significant attention given the potential implications for the implementation of Nepal's e-passport programme and the future of the contracts awarded under the project. Questions raised over charges against Malla The case has also generated questions regarding the inclusion of businessman Manindra Malla among those charged. According to individuals familiar with the investigation, officials from Muehlbauer informed investigators from the Commission for the Investigation of Abuse of Authority (CIAA) that Malla was neither their agent nor their authorized representative in Nepal. Sources further claim that during CIAA questioning of Muehlbauer officials, investigators primarily focused on whether Malla represented the company in Nepal, to which Muehlbauer reportedly responded in the negative. Observers have questioned the basis on which Malla was charged and continue to ask why he remains in custody if he did not formally represent Muehlbauer in relation to the procurement process. Passport inventory remains sufficient Despite the ongoing legal proceedings, passport inventories remain available. DOP sources indicate that approximately 70,000 passports are currently stored in the Department of Passports' vaults. In addition, a further 19,000 passports are expected to be supplied by IDEMIA as compensation for previously damaged passport stock. Officials familiar with the project say the existing stock is sufficient to meet current demand in the immediate term. Based on an average daily consumption of approximately 3,000 passports, the current inventory provides Nepal with more than 25 working days of operational buffer before existing stocks are exhausted, providing authorities with additional time to bring the new e-passport project into operation. Government faces difficult procurement calculus The controversy has also reignited debate regarding the financial implications of the procurement process. According to bid records cited by sources, IDEMIA submitted a proposal valued at USD 67.69 million without discounts and USD 56.81 million after discounts for the combined packages. By comparison, the combined bid submitted by Muehlbauer and Veridos amounted to USD 55.11 million. The figures indicate that the Veridos-Muehlbauer combination remained approximately USD 1.7 million cheaper than IDEMIA's discounted proposal, equivalent to roughly NPR 256 million. Without the discount, the difference exceeded NPR 1.9 billion. These figures have added to the government's dilemma as officials weigh the future of the project amid ongoing legal proceedings and an approaching implementation deadline. Separate questions remain over past payments The case has also renewed attention on unresolved questions concerning alleged payments made by IDEMIA to intermediaries through entities in Hong Kong and Singapore over a period spanning nearly seventeen years. One entity that has drawn particular attention is Capital Biz Solutions, a Singapore-registered company. According to records obtained from Singapore's corporate registry, the company is owned by five Nepali nationals: Siddhartha Pandey, Arjun Gurung, Sharad Gurung, Bippin Bassi and Bijay Raj Pant. Documents reviewed by this publication, including corporate records and invoices, indicate that Capital Biz Solutions received brokerage payments from IDEMIA through Singapore. Corporate filings identify the company's shareholders and directors and contain registration information associated with the business. According to sources familiar with the records, filings also disclose identifying information relating to the company's owners maintained as part of corporate registration requirements. The existence of these payments and the role played by Capital Biz Solutions have become a subject of renewed interest amid the ongoing controversy surrounding Nepal's passport procurement process. Questions remain regarding the nature of the services provided, the legal and regulatory framework governing such payments, and whether any Nepali laws or procurement regulations were implicated. Neither IDEMIA nor representatives of Capital Biz Solutions had publicly responded to these matters at the time of publication. According to sources, the Central Investigation Bureau of Nepal Police is also investigating payments made to Nepali brokers including Siddhartha Pandey by IDEMIA as brokerage fees in Singapore to Capital Biz Solutions owned by five Nepali nationals. Diplomatic, legal and financial stakes continue to rise As court proceedings continue and the planned launch of Nepal's upgraded e-passport infrastructure approaches, the procurement dispute is increasingly evolving from a domestic legal controversy into a matter carrying diplomatic, financial and operational implications. The German government's direct intervention through diplomatic channels, coupled with ongoing court proceedings and questions surrounding competing bidders, has placed the Nepal government in an increasingly difficult position. Any decision relating to contract implementation, suspension or termination is likely to carry significant legal, financial and diplomatic consequences at a time when Nepal is preparing to operationalize one of its most important public service modernization projects.