CIAA Files Corruption Case against Former Udayapur Cement GM, Seven Others

The Commission for the Investigation of Abuse of Authority (CIAA) has filed a corruption case at the Special Court against eight former senior officials of Udayapur Cement Industry Ltd, including its then general manager Surendra Kumar Paudel, over the alleged embezzlement of a large quantity of clinker.

The anti-graft body said investigations confirmed planned misuse of public property and clinker embezzlement from fiscal year 2017/18 to mid-January 2021, prompting it to register the case.

Those charged include former general manager Paudel, acting general manager Nawal Kishor Sah, deputy general manager Mahesh Prasad Kafle, production division chief Sanjay Kumar Lal, store division chief Mahesh Prasad Sah, clinker production department chief Rabindra Paudel, cement production department chief Hari Prasad Adhikari, and sales division chief Ram Bahadur GC.

The CIAA has demanded the recovery of Rs 124.72 million from Paudel and Rs 126.37 million from deputy general manager Kafle. It has also sought the recovery of Rs 465.27 million jointly from acting general manager Sah and other accused.

CIAA spokesperson Suresh Neupane said the officials caused serious financial losses to the state-owned enterprise by misusing public property through collusion and deliberate intent.

According to the CIAA, charges have been filed under Section 17 of the Prevention of Corruption Act, 2002, seeking recovery of the claimed amount along with imprisonment and fines.

Paudel, who is currently the chairperson of Nepal Reinsurance Company, has been suspended from his post following the registration of the corruption case at the Special Court.

He was appointed chairperson of Nepal Reinsurance Company for a four-year term in September 2025. Prior to that, he served as executive director of the Nepal Oil Corporation and earlier as general manager of Udayapur Cement Industry.

Paudel worked at Udayapur Cement from February 2015 to January 2019. During his final two years there, the industry reported profits of Rs 140 million, and production capacity reportedly increased from 30 percent to 50 percent. He now faces corruption charges related to his tenure at the state-owned cement manufacturer.