IDEMIA's tax violations raise serious procurement oversight issues
Summary
Nepal's Department of Passport is transitioning from IDEMIA's e-passport system to a new German consortium system due to procurement and tax compliance controversies involving IDEMIA.
Key Points
- Nepal's Department of Passport has started migrating from IDEMIA's e-passport system to a new system by Veridos GmbH and Muehlbauer.
- The German consortium's bid was significantly cheaper by approximately Rs. 190 crore than IDEMIA's bid, benefiting the government financially.
- IDEMIA allegedly failed to submit mandatory VAT/PAN and tax clearance certificates during the tender process, raising procurement compliance issues.
- The Auditor General reported outstanding tax liabilities of IDEMIA's Nepal permanent establishment amounting to over Rs. 44 crore across fiscal years, causing further scrutiny.
