Nepal seeks German Embassy’s help to resolve passport payment dispute

Summary

नेपाल’s government has asked the German Embassy in Kathmandu to help resolve a Rs300 million payment dispute with Muehlbauer ID Services GmbH over the e-passport system. The standoff, tied to an ongoing corruption case, could disrupt passport issuance nationwide if services are suspended.

Key Points
  • The government owes Muehlbauer ID Services GmbH about Rs300 million for Nepal’s e-passport system but has withheld payment because of an ongoing corruption investigation.
  • Foreign Secretary Amrit Bahadur Rai said the government approached the German Embassy in Kathmandu after the CIAA and the Office of the Attorney General did not give clearance for payment.
  • Muehlbauer has warned it may suspend services, which could disrupt passport issuance nationwide, while local employees have also warned of a strike over unpaid salaries.
  • The dispute has wider diplomatic implications for Nepal-Germany relations and could extend under the bilateral investment treaty if unresolved.
Article image