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Germany warns of strict action over reputational damage caused to passport printing company

KATHMANDU:- The German Government has expressed its objection to the Nepalese government, saying that two German companies that were awarded the contract to print Nepalese passports have been accused of corruption “without evidence.”

The German Foreign Ministry summoned Nepal’s Charge d’Affaires (Acting Ambassador) in Germany, Sagar Prasad Phuyal, to its office on Thursday and expressed strong protest over the incident, along with a written letter expressing its objection.

The Diplomatic notes, Concern letters sent to the Nepalese government through the Nepali Embassy in Germany states that it is seriously concerned about the corruption cases filed in Nepal against the German government-owned company ‘Verodos’ and another private German company ‘Mühlbauer ID Services’.

The German government’s protest letter states that although the case was filed for corruption in the passport contract, the charge sheet submitted to the court did not mention any evidence of corruption.

The letter sent to the Nepal government states, “Our company has not committed any corrupt act. Therefore, there is no evidence mentioned in the charge sheet.”

The letter expresses its protest against the damage to the company’s reputation by accusing employees of the German company. Similarly, the German government has also warned that if contracts with German companies are systematically canceled, it will lead to complex legal and financial risks.

The German Foreign Ministry has also warned that German companies will be forced to take strict action to compensate for the damage to their reputation and commercial losses if the contract is canceled.

In a written protest letter handed over to the acting ambassador of Nepal, the German Foreign Ministry has informed that its company’s employees will be coming to Nepal next week to carry out ‘Project Live’ (to start printing new passports) and has also emphasized ensuring the safety of these employees.

Due to pressure from Prime Minister Balen Shah, the CIAA has already filed a case in a special court regarding the passport contract.

Two German companies have been awarded the contract for printing passports. Under Package 1 of the procurement process, Mülbauer ID Services was awarded the contract for the pre-enrollment, enrollment, and data management system of passports.

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