The Central Investigation Bureau (CIB) is looking into claims of fraud over medical screening fees involving 750,988 Nepali workers who want jobs in Malaysia. It is claimed that Rs 1.69 billion was sent from Nepal to Malaysia in 17 transactions linked to these fees.
Investigators are examining claims that workers were charged extra fees for required medical exams, more than the amounts set by the government. They are looking into how health service providers and companies were involved in the process, and how much money was approved and sent abroad.
So far, four people have been arrested and are being investigated for alleged fraud and organised crime.
Four arrested as CIB investigation begins
The arrests include:
Kailash Khadka (42) of Kageshwori Manohara Municipality-1, Kathmandu.
Rabindra KC (40) of Changunarayan Municipality-9, Bhaktapur.
Praveen Tiwari (42) of Gorkha Municipality-3.
Ram Pukar Tiwari (45) of Malangwa Municipality-4, Sarlahi.
The investigation began after a letter from the Office of the Prime Minister and Council of Ministers and a complaint from Development Ranabhat and others.
“We received complaints from people about how the suspects were charging more than the required fees set by the government,” said Anupam Shamsher Rana, spokesperson for the CIB and Senior Superintendent of Police.
Investigators allege that a “Bio-Medical Service Charge” was charged to those undergoing medical screening in the name of MacroTech Pvt Ltd.
The CIB says the investigation is still at a preliminary stage.
Nearly 751,000 workers allegedly affected
Investigators claim that 750,988 Nepali workers were allegedly overcharged for medical screening.
They are looking into how 36 health institutions became involved in the screening process and whether they were officially allowed to charge extra fees under Nepal’s laws and bilateral agreements.
During the investigation, it has been claimed that workers were charged extra fees. When the government fixed the medical exam price at Rs 4,500, they were charged an extra Rs 2,500, bringing the total to Rs 7,000. When the price rose to Rs 5,500, they were charged an extra Rs 3,000, bringing the total to Rs 8,500.
Later, when the government set the fee at Rs 6,500, they were charged an extra Rs 3,500, bringing the total to Rs 10,000.
These extra charges are what is currently under investigation.
Rs 1.69 billion sent to Malaysia in 17 transactions
Investigations have revealed that Rs 1,690,224,026 was sent to Malaysia in 17 transactions.
The funds were sent from a Nepali bank account to Bestinet’s account at Malayan Banking Berhad in Malaysia by telegraphic transfer.
The first transaction took place on 27 February 2020, when about Rs 104 million was sent abroad. The biggest amount, around Rs 283 million, was sent on 26 December 2022.
The final transaction took place on 22 May 2024. Since that date, no further overseas transactions have been recorded, but extra fees were allegedly still being charged.
The money was allegedly sent after applications were submitted to the Nepal Rastra Bank. Investigators are examining how much documentation was provided during the transactions and whether they were approved with accurate information.
They are also investigating whether the money transfers followed foreign exchange rules.
Concerns over workers getting refunds
Concerns have been raised about whether workers received the refunds set out in the labour agreement between Nepal and Malaysia.
The agreement says employers should refund workers for the security screening and medical examination in Nepal, as well as their first month’s salary.
However, investigators claim there is no evidence that the affected workers received the refunds.
If it is proven that they were not refunded, this would add another layer to the case. Workers may have incurred costs while looking for jobs.
The investigation is examining how much extra was charged in Nepal.
Dispute over extra charges
There is a dispute about the extra charge for biomedical services.
The CIB is investigating claims that workers were charged extra fees above the government-set rates, while earlier reports said labour ministry officials stated that MacroTech had official approval from a joint technical committee to charge the biomedical service fee.
The Malaysian Embassy in Kathmandu has also said that the 36 health institutions in Nepal were officially approved to carry out medical tests and charge extra service fees.
This shows that although a payment system existed, it still needs to be determined whether certain charges, amounts and transfers were legal. The investigation has not yet reached any conclusions on this.
Earlier investigation reported missing
In the past, there was an investigation into irregularities in medical screening for overseas jobs.
A taskforce led by former Labour Ministry joint secretary Upendra Paudel visited the 36 health institutions and collected documents. Separate reports were made for each institution.
The taskforce suggested further investigations into possible offences such as fraud, organised crime, foreign exchange offences and money laundering.
However, the report was left unaddressed for a long time before it was reported to have gone missing from the Labour Ministry. This led the Prime Minister’s Office to ask the CIB to investigate.
Investigators are examining how the report was handled and whether any evidence or official documents were hidden.
No conclusions have been reached on who is responsible for the report going missing.
Medical screening fees reduced
In December 2025, the government lowered the price of medical examinations for people who want to work in Malaysia from Rs 9,500 to Rs 6,500.
The earlier investigation raised concerns about inconsistent fees being charged and alleged irregularities at the health institutions.
The investigation is now looking into whether workers were still charged extra and whether the regulations were being followed.
If more evidence emerges, other offences could be examined, but for now the four people arrested are being investigated for alleged fraud and organised crime.
What happens next?
The case brings attention to worries about Nepali migrant workers and how the fees for medical screening are regulated. It also points to concerns about large amounts of money being sent abroad.
The investigation will examine how the fees were approved, who got the money, whether workers were given refunds, and whether any laws were broken.
This could affect hundreds of thousands of workers and how they are held responsible for recruitment costs.
The allegations are still being investigated, and any criminal responsibility will depend on the evidence.