Nepal Police have detained eight individuals, among them a former General Manager of the Dairy Development Corporation (DDC), over suspected financial irregularities that have cost the state owned company more than Rs 121.3 million.
The suspects were taken into custody by the Central Investigation Bureau (CIB) on Friday after arrest warrants were issued by Kathmandu District Court.
A preliminary investigation found that the suspects collaborated in groups to cause losses of Rs 121,343,530 to the organisation for their own illicit gain.
Primary suspect
The primary suspect is Sanjeev Jha, a former General Manager of DDC who now leads the Administration and Management Department.
The others arrested were former officials who over saw cold storage centres as well as employees of the organisation.
They are as follows:
- Sanjeev Jha – Former General Manager and current head of Adminstration and Management Department
- Bijay Kumar Yadav – Former In Charge of Simle Cold Storage Centre
- Manhari Sharma – Former In Charge of Bhaktapur Cold Storage Centre
- Ram Kewal Raya – Former In Charge of Chanauli Cold Storage Centre
- Jitendra Kumar Yadav – DDC Employee
- Nabin Raya Yadav – DDC Employee
- Shivanandan Raya – DDC Employee
- Bikha Bahadur Bhandari – DDC Employee.
- Arrests made across four districts
The CIB arrested the eight at various locations in Kathmandu, Kaski, Sarlahi and Chitwan districts.
The bureau stated that its preliminary investigation showed former senior officials, cold storage centre heads and other employees had joined forces to build an organised structure for illicit financial gain.
The investigation is examining allegations of abuse of position and of causing financial harm to the organisation.
Investigation proceeding under criminal breach of trust and organised crime act
The probe into those detained was carried out under the criminal breach of trust clauses of the National Penal Code, 2017 and the Organised Crime Prevention Act, 2013.
The arrests followed the receipt of legal authorization from the Kathmandu District Court.
The CIB has kept up its investigation to determine the roles the individuals played and how the financial discrepancies came about.
Dairy Development Corporation under examination
The recent arrests have brought the financial management of the Dairy Development Corporation a state run entity that collects, processes and distributes dairy products back into the spotlight.
The organisation has also drawn concern because of delays in paying dairy farmers.
This has resulted in financial difficulties and delayed payments.
The investigation into the alleged discrepancies of Rs 12.13 crores may reveal further details about how the organisation operates financially and who was involved.
The allegations against those arrested will be investigated.