नेपाल सम्वत् ११४५  तछलागाः १२.९ (असार ८, २०८२ ) जून २२, २०२५ ,आइतबार, बाँपीझ्याला । A French technology company, IDEMIA Smart Identity, is facing public backlash in Nepal after it lost out on two key contracts related to biometric passports in a recent tender process. The Department of Passport (DoP) awarded Package 1, for the enrollment system, to Germany's Muehlbauer, and Package 2, for the supply and personalization of e-passport booklets, to Veridos, another German company. IDEMIA contested the decision, first through legal channels and later through media, alleging the tender process was unfair and questioning its transparency. They claimed procedural ambiguities might have disadvantaged their bid.

In response, DoP officials and procurement experts have firmly rejected IDEMIA's claims, asserting that the process was both fair and transparent. The department addressed IDEMIA’s complaint with a detailed reply, defending the integrity of the process and rejecting the allegations as unfounded. One of the main points of contention raised by IDEMIA was the bid opening date, which they claimed was unclear. However, the tender's guidelines clearly stated the date as the day of submission, a standard international practice. Procurement officials believe IDEMIA's claims are part of a deliberate misinformation campaign to create public doubt and apply media pressure.

A further layer of controversy surrounds IDEMIA’s contract with Nepal, where the company delivered 3.1 million passports in 2023 under a variation order sanctioned by the Cabinet. This exceeded the original contract, which covered only 2 million booklets, and came at a significantly higher price. The cost per booklet under the variation was USD 10.13, compared to the USD 6.83 it offered in its new bid. Despite justifying the higher price through "system upgrades" and additional services, DoP officials argue that such upgrades do not justify the significant price differential, suggesting that Nepal may have overpaid by around USD 10.3 million.

In an effort to substantiate its claims, The Himalayan Times (THT) has asked IDEMIA to provide detailed documentation, such as Bill of Quantities (BoQ), VAT invoices, and third-party verification. As of now, IDEMIA has not responded or provided the requested documentation. Experts have pointed out the broader implications for accountability in public contracting, particularly with the misuse of variation orders, which are typically meant for emergency situations. Excessive or commercially motivated variation orders can lead to major concerns over ethical conduct and potential legal violations, raising questions about the integrity of the procurement system in Nepal.