Irregularities of Over Rs 7.3 Million Found in Social Security Allowance Distributed to Deceased Individuals

An investigation has revealed irregularities amounting to Rs 7.33 million (Rs 7,337,627) in the distribution of social security allowances issued under the names of deceased individuals in Janaki Rural Municipality-9 of Kailali district.

According to the Commission for the Investigation of Abuse of Authority (CIAA), the allowances were distributed in collusion with local officials, including Ward Chairperson Khakendra Bhandari, who allegedly facilitated payments even after beneficiaries had died.

The CIAA has filed a case at the Special Court against eight individuals: Ward Chairperson Bhandari, Ward Secretary Prem Bahadur Budha, Ward Members Kalpana Khadka, Sunkosa Sarki, Bijay Bahadur Rawal, and Sher Bahadur Bishwakarma, along with Non-Gazetted Officer Purna Bahadur Bista and Office Assistant Sonam Kathariya.

False Renewals and Forged Fingerprints

The CIAA investigation found that between Fiscal Years 2074/75 and the second quarter of 2077/78 (2017–2021 AD), the accused distributed allowances using fake renewal documents. They continued to register deceased individuals as active beneficiaries and recorded their thumbprints on receipts to claim the payments.

The investigation revealed that Ward Secretary Budha, Chairperson Bhandari, and Office Assistant Kathariya abused their positions by manipulating records. They even registered the deaths of the same beneficiaries in the ward office while simultaneously renewing their eligibility for social security benefits.

The CIAA also found that some individuals were listed twice under the same citizenship number to receive double payments. Several beneficiaries who had not renewed their registration were falsely shown as active, and forged thumbprints were used in the official receipts.

Hundreds of Fake Thumbprints Identified

According to forensic analysis by the National Forensic Science Laboratory, Ward Secretary Budha applied 479 thumbprints using his own right-hand fingers — 280 with his right thumb and 199 with his right middle finger — to fake beneficiary signatures. Similarly, Office Assistant Kathariya used his right thumbprint 204 times to authenticate fraudulent documents.

The CIAA stated that allowances worth Rs 2.17 million were disbursed using Budha’s forged thumbprints, while Rs 781,200 was paid using Kathariya’s fingerprints.

Funds Deposited in Accounts of Deceased Beneficiaries

The investigation further revealed that Rs 1.55 million was paid through renewals under the names of deceased individuals, Rs 178,400 through duplicate records under the same citizenship number, and Rs 1.32 million through accounts of deceased beneficiaries that remained active.
Additionally, Rs 1.36 million was found in accounts of unrenewed beneficiaries from Fiscal Year 2079/80 (2022–23 AD).

Forgery and Misuse of Public Funds

The CIAA charged the accused with misappropriation of government property and use of forged documents, noting that Ward Chairperson Bhandari had certified false payment records and receipts.

The fake receipts, payment vouchers, and meeting minutes were all verified with signatures from Bhandari, Budha, Khadka, Sarki, Rawal, Bishwakarma, Bista, and Kathariya, showing coordinated efforts to create falsified reports and misappropriate public funds.

The CIAA has requested legal action under anti-corruption laws for causing losses to the state treasury through fraudulent distribution of social security allowances.