Communist Party of Nepal (UML) Returns Over NPR 38.5 Million for VIP Medical Treatment Expenses Abroad
The Communist Party of Nepal (UML) has refunded more than NPR 38.5 million to the state treasury, covering the overseas medical treatment costs of former President, former Prime Minister, and Jhalnath Khanal. The Commission for the Investigation of Abuse of Authority (CIAA) is currently investigating the illegal medical expenses incurred by VIPs, and a decision to drop the case may be made soon. The Supreme Court had annulled the directive allowing government payment for VIPs’ overseas medical treatment on April 27, 2026 (14 Baisakh 2083). Kathmandu, May 21.
Following the CIAA’s investigation, UML refunded the treatment expenses previously paid from the state treasury on behalf of former VIPs. According to Nepal Rastra Bank, on May 15, 2026 (1 Jestha 2083), UML returned to the state treasury the amounts paid for the medical expenses of three former officeholders. Nearly NPR 40 million was deposited in Nepal Rastra Bank as reimbursement for the overseas treatment of former President Dr. Ram Baran Yadav, former Prime Minister KP Sharma Oli, and Jhalnath Khanal.
Complaints had been filed alleging that, in violation of existing laws, VIPs’ overseas medical treatment expenses were borne by the state treasury. The CIAA was investigating these claims. “There was significant pressure on us and other senior officials to complete the investigation promptly and file a case concerning the unauthorized payment for medical expenses,” said a senior CIAA official. UML refunded NPR 6,525,000 in the name of former President Dr. Yadav, NPR 23,935,714 for former Prime Minister KP Sharma Oli, and NPR 8,139,155 for Jhalnath Khanal.
According to sources familiar with the CIAA, “A decision to drop the case may be taken soon.” Secretary of UML Central Office, Bhisma Adhikari, stated he was unaware of the refund. When asked whether the payment had been made via checks signed by him and others, he replied, “I need to inquire further before I can comment.” Senior advocate Dhruvalal Shrestha and others had lodged complaints with CIAA accusing VIPs of exploiting the state treasury.
Sources close to the CIAA noted that the controversy over medical expenses incurred by President Ramchandra Paudel during his treatment in India remains unresolved. President Paudel has already announced his intention to personally pay approximately NPR 6 million of his medical costs. Additionally, the CIAA is investigating complaints related to former Deputy Prime Minister Narayan Kaji Shrestha’s treatment expenses in Japan and former Minister Barshaman Pun’s treatment costs in China.
