Nepal's Central Investigation Bureau (CIB) is investigating an alleged medical screening fee fraud said to touch 750,988 Nepali workers who sought jobs in Malaysia, with investigators claiming that Rs 1,690,224,026 — yaani about Rs 1.69 billion, or roughly Rs 169 crore — was sent from Nepal to Malaysia in 17 transactions linked to the fees. Four people have been arrested and are being investigated for alleged fraud and organised crime, the CIB said.
Source: 2daybulletin
How workers were allegedly overcharged
Investigators allege that a 'Bio-Medical Service Charge' was collected in the name of MacroTech Pvt Ltd on top of the government-fixed medical examination fee, through 36 health institutions. When the official fee was Rs 4,500, workers were allegedly charged an extra Rs 2,500, taking the total to Rs 7,000; when the fee rose to Rs 5,500, the alleged extra was Rs 3,000 (total Rs 8,500); and at a fee of Rs 6,500, the alleged extra was Rs 3,500 (total Rs 10,000). The CIB says the probe is at a preliminary stage.
According to investigators, the Rs 1.69 billion was sent by telegraphic transfer from a Nepali bank account to Bestinet's account at Malayan Banking Berhad in Malaysia, after applications were made to Nepal Rastra Bank. The first transfer, of about Rs 104 million (yaani Rs 10.4 crore), was made on 27 February 2020; the largest, around Rs 283 million (yaani Rs 28.3 crore), on 26 December 2022; and the last on 22 May 2024. Investigators are examining the documentation behind the transfers and whether foreign exchange rules were followed.
Four arrested after PMO letter and complaint
Police have arrested Kailash Khadka, 42, of Kageshwori Manohara Municipality-1 in Kathmandu; Rabindra KC, 40, of Changunarayan Municipality-9 in Bhaktapur; Praveen Tiwari, 42, of Gorkha Municipality-3; and Ram Pukar Tiwari, 45, of Malangwa Municipality-4 in Sarlahi. The Kathmandu District Court has allowed police to extend their detention for investigation, according to police. The case follows a letter from the Office of the Prime Minister and Council of Ministers and a complaint filed by 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 CIB spokesperson Senior Superintendent of Police Anupam Shamsher Rana.
Source: Fiscal Nepal
What is solid
- The CIB has opened an investigation and four men have been arrested for alleged fraud and organised crime
- Investigators say Rs 1,690,224,026 was transferred to Malaysia in 17 transactions between February 2020 and May 2024
- An earlier official taskforce had recommended investigating possible fraud, organised crime, foreign exchange offences and money laundering, and its report was later reported missing from the Labour Ministry
What is only claimed
- Whether the extra 'Bio-Medical Service Charge' was illegal: the CIB alleges workers were overcharged above government rates, while the Malaysian Embassy has said the 36 institutions were officially approved to carry out tests and charge extra service fees, and labour ministry officials had earlier said MacroTech had approval from a joint technical committee
- Whether workers received the refunds of screening and medical costs that the Nepal-Malaysia labour agreement provides for — investigators say they have found no evidence refunds were paid
Investigators are also examining whether workers received the refunds set out in the labour agreement between Nepal and Malaysia, under which employers are to refund security screening and medical examination costs and the first month's salary; the CIB says there is no evidence so far that the affected workers were refunded. The government had earlier, in December 2025, reduced the medical examination fee for Malaysia-bound workers from Rs 9,500 to Rs 6,500. No conclusions on criminal responsibility have been reached, and the investigation will examine how the fees were approved, who received the money and whether laws were broken.