Investigation into Surya Silwal Scandals at Insurance Authority Still Pending
Kathmandu — The insurance sector provides a stark example of how extensive political interference has weakened Nepal’s financial institutions. Investigations into alleged misconduct by former Insurance Authority Chairman Surya Prasad Silwal, widely criticized by some as one of the most controversial figures in the sector, have yet to be fully pursued.
Silwal has faced allegations ranging from using funds from the insurance regulator to cover salaries and benefits for domestic staff working at his residence to involvement in various cases of alleged policy-level corruption within the Insurance Authority. Critics have also accused the leadership of the anti-corruption agency, particularly Chief Commissioner Prem Kumar Rai, of being reluctant to take action against him. However, only one case has reportedly been filed against Silwal so far.
Several other allegations remain under scrutiny, including claims of policy manipulation involving the removal of the 20 percent direct insurance share allocated to Nepal Reinsurance Company under budget provisions, as well as decisions related to the foreign employment insurance pool and the awarding of insurance business contracts. According to the article, numerous files concerning alleged policy-level irregularities have yet to be opened for investigation.
Sources claim that authorities acknowledge delays in examining Silwal’s alleged illegal activities and policy-level corruption but are preparing to initiate further investigations in the near future.
An investigation is also pending into the licensing of microinsurance companies during Silwal’s tenure. The approval process involved irregularities and states that several business figures and government employees could come under scrutiny. One example highlighted is the license granted to Protective Micro Insurance Company, which the report claims was issued unlawfully.
According to the sources, a comprehensive investigation into the Silwal affair could also draw former Finance Ministers Bishnu Paudel and Janardan Sharma into the inquiry. The two politicians are reportedly alleged of using Silwal to facilitate various illegal activities through political connections and influence.
Despite numerous reports published by Beemapost, no government agency has yet taken substantive action.