Itahari Hospital drug contract irregularities raised in Parliament

KATHMANDU: Allegations of irregularities in a drug procurement contract at Itahari Hospital have reached federal parliament, prompting calls for a formal investigation into suspected financial misconduct involving local officials and private suppliers.

Rastriya Swatantra Party (RSP) lawmaker Ashok Chaudhary raised the issue during Monday’s parliamentary session, citing recent media reports that suggested questionable transactions linked to the hospital’s medicine supply contract.

According to the allegations, the company awarded the contract by Itahari Sub-Metropolitan City—initially identified as Servika Medico Pvt Ltd—is said to have transferred money through bank transactions to accounts allegedly associated with Mayor Hemkarn Paudel and members of his secretariat.

Lawmakers have demanded a thorough probe into the procurement process, financial dealings, and subsequent changes in the supply chain of medicines to the hospital, including the role of Arbi Pharmacy, which reportedly became involved after acquiring or taking over related operations.

“The issue is directly connected to public health services and public funds. It cannot be treated lightly,” Chaudhary told parliament, urging the government to ensure an immediate and transparent investigation.

Reports indicate that AR Bi Pharmacy had also participated in the original tender process but lost after quoting a higher bid.

However, after the change in ownership structure, the company is now allegedly involved in supplying medicines to the hospital.

The case has intensified political scrutiny over procurement practices in local health institutions, with opposition lawmakers pressing for accountability and clarity on whether due process was followed in the contract allocation and subsequent financial transactions.

Authorities have not yet issued an official response to the allegations.