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An Intelligence Assessment Note reveals how Oli’s government systematically weakened legal safeguards, protected powerful insiders and triggered a governance collapse
Protesters celebrate standing at the top of the Singha Durbar, the seat of Nepal’s government’s various ministries and offices, after it was set on fire during a protest against social media ban and corruption in Kathmandu, Nepal, Tuesday, Sept. 9, 2025. (AP Photo)
The political unravelling of Nepal in mid-2025 was the result of deep-rooted corruption, elite impunity, and growing public outrage and not a sudden event, an Intelligence Assessment Note accessed by CNN-News18 has revealed.
The note lays bare how the government of prime minister KP Sharma Oli—who has resigned in the aftermath of the violent protests in the Himalayan nation—systematically weakened legal safeguards, protected powerful insiders and triggered a governance collapse that sparked mass protests and institutional breakdown.
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Law as a Tool for Corruption
The genesis of public anger can be traced back to January 2025, when the Oli cabinet pushed a sweeping ordinance that amended 29 laws in a single stroke. Among the most controversial changes were provisions that neutralised previous Supreme Court rulings, especially the 2024 verdicts against illegal land swaps and hoarding.
The amendments not only reversed judicial decisions but gave legal cover to individuals facing corruption charges, including those close to the ruling elite.
Tech and Telecom: A Billion-Rupee Black Hole
From 2022 to 2025, 17 major IT-related corruption cases were reported, totaling nearly Rs 9 billion, according to data from the Commission for the Investigation of Abuse of Authority (CIAA). Among them were:
A Rs 3.2 billion telecom billing fraud
Multiple server procurement scams
Inflated vendor contracts benefiting top bureaucrats
These scandals made the IT sector the most corrupt government-linked domain, shattering the faith of young Nepalese who once saw tech as a career of promise.
Systemic Loot, Institutional Rot
In June 2025, a fresh scandal erupted involving Rs 334.8 million in irregularities linked to senior executives of state-run enterprises. A month later, six officials were indicted for Rs 158.8 million in procurement fraud, exposing how vendors and bureaucrats colluded to control and siphon off public funds.
The rot wasn’t limited to economic sectors. In May 2025, a visa scam unearthed a racket involving Joint Secretary Tirtha Raj Bhattarai, revealing how even the most basic public services had become profit zones for corrupt officials.
The public fury intensified after fresh revelations about controversial land diversions at Lalita Niwas and Baluwatar, where top government figures were accused of facilitating the theft of national property.
Youth Discontent, Street Mobilisation
For many Nepalese youth already facing economic stagnation and joblessness, the elite’s flaunting of wealth became a tipping point. Student unions, bar associations, and civil society groups launched nationwide protests after the government repeatedly overruled Supreme Court rulings—acts seen as contempt of court and an assault on democracy itself.
By August 2025, the damage was done. Oli’s administration had lost all credibility, with insiders arrested, public trust shattered, and institutions discredited. What began as a political manoeuvre turned into a national awakening, where corruption became not just an issue but the core reason behind Nepal government’s collapse.
About the Author
Group Editor, Investigations & Security Affairs, Network18
Group Editor, Investigations & Security Affairs, Network18
Kathmandu, Nepal
September 10, 2025, 16:50 IST
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