Kathmandu, Oct. 14 -- The government has approached the German Embassy in Kathmandu to help resolve a payment dispute with Muehlbauer ID Services GmbH, the company handling Nepal's e-passport system. The government owes the company Rs300 million but has withheld payment amid a corruption investigation.

The latest diplomatic move comes months after German Ambassador Udo Volz waited nearly three hours at the Prime Minister's Office while seeking a meeting to discuss the investigation into German companies involved in the passport contract. The prime minister's advisers reportedly reprimanded him.

The dispute has intensified as Muehlbauer has warned that it may suspend services if the government fails to clear its dues. On Monday, Foreign ...