Nepal Home Minister Sudhan Gurung resigns over links to controversial businessman being investigated for money laundering

Gurung rose as the leader after the Gen-Z protest of September and won from Gorkha in the March 5 elections, making his way to the parliament and the Home Minister. On Wednesday, he submitted his resignation to Prime Minister Balendra Shah (Balen). He also informed the public about his decision through social media.

"I, Sudan Gurung, have been working honestly in the capacity of Minister of Home Affairs since Chaitra 13, 2082. In recent days, I have taken seriously the questions, comments, and public interest raised by citizens on issues, including my share. For me, morality is greater than position, and there is no greater power than public trust. The Gen Z movement that is rising in the country today, demanding good governance, transparency, and accountability, has also given the same message: public life should be clean, and leadership should be responsible. If anyone questions the government that was formed on the basis of the blood and sacrifice of my 46 brothers and sisters, the answer is morality," Sudhan wrote on Facebook.

Further adding, "Therefore, with the aim of ensuring that there is a fair investigation into matters related to me and that there is no conflict of interest while holding office and that it is not affected in any way, I have resigned from the position of Home Minister, effective today."

Prime Minister Shah had formed his Cabinet on the very day he assumed office, appointing Gurung as Home Minister at that time.

In his early days, Gurung drew attention for taking action against high-ranking officials, including arrests. However, in recent times, he had come under heavy criticism.

Pressure had built over him to step down after revelations that he holds shares in companies linked to controversial businessman Deepak Bhatt, who was recently arrested in a money laundering case.

The controversy surfaced after documents made public on Sunday showed that Gurung holds shares in his own name in Star Micro Insurance and Liberty Micro Insurance, companies associated with Bhatt and currently under investigation following his arrest.

As the issue gained traction, voices within the ruling RSP have reportedly begun calling for Gurung's resignation, citing concerns over a potential conflict of interest.

Responding to the allegations, Gurung had issued detailed clarification twice, rejecting claims that he had concealed financial information. He said his total investment in the securities market exceeds NRs 20 million and that all details are available in official records. "I would not hide NRs 2.5 million worth of shares when my total declared assets exceed NRs 20 million. This is simply a matter of classification," he said.

Gurung also had maintained that the shares in question, including those in Star Micro Insurance and Liberty Micro Insurance, were acquired before he assumed office and were part of his declared portfolio. He also argued that being a shareholder does not imply direct association with all individuals linked to a company.

Addressing concerns over a potential conflict of interest, he said the investigation into Bhatt is being carried out by the Department of Money Laundering Investigation under the Ministry of Finance, not the Home Ministry.

Separately, Gurung dismissed the allegations and media reports linked to him as "sponsored rumours." In a statement posted on social media on Monday evening, he claimed that corrupt individuals unsettled by ongoing action against them are deliberately spreading misinformation.

He asserted that action against those accused of embezzling state funds would continue unabated. "Those who have long set their sights on the nation's treasury- built on the sweat and toil of the people- are now fearful," he wrote. "Media trials and sponsored rumours are nothing more than a reflection of their desperation."

Expressing dissatisfaction over what he described as a coordinated campaign against him, Gurung said, "The action will neither stop nor falter," adding that he had not seen comparable efforts to pursue individuals allegedly involved in large-scale corruption.

While Gurung claimed that his investments were made through a bank loan, he hadn't disclosed or mentioned it in the asset declarations submitted to the Office of the Prime Minister and Council of Ministers, which were made public last week.

Likewise, his investments, which are worth NRs 2.5 million each in Star Micro Insurance and Liberty Micro Insurance, as a founding shareholder, weren't disclosed separately. Instead, he said they were included within a broader figure of NRs 27.45 million listed under shares traded in the securities market.

Later, it was disclosed that these companies had not yet begun public trading, raising questions about how such shares were categorised in the declaration. (ANI)