Nepal's Government Faces Scrutiny Over Ministerial Allegations
Nepal's Political Turmoil Deepens
File image of Nepal's PM Balendra Shah(Photo: Media House)
Kathmandu, April 21: Following the dismissal of a minister due to disciplinary issues, new allegations of financial misconduct have emerged against another member of Nepal's government led by Balendra Shah.
The Rastriya Swatantra Party (RSP) came to power after a significant victory in the national elections on March 5, promising transparency and effective governance.
According to reports, Home Minister Sudan Gurung is facing scrutiny due to his financial ties with businessman Deepak Bhatta, who is currently under investigation for money laundering. Party leaders are calling for a thorough investigation, as reported by The Kathmandu Post.
Bhatta was apprehended on April 1 and is being investigated by the Department of Money Laundering Investigation after his detention by the Central Investigation Bureau of Nepal Police.
Just two weeks prior, the RSP had removed Labour Minister Deepak Kumar Sah amid controversy regarding the appointment of his wife to the Health Insurance Board. Insiders suggest that the party cannot ignore the more serious allegations against Gurung.
Sah's removal followed findings from the RSP’s central disciplinary commission, which concluded he had misused his authority to secure his wife's position, damaging the party's reputation.
The Prime Minister acted on the recommendation of the party chair to dismiss Sah.
Gurung is now under investigation due to reports linking him to shares in companies associated with Bhatta, who is being probed for alleged money laundering.
In his defense, Gurung stated that his asset declarations were transparent, claiming that any perceived omissions were due to classification issues rather than concealment. He emphasized that his investments in Star Micro Insurance and Liberty Micro Life were disclosed in line with his other stock market holdings, as reported by The Himalayan Times.
“Someone who intends to hide assets does not openly declare over Rs 20 million in investments,” the minister asserted.
An unnamed RSP lawmaker expressed concerns to Nepali daily Kantipur, stating that Sah was dismissed without the opportunity to clarify his position, and emphasized that the allegations against Gurung are more severe. They insisted that no wrongdoing should be overlooked and should be investigated properly.
Despite the gravity of the situation, the matter was not addressed during Monday’s Central Committee meeting, as it was not included in the agenda. Party spokesperson Manish Jha confirmed that the leadership is aware of the issue and discussions are ongoing.
The swift action against Sah indicates the RSP's commitment to maintaining its image. While this decisiveness may signal a zero-tolerance approach to nepotism, rapid dismissals without a transparent process could lead to perceptions of selective enforcement or internal conflicts. The party's reliance on its internal disciplinary mechanisms will be tested as demands for independent investigations grow.
The RSP gained office with the support of Gen Z activists who ousted the K. P. S. Oli government in September 2025, citing issues like unemployment, nepotism, and corruption, as well as a lack of concern for their future.