KATHMANDU – In a stunning development shaking Nepal’s nascent government, Home Minister Sudan Gurung has stepped down from his post amid swirling controversies linking him to a businessman under investigation for money laundering. The resignation, announced via social media on Wednesday, marks the second ministerial exit since Prime Minister Balendra Shah assumed office just weeks ago.
Gurung’s decision comes on the heels of intense public and media scrutiny over his alleged ties to Deepak Bhatta, a prominent entrepreneur facing probes into financial irregularities. Nepali outlets report that Bhatta’s name has surfaced in multiple money laundering cases, casting a shadow over Gurung’s tenure.
The minister, who has been a focal point since Shah’s coalition took power following March elections, cited the need for an impartial investigation into matters concerning him. ‘To ensure a fair probe and avoid any conflict of interest while in office, I have resigned as Home Minister effective today,’ Gurung stated in a detailed Facebook post.
He emphasized his commitment to ethics over position, invoking the sacrifices of 46 comrades and the demands of Nepal’s Gen Z movement for clean governance. ‘Public trust is paramount; morality supersedes office,’ he wrote, urging media, citizens, and youth to embrace truth and self-purification for real change.
Reports from The Himalayan Times reveal Gurung as a shareholder in Star Micro Insurance Company, where Bhatta, Sulav Agrawal of Jagdamba Holdings, and Shankar Group executives are also involved. The firm, licensed in 2022, lists Gurung’s 2.5 million rupee investment, though he claims all his holdings – exceeding 20 million – are transparently declared on the Council of Ministers’ website.
Gurung vehemently denied omitting assets from official disclosures, insisting his stakes in Star Micro and Liberty Micro Life fall under properly declared categories. This scandal unfolds barely a month after Shah’s swearing-in on March 27, following results announced on March 8 from polls held on March 5. Previously, Labor Minister Kumar Shah was ousted for indiscipline.
As Nepal’s political landscape trembles, Gurung’s exit raises questions about the stability of Shah’s administration and the broader push for accountability in the Himalayan nation’s leadership.