Kathmandu: Sudan Gurung resigned from his post as Nepal’s Home Minister on Wednesday, citing ethical responsibility amid growing scrutiny over his alleged financial links to a businessman under investigation for money laundering.
Announcing his decision through a public statement, Gurung said that maintaining public trust was paramount and that stepping down would ensure a fair and impartial probe into the allegations. “Ethics is greater than position,” he stated, emphasising the need for accountability in public life.
Controversy over financial links
The resignation follows controversy surrounding Gurung’s reported investments in companies allegedly linked to businessman Deepak Bhatta, who is currently under investigation in a money laundering case.
Reports indicated that Gurung held shares in Star Micro Insurance and Liberty Micro Insurance, firms said to be associated with Bhatta. The disclosures triggered public debate and raised concerns about potential conflicts of interest.
Gurung maintained that his investments were declared assets acquired before assuming office and argued that shareholding in a company does not imply direct involvement with all individuals connected to it.
Decision to step aside
In his statement, Gurung said stepping down would allow investigations to proceed without any perception of influence or interference. He acknowledged the ongoing public discourse around transparency and accountability, particularly among younger citizens.
He also referred to Nepal’s growing Gen Z-led movement advocating clean governance, noting that such public expectations reinforced his decision to resign.
Political context and timing
The resignation comes at a politically sensitive time for the government led by Balendra Shah, popularly known as Balen Shah. The administration has been facing protests over issues such as customs enforcement along the India-Nepal border and proposed reforms affecting student organisations.
Gurung, 38, had emerged as a prominent political figure following youth-led protests last year and was elected from the Gorkha-1 constituency in the March 5 general elections. He was later appointed Home Minister in Shah’s Cabinet.
Asset disclosure debate
Questions intensified after reports suggested that Gurung’s investments—estimated at around 2.5 million Nepali rupees each in the two insurance firms—were not separately disclosed.
In response, Gurung clarified that the holdings were included within a broader declaration of over 27 million Nepali rupees in securities investments. However, critics pointed out that the companies involved were not publicly traded, raising further concerns about classification and transparency.
Previous denial and cooperation
Prior to his resignation, Gurung had denied any wrongdoing and urged the public to distinguish between allegations and verified facts. He also highlighted that the investigation into Bhatta was being handled by the Department of Money Laundering Investigation under the Finance Ministry, not the Home Ministry.
He had pledged full cooperation with authorities, a stance he reiterated while stepping down.
Second ministerial exit
Gurung’s resignation marks the second ministerial departure from the current government. Earlier, Labour Minister Deepak Kumar Sah was removed following allegations of misuse of office related to appointments in the Health Insurance Board.
Conclusion
Sudan Gurung’s resignation underscores the increasing importance of transparency and ethical standards in public office. While he continues to deny wrongdoing, his decision to step aside is aimed at preserving institutional integrity and allowing investigations to proceed without hindrance.
The development adds to the political challenges facing the Nepal government, even as public scrutiny over governance and accountability continues to grow.