Nepal Home Minister Sudan Gurung resigned from his post on Wednesday amid mounting controversy over his share investments, becoming the latest minister in the Rastriya Swatantra Party-led government to be embroiled in scandal within weeks of its formation. In a social media post announcing his resignation, Gurung said he was stepping down to ensure an impartial investigation could proceed without any conflict of interest arising from his continued presence in office.
In a social media post announcing his resignation, Gurung said he had been serving as Home Minister since Chaitra 13, 2082, and had taken public concerns about his shareholdings seriously.
“For me, ethics matter more than a position, and no power is greater than public trust,” he wrote, adding that the Gen Z movement’s demand for good governance, transparency and accountability had reinforced his decision. He said the government was formed on the sacrifices of 46 young lives, and that the only fitting response to questions raised against it was to act with moral integrity.
The controversy centres on Gurung’s shareholding in Star Micro Insurance Company Ltd, in which money laundering accused Deepak Bhatta and businessman Sulav Agarwal, vice-chairman of Shanker Group and chairman of Jagdamba Holdings, are also partners. Gurung’s name appears at number 49 in the company’s preliminary share register, with an investment of Rs 2.5 million. The insurance company, licensed in 2022, has not yet issued an IPO and counts Bhatta’s Infinity Holdings and Agarwal’s Jagdamba Holdings and Shanker Group among its investors.
Allegations were also made that Gurung had failed to include these shares in his official asset declaration. He denied this, saying all his stock market investments, exceeding Rs 20 million, are clearly listed in his property details on the Council of Ministers’ website, and that his investments in Star Micro Insurance and Liberty Micro Life fall under the same declared share category as his other holdings.
“Someone who intends to hide assets does not openly declare over Rs 20 million in investments,” he said in earlier social media post. He added that the investment was financed through a loan with a written agreement dated September 15, 2023, and that all transactions were conducted through banking channels.
Despite his earlier defence, pressure mounted steadily. Major opposition parties, including Nepali Congress, CPN UML, and Shram Sanskriti Party, issued formal calls for his resignation and demanded an independent investigation. Gurung had also met RSP President Rabi Lamichhane earlier in the day to address concerns raised within the party.
The episode is the latest in a series of controversies to hit the RSP-led government in quick succession. Former Labour Minister Deepak Kumar Sah lost his portfolio under the party’s right-to-recall provision after controversy over the reappointment of his wife to the Health Insurance Board. Health Minister Nisha Mehta has been issued a warning. Gurung himself had earlier been drawn into a land dispute controversy involving Fewa Lake.
Before the share controversy, Gurung had made headlines for ordering the high-profile arrests of former Prime Minister KP Sharma Oli and former Home Minister Ramesh Lekhak shortly after taking office.
Prior to his resignation, Gurung had taken a combative tone on social media, dismissing the allegations as a media trial and sponsored rumour campaign.
“Those who have eyed the nation’s treasury built from the blood and sweat of citizens for years are terrified today,” he wrote, saying the investigation would not stop and that he would not falter. He called on journalists, the public and youth to stand on the side of truth and honesty, and alluded to others in public life and media who may themselves face scrutiny over their financial interests. (The Himalayan Times)
