Sudhan Gurung Set To Return As Nepal Home Minister After Inquiry Clean Chit

Sudhan Gurung is set to return as Nepal’s Home Minister after an official inquiry reportedly found no evidence supporting allegations regarding his financial dealings.

Prime Minister Balendra Shah has recommended Gurung’s appointment to President Ram Chandra Poudel. The swearing-in ceremony is likely later on Tuesday.

The recommendation followed a Cabinet decision to accept the report submitted by a committee established to examine matters related to Gurung.

Although authorities have not formally released the report, several media reports indicated that investigators found no proof of improper financial transactions involving the former Minister.

For nearly six weeks, Prime Minister Shah personally oversaw the Home Ministry portfolio.

Officials from the President’s Office confirmed receipt of the recommendation for Gurung’s appointment. They also stated that former Minister and lawmaker Mahabir Pun will assume charge as Minister for Science, Technology and Innovation.

Gurung emerged as one of the prominent leaders of Nepal’s Gen-Z political movement that gained momentum in September last year. He resigned as Home Minister on April 22 after scrutiny intensified over his alleged business links with businessman Deepak Bhatta, who remains in judicial custody on money-laundering charges.

Gurung stepped down voluntarily to facilitate an impartial investigation and prevent any perceived conflict of interest. He became the second Minister to resign from Prime Minister Shah’s Cabinet, which took office following the March 5 elections.

On May 11, the government formed an investigation panel led by former judge Achyut Prasad Bhandari.

The committee reportedly determined that no evidence established a direct link between Gurung and Bhatta.

Investigators also found no banking records indicating financial transactions between them.

During his testimony, Gurung explained that he earned income through a hotel business in Kathmandu’s Thamel district and later invested in shares and gold.

The committee considered this explanation during its assessment.

Questions about Gurung’s wealth surfaced after Cabinet members disclosed their assets in April. He was listed among the wealthiest Ministers, holding substantial cash reserves, share investments and extensive land assets.

Gurung publicly defended his wealth. He said there was nothing wrong with accumulating assets legally before entering government service. He, however, maintained that corruption after assuming office was unacceptable.

Subsequent reports revealed that Gurung had invested in a micro-insurance company promoted by Bhatta, prompting further public scrutiny.

The inquiry panel reportedly found insufficient evidence to establish wrongdoing.

Gurung represents the Gorkha-1 constituency in Nepal’s House of Representatives. His anticipated return to the Home Ministry marks a significant development for the government as it seeks to move beyond the controversy and continue its administrative agenda.

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