Kathmandu, April 21: Questions over transparency and accountability have intensified in Nepalβs newly formed government after fresh allegations of financial irregularities surfaced against a senior minister, days after another was removed on disciplinary grounds.
The controversy centres on Home Minister Sudan Gurung, whose reported investments have drawn attention for alleged links with businessman Deepak Bhatta, currently under investigation for money laundering. Bhatta was arrested on April 1 and is being probed by the Department of Money Laundering Investigation following his detention by Nepal Policeβs Central Investigation Bureau.
The development comes shortly after the ruling Rastriya Swatantra Party (RSP) removed Labour Minister Deepak Kumar Sah over allegations of misuse of position linked to the appointment of his wife to the Health Insurance Board. The partyβs central disciplinary commission found Sahβs actions inconsistent with internal standards, prompting his dismissal on the recommendation of party leadership.
The emergence of allegations against Gurung has triggered demands within the ruling party for a fair and transparent investigation. Party insiders have indicated that ignoring the issue could undermine the partyβs stated commitment to clean governance and accountability.
Reports linking Gurung to shareholdings in companies associated with Bhatta have placed the minister under scrutiny. Responding to the allegations, Gurung defended his asset declarations, stating that all his investments were disclosed. He maintained that any perceived omission was related to classification rather than concealment, adding that his investments in Star Micro Insurance and Liberty Micro Life were part of his broader declared stock holdings.
Gurung has asserted that his financial disclosures are transparent, stating that substantial declared investments contradict any suggestion of concealment. However, the issue has fuelled internal debate within the RSP, with some leaders calling for an independent probe mechanism.
An unnamed party lawmaker questioned the handling of the earlier case involving Sah, noting that he was removed without an opportunity to present his clarification, while the allegations against the Home Minister appear more serious. The lawmaker emphasised that any wrongdoing should be examined through a proper investigative process.
Despite the growing controversy, the issue was not formally discussed during the partyβs Central Committee meeting on Monday, with leaders stating that it was not part of the scheduled agenda. Party spokesperson Manish Jha confirmed that the leadership is aware of the matter and consultations are ongoing.
The developments come at a critical time for the RSP, which assumed office following a landslide electoral victory on March 5, campaigning on promises of transparency, good governance and reform-oriented politics. The partyβs rise was driven by widespread public support, particularly among younger voters, who mobilised against the previous government led by K. P. S. Oli in September 2025 over issues including unemployment, corruption and nepotism.
The recent sequence of disciplinary action and emerging allegations is now seen as an early test of the partyβs commitment to its stated principles, as calls grow for consistent and transparent handling of accountability within the government.
