Labor Minister Dipak Kumar Sah Ousted Amid Controversy Over Wife’s Health Insurance Board Membership, Attempts to Alter Meeting Minutes

March 10, Kathmandu: Prime Minister Balendra Shah removed Dipak Kumar Sah from the position of Minister for Labor, Employment, and Social Security on Thursday. This decision followed a recommendation by the Rastriya Swatantra Party (Raswapa).

Raswapa Chairperson Ravi Lamichhane recommended Sah’s dismissal, accusing the minister of abusing his official position while in office.

The party’s action came after reports surfaced that Sah’s wife, June Shrestha, had been actively participating in the Health Insurance Board’s affairs despite being inactive for an extended period, leveraging her power and influence.

June Shrestha is an ophthalmologist appointed to the Health Insurance Board by then-Health Minister Mohan Bahadur Basnet in December 2023 (Mangsir 2080). Initially, she attended meetings regularly but ceased participation from mid-December 2024 (1 Poush 2081) onward without officially informing the board.

Board officials repeatedly requested her attendance. In September 2024 (Bhadra 2081), Shrestha and her husband went to the UK for study purposes.

Meanwhile, Board Chairperson Chandra Bahadur Thapa Kshetri raised concerns citing the Insurance Act’s provision that automatically suspends members missing three consecutive meetings. After she missed eleven meetings, the board formally requested the Ministry to take disciplinary action.

According to high-ranking health ministry sources, June Shrestha was appointed by Health Minister Nisha Mehta. Following widespread allegations of misusing power on social media, ministry and board officials chose to remain silent.

The Health Insurance Act 2074, Section 25(1), states that failure to attend three consecutive board meetings without informing the board results in suspension. The post of the chairperson, member, or executive director then becomes vacant.

On April 17, 2026 (4 Baishakh 2082), then-Executive Director of the Insurance Board Dr. Raghuraj Kafle issued a letter to the Health Ministry seeking enforcement of these provisions.

The letter noted, “From 1 Poush 2081 to the current period, from the 4th to the 14th board meetings, Ms. Shrestha has been continuously absent, adversely affecting the board’s meetings and decision-making process.”

Board officials noted that Ms. Shrestha was a central figure, and the board required an active member at the time.

“The board officials urged her to return; when this failed, the ministry was asked to take formal action,” a board member stated. Despite these efforts, she did not resume participation.

Due to her physical absence, June Shrestha’s membership was declared vacant, and her name was removed from the board’s official website.

In the federal elections of February 2025 (21 Falgun), Dipak Kumar Sah secured a ticket from Raswapa and won by a large margin from Mahottari-2. He and his wife returned to Nepal just a few months prior.

June made multiple attempts to be reinstated as a board member, but board officials rejected these efforts. “She wanted to return citing remaining tenure, but the chairperson and some members opposed her. She did not attend meetings thereafter,” a board member revealed.

Reappointment Initiated by Health Minister

Dipak Kumar Sah was appointed Labor Minister on March 27 (13 Chaitra). At that time, Nisha Mehta was Health Minister. Subsequently, attempts to reinstate his wife on the board gained momentum under claims of power and influence.

A senior Health Ministry official disclosed that Minister Sah pushed to reinstate June as a board member, with Health Minister Mehta approving and issuing the appointment letter.

June Shrestha was then invited to the board meeting on March 26 (23 Chaitra) as a member. Despite her membership being declared vacant, she unexpectedly attended the meeting, with the board members remaining silent and not questioning her presence. The meeting, which started at 5 PM, lasted until 8 PM.

An attending board member confirmed, “She attended as a board member; we had no questions, and the discussion went on for about three hours.”

Following her participation in the meeting where her position was officially vacant, media reports surfaced. The controversy around her reappointment gained traction on social media, leading June to publicly deny the claims.

On social media, she asserted that she had no connection to the news about her reappointment and was unaware of any nomination letter. “I have no relation to the reports regarding my Health Insurance Board membership nor have I received any official nomination letter,” she clarified.

Health Minister Nisha Mehta was absent at a program that involved Health Ministry and Insurance Board staff, citing prior commitments.

June also shared on social media a copy of her original appointment letter dated 2080, stating, “My appointment as a Health Insurance Board member was valid for four years until 2084. The current reappointment is beyond my knowledge and I have not received any formal communication. Therefore, the reappointment news is misleading and I regret it.”

She explained that with her educational background in health insurance, she sought to continue as a member upon returning from London 100 days ago and had notified the Health Ministry of this intention.

However, senior Health Ministry sources noted that the appointment by Minister Mehta sparked controversy, with widespread allegations of power misuse on social media. Ministry and board officials maintained silence amid the uproar.

Attempts to Secure Ministerial Position by Altering Meeting Minutes

As the ministerial post became precarious, Sah adopted another strategy—attempting to delete his wife’s name from the board meeting minutes where she was recorded as participating as a member.

To this end, Minister Sah reportedly met several board members. According to senior sources, he visited Bir Hospital at 9 AM on Tuesday. “She (June) was included as an invited expert, and another set of minutes was signed,” the source said. “Some members signed; others did not.”

On Wednesday, the tenth anniversary of the Health Insurance program was celebrated with a significant event organized by the Insurance Board, where Minister Sah was invited as the chief guest.

Health Minister Nisha Mehta was absent due to work commitments at the event involving Health Ministry and Insurance Board personnel.

Speaking for about 15 minutes, Sah expressed strong dissatisfaction with the work style of the Health Ministry and its staff, criticizing the ministry, Insurance Board, hospitals, and health workers, conveying frustration toward the government’s program.

He urged the Health Insurance Board and Health Ministry to engage in self-reflection.

Sah placed responsibility for the program’s weakening on the Health Ministry and suggested that if the ministry could not manage the insurance, it might have to be handed over to the Labor Ministry under his jurisdiction.

He also recommended restructuring and requested a framework from the Health Ministry. After the controversy surrounding his wife intensified, Sah sharply criticized both the board and the ministry.

On Thursday, the decision was finalized to remove Minister Sah from office, citing misuse of his official position while in power.

In an online statement, Sah said, “I was neither informed nor consulted. I learned of the decision just before the news broke. What did I do? The ministry appointed my wife; that is the only fault I have. I am somewhat saddened by this.”