Despite Home Minister Sudhan Gurung declaring hundreds of ropanis of land and 89 tolas of gold in his public asset declaration, the source of funding lacks transparency. He failed to mention founder shares worth NPR 5 million in two microinsurance companies, raising legal questions. Although he claims the shares were purchased using loans, these shares are not publicly traded since they are not part of an IPO.
Kathmandu, 7 Baisakh – The assets declared by Home Minister Sudhan Gurung have come under scrutiny. He has shown ownership of hundreds of ropanis of land, exceeding legal limits, prompting questions as to why the government has not acquired this land. The minister’s declaration includes 89 tolas of gold, 6 kilograms of silver, and shares worth crores of rupees in various companies, but the sources for these assets remain unclear. Gurung claims to have acquired these through his business, ancestral property, and investments, describing the source as “lumpsum,” but has failed to clarify further.
Moreover, he concealed founder shares worth NPR 5 million, equivalent to 50,000 shares, in two microinsurance companies. He did not include 25,000 shares each in Liberty Microlife Insurance and Star Microinsurance in his asset declaration, raising questions about adherence to the code of conduct and legal norms. While he declared shares worth NPR 27.4 million traded in the securities market, he did not disclose the companies that issued these shares.
The ministry and government have not issued any formal response regarding the undisclosed shares. Government spokesperson Sasmita Pokharel, Raswap’s general secretary Kabindra Burlakoti, and spokesperson Manish Jha have all refrained from commenting. Meanwhile, following the controversy surrounding the appointment of his wife as a member of the Health Insurance Board leading to the removal of then Labor Minister Deepak Sah by Prime Minister Balendra Shah, discussions continue on how the Prime Minister will handle Gurung’s shareholding case.
Purchasing, owning, or selling shares is not illegal, but the source must be transparent and the legal process properly followed. Public officials are required to disclose their entire asset holdings according to the law. The microinsurance shares were not included when Gurung registered his assets after becoming Home Minister. He declared 57,000 founder shares in Lagum Premium Apartments, 30,000 in Hope Holdings, and 70,000 in Adventure Villa Pvt. Ltd., but the shares in Liberty Microlife and Star Microinsurance were omitted.
According to records from the Company Registrar, Gurung owns 25,000 founder shares in each of these companies, with a par value of NPR 100 per share. However, he did not specify any company names in his asset declaration.
Gurung began his political career during the Janabhiyog movement on 23 and 24 Bhadra 2082 BS. He is the founder of ‘Hami Nepal’, elected from Gorkha Constituency No. 1 as a member of Raswap, and was appointed Home Minister.
Minister Provided False Information in Explanation
Following questions regarding his investments in microinsurance companies, Gurung responded on social media claiming he purchased shares using loans. He stated that over NPR 20 million of his investments are accounted for in his asset declaration and included shares in two microfinance companies as part of that, but discrepancies exist between his declaration and his explanation.
In his asset report, he declared shares worth NPR 27,456,200 traded in the securities market, reportedly acquired through business, ancestral property, and investments. However, on social media, he claimed the source was a loan backed by a promissory note dated 29th Shrawan 2080 BS. He stated that the promissory note payments were made through banking channels and used for investment.
Nonetheless, his assertion that shares in two microinsurance companies are publicly traded is inaccurate as neither company has yet conducted an IPO, thus their shares are not listed on the market. This shows that Gurung has twice presented false information, attempting to portray non-IPO shares as being traded on the securities market.
Meanwhile, some media outlets and social media users have raised questions about the microinsurance investments. Remi Capfin Pvt. Ltd. has invested in founder shares totaling 335,000 in Liberty Microlife and Star Microinsurance, holding 6.19 percent shares in both companies.
According to Executive Director Suresh Bhusal, the investment was made using legally earned profits that have paid taxes, with no illegal funds involved. Company Registrar records indicate that the investments made by Remi Capfin, related to this matter, do not include any investment from Dipak Bhatt, who is currently under investigation for asset laundering.
