News Summary
Prepared after review.
- Prime Minister Balendra Shah and Rastriya Swatantra Samajwadi Party (RSWP) Chairman Ravi Lamichhane have instructed Home Minister Sudhan Gurung to resign.
- Gurung was removed after suspicious investments surfaced regarding two micro-insurance companies.
- Upon submitting his resignation, Gurung called for a fair and impartial investigation into matters concerning him.
April 22, Kathmandu – Following instructions from Prime Minister Balendra Shah and RSWP Chairman Ravi Lamichhane to step down, Home Minister Sudhan Gurung has tendered his resignation. Gurung had been publicly clarifying questions raised against him, but suspicion over his investments in two micro-insurance companies led to a consensus between the Prime Minister and Chairman Lamichhane to remove him.
Initially, Gurung sought to retain his Home Minister position by offering clarifications solely within the party. However, when doubts arose regarding the government and RSWP’s commitment to good governance, his departure became inevitable. When preparations to remove him without resignation were underway, Gurung submitted his resignation at the Prime Minister’s Office Wednesday afternoon.
Gurung denied allegations regarding not disclosing micro-insurance shares in his asset declaration and claims about his relations with controversial businessman Deepak Bhatt.
“Purchasing shares does not equate to partnership. If that is the basis for fault, then everyone investing in those companies would be guilty, which is unjust,” he stated.
Though initially attempting to defend his position, Gurung chose to resign when he realized the party would not protect him. He said, “I will fully abide by the party’s decisions on this matter and stand ready to cooperate with investigations.”
Since Sunday, media outlets have reported on Gurung’s ties with controversial individuals and opaque financial sources, prompting questions about governance directed at both the minister and the RSWP from civil society.
Though the issue was not formally discussed in Monday’s central committee meeting, Chairman Lamichhane said the party engaged in serious debate on the matter.
After the meeting, Lamichhane remarked, “He provided clarifications. The matter is under study and the party will decide accordingly. Whatever happens, it will be lawful—we will not allow wrongdoings.”
Questions also surfaced concerning the dismissal of former Minister Deepak Kumar Sah during the study of Gurung’s case.
Amid growing pressure on the party, the Home Ministry, and the government over these cases, Gurung reportedly met repeatedly with Chairman Lamichhane. According to party leaders, Lamichhane was inclined towards securing Gurung’s resignation from the start.
Sources within the RSWP indicate that Prime Minister Balendra Shah was initially opposed to Gurung’s resignation but ultimately agreed to his removal to safeguard good governance.
“Yesterday, Labour Minister Deepak Sah was removed, and today the same should apply to Gurung; this is another example,” a senior leader said.
Former Labour Minister Sah was swiftly dismissed without being given a chance to explain himself.
Sah fell into controversy after appointing his wife to the Health Insurance Board member post, which led to his removal and a warning to Health Minister Nisha Mehtal.
Though Gurung held the powerful Home Ministry for 26 days, he too eventually had to step down, compared to Sah’s tenure of just 13 days.
While swift action was taken against former Minister Sah, both Prime Minister Shah and Chairman Lamichhane directed Gurung to resign. Sources confirm Lamichhane’s strong insistence on this course.
Chairman Lamichhane had recommended former Labour Minister’s dismissal to the Prime Minister based on a letter from the Disciplinary Commission. However, the party has not publicly disclosed whether the Disciplinary Committee has sought explanations from Gurung following his resignation.
After recurring meetings between Chairman Lamichhane and Gurung at Budhanilkantha, and a meeting between the Prime Minister and Chairman, Gurung decided to submit his resignation.
A party leader shared, “No other leaders were consulted. Sudhan resigned following dialogue between the Chairman and the Prime Minister.”
Ordered by Prime Minister Shah and Chairman Lamichhane to resign Wednesday morning, Gurung was compelled to relinquish his post. In his resignation letter, he wrote, “I am resigning to ensure a fair investigation concerning matters related to me and to avoid any conflict of interest during my tenure.”
In accordance with the party constitution’s “Right to Recall” clause, Chairman Lamichhane approved the reinstatement of former Labour Minister Sah.
This time, even without a formal letter to the Prime Minister, Lamichhane vowed equal treatment for all. After the party meeting, he said, “The right to recall is not for one individual but for all.”
A RSWP secretariat member added, “Citizens voted for us to ensure good governance, and we are committed to that. We expressed that studies were ongoing, but the public was unwilling to wait a single day. We have fulfilled their expectations.”
