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Home » Financial irregularities hit new Nepal cabinet
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Financial irregularities hit new Nepal cabinet

Nepal’s new government led by Balendra Shah is facing renewed scrutiny just weeks after taking disciplinary action against a cabinet minister, as fresh allegations of financial irregularities emerge against another senior figure.
AgencyBy AgencyApril 22, 2026No Comments
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Kathmandu, Apr 22:

Nepal’s new government led by Balendra Shah is facing renewed scrutiny just weeks after taking disciplinary action against a cabinet minister, as fresh allegations of financial irregularities emerge against another senior figure.

The ruling Rastriya Swatantra Party (RSP), which came to power with a landslide victory in the March 5 elections on promises of transparency and good governance, is now under pressure to uphold those commitments.

Reports have linked Home Minister Sudan Gurung to investments associated with businessman Deepak Bhatta, who is currently under investigation for alleged money laundering.

Bhatta was arrested on April 1 and is being probed by authorities, including Nepal Police’s Central Investigation Bureau. The controversy comes just two weeks after the dismissal of Labour Minister Deepak Kumar Sah. He was removed after the party’s disciplinary body found he had misused his position by facilitating his wife’s appointment to the Health Insurance Board, a move seen as nepotistic and damaging to the party’s image.

The prime minister acted swiftly on the party leadership’s recommendation, reinforcing RSP’s stance on internal discipline.
Now, Gurung faces calls from within the party for a fair and transparent investigation.

Critics argue that the allegations against him—linked to potential financial misconduct—are more serious than those faced by Sah. Some lawmakers have questioned whether the party will apply the same strict standards or risk appearing inconsistent.

Gurung has defended himself, stating that all his investments were properly declared and that any perceived discrepancies relate to classification rather than concealment.

He emphasized that his disclosures include over Rs 20 million in investments, arguing that this demonstrates transparency rather than wrongdoing. Despite the growing controversy, the issue was not formally discussed at a recent party Central Committee meeting, though party leaders acknowledged awareness and said consultations are ongoing.

The situation highlights a key challenge for the RSP.
While its swift action against Sah signaled zero tolerance for misconduct, critics warn that internal disciplinary processes without transparency could raise concerns about selective enforcement or political maneuvering.

Financial irregularities hit new Nepal cabinet
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