Nepal’s PM Balendra Shah Set to Expand Cabinet, Sudan Gurung Likely to Return as Home Minister

The CSR Journal Magazine

Nepal’s Prime Minister Balendra Shah is set to expand his cabinet today by inducting at least two new ministers. According to sources, the Prime Minister will reappoint Sudan Gurung as the Home Minister, with the oath-taking ceremony planned for 3 PM local time at Sheetal Niwas, the official residence of the President.

In addition to Gurung’s reinstatement, Independent lawmaker Mahabir Pun will also be sworn in as the Minister for Science, Technology and Innovation. Pun previously held a ministerial position in the interim government led by Sushila Karki and has been an advocate for establishing a dedicated ministry focused on technological advancement.

This cabinet expansion follows a recent restructuring of government ministries in Nepal, bringing the total number down from 25 to 18. The newly formed Ministry for Science, Technology and Innovation aims to foster innovation and technology-driven development in the country.

Sudan Gurung’s Background and Resignation

Sudan Gurung had previously resigned from his position amid allegations concerning his assets. His departure took place on April 22 after controversy arose around his investment ties to a businessman under investigation for money laundering. Gurung’s reappointment follows a cabinet meeting that accepted a report from a committee investigating the allegations against him, which reportedly cleared him.

Gurung’s political rise can be traced back to the Gen-Z protests in September, and he was subsequently elected from Gorkha during the elections on March 5. After submitting his resignation to Prime Minister Shah, he communicated his decision to the public through social media.

The Home Minister had been in the spotlight for his notable actions against high-ranking officials, which initially garnered him public attention. However, his recent controversies have overshadowed these achievements, leading some factions within the ruling RSP to call for his resignation due to concerns over potential conflicts of interest.

Allegations and Financial Disclosures

Gurung had come under scrutiny following revelations that he held shares in companies linked to the controversial businessman Deepak Bhatt, who has faced legal action for money laundering. This issue intensified when documents surfaced indicating Gurung’s shareholding in Star Micro Insurance and Liberty Micro Insurance, companies being investigated in connection with Bhatt.

In response to the allegations, Gurung provided clarifications, stating that his total investments in the securities market exceed NRs 20 million, and all details have been made available in official records. He asserted, “I would not hide NRs 2.5 million worth of shares when my total declared assets exceed NRs 20 million,” emphasising the classification of his investments.

Gurung maintained that he acquired the shares in question prior to taking office and that they were part of his official disclosures. He added that being a shareholder does not necessarily imply a direct relationship with all individuals associated with a company. He also clarified that investigations against Bhatt were being conducted by the Department of Money Laundering Investigation under the Ministry of Finance, not under his purview as Home Minister.

Concerns arose regarding the transparency of his financial disclosures, particularly regarding his investments and whether they had been adequately detailed in asset declarations submitted to the Office of the Prime Minister. Reports indicated that some of Gurung’s investments had not been separately listed, raising further questions regarding the categorisation of his financial interests.

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