Full Breakdown
Resignation of Nepal's Home Minister Sudan Gurung Amid Financial Controversy
4/22/2026, 8:59:53 PM
Overview of the Resignation
Sudan Gurung, Nepal's Minister of Home Affairs, resigned on April 22, 2026, less than a month after taking office. His resignation follows mounting scrutiny over his financial dealings, particularly concerning investments in companies linked to individuals under investigation for money laundering. Gurung's departure marks the second ministerial exit from the newly formed government led by Prime Minister Balendra Shah, who assumed office on March 27, 2026.
Context of the Resignation
Gurung's resignation is set against the backdrop of the Rastriya Swatantra Party's (RSP) rise to power, which was largely fueled by the Gen Z protests in September 2025. These protests were ignited by public dissatisfaction with corruption and governance issues under the previous administration led by former Prime Minister K.P. Sharma Oli. Gurung, a prominent figure in these protests, had previously ordered the arrests of Oli and former Home Minister Ramesh Lekhak for their roles in a violent crackdown on demonstrators.
Reasons for Resignation
In his resignation announcement, Gurung emphasized the importance of ethics and public trust, stating, “For me, ethics is greater than position, and there is no greater power than public trust.” He expressed his intention to facilitate a fair investigation into the allegations against him, which include his financial ties to controversial businessman Deepak Bhatta, who is currently under investigation for money laundering. Gurung's investments in Star Micro Insurance and Liberty Micro Life Insurance, companies associated with Bhatta, have also come under scrutiny.
Official Statements & Responses
Dipa Dahal, press adviser to Prime Minister Shah, confirmed that Gurung's resignation had been received and that the Prime Minister would temporarily oversee the Home Ministry. Gurung's decision to step down was framed as a necessary measure to avoid any conflict of interest during the investigation process. He reiterated the need for accountability in public life, aligning his resignation with the demands of the ongoing Gen Z movement for good governance and transparency.
Criticism & Opposition
The resignation has sparked discussions regarding the integrity of the RSP government, which campaigned on an anti-corruption platform. Opposition parties, including the Nepali Congress and CPN UML, have called for an independent investigation into Gurung's financial dealings. Additionally, Gurung's earlier defense of his financial conduct, where he claimed all his investments were transparently declared, has been met with skepticism by critics who argue that his actions contradict the ethical standards expected of public officials.
What's Next
As investigations into Gurung's financial conduct proceed, the focus will shift to how the RSP government manages this internal crisis. The Prime Minister's decision to take charge of the Home Ministry indicates a centralization of power within the administration, raising questions about governance and accountability moving forward. The outcome of these investigations will likely influence public perception of the RSP's commitment to its anti-corruption promises.
Verbatim Quotes
- “For me, ethics is greater than position, and there is no greater power than public trust,” — Sudan Gurung, Former Home Minister
- “Public life should be clean, leadership should be accountable,” added Gurung, who took office on March 27.” — Sudan Gurung, Former Home Minister
- “If anyone questions the government formed on the blood and sacrifice of my 46 brothers and sisters, the answer to that is ethics,” — Sudan Gurung, Former Home Minister
The resignation of Sudan Gurung underscores the challenges faced by the RSP government in maintaining its integrity and addressing public concerns regarding corruption and accountability.
