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Nepal’s home minister Sudan Gurung (left), Prime Minister Balendra Shah (right) and Rastriya Swatantra Party’s president Rabi Lamichhane (second right) during their swearing-in ceremony in Kathmandu on March 27, 2026. [AFP]
Nepal’s home minister stepped down Wednesday over growing criticism of his finances, the second member of the cabinet to leave the new government just weeks after it was formed.
Sudan Gurung, a key figure in the Gen-Z protests in September that toppled Nepal’s previous government, said he was leaving his post ensure a “fair investigation”.
“For me, morality is greater than a position and there is no greater power than public trust… Public life should be clean, leadership should be accountable,” said 38-year-old Gurung, who took office on March 27.
Gurung is the second minister to leave the new government after the labour minister Deepak Kumar Sah was dismissed over allegations of misconduct by getting his wife appointed to a health insurance board.
Dipa Dahal, press advisor to Prime Minister Balendra Shah, confirmed Gurung’s resignation had been received.
Gurung participated in the deadly protests that began as a demonstration against a brief social media ban, but were fed by wider grievances over corruption and a poor economy.
At least 76 people were killed and more than 2,500 wounded during the two days of violence in September.
In January, Gurung joined the Rastriya Swatantra Party (RSP) and won a seat in parliament after the party swept to a landslide victory in the March elections.
Gurung made headlines a day after taking his oath of office for arresting former prime minister KP Sharma Oli and ex-home minister Ramesh Lekhak for their alleged involvement in the deadly crackdown on protesters in September.
But soon he himself was beset by allegations over his financial investments and assets, as well as links with a businessman being investigated for money laundering.
Last week, Shah and his cabinet disclosed their assets to the public, in line with local laws requiring lawmakers to declare their financial status.
Soon after the disclosure, local media reported that Gurung had not revealed some of his financial investments.
At least two Nepali websites published a government-stamped document that listed Gurung as an investor in a company that he did not specifically name in his disclosures.
Gurung claimed that he had lumped his investments together in the disclosure documents.
Public pressure had since been mounting on the government to investigate Gurung.
The opposition Nepali Congress said it would not be possible to carry out an impartial probe if Gurung remained in his position.
“It is natural that there will be doubt over direct or indirect influence over the investigation process,” it said in a statement on Monday, calling for an “independent and impartial” probe.
On Monday, Gurung dismissed the allegations as “rumours” and denied withholding information regarding his investments.
“I would just like to say that accusations and truth are not the same thing. Decisions should be based on evidence, not emotion,” he said on social media.
Earlier this month, the government formed a five-member commission led by a former Supreme Court judge to investigate the assets of politicians and officials.
The commission was a part of the government’s 100-point reform agenda issued after Shah took office to tackle corruption in the Himalayan nation.
Nepal currently ranks 109th out of 180 countries on Transparency International’s Corruption Perceptions Index.
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Nepal’s home minister Sudan Gurung (left), Prime Minister Balendra Shah (right) and Rastriya Swatantra Party’s president Rabi Lamichhane (second right) during their swearing-in ceremony in Kathmandu on March 27, 2026.
[AFP]
Nepal’s home minister stepped down Wednesday over growing criticism of his finances, the second member of the cabinet to leave the new government just weeks after it was formed.
Sudan Gurung, a key figure in the Gen-Z protests in September that toppled Nepal’s previous government, said he was leaving his post ensure a “fair investigation”.
“For me, morality is greater than a position and there is no greater power than public trust… Public life should be clean, leadership should be accountable,” said 38-year-old Gurung, who took office on March 27.
Gurung is the second minister to leave the new government after the labour minister Deepak Kumar Sah was dismissed over
allegations of misconduct
by getting his wife appointed to a health insurance board.
Dipa Dahal, press advisor to Prime Minister Balendra Shah, confirmed Gurung’s resignation had been received.
Gurung participated in the deadly protests that began as a demonstration against a brief social media ban, but were fed by wider grievances over corruption and a poor economy.
At least 76 people were killed and more than 2,500 wounded during the two days of violence in September.
In January, Gurung joined the Rastriya Swatantra Party (RSP) and won a seat in parliament after the party swept to a landslide victory in the March elections.
Gurung made headlines a day after taking his oath of office for arresting former prime minister KP Sharma Oli and ex-home minister Ramesh Lekhak for their alleged involvement in the deadly crackdown on protesters in September.
But soon he himself was beset by allegations over his financial investments and assets, as well as links with a businessman being investigated for money laundering.
Last week, Shah and his cabinet disclosed their assets to the public, in line with local laws requiring lawmakers to declare their financial status.
Soon after the disclosure, local media reported that Gurung had not revealed some of his financial investments.
At least two Nepali websites published a government-stamped document that listed Gurung as an investor in a company that he did not specifically name in his disclosures.
Gurung claimed that he had lumped his investments together in the disclosure documents.
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Public pressure had since been mounting on the government to investigate Gurung.
The opposition Nepali Congress said it would not be possible to carry out an
impartial probe if Gurung
remained in his position.
“It is natural that there will be doubt over direct or indirect influence over the investigation process,” it said in a statement on Monday, calling for an “independent and impartial” probe.
On Monday, Gurung dismissed the allegations as “rumours” and denied withholding information regarding his investments.
“I would just like to say that accusations and truth are not the same thing. Decisions should be based on evidence, not emotion,” he said on social media.
Earlier this month, the government formed a five-member commission led by a former Supreme Court judge to investigate the assets of politicians and officials.
The commission was a part of the government’s 100-point reform agenda issued after Shah took office to tackle corruption in the Himalayan nation.
Nepal currently ranks 109th out of 180 countries on Transparency International’s Corruption Perceptions Index.
By AFP