Home Minister Gurung under intensifying pressure over asset disclosure controversy

Last week, when the cabinet released the ministers’ asset declarations, the public reacted with surprise at the scale of wealth held by the newly appointed officials. Among them was the Home Minister, whose declared assets were comparable to tens of millions of rupees.

It has now come to light that Gurung purchased 50,000 founder shares worth NRs five million in two micro-insurance companies, which were not included in his asset declaration. His failure to disclose 25,000 shares each in Liberty Micro Life Insurance and Star Microinsurance Company has raised ethical and legal concerns, particularly given his public office.

These investments were directed into companies heavily backed by businessman Deepak Bhatta, who was arrested on April 1 and is currently facing a money laundering investigation. Questions have also been raised about links between the two after a photograph surfaced showing Hami Nepal honoring Bhatta.

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In his disclosure, Gurung stated that he holds NRs 27.4 million worth of shares in companies traded on the secondary market, but did not identify the companies. His lack of full disclosure has drawn scrutiny, although neither the ruling Rastriya Swatantra Party nor the government has issued an official response. 

Gurung’s public clarification on Monday has also come under question. Responding to criticism on social media, Gurung said he had taken personal loans to finance his share purchases, including those in the two micro-insurance firms, and that these were reflected in his overall share investments.

However, this contradicts his asset declaration, which attributes NRs 27.45 million in shares to business income, inheritance, and investments, not loans. In his clarification, he said the funds were borrowed under a loan agreement dated September 15, 2023, and transferred through formal banking channels. However, he didn’t mention any loans in the disclosure.

Moreover, his claim that the micro-insurance shares are part of publicly traded securities appears misleading, as those shares are not listed on the secondary market. 

In his disclosure, Gurung has also included the MG S5 car he previously used once he assumed the office instead of the state-provided vehicle. He later stopped using it after reports surfaced that the car was registered under Lagum’s name. At the time, Gurung offered no clarification about his investment in Lagum.

While holding shares alone should not automatically be interpreted as proof of a business partnership with Bhatta, who is himself under investigation, it still raises questions that Gurung should address, particularly regarding the source of his investments and more importantly, why he is hiding his investments, particularly the one he has made alongside the one he is investigating in charges of siphoning off public money.

Moreover, since the September unrest, Gurung’s campaign has emphasised integrity, good governance, and anti-corruption. However, his failure to disclose a substantial investment in a company linked to shareholders currently detained on money laundering charges undermines that stance. That investigation itself falls under his ministry. As a result, his credibility and moral authority to govern have been called into question.

The home minister, however, sought to deflect the allegations, writing in his Facebook wall that he had "yet to see this level of effort [as in the case of his scrutiny] put into targeting even those who were looting 500 million a day."

Earlier too, as scrutiny intensified following the public disclosure of his assets, Gurung made an insensitive remark that being born poor is not your fault, but dying poor is yours.

The current issue has also put Prime Minister Balen Shah under immense pressure. Shah had previously removed Labour Minister Deepak Sah over controversy surrounding the appointment of his spouse to the Health Insurance Board, and observers are now watching how he will respond to the allegations involving Gurung.