PM seeks clarification from HM
Prime Minister Balendra Shah sought written clarification from Home Minister Sudan Gurung following news of his investment in two companies linked to controversial Nepali business figures Sulav Agrawal and Deepak Bhatt, who are currently at the centre of a Rs3.7 billion money laundering investigation.
Home Minister Gurung's secretariat said that it has responded to the PM and submitted a written explanation. This comes after Home Minister Sudan Gurung issued a public clarification about the new developments regarding his investments on Monday.
Gurung is listed as a founding shareholder of two micro-insurance companies Star Micro Insurance and Liberty Micro Life, having acquired shares amounting to Rs2.5 million. The two companies are said to have been issued their licence by the Nepal Insurance Authority at the behest of Bhatt and Agrawal. Family members and close aides of both Bhatt and Agrawal have stakes in the two companies.
Bhatt, chairman of Infinity Holdings, is a power broker accused of using his political connections to secure and manipulate public procurement contracts, influence policy changes ass well as leadership appointments to regulatory institutions including the Securities Board of Nepal and Nepal Insurance Authority.
Meanwhile, Shanker Group vice-chair Sulav Agrawal was also arrested earlier this month as part of a broader money laundering probe as well as an investigation into the group’s finances. Agrawal was previously arrested during the Covid-19 pandemic after he was found selling 67 infrared thermometers from a vehicle with diplomatic credentials. At the time, Bhatt is said to have used his connections to facilitate Agrawal’s release.
Critics have raised concerns the lack of detailed disclosures on Gurung’s part about investments tied to the very figures that his Home Ministry is in charge of investigating. There are also questions as to the source of his investment, which Gurung said in his clarification were raised through loans.
In his clarification, Gurung denied concealing his investments, saying that his shares in the two companies are part of in his over Rs20 million portfolio included in his asset disclosure and insisting the misunderstanding is because of how the shares have been categorised.
On his name and portfolio being associated with controversial figures, he responded, ‘There are hundreds to thousands of shareholders in a company. Buying shares does not constitute a partnership with anyone.’
He continued: ‘If that is the basis, then everyone with investments in those companies must be held accountable, which is not fair. Investments in the companies include those from media houses and banks. Are they all guilty?’
Leaders within the RSP have called for internal investigation into Sudan Gurung, to maintain the party’s platform of clean governance and transparency.
This comes after the sacking of Labour Minister Dipak Sah earlier this month after the RSP found him to be in breach of the party code of conduct following the reappointment of his wife to the Health insurance board. Sah was not given the opportunity for clarification prior to his departure.
Critics have said that the party is reverting to the patronage-driven politics of previous leadership following the appointment of figures close to RSP leadership in various key positions.
Many influential business owners elected to the House with direct stakes in the business, finance, tourism, and infrastructure sectors sit in Parliamentary Committees that would directly benefit their interests.
On Monday, RSP appointed Bhupdev Shah, who previously was a part of Balen Shah’s secretariat during his tenure as Kathmandu Mayor, as the party’s general secretary. Some have questioned the party’s decision to appoint Shah without going through an election process in its upcoming general convention.
Shah’s appointment comes as there is increased public attention over members of the Prime Minister’s inner circle being appointed to key advisory positions as well as to head governance reform committees.