After the relative serenity of the Dasain break, Nepali politics is in turmoil once more with the detention of the leader of the fourth largest party in Parliament. The RSP fashioned itself as an alternative to the three main parties that have taken turns to rule Nepal for the past 18 years, the NC, UML and the Maoists.&nbsp; It was going to show integrity, a vision for the future and do things differently. But RSP supporters took the streets of Pokhara and elsewhere on Monday to protest their leader’s arrest by the Central Investigation Bureau (CIB) in Kathmandu last week. On Sunday, the RSP leader and former home minister <a href="https://nepalitimes.com/news/nepals-home-minister-vs-the-media">Rabi Lamichhane</a> was remanded in custody for six days while investigations continue into charges of involvement in organised crime and siphoning off the savings of depositors in several cooperatives. A multi-partisan Parliamentary investigation committee last week found evidence linking the transfer of nearly Rs650 million from two cooperatives in Butwal and Pokhara to Lamichhane’s Gorkha Media Network where he was managing director and a <a href="https://nepalitimes.com/banner/after-balen-the-rabi-phenomenon">populist talk show hos</a>t before he launched the RSP.&nbsp; Lamichhane’s supporters are convinced that the current NC UML coalition is framing him for investigations into two scandals in which the top leaders of both parties were implicated. In fact, Lamichhane himself has said the Maoist-NC coalition in which RSP was a member was dismantled in June because his investigation was getting close to leaders in the NC and UML. After his arrest in Kathmandu on orders from the Kaski District Court, Lamichhane was taken to Pokhara overnight. Senior leaders of the RSP followed the convoy, and Lamichhane’s supporters greeted him along the highway.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20241021141036_2aa9325ed227be9bfc18b42079bf42392dd286f049d7ba351afb64da82e2dc8b.jpg" data-media-id="editor_2" data-image-id="20241021141036_2aa9325ed227be9bfc18b42079bf42392dd286f049d7ba351afb64da82e2dc8b" data-rendition-name="original" width="3600" height="2295" loading="lazy" alt="Rabi Lamichhane arrest NT"> <figcaption>RSP members gathered at party headquarters in Banasthali as party chair Rabi Lamichhane was arrested by CIB on Friday. Photo: HARI RAM BHETUWAL / RSS</figcaption> </figure>  There were parallel protests in Pokhara against Lamichhane by depositors of Suryadarshan Cooperative who lost their savings to the scam.&nbsp; If found guilty, Lamichhane will not just face a jail term of up to ten years, but also be suspended from his Parliament seat and will be unable to contest the next election. Lamichhane has not presented any facts to defend himself, and has denied involvement in the <a href="https://nepalitimes.com/news/heads-roll">cooperatives scam</a> accusing political rivals of feeling threatened by an emergent alternative party. “Rabi Lamichhane cashed in on populism, and public frustration with establishment parties to become politically successful,” explains political commentator Indra Adhikari. “But he has never been a particularly moral politician.”  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20241021141036_ef0ffab776ff38897c3977b7ee25cea471faaf0ebf7649c4e6cfa5ea9c19a9d9.jpg" data-media-id="editor_4" data-image-id="20241021141036_ef0ffab776ff38897c3977b7ee25cea471faaf0ebf7649c4e6cfa5ea9c19a9d9" data-rendition-name="original" width="3600" height="2021" loading="lazy" alt="Rabi Lamichhane arrest NT"> <figcaption>Rabi Lamichhane addresses party members at RSP headquarters in Banasthali before being taken into police custody on Friday evening. Photo: HARI RAM BHETUWAL / RSS</figcaption> </figure>  Lamichhane is <a href="https://nepalitimes.com/news/the-rise-and-fall-of-rabi-lamichhane">not a stranger to controversy</a>. Besides his citizenship caper, even before he joined politics in 2020 he was charged with abetting the suicide of a journalist by hounding him on his tv channel. He was acquitted. In early 2023, Nepal’s Supreme Court ruled that Rabi Lamichhane, who was Home Minister in the NC-Maoist coalition at the time, was <a href="https://nepalitimes.com/banner/rabi-lamichhane-is-home-less">not eligible to hold political position</a> because he had failed to reacquire his Nepali citizenship after renouncing his American one.&nbsp; Lamichhane subsequently got a new Nepali citizenship and contested the by-elections, which he won by an even bigger margin than his first time at the polls. Later that year, the Office of the Attorney General exonerated him in the case of possession of an active US passport. If found guilty in the cooperatives scam, it will be the second time that he will have to renounce his Parliament seat. Earlier, Lamichhane used his party’s strength in the House to be a kingmaker and bargained for a powerful role in coalition governments. This time, such tactics will not work since the current governing alliance is made up of the two largest parties which do not see any political advantage to supporting him. Indeed, they do not seem interested in rescuing him this time around.&nbsp; Says Adhikari: “The RSP is a personality cut around Rabi Lamichhane. It is not a political party, it functions more like a private company. Without Lamichhane, the party could just wither.” The Kaski District Administration Office has issued a prohibitory order in parts of Pokhara on Sunday. Riot police used water cannons and tear gas during protests by Lamichhane’s supporters.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20241021141028_daaf97ea6434b9799a78c0b1925c3f5429184da069bd5936afea1a8dd9d1df66.jpg" data-media-id="editor_7" data-image-id="20241021141028_daaf97ea6434b9799a78c0b1925c3f5429184da069bd5936afea1a8dd9d1df66" data-rendition-name="original" width="1500" height="1000" loading="lazy" alt="Rabi Lamichhane arrest NT"> <figcaption>Security forces use water cannons and tear gas in a confrontation with protestors at Pokhara's Shahid Chok. Photo: KRISHNA DAWADI / RSS</figcaption> </figure>  Even though many in Nepal's cybersphere question Lamichhane’s integrity, they see leaders of the three main parties as <a href="https://nepalitimes.com/editorial/nepal-s-corruption-carousel">being as corrupt</a>, if not more. They cite Prime Minister K P Oli accepting the donation of land and building from supermarket tycoon Min Bahadur Gurung to house the headquarters of the UML in Kathmandu. Even as the police investigate Lamichhane and former associates police DIG Chabilal Joshi, Gorkha Media Network chair G B Rai, and others, critics have pointed out that NC and UML leaders also involved in scamming depositors of cooperatives have got away scot free.&nbsp; The NC’s Dhanaraj Gurung and UML’s Rishikesh Pokharel, have also been implicated in the cooperatives scam, but have not been investigated even while their wives are at large.&nbsp; “We are only just beginning the process of investigating the individuals mentioned by the report of the all-party inquiry committee,” said Communication Minister Prithivi Subba Gurung on Sunday. “There is no need to create confusion by singling out names of the other people involved.” Popular RSP technocrats like economist Swarnim Wagle and IT expert Sumana Shrestha have <a href="https://nepalitimes.com/opinion/rsp-s-rsvp">taken a risk by backing Lamichhane to the hilt</a>. Analysts say there is a danger that their image could also be tarred.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20241021141024_5c141b2d25cf6ce3bada82b0bdef0012b844334d992cd4203cec0ed2e6782ed3.jpg" data-media-id="editor_10" data-image-id="20241021141024_5c141b2d25cf6ce3bada82b0bdef0012b844334d992cd4203cec0ed2e6782ed3" data-rendition-name="original" width="1500" height="1000" loading="lazy" alt="Rabi Lamichhane arrest NT"> <figcaption>RSP vice chairman Swarnim Wagle addresses a crowd of demonstrators in Pokhara on Sunday. Photo: Krishna Dawadi / RSS</figcaption> </figure>  RSP leaders have resorted to <a href="https://nepalitimes.com/editorial/democracy-s-discontents">inflammatory and populist rhetoric</a> to rile up supporters in the wake of Lamichhane’s arrest. MP Manish Jha said Monday he was ready to “spill his own blood and become a martyr in the fight against the country’s corrupt”.&nbsp; Those with inside knowledge, however, say that for all this bluster, it has no solid plans to maintain its leadership in the event of Lamichhane’s long absence from political activities.&nbsp; Indeed, the party has yet to appoint an acting chair in the aftermath of Lamichhane’s arrest. Senior RSP leaders and lawmakers Dol Prasad Aryal and Swarnim Wagle are the vice-chairs of the party. &nbsp;&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20241021141032_70338ba3551acd1152aec265e6e27e88b5c591ef2ac7f7417a2ddde040f3d45e.jpg" data-media-id="editor_12" data-image-id="20241021141032_70338ba3551acd1152aec265e6e27e88b5c591ef2ac7f7417a2ddde040f3d45e" data-rendition-name="original" width="2700" height="1552" loading="lazy" alt="Rabi Lamichhane arrest NT"> <figcaption>RSP vice chair Dol Prasad Aryal addresses supporters during a demonstration on Saturday. Photo: KRISHNA DAWADI / RSS</figcaption> </figure>  There is also question as to the future of RSP’s leadership and the party as a whole if Lamichhane is found guilty of his charges by the court, which will cut his political career short.&nbsp; Says Adhikari: “It is useless to hope that the RSP will be any kind of an alternative party and work for good governance. A political party that is relying on incendiary rhetoric to rile up crowds to impede investigation into their leader cannot be considered democratic."

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Rabi’s detention churns Nepali politics

For months now, <a href="https://nepalitimes.com/news/nepals-home-minister-vs-the-media">Nepal’s media has been reporting</a> on depositors defrauded of their savings by crooked cooperatives. The spotlight got brighter after<a href="https://nepalitimes.com/news/heads-roll"> Home Minister Rabi Lamichhane was accused </a>of siphoning off savings from two cooperatives and investing it in his television company.
Given a chance to defend his case in Parliament, he resorted to whataboutery and accused the opposition Nepali Congress (NC) of even greater plunder. After the row brought the House to a standstill for over a month, a cross-party probe committee has finally been formed, but without naming Lamichhane personally.
Nearly 30 crisis-ridden cooperatives across the country which have more than Rs60 billion in depositors’ savings at risk will be probed by the committee. Another 500 cooperatives are said to be dodgy, and the government says it will be compensating depositors who had up to Rs500,000 in savings in cooperatives that have gone belly-up.
Economist Pushkar Bajracharya says that <a href="https://nepalitimes.com/here-now/cooperatives-leave-nepalis-high-and-dry">Nepal’s cooperatives have had problems </a>from their earliest years because of lack of regulation and monitoring which allowed unscrupulous shareholders to invest the savings in questionable real estate deals (best case scenario) or fraudsters to decamp with depositors' savings (worst case).&nbsp;
“The lawlessness in the cooperatives sector meant that the hard-earned savings of depositors were misused or stolen,” Bajracharya says.
At the root of this <a href="https://nepalitimes.com/editorial/institutionalised-inequality">pandemic of plunder</a> in cooperatives is the culture of impunity where trusting Nepalis are cheated out of hard-earned savings with the promise of high interest rates. Like pyramid schemes, these are ways for deceitful individuals to cheat gullible depositors because they know they can get away with it.
This is similar to the <a href="https://nepalitimes.com/editorial/nepal-s-corruption-carousel">rampant corruption at all layers of government</a> and across the country where the might of those who hold power seem to have the right to extort and defraud the powerless. In many cases shareholders in local cooperatives are even elected local officials.&nbsp;
There is even a sitting MP, Gita Basnet, who is accused of pocketing Rs165.8 million from her cooperative depositors, and she has been on the run. A mayor and his wife in Baglung siphoned off Rs3 billion from 1,500 depositors. Criminal cases have been filed against all of them in the courts.
Ironically, the <a href="https://nepalitimes.com/news/till-debt-do-us-part">crisis in Nepal’s banks and financial institutions</a> has turned out to be a bonanza for financially fragile daily newspapers which these days are filled with pages and pages of paid property auction notices by banks. These advertisements are from Class A, B, C or D financial institutions and point to an upsurge in loan defaults.&nbsp;
The Credit Information Bureau (CIB) Nepal monitors 129 financial institutions, and says the number of blacklisted borrowers has grown from 3,609 to 96,331 in the past ten years — nearly half of them made it to the list just this year. Bijay Kunwar of the CIB says the numbers shot up after despositers failed to pay back loans from microfinance institutions.&nbsp;
The real estate slump is at the bottom of this crisis. Those who had borrowed from cooperatives or banks to invest in property speculating, hoping for fast returns, were trapped with huge loans they could not pay back. The crisis began during the Covid crisis and continued with the economic slump in Nepal caused by the Russia-Ukraine war.
Many defaulters have rallied around businessman Durga Prasai, himself a wilful defaulter who failed to pay back bank loans for a hospital in Jhapa, and <a href="https://nepalitimes.com/news/street-politics">held nationwide demonstrations</a> earlier this year. Prasai urged his supporters to stop servicing their loans and to force banks to cancel their debt.
“Prasai’s debt cancellation campaign sowed confusion,” senior economist Keshav Acharya explains. “Some borrowers of cooperatives who wanted to pay back loans were stopped from doing so by activists. And bank borrowers covertly hoped for their loans to be waived.”
Nine months of data from Nepal Rastra Bank (NRB) for the past year shows that the wholesale and retail sectors had the highest proportion of credit (19.9%) and loans to real estate developers made up just 4.92%.
“Many borrowers took loans for business purposes but used a portion to buy property, but since there is a real estate slump it has led to banking defaults,” says Bhuvan Dahal, former president of Nepal Bankers’ Association.&nbsp;
The default crisis in turn has been a factor in record outmigration in the past year as Nepalis leave to earn money overseas to pay loans back home. If there is a way out of this crisis, it will be to henceforth provide loans for projects that create jobs and not in unproductive sectors.
Pinki Sris Rana

Giving credit where it’s due

<h2>Gold Smuggling</h2>  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/2024032205038_6ff436f3ca5399751402ff6a360edee752b303b526320ae6e8b248f109194db2.jpg" data-media-id="editor_0" data-image-id="2024032205038_6ff436f3ca5399751402ff6a360edee752b303b526320ae6e8b248f109194db2" data-rendition-name="original" width="700" height="600" loading="lazy" alt="Gold smuggling NT"> </figure>  On orders of Home Minister Rabi Lamichhane, police on Monday <a href="https://nepalitimes.com/editorial/nepal-s-corruption-carousel">arrested Maoist vice-chair and former House Speaker Krishna Bahadur Mahara</a> in Bhairawa while he was trying to escape to India. He is accused of involvement in smuggling 60kg of gold concealed in motorcycle brake parts from Hong Kong last year, as well as 9kg of gold concealed inside vape devices in December 2022. Mahara’s son Rahul has been in custody since last August.&nbsp; Police arrested customs officials, Chinese and Indian nationals, and middlemen involved in smuggling the 60kg, while a Chinese trader was detained for gold hidden in e-cigarettes. Police uncovered phone records of Mahara and his son apparently pressuring customs officials to release the seized gold. Other Maoists, including Finance Minister Barsaman Pun, former Speaker Onsari Gharti Magar, son of former vice-president Nanda Bahadur Pun Dipesh Pun, are also implicated in the investigation report. &nbsp; Dipesh Pun was found to be directly linked to Dawa Tsering, the Belgian national thought to be the mastermind behind gold smuggling, who was arrested again last week after being released earlier. &nbsp; Finance Minister Barsaman Pun and his brother are alleged to have been in touch with one of the people said to be directly involved in the smuggling. They are so far not under investigation.&nbsp; <h2>Baluwatar Land Grab</h2>  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20240322050312_a71c350eed753b8a19aec2925a051ed256b766167eabf6a9e7c13ecc93f289ea.jpg" data-media-id="editor_2" data-image-id="20240322050312_a71c350eed753b8a19aec2925a051ed256b766167eabf6a9e7c13ecc93f289ea" data-rendition-name="original" width="1300" height="800" loading="lazy" alt="Lalita Niwas NT"> </figure>  Almost 14.45 hectares of real estate in Baluwatar nationalised by the government was <a href="https://nepalitimes.com/here-now/crime-and-or-punishment-in-nepal">parcelled out to private owners by brokers</a> since the 1990s under the guise of returning it to Subarna Sumsher’s family. Former prime ministers, ministers, party leaders, bureaucrats, and land revenue officials are all said to have their hands in the honey pot. &nbsp;&nbsp; In 2023, the CIB recommended that the government prosecute those implicated, including former prime ministers Babauram Bhattarai and Madhav Kumar Nepal whose Cabinets allowed ownership of the land to be transferred to private entities. Senior UML leader Bijay Gachhadar was named, as was Bishnu Poudel of the UML who later returned a part of the property.&nbsp; Middlemen Ramkumar Subedi and Shobhakant Dhakal, Bhatbhateni Supermarket owner Min Bahadur Gurung, as well as officials of the Land Revenue Office were arrested for alleged involvement last year. Baburam Bhattarai and Madhav Kumar Nepal have been spared, and Bishnu Paudel cleared. <h2>Fake Refugee scandal</h2>  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20240322050312_aca19c77e73d7dc603a1bccad13565768e5facd09d2e53c1d17ede36ddb7ae57.jpg" data-media-id="editor_4" data-image-id="20240322050312_aca19c77e73d7dc603a1bccad13565768e5facd09d2e53c1d17ede36ddb7ae57" data-rendition-name="original" width="1200" height="600" loading="lazy" alt="Fake Bhutanese refugee NT"> </figure>  Reporter Devendra Bhattarai for the Centre for Investigative Journalism Nepal <a href="https://ekantipur.com/news/2023/03/27/167988439341418193.html">broke the story in Kantipur </a>in March 2023 about top politicians and bureaucrats in cahoots with human traffickers to provide Nepalis with fake refugee papers so they could emigrate to the United States pretending to be from Bhutan. &nbsp; The masterminds were said to be Keshav Dulal, adviser to former Foreign Minister Sujata Koirala, and Sanu Bhandari who worked with former Home Minister Bal Krishna Khand with then home secretary Tek Narayan Pandey.&nbsp; <a href="https://nepalitimes.com/news/rot-at-the-top">In May</a>, police arrested Khand as well as UML leaders Top Bahadur Rayamajhi and his son, as well as the son of UML vice chair Ram Bahadur Thapa. Those arrested implicated Arzu Rana Deuba, wife of former Prime Minister Sher Bahadur Deuba, and Manju Khand, wife of Bal Krishna Khand. Both have denied the accusations and the CIB did not investigate them despite leaked tapes purporting to prove they were paid millions. Bal Krishna Khand was released on bail in December, while Top Bahadur Rayamajhi remains in custody.&nbsp; <h2>Cooperatives fraud</h2>  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/2024032205030_e6ad30233ba5e8c2b399e069a927cd29e34843c363272424b25700af8fa9f69c.jpg" data-media-id="editor_7" data-image-id="2024032205030_e6ad30233ba5e8c2b399e069a927cd29e34843c363272424b25700af8fa9f69c" data-rendition-name="original" width="800" height="800" loading="lazy" alt="Cooperatives NT"> </figure>  Last year arrest warrants were issued for Galaxy TV co-founder and former chair of Suryadarshan Cooperative G B Rai for embezzling deposits to fund business ventures. Rai is also alleged to have misappropriated more than Rs1 billion from Supreme Cooperative in Butwal and other microfinance institutions in Chitwan, Birganj and Kathmandu. Rai is on the run.&nbsp; Home Minister Rabi Lamichhane was co-founder of Galaxy TV, and was also <a href="https://nepalitimes.com/editorial/skeletons-in-the-cabinet-k5x6py1v">accused of cheating cooperatives </a>to bankroll the media company he co-owned. Lamichhane has refuted all allegations and since becoming Home Minister again transferred Kiran Bajracharya, the CIB chief investigating the cooperative fraud case. Instead, he jailed Maoist vice-chair Krishna Bahadur Mahara for his reported involvement in multiple gold smuggling scams and appears to be going after big fish in the NC next.&nbsp; Dipesh Pun, son of former vice-president Nanda Bahadur Pun was arrested last week for his involvement in gold smuggling is also one of those named in the Supreme Cooperative fraud case. <h2>Bansbari Land Scam</h2>  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/2024032205034_887d724962f9e585ff9bec4cabf5c5b444a9f42d9723c8d95d7c2d8b4f03bac9.jpg" data-media-id="editor_9" data-image-id="2024032205034_887d724962f9e585ff9bec4cabf5c5b444a9f42d9723c8d95d7c2d8b4f03bac9" data-rendition-name="original" width="500" height="500" loading="lazy" alt="Land scam Bansbari NT"> </figure>  In February, the CIB arrested Arun Chaudhary of CG Holdings over alleged involvement in the illegal acquisition of 0.51 hectare of the government-owned Bansbari shoe factory. His brother, Nepal’s richest man and NC MP Binod Chaudhary, was also questioned on Thursday. The land was transferred without government approval in 1986 to the Chaudharys' Champion Footwear which is defunct, but the assets are owned by CG Chandbagh Residency, which also runs a school on the land. The CIAA was investigating, but the CIB took over after an <a href="https://www.ukaalo.com/ukaalo-vishesh/221022-cg-possession-in-bansbari/360">investigative report by Deepa Dahal in Ukaalo</a>. &nbsp;

Heads Roll

Home Minister Sudan Gurung resigned on Wednesday following increasing coverage of and criticism over his investment in companies linked to controversial Nepali business figures Sulav Agrawal and Deepak Bhatta, who are currently under investigation for money laundering.
‘I am resigning from the position of Home Minister effective today to ensure impartial investigation into matters associated with me, and to make sure that there is no conflict of interest,’ Gurung wrote, saying that morality and public trust mattered more to him than office.
Gurung ended his message to the nation in English as he invoked the security forces, writing: &nbsp;‘For my country and For the respect of our security forces and For the youths of Nepal.’
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Gurung has become the second member to depart the Cabinet, serving for less than a month, despite the Nepali electorate’s hopes that Nepal would finally get a stable government after the RSP’s sweeping victory in the March elections.&nbsp;
Prime Minister Balendra Shah had sought clarification from Gurung on Wednesday after new details emerged about his shares in two micro-insurance companies, Star Micro Insurance and Liberty Micro Life, which are said to have been issued their licence by the Nepal Insurance Authority at the behest of Bhatta and Agrawal.
Gurung denied financial misconduct, saying that his investment in the two companies was included in his asset disclosure and insisting the misunderstanding is because of how the shares have been categorised.&nbsp;
Leaders within the RSP had called for an internal investigation into Gurung as they sought to maintain the party’s platform of clean governance and transparency. As such, Gurung’s position had become increasingly untenable, especially since former Labour Minister was sacked without being given an opportunity for clarification over a disciplinary breach involving his wife’s appointment to the Health Insurance Board.&nbsp;
On social media, Sah on Tuesday seemed to express dissatisfaction over the PM’s request for Gurung’s clarification.&nbsp;
Judging by the comments under Gurung’s resignation post, a significant part of the Nepali public seems to be firmly on Gurung’s side, blaming the mass media and what they call mouthpieces of old parties for driving him out of the Cabinet.&nbsp;
This is a reflection of his meteoric rise and the continued support he has maintained since he stepped into the spotlight as the leader of Nepal’s youth movement in the aftermath of the September protest.&nbsp;
Gurung has made headlines constantly ever since he burst onto the national stage, which includes questions over the degree of his and his organisation Hami Nepal’s involvement in the September 9 unrest, calls to divulge details behind Hami Nepal’s finances, and not paying five years of rent for an illegal lakefront property in Pokhara.&nbsp;
There have also been unsubstantiated claims, despite Gurung’s denial, about his ‘ties’ to the Free Tibet movement, which has made the Chinese— as well as Nepalis— wary.&nbsp;
As Home Minister, Gurung cultivated an image of a tough but approachabe leader, overseeing a series of high-profile arrests of previous political leadership and business figures even as he posted photos of sleeping in a sofa in his office, and engaged with the public on the streets and on social media.&nbsp;
As it stands, the Home Ministry was a bone of contention between Shah and RSP Chair Rabi Lamichhane before it was awarded to Gurung, who is a close ally of PM Shah. Analysts had noted that with Gurung in charge, the Home Ministry would be a hook for Shah if Lamichhane, with his share of controversies, stepped out of line.&nbsp;
Following Gurung’s resignation, the Prime Minister’s secretariat has said that the PM would take charge of the portfolio for the time being. But it will be interesting to see if and how fresh negotiations for the Ministry unfold within RSP.&nbsp;
And with his supporter base largely intact, it remains to be seen how much of an impact this setback will have on Sudan Gurung’s political aspirations.&nbsp;

Home Minister Sudan Gurung resigns

Sudan Gurung is dancing. It is 2009. He has an emo fringe falling over one eye and is spinning on a polished floor. His dance shows dedication — moves that take years of bruised elbows to land. The clip is 16 years old, and had been sitting in the dead archives of YouTube and old Facebook pages, watched by almost nobody. This month <a href="https://www.tiktok.com/@4gr4j/video/7621892206902725909">it has 1.9 million views</a>. Gurung became Home Minister on 27 March and resigned on Wednesday, barely a month into office. His<a href="https://www.tiktok.com/@aayvik/video/7626069452177542408"> pre-political life had been put back into circulation</a> at industrial speed -- the b-boying, the DJ sets, and the YouTube video of him dancing in a music clip.&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/2026042202040_71df4d531423e7c941abde95fb8106346c70ab0afb71bbeb520cc570f14ba178.jpg" data-media-id="editor_2" data-image-id="2026042202040_71df4d531423e7c941abde95fb8106346c70ab0afb71bbeb520cc570f14ba178" data-rendition-name="original" width="2300" height="1000" loading="lazy" alt="When aura meets audit"> </figure>  The youth of Nepal, well-versed in snappy TikTok edits and aura compilations, turned the archive into a meme economy almost overnight. TikTok remixed the footage to trap beats. The comments settled on a nickname that crossed into everyday speech within days: 'Homie Minister'. <div class="embed-block"><blockquote class="tiktok-embed" cite="https://www.tiktok.com/@yalexthwreal/video/7622325255792512276" data-video-id="7622325255792512276" style="max-width: 605px;min-width: 325px;" > <section> <a target="_blank" title="@yalexthwreal" href="https://www.tiktok.com/@yalexthwreal?refer=embed">@yalexthwreal</a> <a title="sudangurung" target="_blank" href="https://www.tiktok.com/tag/sudangurung?refer=embed">#sudangurung</a> new home minister of Nepal😎 <a title="fyppppppppppppppppppppppp" target="_blank" href="https://www.tiktok.com/tag/fyppppppppppppppppppppppp?refer=embed">#fyppppppppppppppppppppppp</a> <a title="sudangrg" target="_blank" href="https://www.tiktok.com/tag/sudangrg?refer=embed">#sudangrg</a> <a title="home" target="_blank" href="https://www.tiktok.com/tag/home?refer=embed">#home</a> <a title="minister" target="_blank" href="https://www.tiktok.com/tag/minister?refer=embed">#minister</a> <a target="_blank" title="♬ original sound - •⪨н є α я т ❤н α ¢ к є я ⪩• - Music Universe 🎧" href="https://www.tiktok.com/music/original-sound-•⪨н-є-α-я-т-❤н-α-¢-к-є-я-⪩•-7308733170064231170?refer=embed">♬ original sound - •⪨н є α я т ❤н α ¢ к є я ⪩• - Music Universe 🎧</a> </section> </blockquote> <script async src="https://www.tiktok.com/embed.js"></script></div> As Home Minister, Gurung was in charge of the Nepal Police, Armed Police Force, Department of Immigration, and the country's internal security apparatus. Calling him 'homie' collapsed the distance between that office and the Discord server where the movement that brought him into power had organised itself. What is harder to explain is why the nostalgic clips did the narrative work for Gurung's political standing right up until the moment the paperwork did not. A teenager on a dance floor in a Thamel club, filmed before smartphones had decent cameras, was functioning as political currency for a powerful home minister, while a share registry was quietly filling the other column. The footage was not an argument. Gurung was not doing anything in it that related to home affairs. He was just dancing. The comments compared him to <a href="https://www.tiktok.com/@4gr4j/video/7621892206902725909">Korean film heroes</a>. A separate <a href="https://www.tiktok.com/@tandavyt7/video/7622151050128018708">48,000-like edit</a> was captioned 'Our New Home Minister Aura'. The replies were full of people saying they got chills listening to him speak. Even after his resignation, most comments on his Facebook page were supportive, saying he had been punished for pursuing truth and justice.&nbsp; Political legitimacy in Nepal has been built out of many things over the last 70 years, but it has never been built out of this. The question was always: what happens when the job starts demanding things his style, boldness, and swag cannot provide. Political aura in Nepal used to be a slow harvest, now it isn't. B P Koirala spent eight years in prison under the Panchayat. He wrote fiction at Sundari Jal. The writing survived, the prison sentences survived, and that experience became the template for what a serious Nepali politician looked like: someone the state had tried to break and failed. Legitimacy was accumulated by having their lives taken away, and refusing to bend the knee. The old mechanics of legitimacy produced politicians who could be audited. The record was made of words, dates, votes, and years behind bars. A voter who wanted to know what a leader stood for read his writings. A journalist digging for inconsistency could find it. The system was slow, often corrupt, and frequently boring. But boring was part of the job description. A minister was supposed to be slightly dull — evidence that the person was doing the unglamorous work of reading files and sitting through committee meetings. Today, boring is a disqualification. The attention economy rewards velocity and visual charge, and a politician who cannot generate either does not exist in the feed, and that means does not exist at all. The legacy parties are still issuing press statements criticising the new guard in the grammar of paper trails and procedural failure. But the audience has stopped reading, users scroll for their next viral bite. Sudan Gurung, unlike the old parties, understood exactly which grammar the feed rewarded. On his first evening as Home Minister, he posted a photo of himself sleeping on a sofa inside the ministry. Caption: creation cannot be greater than the creator, government is not above the people. The image travelled further in 12 hours than any ministerial press release has ever done.&nbsp; A minister napping on a sofa, phone-shot, zero production, read by the public as evidence of a minister who had skipped the motorcade and got straight to work. Gurung used Facebook to announce the names of former ministers and businessmen he intended to arrest. The feed was used to pre-announce state security action.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20260422010456_2fa1918e1dd031d01f38b4001ee306d9414073cec0b795fa43a75cb5a8deb8c7.png" data-media-id="editor_6" data-image-id="20260422010456_2fa1918e1dd031d01f38b4001ee306d9414073cec0b795fa43a75cb5a8deb8c7" data-rendition-name="original" width="926" height="868" loading="lazy" alt="When aura meets audit"> </figure>  INFLUENTIAL INFLUENCER This is not how the Ministry of Home Affairs has ever operated. It is how a YouTuber releases a series. Sudan Gurung was a political content creator. As home minister, he was an influential influencer kinetically doing something in the visual medium. Much like Prime Minister Balendra Shah's sunglasses, Gurung's aura, authenticity and swag were a brand asset, instantly recognisable at thumbnail size. Balen's rap career supplies a pre-political archive that authenticates him the same way Gurung's DJ sets and b-boying clips authenticated him. The aesthetic is doing the work a manifesto used to do. The work is authenticity, and the strategy is auramaxxing. The emo fringe predates the ministry. The DJ sets predate Hami Nepal. The b-boying predates the earthquake, the NGO, the September uprising, the interim cabinet, all of it. Whatever Gurung is now, he was already that person before the office existed. This was the real spectacle of the Homie Minister: authenticity. Nepal's youth have grown up watching heavily-polished, talking-point ministers speak in a language aimed at nobody in particular. But that grainy archival clip of the Home Minister from 2009 was honest.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20260422010456_5d6dff3a09e8b7e77dc60c3aa567c9e02b6bd5f90f94e20737ec05cc9a09023b.jpg" data-media-id="editor_7" data-image-id="20260422010456_5d6dff3a09e8b7e77dc60c3aa567c9e02b6bd5f90f94e20737ec05cc9a09023b" data-rendition-name="original" width="1800" height="1000" loading="lazy" alt="When aura meets audit NT"> </figure>  The effect transcended GenZ. <a href="https://www.tiktok.com/@ektapokharel/video/7623242573481561365">A TikTok trend</a> captioned NOT ONLY OUR HOME MINISTER, WE ARE ALSO FROM THAT ERA <a href="https://www.tiktok.com/@sonykhadka/video/7624106790266948872">has millennials posting their own</a> archive photos from the same period, aligning themselves with Gurung's pre-political aesthetic. The aura did <a href="https://www.tiktok.com/@_thakuri/video/7623397397556645141">cross-generational work</a>. It was a shared legibility, spanning at least 15 years of Nepali youth culture, with the Home Minister standing at its centre.&nbsp; The traditional politician's entire adult life is a performance of identity. Every photograph is lit for the media, every statement is vetted. The persona is the product, and the product has been in development for 30 years. This makes the old guard legible but suspect in the attention economy. A generation raised on authenticity-as-currency reads the decades of careful performance as evidence of something to hide. The polish is the problem. The nostalgic Sudan Gurung party clips inverted this. The polish was absent. The footage could not be performance aimed at the viewer, because the viewer did not exist in 2009 and neither did the political stakes. The clip was therefore read as real, in a way a press conference can never be. It was just a kid dancing, and he happened to grow up to be the Home Minister. But Sudan Gurung's job was never to go viral. The Ministry of Home Affairs requires the person running it to file a complete asset declaration and to avoid holding financial interests in crony entities.&nbsp; None of that work is content. A correctly filed asset declaration does not get remixed into a trap beat. A functioning immigration database is not a TikTok. The paperwork that constitutes actual governance is structurally boring in exactly the way the old parties are structurally boring, and for the same reason. It is the slow, procedural, checkable apparatus that the old system was built to produce and that the new system has not yet learned to replace. And it is painstaking follow-the-money paper trail investigative journalists in the legacy media who uncovered the evidence. You cannot auramaxx your way out of a share registry. You cannot post your way past a conflict-of-interest statute. No amount of fire outfits and wild DJ transitions does anything for you when a journalist pulls the initial shareholder list of Star Micro Insurance and finds your name at number 49, with Rs2.5 million in shares alongside investors linked to Deepak Bhatta and Sulav Agrawal — two men currently at the centre of a Rs 3.7 billion money laundering investigation. <a href="https://www.tiktok.com/@blox.drop/video/7622173520981658900">Auramaxxing was engineered</a> for the mechanics of reaching office. It is the reason Sudan Gurung became Home Minister and Gagan Thapa did not. The question that had not yet been tested, until this week, was whether the same weapon works when the terrain changes. The terrain does change when you assume power. This week, the answer arrived. TWO CLOCKS Two clocks had been running, and they did not sync. The first clock was built for auramaxxing. A clip posted at eight in the morning peaked by noon. A sofa photo was remixed before the minister had left the building. The feedback loop is fast and legible, and a politician playing this clock gets real-time data on what to post next. The old guard never learned to read it, which is a large part of why they lost the election. The second clock was the one the ministry actually runs on. It measures in quarters, court calendars, and the slow grind of investigation files moving between offices. A share registry takes weeks to pull. A money-laundering case moves at the speed of the prosecutor's office, which is to say, it often does not appear to move at all, until one morning it does. The legacy mass media is fed leaks, and the second clock does not care whether the minister is currently trending. The two clocks collided this week, and the second clock got there first. Faster than anyone expected. The first clock put Gurung in the Home Ministry in weeks. The second clock put him out of it in less than a month. On Sunday evening, Diyopost and Janaastha published documents showing Gurung as a founding shareholder in Star Micro Insurance and Liberty Micro Life — companies licensed by the Nepal Insurance Authority in 2022 following what reporting identified as political lobbying by Bhatta and Agrawal. A photograph also surfaced of Hami Nepal, the NGO Gurung chairs, honouring Bhatta as a donor on 21 December 2021. Gurung's first response was auramaxxed. A Monday Facebook post distinguishing ‘rumours’ from ‘facts’, insisting the shares were disclosed within his broader Rs20 million securities portfolio, promising to cooperate with any investigation. "Allegations and truth are not the same thing," he wrote. "Decisions should be based on evidence, not sentiment." It was a coherent clip, but it did not stop the clock. By Wednesday, Prime Minister Balendra Shah had sought written clarification. Leaders within the RSP itself were calling for his resignation. The opposition Nepali Congress had framed the question as one of democratic transparency.&nbsp; Gurung resigned, posting his decision to Facebook as he did everything else. Ethics, he wrote, hold more weight than any position. There is no power greater than public trust. He ended in English, invoking ‘my country … the respect of our security forces … the youths of Nepal’. Even the exit was content. And this is the asymmetry the office exposed. A politician whose legitimacy is built on fast 30 second videos is structurally exposed to a process that runs slower than the news cycle, because the archive of aesthetic proof was not engineered to answer documentary evidence.&nbsp; It was engineered to displace the demand for documentary evidence in the first place. When that demand returns, as it always does once a politician takes office, the digital archive keeps performing, but the documents keep getting uncovered. And the two tracks do not communicate. The old guard knew this clock because they had no other clock to know. What they lost in charisma they gained in durability: a politician built over 20 years of parliamentary record is harder to dislodge with a single document because they have already survived thousands of documents. The new guard has not been stress-tested against its own paper trail. Sudan Gurung has now been tested, and the test is over, and the template has been written in his exit rather than his survival.&nbsp; A politician can enter office on the strength of a dance clip, and the same class of evidence — share registries, company filings, founding-shareholder lists at number 49 — that would have ended the career of a politician in a previous era of Nepali politics has ended his. The second clock got there. The feed did not save him. Or not entirely. Because the resignation itself is now in the feed. The Facebook post. The 46 brothers and sisters. The epic sign-off. Within hours of stepping down, Gurung had already re-enrolled his exit into the same register that put him in office. The clip of the Home Minister dancing in 2009 is still in circulation. The sofa photo still reads as sincerity. The investigation into the micro-insurance shares will move at the speed of Nepal's prosecutor's office, which is to say, at a speed the feed has long since outrun. The movement that installed Gurung in the name of ending elite capture has had its answer about whether its own hero is subject to the same audit it demanded of everyone else. He walked — or was walked — before the audit ran its course. The resignation was framed as moral choice rather than forced exit, and the framing is already winning. Whether that framing holds is the next test. Auramaxxing, it turns out, is a weapon that works in one direction only: it got him the job, and when the documents arrived, it did not save him. But it may yet save the person. These are not the same thing. If the technique is wounded, it is not yet dead. The next Nepali politician with a pre-political archive and a phone is watching how Gurung exits, not just how he entered. And the answer is: you exit the same way you entered: on Facebook. In your own voice. Before anyone else writes the caption. Whether he comes back is the thing to watch. Whether the technique does is already decided. &nbsp; &nbsp;

When Aura meets Audit

Just three weeks in, Prime Minister Balendra Shah has already shed two ministers, and is having to contend with the economic fallout of the West Asia war plus the global order that it has upended.&nbsp;
The new dispensation in Nepal has aroused interest in New Delhi, Beijing as well as Washington. The ouster of Home Minister Sudan Gurung, whose first act in office was to arrest former prime minister K P Oli, has foreign policy wonks scratching their heads.
The US sent Assistant Secretary of State for South and Central Asian Affairs Samir Paul Kapur on a special mission to figure out what is happening in Kathmandu. In town at the same time was Cao Jing, Deputy Director General of the Asian Affairs Department of China’s Ministry of Foreign Affairs. And Prime Minister Shah is preparing for an official visit to India.
For the Americans, it is mostly about containing China and looking after the welfare of Tibetan refugees, while pushing its own MCC Compact and State Partnership Program (SSP). Beijing is mindful of the post-Dalai Lama era, and does not want instability in Nepal to encourage free-Tibet activities. India lately seems more wary of American activity in what it considers its backyard.
The Chinese appear relieved to see Sudan Gurung go. Only last week, Ambassador Zhang Maoming met Gurung during which he raised the issue of Tibetan and Taiwanese activities in Nepal, seeking firm commitment that Kathmandu would not harbour activities hostile to Beijing.
“Geographically we are close to Tibet and not to the Mainland, so China remains suspicious of us, especially after the TOB and free-Tibet components that emerged from the GenZ protests,” says geopolitical analyst Indra Adhikari.
Kapur, for his part, met RSP Chair Rabi Lamichhane, Finance Minister Swarnim Wagle and Foreign Minister Shishir Khanal. Although investment and infrastructure was on the agenda, the main issue seems to have been about Tibetan refugees. In nearly parallel meetings with ministers, Cao Jing warned Nepal not to be too cosy with the Americans.
For Indian academic and Nepal watcher Sukh Deo Muni, all this harks back to American activity in Nepal during the height of the Cold War. He tweeted: ‘US senior diplomat Paul Kapur's statement in Kathmandu must be understood carefully in New Delhi. He said the US does not want China or any other country to dominate Nepal.’&nbsp;
‘Any other country’ could be a pointed reference to India, and what this means is that Nepal may now have to navigate even more carefully a tri-polar world order reshaped by the West Asia war.&nbsp;
Nepali journalist based in New Delhi Akanshya Shah agrees that the United States may not be seeing Nepal through the Indian lens anymore, while New Delhi does not want heightened US activity in what it considers its sphere of influence. All this is further complicated by recent frostiness in Washington-New Delhi ties.
“New Delhi doesn’t have that familiarity factor it used to with old leadership in Nepal, but it is curious about what the young Balen Shah will do and what kind of relation he will pursue with India,” she adds. “Certain decisions of the Balen government such as ending VIP culture and delivering passport at homes have hugely resonated with the Indian people, he has in some ways become a role model among the youth in India as well.”
India has invited Prime Minister Shah for an official state visit, which will be his first foreign trip as per tradition. Shah graduated in structural engineering from a college in Bengaluru, and knows India well. Shah has injected religious elements into his public exposure as prime minister and this could help project Nepal’s ‘soft power’ in dealing with India.
But he has also been a nationalist on the Limpiyadhura map dispute, and there are other thorny issues like air connectivity, river projects and power exports that need to be ironed out.&nbsp;
Sukh Deo Muni warns that the old Indian diplomatic approach based on religio-cultural stakeholders in Kathmandu may not work anymore. He wrote: ‘India's Modi government must prepare itself well to deal with new Nepalese leadership and their empowered support base, which is self-confident, highly nationalist, aspirant and impatient.’
The RSP’s 22-page National Commitment document said Nepal should abandon its historical ‘buffer state’ identity to serve as a ‘vibrant bridge’ between regional and global powers. Much of this debate is theoretical, and there is much navel-gazing that distracts from regional realpolitik.&nbsp;
“Whether we are a buffer state or a vibrant bridge, in today’s heightened geopolitical scenario we have to have good relations with good neighbours,” explains Akanshya Shah. “What is of paramount importance is that our ties are based on the aspirations of the young generation, so that they are engaged.”
Indra Adhikari goes as far as to say that the concepts of “buffer state” and “vibrant bridge” have both failed and Nepal is neither. “We have had zero roles in mediating or de-escalating the tensions between India and China to call ourselves a buffer state. As a vibrant bridge, we cannot facilitate trade of the two countries. The new government should have researched and consulted more before proposing the same outdated and failed foreign policy concepts.”&nbsp;
What will be much more important for Prime Minister Shah is to continue Nepal’s traditional policy of ‘equidistance’ and convince his interlocutors that it is not an anti-Indian stance.&nbsp;
“At a time when there is increased interest of big powers in Nepal, we need to do a bit of our own homework for the systemic reforms we want,” says Akanshya Shah. “As for India, we first need to clearly define what we want on connectivity, energy and culture. But most importantly, we have to capitalise on the goodwill of India which we haven’t been able to in the past.”
Adds Indra Adhikari: “When it comes to fundamental aspects of foreign policy that ensures and enhances the well being of our citizens, national parties should all have one unified voice that doesn’t change when the government does. Only then the future generations can own it.”

Love thy neighbours (and America)

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.&nbsp;
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.&nbsp;
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.&nbsp;
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 &nbsp;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.&nbsp;
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. &nbsp;
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.’&nbsp;
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.&nbsp;
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.&nbsp;
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. &nbsp;
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.&nbsp;
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.