Home Minister Gurung claims loan-funded investment, Defends shareholding amid controversy

KATHMANDU: Home Minister Sudhan Gurung has issued a detailed clarification regarding the source of funds used in his share investments, stating that the money was obtained through a formal loan and routed via banking channels, amid growing scrutiny over his financial disclosures and alleged business links.

In a statement posted on Facebook on Monday, Gurung addressed questions surrounding his share transactions totaling approximately NPR 27.5 million. He emphasized that the investment was financed through a loan agreement dated September 15, 2023 (Bhadra 29, 2080 BS), which is officially documented.

“Regarding the source, the amount I invested was arranged through a loan, supported by a written agreement. The funds were transferred through formal banking channels and used accordingly for investment,” Gurung wrote. He added that the origin and flow of the funds can be verified through bank records and official documentation.

Clarification on Asset Disclosure

Responding to allegations that he concealed NPR 2.5 million worth of shares, Gurung argued that not all shares fall under the same classification. He stated that he has already disclosed investments exceeding NPR 20 million in publicly traded securities in his asset declaration, which is available on the Cabinet’s official website.

According to him, investments in companies such as Star Micro Insurance and Liberty Micro Insurance are included within this broader category. “This is not concealment but a matter of classification,” he said, adding that someone intending to hide assets would not openly declare investments exceeding NPR 20 million.

Denies Improper Partnership Allegations

Gurung also addressed claims linking him to controversial businessman Dipak Bhatt, who is currently under investigation by the Department of Money Laundering Investigation.

He rejected the notion that owning shares in the same company constitutes a business partnership. “A company can have hundreds or thousands of shareholders. Buying shares does not mean entering into a partnership with every shareholder,” Gurung stated.

He further questioned the logic of selectively targeting individuals, noting that the same company includes investments from media houses and banks. “If that logic is applied, all investors should be equally held accountable. The question is simple—Is being a shareholder a crime, or is it selective accusation?” he wrote.

On Conflict of Interest Allegations

Addressing concerns over a potential conflict of interest, Gurung clarified that the matter falls under the jurisdiction of the Ministry of Finance through the money laundering investigation authority, not the Home Ministry he currently leads.

“If I had interfered, such an investigation would not have progressed. The fact that the process is ongoing shows that institutions are functioning independently,” he argued.

Investment Risk and Timing

Gurung also responded to criticism that he invested without adequately assessing the background of associated individuals. He maintained that business investments inherently carry risk and that it is not always possible to foresee future developments.

“Judging past decisions based on events that occurred later is not factual but a convenient interpretation,” he said.

Response to Public and Political Criticism

The Home Minister acknowledged criticism regarding delayed response but defended his approach, stating that sensitive legal matters require careful handling rather than immediate public statements.

“Rumors spread quickly, but truth must be established through evidence,” he noted.

He also rejected claims that his actions contradict his party’s anti-corruption stance, arguing that personal investment should not be conflated with intermediary collusion. “Investment and brokerage are different. Mixing them may serve political narratives, but it does not reflect reality,” he added.

Commitment to Cooperation

Concluding his statement, Gurung reiterated his commitment to abide by party decisions and cooperate fully with any ongoing investigations.

“Allegations and truth are not the same. Decisions must be based on evidence, not emotion,” he said, adding that the values of past movements and sacrifices demand accountability grounded in facts rather than speculation.

The clarification comes at a time when the government led by Balen Shah faces increasing scrutiny over governance, transparency, and its commitment to reform amid rising public and political pressure.