PM Balen seeks written clarification from Home Minister Gurung over share investment controversy

KATHMANDU: Prime Minister Balen Shah has sought a written clarification from Home Minister Sudhan Gurung amid mounting questions over undisclosed share investments and alleged links with a controversial businessman currently under police investigation.

The development comes after allegations surfaced that Gurung had failed to fully disclose details of his share purchases in his asset declaration and was connected to businessman Deepak Bhatt, who is currently in police custody on charges related to money laundering.

According to the Prime Minister’s Secretariat, Shah formally took note of the issue and requested clarification after the matter gained public and media attention. Gurung’s Secretariat confirmed that a written explanation was submitted to the Prime Minister on Monday evening at 6 PM.

“Prime Minister Shah had expressed concern over the matter. Home Minister Gurung has already publicly clarified his position, and a written clarification has also been submitted regarding the share purchases linked to companies associated with Deepak Bhatt,” the Secretariat stated.

Gurung Claims Loan-Financed Investments

In his clarification, Gurung stated that the shares in question were purchased through borrowed funds. He argued that the investments were not concealed but categorized under broader headings in his asset disclosure.

Gurung mentioned that he had invested over NPR 20 million in publicly traded shares, which were already disclosed. He further clarified that investments in companies such as Star Micro Insurance and Liberty Microfinance were included within this category.

“I have clearly stated in my asset declaration that I invested over NPR 20 million in shares traded in the securities market. Investments in Star Micro and Liberty Micro fall under this category. This is not concealment but a matter of classification,” Gurung stated.

He further claimed that the funds used for these investments were obtained through a formal loan agreement dated September 15, 2023 (BS 2080/05/29), with transactions conducted via formal banking channels.

Five Key Questions Remain Unanswered

Despite the clarification, several critical questions remain unresolved, raising concerns about transparency and governance standards in Nepal’s political leadership.

1. Source of Overall Investment:
   While Gurung has explained the source of funds for specific investments, questions persist regarding the origin of his total share portfolio disclosed under multiple headings in his asset declaration.
2. Selective Disclosure of Companies:
   The names of certain companies, including Star Micro and Liberty Micro, were not explicitly mentioned in the original asset declaration and only surfaced after media reports. This raises concerns about selective transparency.
3. Nature of Loan Financing:
   Although Gurung claims the investments were financed through loans, details about the lender, loan terms, and repayment capacity have not been fully disclosed.
4. Alleged Links to Deepak Bhatt:
   The controversy is further intensified by alleged connections between Gurung and businesses linked to Bhatt. While Gurung has denied any wrongdoing, clarity on the nature and extent of these connections is still lacking.
5. Compliance with Asset Disclosure Norms:
   The broader issue centers on whether Gurung’s asset declaration complies with legal and ethical standards expected of high-ranking public officials in Nepal.

Political and Governance Implications

The issue has triggered debate within political and policy circles, particularly concerning transparency, accountability, and financial disclosures by public office holders. It also comes at a time when Nepal is under increasing scrutiny from international observers regarding governance standards, anti-money laundering compliance, and financial transparency.

Analysts note that such controversies could impact investor confidence in Nepal’s financial markets and governance framework, especially as the country seeks to attract foreign investment and strengthen regulatory oversight.

The Prime Minister’s move to seek clarification is being viewed as an attempt to maintain institutional credibility and signal accountability within the government. However, whether the explanation provided by the Home Minister will satisfy public and political scrutiny remains to be seen.