Home Minister Sudhan Gurung Resigns Amid Allegations of Financial Misconduct

In a dramatic shift for the current administration, Home Minister Sudhan Gurung officially stepped down from his post late Wednesday evening. The resignation follows weeks of mounting pressure from opposition parties and widespread public demonstrations fueled by allegations of illicit financial ties between the Minister and a prominent businessman currently under investigation for international money laundering.

The Resignation Statement

In a brief but firm press conference held at the Ministry of Home Affairs, Gurung announced he had submitted his resignation to Prime Minister Balen Shah.

“While I maintain my innocence against these baseless accusations, I am stepping down on moral grounds,” Gurung stated. “The integrity of the Home Ministry must remain unquestioned. I am resigning to ensure that a completely impartial and transparent investigation can take place without any perception of influence from my office.”

Background of the Controversy

The crisis reached a breaking point last week when leaked financial documents allegedly linked a private account associated with Gurung’s family to a series of high-value transactions from Deepak Bhatta, a tycoon whose assets were recently frozen by the Department of Money Laundering Investigation (DMLI).

The news sparked immediate backlash, leading to:

  • “Gen Z” Protests: Youth-led movements occupied key intersections in the capital, demanding “clean governance” and immediate accountability.

  • Parliamentary Deadlock: Both the Nepali Congress and CPN-UML had threatened to obstruct all parliamentary proceedings until the Home Minister was removed from his post.

What Happens Next?

Prime Minister Balen Shah has reportedly accepted the resignation and is expected to appoint an Acting Home Minister by Thursday morning.

Political analysts suggest this move is a strategic attempt by the Prime Minister to save his coalition government, which has been under fire for perceived “softness” on internal corruption. A High-Level Judicial Committee is expected to be formed within the next 48 hours to probe the specific financial links cited in the leaked reports.

Meanwhile, the opposition has signaled that a simple resignation may not be enough. “Resignation is the first step, but prosecution must be the second,” said a spokesperson for the Gen Z Movement Nepal, indicating that public protests may continue until a formal legal case is filed.