Sudan Gurung Steps Down as Nepal Home Minister Amid Financial Scrutiny

Nepal’s newly appointed home minister, Sudan Gurung, resigned on Wednesday following mounting criticism over his financial disclosures, marking the second cabinet exit in a government still in its early weeks.

Gurung, 38, said he chose to leave office to allow what he described as a fair and impartial investigation into the allegations. He framed the decision as a matter of principle, stressing that public trust and accountability outweigh the authority of office.

His resignation was confirmed by Dipa Dahal, press adviser to Prime Minister Balendra Shah, who said the government had formally received his letter.

The development adds to early turbulence for the administration, which came to power after sweeping elections in March. Gurung had taken office on March 27 and quickly drew attention by ordering the arrest of former prime minister KP Sharma Oli and former home minister Ramesh Lekhak over their alleged roles in a deadly crackdown during protests last September.

Those protests, in which Gurung himself was a prominent figure, began over a short-lived social media ban but escalated into broader unrest driven by frustration over corruption and economic conditions. The violence left at least 76 people dead and more than 2,500 injured over two days.

In recent days, however, Gurung faced scrutiny of his own. Questions were raised after asset declarations by government officials were made public, as required by law. Local media reported discrepancies, suggesting that some of his investments had not been clearly disclosed.

Two Nepali news websites published what they described as official documents indicating Gurung’s involvement in a company that was not specifically listed in his filings. Gurung responded by saying his investments had been grouped together in the declarations and denied deliberately withholding information.

Pressure intensified as the opposition Nepali Congress argued that any investigation would lack credibility if Gurung remained in office, citing concerns about possible influence over the process.

Earlier in the month, the government had established a five-member commission, led by a former Supreme Court judge, to examine the assets of politicians and officials as part of a broader anti-corruption reform agenda.

Gurung’s departure follows the earlier dismissal of labour minister Deepak Kumar Sah over allegations that he secured a public appointment for his wife.

The back-to-back exits have drawn attention to the challenges facing the new administration as it attempts to project a reformist image in a country where corruption concerns remain persistent. Nepal is currently ranked 109th out of 180 countries on Transparency International’s Corruption Perceptions Index.

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For now, Gurung’s resignation leaves the investigation to proceed without his presence in office, a move he said was necessary to uphold public confidence at a sensitive moment for the government.