Nepal home minister Sudan Gurung resigns over financial misconduct in big jolt to Balen Shah's govt
Nepal Home Minister Sudan Gurung on Wednesday tendered his resignation following allegations related to his financial conduct while in office.
Gurung, who had been appointed as Home Minister on March 27, stepped down amid mounting criticism over his alleged business links and share transactions with a controversial businessman.
He said he had resigned to facilitate an impartial investigation into allegations related to his financial conduct and to avoid any conflict of interest while in office.
“For me, ethics is greater than position, and there is no greater force than public trust. The ongoing Gen Z movement in the country, which is demanding good governance, transparency and accountability, has also conveyed this message—that public life must be clean and leadership must be accountable.
“If anyone questions the government formed on the blood and sacrifice of my 46 brothers and sisters, the answer to that is ethics,” Gurung wrote on Facebook.
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Nepal’s home ministry portfolio with Balen Shah now
According to Prime Minister Balendra Shah’s secretariat, Gurung submitted his resignation letter to the prime minister, who has now retained the home ministry portfolio.
Gurung was also a part of the Gen Z protests in September last year, where he was seen distributing bottled water to demonstrators at Maitighar Mandala and Naya Baneshwor, the main protest sites.
He also played a key role in facilitating a deal between Shah, then the mayor of Kathmandu, and Ravi Lamichhane, a television journalist-turned-politician and president of the Rastriya Swatantra Party (RSP).
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Labour minister dismissed earlier
Earlier, on April 9, Prime Minister Shah had dismissed Labour, Employment and Social Security Minister Dip Kumar Sah on the recommendation of the ruling RSP.
RSP president Lamichhane had urged action against Sah, accusing him of misusing his position by being involved in the reappointment of his wife to the Health Insurance Board after her tenure had ended.
Following Sah’s removal, the prime minister took charge of the Labour Ministry, just 15 days after assuming office.
The Shah-led RSP government in Nepal came to power on the back of widespread opposition to legacy parties, months after the September 2025 Gen Z protests that toppled the K P Sharma Oli-led coalition amid allegations of corruption and restrictions on social media.