Nepal's Prime Minister Balendra Shah expanded his Cabinet on Tuesday, 9 June, reappointing Sudhan Gurung as Home Minister and inducting Mahabir Pun as Minister for Science, Technology and Innovation. President Ram Chandra Poudel administered the oath of office at a ceremony held at the presidential office in Kathmandu.

Why Gurung Was Out — and What Brought Him Back

Gurung had stepped down as Home Minister on 22 April amid controversy over his alleged financial links with businessman Deepak Bhatta, who is currently in judicial remand on money-laundering charges. He announced the resignation through a social media post, stating he was stepping down to ensure an impartial investigation and to avoid any conflict of interest while holding office.

On 11 May, a Cabinet meeting constituted an inquiry committee headed by former judge Achyut Prasad Bhandari. The committee has since submitted its report to Prime Minister Shah, concluding that no direct connection could be established between Gurung and Bhatta, and that no banking records were found showing financial transactions between them. During his testimony, Gurung reportedly stated that he had earned income from operating a hotel in Thamel, Kathmandu's main tourist hub, and subsequently invested the proceeds in shares and gold.

The Wealth Controversy That Lingered

When Cabinet ministers disclosed property details on 12 April, Gurung emerged as one of the wealthiest members of the government, with substantial cash deposits, shareholdings in multiple companies, and landholdings that reportedly exceeded the legal ceiling. Questions about the sources of this wealth persisted even after his initial defence.

Gurung had responded on social media, writing: 'When you are born poor, that is not your fault; but if you die poor, that is your fault. Earning wealth without corruption before joining the government is not a sin; earning wealth through corruption after joining the government is a sin.' It later emerged that he had also invested in a micro-insurance company promoted by Bhatta, further fuelling scrutiny.

Gurung is a member of the House of Representatives, elected from the Gorkha-1 constituency in western Nepal. He is also one of the key figures of the Gen-Z movement that emerged in September last year. For the past one and a half months, Prime Minister Shah had been personally holding the Home Ministry portfolio following Gurung's exit.

Who Is Mahabir Pun

The newly appointed Science and Technology Minister, Mahabir Pun, was elected to Parliament as an independent candidate from Myagdi district in western Nepal. He had previously served as a minister in an interim government led by former Prime Minister Sushila Karki. Pun is widely recognised for his work in expanding internet connectivity to remote Himalayan communities.

Context: A Government Still Finding Its Footing

The Shah-led government was formed on 27 March following the 5 March elections. Gurung's departure in April had made him the second Cabinet minister to leave office in under a month of the new government's formation. His reinstatement, backed by the inquiry committee's findings, marks an attempt to stabilise an administration that has faced repeated scrutiny over its ministers' financial backgrounds. How the government manages ongoing accountability questions will be closely watched in the months ahead.