Kathmandu, 28 Sep: The Department of Money Laundering Investigation has belatedly launched an inquiry against former prime ministers Sher Bahadur Deuba and Pushpa Kamal Dahal, as well as former minister Deepak Khadka. Although photos and videos showing large amounts of Nepalese and foreign currency burning during the September 9 (24 Bhadra) arson attacks circulated widely on social media, the department only began collecting evidence and starting its investigation nearly two weeks later. Protesters had vandalized and set fire to the houses of Nepali Congress President Deuba, central committee member Khadka, and Maoist Chairman Dahal. During the incident, people were seen entering the houses and retrieving bundles of cash, later posting videos of burnt banknotes and property remains online. Additional footage showed people searching the ruins in the following days. The government provided police security outside the burnt residences only after the day following the arson.
On September 21 (5 Asoj), a team from the department visited Deuba’s and Khadka’s residences in Budhanilkantha, while they reached Dahal’s Khumaltar residence only on September 23, citing a holiday in between. The team collected burnt note fragments, ashes, and other evidence, later sending them to the forensic science laboratory for examination. “Videos and photos circulating on social media showed stacks of money allegedly found in the leaders’ homes. After initial screenings raised concerns, a formal investigation was initiated,” said one official.
Deuba’s secretariat, however, rejected the allegations. His personal secretary, Bhanu Deuba, issued a statement claiming, “The scenes shown on social media are fabricated, exaggerated, misleading, and deliberately spread with malicious intent to defame.”
Allegations Against Deuba, Dahal, and Khadka
Both former prime ministers have long faced accusations of protecting corruption and amassing illegal wealth while in power. Sher Bahadur Deuba has held public office continuously since 1991 (2048 BS), winning every parliamentary and constituent assembly election in Dadeldhura since then. He served as Home Minister in 1991 and became prime minister five times between 1995 and 2021. His wife, Arzu Rana, has also served as a proportional representative lawmaker in three elections and held the position of foreign minister in the government formed after the Gen-Z uprising toppled KP Sharma Oli. Arzu has faced allegations related to fake Bhutanese refugee scams and irregularities in land deals, but she was never investigated.
Pushpa Kamal Dahal
Pushpa Kamal Dahal entered parliamentary politics after the 2005/2006 People’s Movement and has since served as prime minister three times. During the Maoist insurgency (1996–2006), there were accusations that money and valuables looted from banks and financial institutions were misappropriated by the leadership. After joining the peace process, allegations surfaced that funds allocated by the government for Maoist combatants’ sustenance were embezzled by presenting inflated numbers of fighters. The Office of the Auditor General even categorized such misuse as irregular expenditure. Later, after Maoists joined government, Dahal was accused of interfering to write off the irregularities. He has also been criticized for residing in the home of controversial contractor Sharda Adhikari, which was among the properties set on fire by protesters in September.
Former minister Deepak Khadka has also faced corruption allegations. While serving as the Minister of Energy, Water Resources, and Irrigation, he was accused of manipulating hydropower licensing and contracts for personal benefit. He allegedly arranged financial transactions from ministerial quarters to favor associates. He was also implicated in the misappropriation of Nepal Scout’s land in Lainchaur. However, no effective investigation has been carried out in these cases.
Calls for Stronger Investigations into Illicit Wealth
In response to growing concerns, officials have stressed the need for robust investigations. Former Deputy Inspector General of Police Hemant Malla argued that all issues such as corruption, money laundering, abuse of state resources under the guise of policy decisions, and transactional transfers and promotions must come under investigation. He added that money laundering inquiries are not as complex as other heinous crimes; a comparison of an individual’s past and present status often reveals the truth.
“The key is to examine the gap between a person’s earlier financial standing and their current lifestyle and economic condition,” Malla said. “If an unbelievable transformation has occurred during this period, the question must be raised: what is the legitimate source of that wealth?”
Meanwhile, the government recently decided to return the Department of Revenue Investigation and the Department of Money Laundering Investigation to the Finance Ministry, and the National Investigation Department back under the Home Ministry, reversing the centralization decision made under KP Sharma Oli’s premiership in 2018 (2074 BS).
