Nepal Issues Arrest Warrant for Former Home Minister Amid Fraud Allegations

The Kaski District Court in Nepal has issued an arrest warrant for former Home Minister Rabi Lamichhane, now chairman of Rastriya Swatantra Party, over alleged involvement in cooperative fund misappropriation. The warrant follows arrests and a special parliamentary report implicating Lamichhane and three others in forgery, fraud, and money laundering.

The Kaski District Court in Nepal has issued an arrest warrant against former Home Minister and chairman of the Rastriya Swatantra Party (RSP), Rabi Lamichhane, on Sunday. The warrant, issued by a bench led by Judge Krishna Jung Shah, pertains to Lamichhane's purported involvement in cooperative mismanagement while managing Gorkha Media Network, owned by GB Rai.

Following the issuance of the arrest warrant, party cadres rallied at the party office, chanting slogans against the government and the authorities. They accused the state of targeting Lamichhane due to his rapid rise in popularity.

Earlier the same day, former Deputy Inspector General (DIG) Chhabi Lal Joshi, a partner at Gorkha Media Network, was also detained, prompting a gathering of key party members at the office.

This move against Lamichhane follows directions from the current Minister for Home Affairs, Ramesh Lekhak, who instructed Nepal Police to initiate a parliamentary special investigation. The report, made public Friday, suggests that Lamichhane, Rai, Joshi, and Kumar Ramtel be probed for alleged fraud, forgery, organized crime, and money laundering.

The committee report links the cooperative fraud case to various legislative frameworks, including the Cooperative Act 2017 and the Organized Crime Prevention Act 2013. The investigation focuses on Nepali Rs 650 million funnelled into Gorkha Media from several cooperatives. The parliamentary committee, led by Surya Thapa, comprises members from various political parties, underscoring the severity of the allegations.

Lamichhane, who entered politics in 2022 with the formation of RSP, was managing director of Gorkha Media at the time of the alleged fund misappropriations. He has claimed innocence, asserting he was unaware of the cooperative fund transfers.

The committee report recommends strict legal actions and attention to the regulatory provisions governing cooperative fund transfers. It alleges active involvement of Lamichhane and others, evidenced by millions worth of cheques issued from a joint account.

The House Speaker directed the government to act on the committee's report, emphasizing the accountability of promoters and shareholders in cooperative operations. Lamichhane, questioned for over 10 hours during the inquiry, maintained his ignorance about the origins of the funds.

The report's tabling has led to directives for government implementation, following demands from the Nepali Congress for a parliamentary probe into Lamichhane's activities. Initially granted three months, the committee's tenure was extended by 15 days to finalize the report.

(With inputs from agencies.)