In a significant political and legal development, the Kaski District Court in Nepal has issued an arrest warrant against former Home Minister and chairman of the Rashtriya Swatantra Party (RSP), Rabi Lamichhane.
The warrant pertains to his alleged involvement in a cooperative mismanagement case while managing Gorkha Media Network, owned by GB Rai. This move marks a critical point in the ongoing investigation into alleged financial irregularities within the cooperative system, particularly focusing on Lamichhane’s role in overseeing the operations of Gorkha Media.
The warrant, issued by Judge Krishna Jung Shah on Sunday, has stirred political tensions, with Lamichhane’s supporters accusing the government of politically targeting him due to his rising popularity in Nepalese politics. The arrest follows the detention of former Deputy Inspector General (DIG) Chhabi Lal Joshi, a partner at Gorkha Media Network, earlier the same day.
Allegations of Fraud and Money Laundering
The arrest warrant stems from a comprehensive investigation led by a parliamentary committee, which had been instructed to probe financial misconduct at Gorkha Media. According to the committee’s report, the case involves mismanagement of Nepali Rs 650 million, which was reportedly funneled into Gorkha Media from various cooperatives. The funds were allegedly misused, leading to accusations of fraud, forgery, organized crime, and money laundering against Lamichhane and other individuals associated with the media network.
The parliamentary committee’s report, made public on Friday, directly implicates Lamichhane, Joshi, GB Rai, and Kumar Ramtel in the financial irregularities. It highlights violations of several legal frameworks, including the Cooperative Act 2017 and the Organized Crime Prevention Act 2013. The committee, led by Surya Thapa, consists of members from multiple political parties, reflecting the seriousness of the charges and the wide-ranging political impact of the case.
The investigation into the case was initiated following instructions from the current Minister for Home Affairs, Ramesh Lekhak. Lekhak directed the Nepal Police to begin a special parliamentary investigation after the allegations against Lamichhane and his associates surfaced. The scope of the investigation also prompted demands from the Nepali Congress for a thorough parliamentary inquiry into Lamichhane’s activities, which led to the formation of the committee in question.
Party Cadres Protest Allegations
As news of the arrest warrant broke, supporters of Lamichhane and the RSP gathered at the party office to protest the government’s actions. They chanted slogans against the authorities, accusing the state of unjustly targeting Lamichhane due to his growing influence in Nepalese politics. Lamichhane, a former television presenter who entered the political arena in 2022, has quickly garnered public attention and support, especially among younger voters. His swift rise to prominence is seen by many as a threat to established political figures, leading his supporters to claim that the charges are politically motivated.
Lamichhane has maintained his innocence throughout the investigation. During his questioning, which lasted over 10 hours, he repeatedly asserted that he was unaware of the cooperative fund transfers into Gorkha Media. According to Lamichhane, he was not involved in the financial management of the cooperatives and was unaware of any irregularities.
His claims, however, have been met with skepticism by the parliamentary committee, which has recommended strict legal action based on evidence, including millions of rupees worth of cheques issued from joint accounts linked to Gorkha Media.
Government Actions and Legal Consequences
The parliamentary report has now been formally tabled in the House, with the Speaker directing the government to take appropriate action based on the committee’s findings.
The report emphasizes the importance of holding promoters and shareholders accountable for the operations and financial activities of cooperatives, which have become an integral part of Nepal’s economy. The committee has recommended stringent regulatory oversight to prevent future cases of mismanagement within the cooperative sector.
The report also calls for legal actions to be taken against Lamichhane and other accused individuals. This has placed significant pressure on the government to follow through with the investigation and ensure that justice is served, regardless of the political consequences.
The investigation committee was initially given three months to complete its work, but its tenure was extended by 15 days to finalize the report, underscoring the complexity and seriousness of the case.
The implications of this investigation extend beyond Lamichhane and his party. The case has highlighted broader concerns about the management and regulation of cooperatives in Nepal, which play a crucial role in the country’s financial system.
As cooperatives have become an important vehicle for economic development, any mismanagement or corruption within these institutions can have far-reaching consequences for the economy and public trust.
Lamichhane’s political future is now uncertain. While he has been a popular figure since the establishment of the RSP, the ongoing legal proceedings could damage his reputation and hinder his ability to continue as a political leader. His party’s leadership, meanwhile, has remained defiant, vowing to continue their protests and fight what they see as an unjust campaign against their chairman.
As the legal case against Lamichhane progresses, the political landscape in Nepal could shift, with potential ramifications for the broader political system. For now, the focus remains on the investigation and the legal consequences that may follow, as both the government and the opposition navigate the turbulent waters of this high-profile case.
