Home Minister Gurung Allegedly Paid a Rs. 50 Per Share Bribe to Acquire Star Micro Shares

Kathmandu — Reports had repeatedly surfaced on Beemapost alleging that shares of micro-insurance companies were sold through bribery arrangements, with payments reaching up to Rs. 200 per share under the tenure of then–Nepal Insurance Authority Chairman Surya Prasad Silwal. These claims, first reported three years ago, now appear to have been substantiated.

Investing in Star Micro Insurance Company is a personal decision of Sudhan Gurung, and his investment itself appears to be legally valid. However, a clarification statement he released yesterday has inadvertently pointed to the possibility that bribes were paid in the process of acquiring those shares.

According to details of a loan document Gurung shared on social media, he borrowed Rs. 3.75 million to purchase a total of 25,000 shares in Star Micro Insurance and Liberty Micro Insurance Company. Given that each share has a face value of Rs. 100, the total cost should have been Rs. 2.5 million. However, the loan amount exceeds this by Rs. 1.25 million, despite clearly specifying the number of shares to be purchased.

The loan, officially certified by a local ward office on August 8, 2023, lists the borrowed amount itself as the source of funds, which appears legitimate on the surface. However, a comparison between the number of shares and the total loan amount suggests that an extra Rs. 50 per share was borrowed. It is widely believed that this excess amount was used to pay bribes to then Chairman Surya Silwal, although Gurung has made no explicit mention of this.

Gurung’s clarification has further strengthened allegations that bribery was involved in the issuance of a micro-insurance license to Star Micro Insurance Company. At the time, Chairman Silwal, reportedly in coordination with then Finance Minister Janardan Sharma, approved licenses for seven micro-insurance companies in January 2023, during the election period. Although a complaint was filed with the Commission for the Investigation of Abuse of Authority against Sharma, no action was taken.

Now serving as Home Minister, Sudhan Gurung may face growing pressure as calls for an investigation intensify. Allegations have also emerged that Silwal used illicit gains from the licensing process to purchase a house in Downtown Housing, Imadol. With Gurung publicly advocating a zero-tolerance policy on corruption, attention is now focused on what action he will take against Silwal, who is accused of wrongdoing in this case.