Nepal Court issues arrest warrant for former Home Minister Rabi Lamichhane

Kathmandu [Nepal], September 23 : The Kaski District Court in Nepal issued an arrest warrant against former Home Minister and the chairman of Rastriya Swatantra Party (RSP), Rabi Lamichhane, on Sunday.
A bench of Kaski District Court led by Judge Krishna Jung Shah issued the warrant related to Lamichhane's alleged involvement in cooperatives while managing Gorkha Media Network, owned by GB Rai.
Soon after the issuance of the arrest warrant, cadres of the party gathered in the premises of the party office, chanting slogans against the government and the authorities issuing the warrant.
They claimed that Lamichhane has been framed by the state given his popularity within a short span of time.
Earlier on Sunday, former Deputy Inspector General (DIG) Chhabi Lal Joshi, partner of Lamichhane at Gorkha Media Network, was also arrested.
A meeting at the party office was prompted by the arrest of Joshi calling all the key members of the party's secretariat and central committee to assemble at the office.
The recent development in Nepal leading to the arrest of the former Home Minister Rabi Lamichhane comes after incumbent Minister for Home Affairs Ramesh Lekhak directed Nepal Police to call for a parliamentary special investigation committee.
Lekhak sent the report to the police headquarters on Sunday, instructing them to act on it immediately. The report recommends investigating four individuals, including the former managing director of Gorkha Media and chairman of Rastriya Swatantra Party (RSP), Rabi Lamichhane, on the four charges--fraud, forgery, organised crime and money laundering.
The special committee's report, made public on Friday, suggested that Lamichhane, Gorkha Media's chairman Gitendra Babu (GB) Rai, former Deputy Inspector General (DIG) of Nepal Police Chhabi Lal Joshithe and Kumar Ramtel be investigated for their alleged involvement in the misappropriation of funds from various cooperatives.
Chapter 8 of the parliamentary committee's report mentioned that the cooperative fraud case was subject to the Cooperative Act 2017, sections on forgery under the Criminal Code, the Organised Crime Prevention Act 2013, and the Anti-Money Laundering Act 2008.
Rai was Gorkha Media Network's chair and Lamichhane its managing director when over Nepali Rs 650 million was brought into the company from various cooperatives, including Suryadarshan in Pokhara, Sahara in Chitwan, Supreme in Butwal, and Swarnalakshmi in Kathmandu.
The seven-member parliamentary committee headed by Surya Thapa comprised Sarita Bhusal of CPN-UML, Ishwari Neupane and Badri Pandey of Nepali Congress, Lekhnath Dahal of CPN (Maoist Centre), Shishir Khanal of the Rastriya Swatantra Party and Dhruba Bahadur Pradhan of the Rastriya Prajatantra Party as its members.
Former Home Minister Lamichhane had worked in Gorkha Media, the parent company of now-defunct Galaxy 4K Television, as managing director at the time when cooperative savings were invested, violating cooperative legislation. The incumbent parliamentarian also clarified that he was engaged in Gorkha Media taking sweat share.
Later in 2022, Lamichhane, entered politics, announcing the formation of the Rastriya Swatantra Party, and entered the federal parliament as a parliamentarian contesting the election the same year. The television's failure to pay salaries to its staff has shut down its formal operation since last year.
The parliamentary investigation report has pointed out that the shares were traded on the basis of forged documents recommending the government to draw the attention of authorities.
Further, it has instructed the government authorities to determine the payment process for the transfer of shares and pay applicable tax in case of a complete transfer of shares. Also, the committee has directed the government to further explain and strengthen the provisions regarding sweat shares.
The committee in its report also recommended the government take legal action against everyone involved in the transfer of money to Gorkha Media from various cooperatives. Millions of rupees were inducted into Gorkha Media from various cooperatives: Suryadarshan from Pokhara, Supreme from Butwal, Swarnalaxmi from Kathmandu, Sahara Chitwan from Chitwan and Sanopaila from Birgunj.
The report stated that the embezzlement of amounts was completed with the active involvement of GB Rai, Kumar Ramtel, Rabi Lamichhane (then managing director), and Chhabi Lal Joshi. Rai and Lamichhane had operated a joint account in a bank and had issued cheques amounting to millions, which shows his involvement, the committee report includes.
"Every company has its own objective and spirit. Promoters and shareholders are the ones with main responsibilities in such institutions. Those in the role and responsibility as shareholders, promoters and managing directors cannot be allowed to not be responsible and accountable for the money received by the company," the report stressed.
During the investigation, the committee held an inquiry session with former Home Minister and incumbent Chairperson of Rastriya Swatantra Party (RSP) Lamichhane for over 10 hours.
Throughout the inquiry session, he claimed to be unaware that the transfers that were made to the Gorkha Media originated from cooperatives, that too savings of about 50,000 people.
Further arguing over the case, Lamichhane also claimed that Rabi Lamichhane, who had borrowed money from Suryadarshan and Supreme Cooperatives, was also someone not in his knowledge. The committee had asked him a set of 50 questions about his alleged involvement in the scam.
Following the tabling and endorsement of the report, House Speaker Devraj Ghimire directed the government to implement the report of the parliamentary special inquiry committee formed to investigate the misappropriation of savings of cooperatives. Speaker Ghimire then directed the Parliament Secretariat to send the report to the government for implementation.
The HoR had formed the committee headed by CPN-UML lawmaker Thapa on May 28 after the Nepali Congress demanded the formation of a parliamentary investigation committee, saying Rastriya Swatantra Party President Rabi Lamichhane, who was then deputy prime minister and home minister, was involved in the misappropriation of cooperative savings. The HoR had initially given the committee three months and later extended its tenure by 15 days.