Nepal Police arrest ex-Dy PM Rabi Lamichhane for organized crime, misappropriation of funds

Kathmandu [Nepal], October 18 : A team from the Central Investigation Bureau on Friday arrested former Deputy Prime Minister and Home Minister Rabi Lamichhane on charges of organized crime and misappropriation of cooperative funds.
Lamichhane, the chairman of Rastriya Swatantra Party, now in opposition who rose to power through the last general election was arrested as he stepped out from the party office in Kathmandu. The police, before formally arresting him on the charges had handed him over the arrest warrant issued by the Kaski District Court where he was investigated for embezzlement of cooperative frauds.
Addressing dozens of supporters, Lamichhane defended himself and blamed the new alliance forged under the Prime Ministership of KP Sharma Oli orchestrating a plot against him to remain longer in power.
"If I had made compromises as them, we would not have faced such a problem. But we didn't favour any of the compromises. I can understand the compelling situation of the party, I received the information about an agreement signed on the day when the coalition changed that, Rabi (Lamichhane) will be sent to jail very soon. I am not worried about anything, I have got enough as a person, the expectation and the trust which is being attacked, we will face it, I am ready to face all the legal consequences- would respect the legislative procedures but would call on everyone to fight against this political prejudice," Lamichhane called out to his supporters.
Soon after the arrest, Lamichhane was taken to the Pokhara to face trial as the case was filed in Kaski district police. The team led by Superintendent of Police Hobindra Bogati has been assigned to take him to Pokhara via road.
After the arrest warrant was issued, Lamichhane posted on social media, venting his ire against the government and expressing his commitment to fully cooperate with the investigation process. Lamichhane criticized the government for its alleged hypocrisy, stating corrupt leaders are protected while ordinary citizens, like himself, face unfair charges.
"The government has died, and we are in mourning. Your wristwatch is worth millions, while I wear handcuffs. You serve intermediaries and wear expensive glasses and shoes gifted by smugglers, while I carry the burden of accusations. You take land worth millions from proven corrupt figures, and I'm the one being accused of fraud," Lamichhane wrote on social media.
Lamichhane accused the government of using its power to protect its leaders while failing to hold corrupt figures accountable, even in the face of clear evidence. He also accused the ruling leaders of trying to protect its leaders.
"Now, we will lead the voice of cooperative victims. In your celebration of power, I commit to fully supporting the law and ensuring justice is served. Your actions will lead the country to ruin, but we will bring about change. The people will act, and soon, they will make their voices heard," he said.
Lamichhane also expressed confidence in his party and its role in this struggle, telling supporters, "To my RSP family, hold your heads high. Your chairperson has not defrauded anyone."
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Along with Lamichhane, the Kaski District Court also has allowed the police to arrest 13 others in the same case with the same charges. Earlier, the District Police Office, Kaski sent a letter to the Central Investigation Bureau of Nepal Police requesting the latter to arrest Lamichhane for investigation into cooperative fraud and organized crime. The letter was addressed to the CIB, the Kathmandu Valley Crime Investigation Office, and the Kathmandu District Police Range.
A special inquiry by a parliamentary committee formed to investigate the cooperative scam which had prepared and tabled a report in the parliament on September 16 had indicted Lamichhane for embezzlement of millions of rupees as a part of the cooperative scam.
The seven-member committee formed on May 28 was tabled on the parliament which was formally endorsed by the house session. The report concludes that millions injected into Gorkha Media came from cooperatives that were traded on the basis of forged documents.
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 in violating cooperative legislation. The incumbent parliamentarian also clarified that he was engaged in Gorkha Media taking sweat share.
Lamichhane later in the year 2022 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 shut its formal operation since last year.
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 has 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 the 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 director cannot be allowed to not be responsible and accountable for the money received by the company," the report stated.
During the investigation, the committee also 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, also to be 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.
Dilendra Badu of Nepali Congress, Ishwari Neupane, Sabitra Bhusal of UML, Lekhnath Dahal of CPN (Maoist Center), Shishir Khanal of RSP, and Dhruba Bahadur Pradhan of Rastriya Prajatantra Party are members of the parliamentary committee.