What Evidence Prompted the Investigation Against Sher Bahadur Deuba and His Wife?
News Summary
Reviewed Editorially.
- The Department of Money Laundering Investigation has issued arrest warrants against former Prime Minister Sher Bahadur Deuba and his wife Dr. Arju Rana Deuba.
- After obtaining arrest permission from the Kathmandu District Court, investigations began following detection of suspicious transactions involving movable and immovable assets of the Deuba couple.
- The department indicated that the ownership source of approximately 73 ropani of land purchased by the couple’s son, Jayveer, appeared suspicious, prompting further inquiry.
March 8, Kathmandu – Following the discovery of suspicious transactions involving former Prime Minister Sher Bahadur Deuba, his wife and former Foreign Minister Dr. Arju Rana Deuba, and their family, the Department of Money Laundering Investigation has issued arrest warrants against the couple.
The department secured arrest authorization from the Kathmandu District Court for Sher Bahadur Deuba and Dr. Arju Deuba.
A source affiliated with the district court stated, “During the investigation of their movable and immovable assets, irregular earnings were found, leading to further inquiry on charges of money laundering.”
Officers from the Department of Money Laundering Investigation and technical support personnel from the Nepal Police’s Central Investigation Bureau have been collecting information about assets reportedly concealed by the Deubas. A police officer disclosed, “As a result, when certain immovable properties were identified, further procedures were initiated.”
According to sources within the department, over the last year or so, the approximately 73 ropani of land acquired by Sher Bahadur and Arju’s sole son, Jayveer, in the Kathmandu Valley and nearby regions, has been the most questionable. The sources explained, “During investigations initiated through that land acquisition, other suspicious transactions were also uncovered.”
A few days ago, the department dispatched security personnel to the Deuba residence in Budhanilkantha to prevent the destruction of fire-damaged debris.
Except for brief periods during the Shah regime, Sher Bahadur Deuba has continuously held public office since the restoration of democracy, serving as Prime Minister five times.
Since the 2070s BS, Dr. Arju Deuba also entered Congress politics directly, having been elected to parliament twice and serving once as Foreign Minister.
The Deubas, who have not been known to engage in professions outside politics, have faced dozens of complaints filed with the Commission for the Investigation of Abuse of Authority and the Department of Money Laundering alleging illicit wealth accumulation. According to sources, no substantive investigations had been conducted until now.
Sources connected to the Money Laundering Investigation Department stated that investigations are currently underway concerning the land purchased by Jayveer, properties owned by the Deuba couple, and related bank accounts. The department noted that there is no record of Jayveer entering Nepal through official airport channels following the recent political movement.
The department is also preparing to investigate the land and house in Budhanilkantha, which the Deuba family claims was purchased by Dr. Arju’s maternal family and gifted to them, a contention upheld by her secretariat.
The Deubas are currently in Hong Kong for medical treatment. Bhanu Deuba, personal secretary to former Prime Minister Deuba, responded that he is not aware of any government investigation or arrest authorization against them. He said, “They are both abroad for treatment, and I have no further information.”
What Crime Triggered the Money Laundering Investigation?
According to amendments made two years ago to the law governing money laundering investigations, no individual may be investigated for money laundering without evidence of involvement in a predicate offense.
If there is a primary allegation, investigations on suspicion of accumulating unexplained wealth may proceed accordingly.
Nevertheless, to date, Sher Bahadur and Arju Deuba have not faced any criminal investigations or registered cases. However, accusations persist that they amassed wealth through abuse of political power and influence.
During Sher Bahadur Deuba’s tenure as Prime Minister, allegations surfaced that Arju operated parallel underground gangs and misused public office appointed positions and state functions for personal benefit.
Arju’s name was also linked to allegations of illegal wealth acquisition and the fabricated refugee case. Following the recent political movement, the department sent some debris found at the Deuba residence, damaged by arson, for laboratory analysis.
Numerous Complaints Remain Pending
Last week, Home Minister Sudan Gurung visited the Commission for the Investigation of Abuse of Authority (CIAA) and met with Chief Commissioner Prem Kumar Rai in the latter’s office. Gurung expressed interest in the investigation of sensitive complaints and pledged support if needed.
Senior officials from the Prime Minister’s Office and the Ministry of Home Affairs have indicated that documents detailing transactions between Nepal Telecom officials and the Deuba family during the annual maintenance contract (AMC) for Nepal Telecom’s billing system were submitted to the CIAA.
A supplier based in Singapore’s information technology sector also provided detailed documentation of these transactions to the CIAA; however, despite repeated discussions, the commission has been unable to conduct a thorough investigation or take action.
The former Secretary of Communications, Dr. Baikuntha Aryal, who facilitated the contract, later became Chief Secretary. The government then managed to appoint him as Chief Secretary two days before his scheduled retirement by involving National Security Advisor Shankardas Bairagi and the then administration led by Prachanda. The Deuba family reportedly played a role in this appointment.
Sunil Paudel and Bikal Paudel, who actively assisted with Aryal’s appointment, are currently in custody on corruption charges. Approximately a dozen related corruption cases involving them are pending at various courts from the Supreme Court to the Special Court. Following irregularities in the billing system contract, the CIAA has not pursued further investigations into remaining complaints.
Jayveer Deuba is also accused of misusing state power to influence several government decisions. His name is linked to entities such as the Security Printing Press, Payment Gateway, and Nepal Telecom’s billing system.
The CIAA has conducted formal correspondence and investigations into these irregularities involving certain individuals and politicians. The cases against former Nepal Telecom Managing Director Sunil Paudel and former Executive Director of the Security Printing Press, Bikal Paudel, include these details.
In the case against Sunil Paudel, the CIAA noted that “Sunil Paudel was found to have associations with various government and non-government agencies, national servants, domestic, and foreign individuals,” prompting the appointment of a dedicated investigation officer.
Similarly, in the case against Bikal Paudel, the CIAA reported to the Special Court that “Bikal Paudel had connections with various government and non-government agencies and national servants, domestic and foreign political and business figures,” necessitating the appointment of a separate investigation officer.
Although the CIAA planned to investigate others involved in both cases, the names have not been disclosed. Department sources revealed that Dr. Arju Deuba and Jayveer have been linked to these irregularities and that further details have emerged with ongoing investigations.