Home Minister Sudan Gurung has expressed his commitment to cooperate with an investigation after questions were raised over his alleged business links with businessman Deepak Bhatta, who is under probe for money laundering offences.

In a Facebook post on Monday, Gurung said there had been “a lot of rumours” and stressed the need to distinguish facts from speculation. “Allegations and truth are not the same thing. Decisions should be based on evidence, not sentiment,” he said, adding that he would “fully abide by every decision made by the party” and cooperate with the investigation.

Prime Minister Balendra Shah on April 9 had sacked then minister for Labour, Employment and Social Security Deepak Kumar Sah after the Rastriya Swatantra Party, the party he represented, recommended his dismissal for the “breach of its code of conduct and discipline.”

On Sunday evening, media outlets including Diyopost.com and Janaastha.com published documents indicating Gurung’s investment in Star Micro Insurance Company Limited, which includes capital linked to Bhatta and the Shankar Group, both under investigation. A photograph also surfaced showing Hami Nepal, an organisation chaired by Gurung, honouring Bhatta as a donor on December 21, 2021.

Responding to claims that shares worth Rs2.5 million were concealed, Gurung said all his investments had been disclosed. “I have clearly declared investments of over Rs20 million in shares traded on the securities market. Investments in Star Micro Insurance and Liberty Micro are included within this total. This is not concealment, but a matter of classification,” he said.

He argued that transactions conducted through banking channels are fully traceable. “There is a complete record of when money was transferred, where it went and to whom. How can such money be hidden?” he said.

On the source of funds, Gurung said the investments were made through loans backed by written agreements, with records showing the funds were routed through banks. “This is not a matter of assumption but one proven by documents and bank records,” he said.

Addressing allegations of links with Bhatta, he said shareholding in a company does not amount to a direct partnership, as a single company could have hundreds of shareholders and not everyone can be held liable for others’ source of investment.

On conflict-of-interest concerns, Gurung said the investigation is being conducted by the Department of Money Laundering Investigation under the Ministry of Finance.