Key facts
- Former Nepal finance minister Bishnu Prasad Paudel arrested on money laundering charges.
- Paudel is a senior leader of the Communist Party of Nepal (UML).
- The arrest is part of a crackdown on alleged corruption by the current government.
Nepal's former finance minister Bishnu Prasad Paudel was arrested on charges of money laundering. The arrest is part of a crackdown on alleged corruption under previous administrations by the current Gen Z-backed government.
The arrest of a former finance minister on money laundering charges signals an intensified crackdown on corruption by Nepal's new government, potentially impacting political stability and investor confidence.
Nepal's former finance minister, Bishnu Prasad Paudel, was arrested late on Monday on charges of money laundering, according to police. Paudel, 66, a senior leader of the Communist Party of Nepal (UML) and a key figure in the previous K.P. Sharma Oli administration, was detained at a hotel in western Nepal. Police spokesperson Abi Narayan Kafle stated that Paudel is being transported to Kathmandu and will be transferred to the Department of Money Laundering Investigation.
This arrest occurs months after the Oli government was ousted following significant anti-graft protests that resulted in at least 76 deaths and over 2,500 injuries, with several government buildings, including parliament, being set on fire. Oli and his former home minister were previously arrested for failing to prevent the violence and have since been released on bail.
Prime Minister Balendra Shah, a 36-year-old rapper-turned-politician who assumed office in March with a strong mandate to combat corruption, has committed to taking action against past misconduct. Paudel was unavailable for comment, and a UML official indicated that senior party leaders would convene on Tuesday to discuss the situation. Paudel has previously served in multiple ministerial roles across various governments.