Nepal’s former deputy PM Lamichhane arrested in cooperative scam

KATHMANDU: Nepal’s former deputy prime minister Rabi Lamichhane was arrested from his party office here on Friday evening in a misappropriation of funds case related to cooperatives.

A team of police from the Central Investigation Bureau raided the office at Banasthali on the outskirts of the capital and arrested Lamichhane, 50, who is also the president of the Rastriya Swatantra Party.

Earlier, the Kaski District Court had issued an arrest warrant against the former deputy prime minister and home minister in the Suryadarshan Cooperatives fund misappropriation case.

A parliamentary probe committee had found that Rs 1.35 billion fund of the Suryadarshan Cooperatives was misused.

Nepal police confirmed that an arrest warrant was issued against Lamichhane on Friday in connection with the cooperative fund misuse.

A bench of Kaski District Court headed by Justice Krishna Jung Shah permitted the arrest of Lamichhane.

The bench also issued arrest warrants against 13 others.

A parliamentary special probe committee was formed to investigate the crisis-ridden cooperatives. The committee’s report alleged that Lamichhane was involved in misusing the funds of various cooperatives, including Suryadarshan and Gorkha Media Network, when he was the managing director of the now-dissolved media company.

The report also holds several others responsible for their roles in the cooperative fraud.