Parliamentary Suspension

Rabi Lamichhane, a Member of Parliament (MP) elected from Chitwan Constituency No. 2, has been suspended by the Parliamentary Secretariat. A formal notice was issued regarding his suspension from the MP post following a supplementary charge sheet against him in Kaski District Court.

Legal Charges and Automatic Suspension

The suspension was initiated after supplementary charges of cooperative fraud, organized crime, and money laundering were filed against Lamichhane on December 22, 2024. Ekram Giri, the spokesperson for the Parliamentary Secretariat, clarified that the suspension was in accordance with Section 27 of the Money Laundering Prevention Act, 2008 (amended). The act mandates automatic suspension for public officials or employees under judicial custody or facing formal charges under its provisions.

Allegations of Fraud and Organized Crime

The District Government Attorney’s Office in Kaski filed three charges against Lamichhane and 44 others. These charges include:

1. Cooperative Fraud: Misappropriation of funds through two cooperative institutions using "VIP accounts."
2. Organized Crime: Directing and coordinating fraudulent activities behind the scenes.
3. Money Laundering: Accusations of embezzling NPR 278.9 million, with no clear source of the funds.

Party Membership at Risk

According to the statutes of the Rastriya Swatantra Party (RSP), Lamichhane could lose his party membership if convicted of money laundering. The party constitution disqualifies members guilty of crimes like corruption, money laundering, human trafficking, or offenses involving moral turpitude.

Tax Evasion Accusations

Lamichhane has been accused of evading taxes during his tenure as Managing Director of Gorkha Media Network and his employment at Galaxy TV. Investigations revealed:

• Underpayment of taxes on earnings of NPR 10.4 million over 18 months.
• Concealment of significant portions of his income, showing only half of his actual earnings in tax filings.

Use of VIP Accounts in Cooperative Fraud

Investigations have uncovered the existence of VIP accounts under Lamichhane’s name in two cooperatives:

1. Suryadarshan Savings and Credit Cooperative in Pokhara.
2. Supreme Savings and Credit Cooperative in Butwal.

These accounts facilitated unauthorized loans and fraudulent transactions, as confirmed by forensic evidence and digital records.

Leadership in Turmoil

Lamichhane’s legal troubles have also impacted the RSP’s leadership. The party appointed Deputy Chairperson Dol Prasad Aryal as Acting President. This marks Aryal’s second stint as Acting President, following Lamichhane’s earlier suspension due to citizenship controversies in 2023.

Internal Party Disputes

Internal dissent within the RSP has grown. Former General Secretary Mukul Dhakal openly criticized the party’s direction under Lamichhane and was later suspended for "indiscipline." The party has appointed interim leaders to key roles as part of damage control.

Judicial Process and Party’s Stance

The RSP has pledged to support the judicial process while maintaining confidence in Lamichhane’s innocence. The party’s Secretariat met to discuss the charges and decided to cooperate fully with ongoing investigations.

Conclusion

The suspension of Rabi Lamichhane underscores serious allegations of financial misconduct and organizational malpractice. As legal proceedings unfold, the implications for Lamichhane’s political career and the RSP’s stability remain significant.