KATHMANDU: Rabi Lamichhane, chair of the Rastriya Swatantra Party (RSP), is facing serious accusations of financial fraud in connection with the Supreme Cooperative case. This case has revealed massive irregularities in the cooperative’s operations, affecting the hard-earned savings of thousands of depositors.
Lamichhane’s involvement in the case is not an isolated incident. His connections to some of Nepal’s most prominent cooperatives have raised suspicions of financial mismanagement and corruption. Most notably, his close working relationship with GB Rai, the founder of Gorkha Media Network and a key figure in several cooperative scandals, has drawn public and legal scrutiny.
Lamichhane’s role in the Supreme Cooperative fraud case has raised questions about the broader impact of cooperative mismanagement on Nepal’s financial ecosystem.
Rabi Lamichhane was released on bail from the Kaski and Kathmandu District Courts after facing charges related to the cooperative fraud.
On January 15, Lamichhane was granted bail of Rs 6 million by the Kathmandu District Court. Previously, on January 9, the Kaski District Court had granted him bail of Rs 6.5 million. The charges against Lamichhane are serious, involving money laundering, organized crime, and cooperative fraud.
The Supreme Cooperative case is not a new one. Lamichhane, along with 14 others—including his business partner former DIG Chhabilal Joshi—was implicated in a massive savings fraud scheme at the Supreme Cooperative, based in Butwal.
This cooperative, which was supposed to safeguard the savings of local citizens, became a source of contention when investigators found evidence of large-scale embezzlement of funds.
Gorkha Media Network and GB Rai
Lamichhane’s professional ties to GB Rai, a key figure in the cooperative’s operations, have played a central role in his legal predicament. Prior to entering politics, Lamichhane worked closely with Rai at Gorkha Media Network, a major company in Nepal. Lamichhane’s connections with cooperatives like Supreme and Swarnalaxmi in Kathmandu, alongside his collaboration with Rai, have raised suspicions of financial misconduct.
The case took a dramatic turn when the Parliamentary Investigation Special Committee, led by MP Surya Bahadur Thapa, concluded that Lamichhane had also embezzled funds from the different cooperatives including Supreme Cooperative.
According to the report, Lamichhane is said to have transferred substantial sums of money from the cooperative to his media ventures, including Galaxy Television. The report found that Lamichhane was linked to the illegal diversion of Rs 143 million from the Supreme Cooperative into the Gorkha Media Network.
Evidence of fraud and financial mismanagement
The investigation into Lamichhane’s financial dealings revealed that at least Rs 143 million was funneled into Gorkha Media Network from Supreme Cooperative’s funds.
Of this amount, Rs 20 million was reportedly loaned to Lamichhane through a check issued in his name, without completing the proper procedural checks. This loan was later scrutinized by the parliamentary committee, which uncovered that the money had been transferred under questionable circumstances.
In fact, the cooperative’s own records revealed a deposit of Rs 20 million into an account in Lamichhane’s name at Global IME Bank in April 2021. According to reports, a sum of Rs 400,000 was deducted as service charges from this deposit.
The money was reportedly deposited by Roshni Gurung, a Supreme Cooperative staff, who later testified that they had done so on the instructions of the cooperative’s manager, Sagar KC.
But the story doesn’t end there. Further investigations revealed that Lamichhane wasn’t the only beneficiary of these illegal transfers. Funds from the Supreme Cooperative were also diverted to other individuals linked to Lamichhane and the cooperative, including his RSP treasurer Bipin Kumar Acharya.
According to the charge sheet, Acharya’s account also received a large sum from the cooperative, amounting to Rs 15.6 million, further complicating the web of financial irregularities.
Broader impact
The Supreme Cooperative fraud has far-reaching implications, not just for the individuals involved but also for the trust in Nepal’s cooperative sector.
As the investigation continues, the public’s faith in cooperatives, which are often seen as a safe place for citizens to deposit their savings, has been severely damaged.
In the aftermath of the scandal, the Supreme Cooperative has faced mounting scrutiny. Investigators have found that the cooperative was systematically mismanaged, with assets and liabilities poorly managed.
Reports show that the cooperative failed to meet the basic financial obligations required by law, such as maintaining sufficient liquidity and asset-to-liability ratios. The entire scheme was reportedly designed to siphon off savings from thousands of unsuspecting Nepalis to fund personal ventures, including the Gorkha Media Network.
What’s next for Lamichhane?
Rabi Lamichhane’s involvement in the Supreme Cooperative case highlights a troubling intersection between business, media, and politics in Nepal. His transition from media personality to politician has raised concerns about the overlap between these spheres, with critics alleging that Lamichhane used his media influence to facilitate financial dealings that benefitted him personally.
Lamichhane’s rise in politics, notably as the chair of Rastriya Swatantra Party, has been rapid, but his legal troubles have cast a shadow over his political future.
Many of his supporters argue that Lamichhane is being targeted because of his political ambitions, while critics believe that his involvement in these financial scandals undermines his credibility as a leader.
As Lamichhane faces serious charges of money laundering and organized crime, the legal proceedings are likely to continue for some time. His political career, which seemed to be on an upward trajectory, now faces significant challenges as he navigates the complexities of the case.
For now, Lamichhane remains free on bail, but his future—both as a politician and as an individual—is uncertain. The case against him is a stark reminder of the potential for corruption and mismanagement in Nepal’s cooperative sector, and the ongoing investigations may reveal even more layers to this intricate scandal.
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