Did Rabi Lamichhane Really Get a ‘Clean Chit’?

Kathmandu: Following the release of a parliamentary investigation report on cooperative fraud and fund misappropriation, the Rastriya Swatantra Party (RSP) has claimed that its president, Rabi Lamichhane, has received a 'clean chit' in the Network case.

However, this claim lacks any solid basis. The content of the parliamentary investigation committee’s report tells a different story.

In the fourth point of the action recommendations, the report clearly states: “Once the money from the cooperative reached the Gorkha Media Network’s account through irregular means, those involved in spending it, including directors Gittendra Babu Rai and Kumar Ramtel, and former Managing Director Rabi Lamichhane, along with board member Chhabilal Joshi, were responsible for the funds misappropriated from the cooperative to the company. Therefore, the government of Nepal is recommended to take legal action against them.”

Interestingly, RSP MP Shishir Khanal, who publicly claimed that Lamichhane received a 'clean chit,' signed the report without registering any formal disagreement or writing a note of dissent. Despite agreeing with the report, he is now speaking against it in public, contrary to his parliamentary responsibilities.

The report puts Lamichhane in the same category as Gittendra Babu Rai, Kumar Ramtel, and Chhabilal Joshi, all of whom are recommended for action. It makes it clear that during Lamichhane’s tenure as Managing Director, the cooperative's funds were transferred to Gorkha Media Network, where he, along with the others, held shares and directorial positions.

Lamichhane has maintained that he was merely a 'salaried employee' and that his involvement was limited to ‘sweat equity.’ But according to Nepal’s Company Act, a salaried employee cannot hold the position of Managing Director—such a role is reserved for an executive or shareholder. Many other employees and journalists at Galaxy TV were simply workers, and no questions have been raised about their roles.

Section 96 of the Company Act 2063 states that directors appoint one of their own as the Managing Director. Lamichhane's role as Managing Director confirms he was a founding shareholder, not just an employee.

If Lamichhane was only a salaried worker at Gorkha Media Network, he would not have been entrusted with the role of Managing Director, a position responsible for the company’s financial and administrative operations. The Managing Director’s authority often surpasses that of the chairman in a company’s day-to-day running.

As a founder shareholder, Lamichhane would have been required to pay his share of the company’s capital. The report highlights that Lamichhane held 15% of the company’s shares, became Managing Director without fulfilling his capital commitment, and that these funds were unlawfully pulled from the cooperative. Claiming a 'clean chit' under such circumstances is unfortunate.

It is also essential to note that this cooperative fraud case is a personal matter concerning Lamichhane, not the RSP party itself. When Lamichhane was involved with Gorkha Media Network, the RSP didn’t even exist. There is no formal or legal relationship between a political party, a cooperative, and a private company. Therefore, the cooperative fraud and the misappropriated funds from Gorkha Media Network have no direct connection to the RSP.

Lamichhane’s involvement in Gorkha Media Network is entirely a personal and private matter. It raises questions about his personal financial ethics and discipline. If this had been an issue after the formation of the RSP, it could have been a different story, but it is not.

Expecting RSP to take political responsibility for a pre-existing personal issue is laughable. This is entirely Lamichhane’s personal issue, and he must face it on his own. Trying to politicise this private matter, dragging the party into it, and mobilising supporters for defence while threatening political retaliation is completely unjustified.

This is not an issue that the entire RSP should defend. As Nepali Congress General Secretary Gagan Thapa rightly put it, "Who will carry the burden of Lamichhane's wrongdoings?" The RSP seems unable to distinguish between personal matters and party concerns.

Even some leaders, who are thought to be well-educated and knowledgeable about democratic values, are caught up in this leadership protection mentality, promoting a form of mob politics.