Nepal Court Jails Former Ministers in Refugee Resettlement Scam

In Nepal, a court sentenced ex-Deputy Prime Minister Top Bahadur Rayamajhi for fraud in a fake Bhutanese refugee scam. Former Home Minister Bal Krishna Khand was also implicated. Fourteen others were convicted. The verdict follows years of refugee resettlements and political upheaval, leading to a Gen Z-backed government promising reforms.

In a significant legal development, a court in Nepal has sentenced two former ministers for their involvement in a scam that resettled Nepali citizens in the U.S. as Bhutanese refugees. The district court in Kathmandu handed down a four-year sentence to former Deputy Prime Minister and Energy Minister Top Bahadur Rayamajhi. His colleague, former Home Minister Bal Krishna Khand, received a two-year sentence as an accomplice in the fraudulent scheme against the state. According to court documents revealed on Wednesday, both ministers have previously denied any wrongdoing in the case.

Rayamajhi's lawyer, Dharma Raj Regmi, announced plans to appeal the verdict, insisting that his client was not involved in policymaking related to the refugees. Similarly, Pankaj Karna, representing Khand, also indicated an intention to challenge the ruling. The case implicates fourteen additional individuals, including a former high-ranking officer within the home ministry and a past Bhutanese refugee leader, all sentenced to jail terms up to four years. The scam was exposed in 2023 after both ministers had exited their government roles.

The situation has unfolded amidst decades of political tension, as around 120,000 Bhutanese of Nepali origin had left Bhutan for Nepal demanding more freedoms. International resettlement programs placed nearly 113,000 of them in Western countries, notably the United States, which accepted approximately 100,000. Amidst these pressing issues, a new government led by 36-year-old Balendra Shah emerged in March, promising to crack down on corruption in response to public dissatisfaction and the tragic anti-corruption protests of the previous year.