Nepal Protests- Is Gen Z uprising backed by shady money?

Violent protests have engulfed the Himalayan state of Nepal, with both Prime Minister KP Sharma Oli and President Ram Chandra Poudel having resigned, and Kathmandu is on the edge. The September 8 protests were triggered by the ban on 26 Social Media platforms. The government reportedly banned the social media platforms to curb the organising power of protestors.

Following Nepal's four-year IMF extended credit facility programme, the government was under immense pressure to boost domestic revenue. It started levying a Digital tax and stricter VAT on the e-service providers, many major platforms refused to register, and the government responded by blocking them. It started as a law enforcement effort and quickly turned into a tool for control and manipulation.

This came at a time when dissatisfaction was festering owing to scams related to weapons, energy projects, and medical supplies.The most terrible of them being the Fake Bhutanese Refugee Scam (2023–2024), duping 800 Nepalis from millions of money with fictitious documents of asylum seekers from Bhutan, so that they can resettle anywhere. Another case that shook the core of Nepalese was the Bulwatar land grab case which transferred government land to private owners. It had many high-profile politicians, including Deputy Prime Minister Bishnu Prasad Poudel. According to a report by Kathmandu Post, Nepal has witnessed approximately 4000 protests in the last 12 months, costing approximately Rs 500 million in damages.

What are the red flags?

The protests are reportedly being led by a 36-year-old Sudan Gurung, President of Hami Nepal, an NGO established during the earthquake of 2015, which devastated the country. The website of Hami Nepal has described its objective to connect donors with recipients. The NGO prides itself on financial transparency; its website shows information on total funds received and used, and the remaining funds.

Some of its financial backers of Hami Nepal have some questionable tie-ups. According to a report by Republica, Deepak Bhatta of Infinity Holding, a mentor of Hami Nepal, was a mediator of an arms procurement deal for Nepal Police with an Italian firm, Baretta and was accused of corruption/overpricing in 2022. He also had close ties to Former Finance Minister Janardan Sharma.

According to a report by Business Age, a Senior Executive of the Shanker Group, named Sulab Agarwal, was arrested in April 2020 on charges of black-marketing/ overpricing infrared thermometers. Hami Nepal have publicly listed them as corporate supporters and held an AGM where business donors were acknowledged. Moreover, the foundation has listed Dr. Sanduk Rait, founder of the Barbra Foundation, as its mentor, who had close ties to the CIA and had been a recipient of the Magsaysay award.

However, the allegation about the Infinity holding has not been confirmed by the court and exists only in local media reports. Hami Nepal have also garnered huge cultural support. Several organisations and public figures, such as music bands, Albatroos, actors and media personalities, Priyanka, Khadki and Swasmita Khadka and many others. It is internationally appreciated and has received funds from many big brands like Coca-Cola, Al-Jazeera, Glodster, Mulberry hotels, Time Pharmaceuticals, to name a few.