Tamag made the allegation while addressing a public meeting in Sukna in Darjeeling district.
Tamang alleged that funds intended for public benefits were misused by Gurung and his associates.
He said his main objective is development of the Darjeeling hills.
The emphasis will be on water, health and road development, he said.
Sikkim being a separate state should not interfere in the politics of the Darjeeling hills, he said.
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"We do not want them to interfere in our affairs. We want to maintain a friendly relationship," he said.
Before concluding his speech, Tamang said that peace has returned in the Hills and tourists have started visiting.