English | Dzongkha Wednesday, December 13, 2017

RICBL embezzlement a case of huge collusion: CEO


Jul 15, 2015

RICBL-CEORoyal Insurance Corporation of Bhutan’s Chief Executive Officer, Namgyal Lhendup says the recent embezzlement of Nu 92 M from its Paro Branch was a case of huge collusion. He said it was three-way collusion,which even the best of CEO and the system would not have been able to prevent.

“If people from my branch office in Paro and some from head office have joined hands, how could we have  prevented this?”

After a series of meeting, RICBL suspended two officials, in connection with the embezzlement, on Saturday.

The company’s supervisor of Paro Branch, Rinchen Wangdi had absconded after siphoning off Nu 92 M on June 20.


Namgyal Lhendup said their General Manager of Finance and Accounts Division and the Internal Auditor had to be taken to the task.

“We pinned it down to the General Manager. We looked at the documents from the Asset Liability Committee. It was clear from the documents that the committee was misinformed by the finance department.”

The CEO chairs the Committee’s meetings.

He said there was substantial amount of money in Paro Branch which was supposed to be brought back to Thimphu. This was not reflected in the documents from the meetings and was a clear indication that something was being hidden from the committee. “Of course, it may not necessarily have been the General Manager but someone was hiding.”

On the other hand, the CEO said the internal auditor had corresponded with Rinchen Wangdi over the phone. “Rinchen Wangdi had even confessed to his crime to the internal auditor at 8:30 PM, a day before he had absconded.”

However, the internal auditor reported to the management only at 11:30 AM the next day, which gave Rinchen Wangdi enough time to escape, according to Namgyal Lhendup. “If a person has confessed, isn’t it his duty to report to his supervisor and management?”

Both the CEO and Executive Director were out when the information came in. Namgyal Lhendup said their colleagues acted and by the time they reached Paro, Rinchen Wangdi had already absconded.

“We feel the internal auditor aided the escape of Rinchen Wangdi. It clearly shows that he failed us. I told him you helped this man’s escape and that the auditor has to bring Rinchen Wangdi back, along with the money.”

The CEO also said there was a strong message from the board that people down the line, including the CEO, must be held accountable. “Morally, as a CEO, I cannot shy away from this. I am responsible. But, I cannot just leave. I have to bring people, who are involved, to task.”

Namgyal Lhendup also said he has informed the board that he is morally responsible. “It is the board’s call. If the board feels I have to leave the company, I have to.”

The investigation continues and the CEO says the Anti-Corruption Commission has been forthcoming.

“Verification of documents is taking place. So it will be another week or so before we can establish substantive evidence to move things forward.”

2 Comments for “RICBL embezzlement a case of huge collusion: CEO”

  1. Tenzin

    Even if those officials (Internal Auditor, General Manager) involved in the embezzlement of Nu. 92m were to leave their job and company, they wont be losing anything because they have a share from that money. The concerned authority must look into this matter seriously.

  2. Jambay

    Even the best product has flaw so new version is inevitable. The story reminded about the Banco Central Burglary at Fortaleza incident in Brazil. About R$160 was stolen from the vault.

    We need smart system to check smart people. Now the RICBL management must think of recovering this money.

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