English | Dzongkha Wednesday, December 13, 2017

Legality of BoiC questioned again

Kinley Yangden, Thimphu
Nov 29, 2016

legality-of-boic-questioned-againThe Opposition questioned the Government if the mandate of Rural Enterprise Development Corporation Limited (REDCL) differs from that of Business Opportunity and Information Centre (BOiC).

In the National Assembly today, the Opposition asked the government why BOiC was shut down, if the government does not deem it to be illegal.

REDCL was established in place of BOiC, which according to the opposition is an enterprise with a different name but same responsibilities.

The foreign minister, Damcho Dorji said they discussed with Royal Monetary Authority and that the central government told them there was nothing illegal about the enterprise.

“Even right now, we believe Business Opportunity and Information Centre was not illegal.”

However, Lyonpo said the question and issued raised by the two houses of the parliament and people’s false impression posed many hurdles to the functioning of the centre.

“We had to shut down the enterprise and start Rural Enterprise Development Corporation Limited. The new enterprise will continue to create employment opportunities and contribute to the economy. Since BOiC helped the people, we wanted to continue with the work, hence we established REDCL.”

BOiC was deemed illegal even after a year and a half in operation. It was deemed illegal because donor funds were used as management fund.

It did not have a financial license to give out loans and the employees were not recruited as per Royal Civil Service Commission regulations.

“The name has changed but the responsibilities have remained the same. The house was informed that Royal Monetary Authority was going to grant the license for the enterprise. So was the license granted? Also there are many incomplete projects pending from BOiC. How is the enterprise continuing with the projects?” said Panbang MP, Dorji Wangdi.

The finance minister, Namgay Dorji said the Rural Enterprise Development Corporation Limited was established after they received the license.

“While closing an old project and opening a new one, we are bound to face problems. And yes, we did face problems. Nonetheless, we are trying to complete the work as soon as possible. Also, we had the practice of using the donated funds for management, like Dzongs in the country was built or renovated using the funds, so when BOiC used the funds, I do not really see an issue there.”

Since the establishment of REDCL in May, this year, the enterprise has approved 236 projects and a total of Nu 256 M has been given as loan.

 

 

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