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Construction sector has highest number of lapses & malpractices : RAA report

July 10, 2019
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The construction sector has the highest number of lapses and malpractices according to the Royal Audit Authority (RAA)’s report. The findings were shared at the ongoing 16th Audit Conference in Tsirang.

At the opening of the conference, the Auditor General presented the report. The report is based on RAA’s findings from July 2015 to June 2019.

The report states that common defaults and malpractices were observed in construction sites. Moreover, the lowest bid scheme in awarding of works has been found to compromise the quality of works.

“We discourage the lowest bid scheme in awarding works and other procurement processes. Whatever the scheme, the intentions should be clear. We have a feeling that there is favouritism in the tendering process through lowest bid format. We didn’t come across one so far yet. It is doable if one plans properly and draws the maps accurately, monitor constantly. Even the workers can contribute by putting sincere efforts,” the Auditor General Tshering Kezang said.

Meanwhile, a significant portion of manpower in the RAA is non-technical and it has become a challenge for the RAA to conduct construction audits to provide reasonable assurance on the quality and expenditure incurred. However the enactment of Audit Act 2006 to Audit Act 2018 last year has brought much relief in delivering audit services.

“For example, while auditing in fields of public resources such as mines we often get asked of our role in it. Now in the Audit Act 2018, it is reflected clearly. Now with the Act, we can perform decent auditing in all fields such as constructions, legal and financial related auditing among others,” the Auditor General added.

At the conference, a  financial audit manual, three audit guidelines were released and the Professional Development Centre’s website was also launched.

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