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Annual Audit Report 2019 records the highest unresolved significant irregularities of Nu 1.4B

July 20, 2020
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The unresolved significant irregularities significantly increased by a whopping 134 percent last year, according to the Annual Audit Report 2019. With unresolved irregularities at Nu 1.4B, 2019 records the highest irregularities reported over the past five years.

The report is a consolidated summary of significant unresolved audit findings compiled from 564 audit reports issued during the year. The increase in the irregularities is attributed to issues relating to construction of Geylposhing-Nganglam Road Project, overdue loans and advances and embezzlement of funds reported for Samdrupcholing drungkhag administration.

The report states that the Lingmethang regional office under the department of roads had made avoidable payment of Nu 0.652M for the formation cutting of Gyelposhing-Nganglam Road Project, had not levied liquidated damages amounting to Nu 49.3M and suffered a financial loss of Nu 120M in the construction of the road project among others.

Similarly, the accounts assistant of Samdrupcholing drungkhag administration had embezzled Nu 7.59M and misappropriated funds worth Nu 0.800M.

Amongst the budgetary agencies, the highest amount of irregularities of Nu 520M is reported under the Ministry of Works and Human Settlements. It is followed by Samdrup Jongkhar dzongkhag administration with Nu 135.6M and the Home and Cultural Affairs Ministry with Nu 46M.

And amongst the non-budgetary agencies, Bhutan National Bank had the highest amount of irregularities with Nu 229.9M followed by National Pension and Provident fund with Nu 54M and Bhutan Postal Corporation Limited with Nu 21M.

In addition, amongst the five broad audit categories, the highest amount of irregularities was reported under the category of shortfalls, lapses and deficiencies at Nu 871M followed by non-compliance to laws and rules, mismanagement and embezzlement. The least was reported under the category fraud and corruption.

Meanwhile, the audit authority made audit recoveries of Nu 181M last year, an increase of 80 percent compared to 2018.

 

Sonam Pem

 

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