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Unresolved irregularities more than Nu 2bn: RAA report

July 8, 2021
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The 2020 annual audit report shows unresolved irregularities of over Nu 2bn. The irregularities are an increase of close to 45 per cent compared to the previous year. While over Nu 26 M was lost to fraud, corruption, and embezzlement, the highest irregularities of over Nu 1.5bn ngultrum were due to shortfalls, lapses, and deficiencies by the audited organizations.

The report contains audit irregularities of ten ministries, nine dzongkhag administrations, four dungkhag administrations, 49 gewogs administrations, ten autonomous agencies, 15 corporations, three financial institutions and nine non-governmental organizations.

The works and human settlement ministry has close to Nu 350 M worth of irregularities among the ministries. The major chunk of over Nu 160 M irregularities resulted from the department of road offices across the country, not recovering advances paid contractors whose contracts were terminated.

The report also shows about Nu 80 M irregularities where the ministry did not comply with the laws and rules.

The other nine ministries have a total of Nu 270 M in unresolved irregularities. The health ministry and the finance ministry have the lowest irregularities at Nu 105,000 and 385,000, respectively.

Meanwhile, during the year, 16 dzongkhags administration had unresolved irregularities amounting to Nu 55.953 M.

The fifteen audited corporations saw some Nu 235 M worth of unresolved irregularities. The State Trading Corporation of Bhutan Limited accounted for more than half of the total irregularities in the corporate sector.

In the financial sector, the Bhutan Development Bank Limited saw huge cases of loan defaults amounting to over Nu 145 M. The BDBL saw a total unresolved irregularity of Nu 307 M.

Sherub Dorji

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