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Irregularities at over Nu 4 bn, finds RAA report

November 20, 2021
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The Royal Audit Authority has reported irregularities amounting to more than Nu 4 bn for the financial year 2020-2021. The highest was reported among non-budgetary agencies. Non-budgetary agencies are offices that receive funds from their parent agency and not directly from the government. The hydropower projects alone constituted over Nu 2.1 bn.  

The RAA found irregularities amounting to over Nu 2.3 bn due to non-compliance to rules, regulations and laws.

Meanwhile, irregularities related to fraud and corruption amounted to more than Nu 133 M and shortfalls and lapses were at Nu 1.5 bn.

The RAA observed that under non-compliance, the Punatsangchu I Hydroelectric Authority (PHPA I)  had irregularities amounting to more than Nu 1.6 bn. That constitutes about 71 per cent of the total irregularities under non-compliance. PHPA I violated procurement norms in managing public procurement for works, goods and services.

The Zhemgang Dzongkhag administration had irregularities of more than Nu 82 M followed by STCBL with Nu 80 M under the non-compliance category.

As per the Annual Audit Report 2020-2021, irregularities occurred due to an inadequate system that prevents, detects or corrects errors as it occurs. The weak system also facilitated fraud, corruption and embezzlement.

Meanwhile, the RAA recovered over Nu 121 M in the last financial year.

Tshering Zam / Sangay Chezom

Edited by Yeshi Gyaltshen 

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