The Anti-Corruption Commission’s Annual Report 2024-2025 highlights systemic weaknesses, lack of oversight, and unethical leadership within the State Trading Corporation of Bhutan. This follows a major vehicle-tyre misappropriation scandal at the corporation between January 2020 and December 2022, where more than Nu 8.4 M was embezzled.
The Royal Audit Authority’s compliance audit of the corporation revealed major discrepancies in tyre inventory at both the Head Office in Thimphu and the Phuentshogling Regional Office.
Following the audit, the corporation conducted its own internal review and reported the findings to the Anti-Corruption Commission in August 2024.
ACC investigations found that several sales staff, from helpers to executives, were involved in the misuse and embezzlement of tyres.
In Phuentshogling, two staff failed to account for more than five hundred tyres and over two hundred flaps and tubes, valued at 3.7 M. In Thimphu, shortages worth more than Nu 1 M were detected.
The investigation revealed that staff deliberately created fake stock transfers in the system to cover up the missing tyres. They also collected customer payments into personal accounts and falsified customer records.
The reports say the Head of the Division failed to supervise staff properly and abused his position, allowing tyres worth Nu 2.3 M in Phuentshogling and Nu 1.3 M in Thimphu to be misappropriated without proper sales documentation.
Staff responsible for managing tyre sales and inventories were implicated.
Tashi Dekar
Edited by Tandin Phuntsho
