The Royal Audit Authority (RAA) has identified low public sector salaries as a key driver of recurring financial irregularities in government offices. Its Annual Audit Report highlights how financial pressures often push officials towards unethical practices, including collusion, bribery, and falsification of claims.
The Audit Authority recorded 120 cases of financial irregularities across 64 government agencies, amounting to over Nu 11 M. The RAA links this persistent cycle of misconduct to the existing salary and incentive structures in the public sector.
RAA noted that misconduct frequently occurs where weak oversight creates opportunities, and individuals justify unethical actions. Financial pressure, the report says, is often overlooked.
The audit report states that public servants earn significantly less than their counterparts in the corporate sector, yet the Bhutan Civil Service Rules prohibit them from engaging in private trade or commercial activities.
The RAA observed that some officials resort to unethical practices to supplement their income. Common irregularities included inadmissible mileage claims, where officials were paid without actually using vehicles, as well as travel and daily allowances for journeys that could have been completed in a single day.
Other irregularities involved incorrect pay, leave encashments, retirement benefits, and inadmissible payments of salaries and allowances to employees on leave.
The RAA also pointed out that a weak accountability culture leads to many agencies focusing only on clearing audit observations rather than strengthening systems to prevent recurrence.
To break this cycle, the Royal Audit Authority has recommended public sector salary reform. It says fair compensation should be viewed not as an expense, but as a strategic investment in ethical behaviour and good governance.
Namgay Wangdi & Kelzang Chhophyel
Edited by Sangay Chezom
