The Royal Audit Authority has raised concerns over a growing blind spot in the monitoring of external funding received by civil society and other organisations in its Annual Audit Report. It says several groups are receiving funds directly from international donors without proper reporting to regulatory authorities, creating risks of misuse and weak accountability.
Behind many well-intended development activities by the organisations, the Royal Audit Authority says, lies a growing blind spot.
According to the authority, several Civil Society Organisations (CSOs), Non-Governmental Organisations (NGOs), Religious Organisations, and autonomous agencies have been receiving external funding directly from international donors, without routing the funds through or even informing regulatory authorities such as the Civil Society Organisations Authority or the finance ministry.
While the 2007 Civil Society Organisations Act mandates registration and monitoring, and the Financial Rules and Regulations of 2016 require proper accounting of all funds, the RAA notes that no formal mechanism currently exists to track externally funded programmes that fall outside the national budget system.
Such gaps, the authority says, create risks of misuse or misappropriation of funds, undermine transparency and accountability, and raise the possibility that externally funded activities may not align with national priorities or security interests.
In some cases, the report says, mismanagement of donor funds went unnoticed until an activity had already taken place (post-facto audits) or whistle-blower complaints brought the issues to light.
Therefore, the absence of a structured reporting and monitoring framework has also left oversight agencies without a clear picture of how much external aid is entering the country, for what purpose, and with what outcomes.
To address these concerns, the authority has recommended that the government mandate all CSOs, NGOs, religious organisations, and autonomous agencies to declare any external funding they receive, and subject such funds to mandatory audits.
According to the authority, this move would not only strengthen oversight and prevent fund diversion but also ensure that externally funded programmes align with Bhutan’s development goals while enhancing donor confidence, institutional credibility, and good governance.
Kelzang Chhophyel
