The Economic Stimulus Programme Steering Committee has submitted an Action Taken Report to the Anti-Corruption Commission. The report outlines measures taken to address procedural lapses in the implementation of concessional loans under the ESP by three financial institutions. The ESP Steering Committee submitted the report following a directive from the ACC.
Acting on the commission’s referral, the ESP Steering Committee directed the Royal Monetary Authority to implement recovery, cancellation, and loan-conversion measures in line with ESP guidelines.
Subsequently, the RMA directed three financial institutions to initiate recovery of ESP-related loans as per ACC’s referral letter.
Bhutan Development Bank Limited has instructed M/s Wangchuk Blocks to repay its outstanding ESP loan of more than Nu 35 M by the end of this month.
T-Bank Limited has been instructed to recover the interest difference between ESP and commercial loan rates for Bhutan Biscuits and Gourmet and to convert the ESP loan into a commercial loan.
In the case of T&K Concrete Products, Bhutan Insurance Limited, BIL, has disbursed Nu 50 M under the ESP without approval of the Credit Committee. While BIL maintained that the project remained eligible for ESP support, the RMA agreed with the ACC’s findings.
As both T-Bank and BIL had prefunded the loan amount before receiving the ESP fund, the banks will not be refunded from ESP fund.
Meanwhile, the RMA has been directed to review all medium-scale loans ranging from Nu 10 M to Nu 100 M and submit a report within three months.
Deki Lhazom
