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Billions in audit irregularities remain unresolved over 15 Years

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Billions of ngultrum in unresolved audit irregularities continue to burden the system. The Public Accounts Committee highlighted the issue during today’s Joint Sitting of the Parliament. According to the committee, unresolved irregularities worth more than Nu 2.36bn have been identified over the past 15 years. The Committee found that ministries, corporations, financial institutions, and local administrations account for the highest number of unresolved cases.

The findings are part of the committee’s comprehensive review of audit reports spanning 2010 to 2025, which examined financial irregularities flagged by the Royal Audit Authority and the progress made in clearing them.

The committee found that ministries accounted for the largest share of unresolved cases, amounting to Nu 809.26 M, or 34.29 per cent of the total.

Corporations followed with Nu 466.70 M, while financial institutions recorded Nu 461.04 M in unresolved irregularities. Local administrations accounted for Nu 80.95 M in unresolved irregularities.

“Out of the total unresolved balance of Nu 2.35bn accumulated under AAR from 2010 to 2024, 87 cases worth Nu 446.127 M are currently under investigation or unresolved with the Anti-Corruption Commission. Another 102 cases amounting to Nu 368.059 M pertain to pending enforcement of court judgments. Furthermore, five cases worth Nu 1.786 M involve defendants who are missing or have absconded and remain at large,” said Jamyang Namgyal (PhD), the chairperson of the Public Accounts Committee.

Furthermore, the committee reported that the total financial irregularities of 9.98 billion ngultrum was reported in 2024-2025. The irregularities were classified as ‘Fraud’ and ‘Errors’. Under Fraud, the highest number of irregularities amounting Nu 8.1 M was reported under the Centenary Farmers Market, followed by district administrations including gewogs, with Nu 0.1 M.

Likewise, under Error, the highest number of irregularities, amounting Nu 7.78bn, was reported under the PHPA II, followed by Food Corporation of Bhutan Limited (FCBL) with Nu 654.2 M.

The Committee noted that with such cases recurring every year, it is likely to remain a continuous and growing challenge if systemic issues are not addressed urgently.

The Committee recommended that the government establish a clear framework for regular inter-agency coordination meetings involving the Royal Audit Authority, the Office of the Attorney General, and the Office of the Cabinet Affairs and Strategic Coordination.

This, the committee says, will help review pending cases systematically and ensure timely follow-up on audit recoveries.

The deliberation will continue on Monday.

Kelzang Chhophyel/Sonam Yuden/Tashi Dekar

Edited by Sonam Pem

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