Bank of Bhutan lacked objectivity and transparency while identifying office space and negotiating rents for the selected properties. The Annual Audit Report, 2014 says there were no documented records of discussions between the building owners and the Bank.
Audit findings show the bank did not have clear basis for fixing the rent for hiring of ATM spaces at various locations in Thimphu. The rents were found to be paid in lump sum amounts. The rent was neither based on square footage of property nor through negotiations. The bank had not invited quotations for competitive rates.
The report says the Bank of Bhutan had not invited quotations for hiring of office space at various locations in Thimphu, depriving competitive prices.
The bank’s management had maintained that direct negotiations were more viable. But there were no documentary evidences to show direct negotiations with building owners were carried out objectively and transparently.
According to the report, causes of such irregularities have been attributed to poor enforcement of rules and regulations. The enforcement of procurement rules was found to be apparently affected by inadequate control and monitoring mechanisms to ensure minimal compliances to the requirements of the relevant rules.
Bank of Bhutan refused to comment.
