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Agencies’ poor response led to low irregularities recovery: PAC

November 23, 2015
in Uncategorized
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Agencies’ poor response led to low irregularities recovery- PACPoor response from agencies has led to low recovery of irregularities from 2009-13, according to the parliament’s Public Account Committee (PAC). Despite the directive from the parliament in 2014, the amount recovered is only about Nu 53 M as of September this year of the total Nu 612.36 M unresolved irregularities.

The recovery percentage, according to Public Account Committee Report – which was discussed in the parliament today – is only about 8 percent.

The unresolved irregularities up until 2010 should have been resolved by the concerned agencies by April 2014 and for 2011-12 by November 2014.

The PAC Committee Report reveals the ministries has the highest unresolved irregularities from 2009-13 with over Nu 545 M.

Among the ministries, the Ministry of Foreign Affairs topped the list with Nu 196.23 M.

Corporations and financial Institutions, with over Nu 48 M, took the second slot. Penden Cement Authority has the highest unresolved irregularities in this category with Nu 45.5 M.

The committee report says shortfalls, lapses, and deficiencies made up the highest unresolved irregularities followed by fraud, corruption, embezzlement, and mismanagement.

PAC’s Chairperson and Zhemgang’s NC MP, Pema Dakpa for better use of public recourses and assuring accountability to the people, the head of the agencies is directly accountable for monitoring and resolving the audit irregularities.

“The head of a concerned agency has to take legal actions on the officials, if the audit irregularities are not resolved within 12 months from the date of issue of audit report.”

MP Pema Dakpa said accordingly the implementation status should be reported to Royal Audit Authority latest by September 30 of each financial year for incorporation in the Annual Audit Report.

However, the Chairperson said the head of the agency has to report the legal action taken on the irregularities from 2009-13 to RAA latest by March 30, 2016.

The committee also recommended that the Royal Audit Authority should report implementation status in 2015 Annual Audit Report as separate chapter.

The issue will be deliberated tomorrow as well.

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