The Prime Minister’s Office (PMO) is accusing Yeshey Zimba, the former Works and Human Settlement Minister, of official misconduct, and policy corruption.
The allegation is in relation with fiscal incentives for tourist standard hotels enforced at the end of the previous government’s tenure. PMO has requested the Anti-Corruption Commission to investigate the case yesterday.
The DPT government had approved additional fiscal incentives titled “Revised List of Incentives for Tourist Standard Hotels” on 17 April, 2013, just three days before its dissolution to make way for the second parliamentary elections.
A press release issued, today, by the Office of the Prime Minister states that Yeshey Zimba chaired the cabinet meeting which approved the additional fiscal incentives. The government is also alleging that the incentives were enforced days before the erstwhile government’s dissolution to bypass reporting requirement to the Parliament.
During that time Le Meridien was under construction. The hotel is a FDI incorporated venture in partnership with Bhutan Hotel Limited, which is owned Yeshey Zimba’s daughter.
The press release specified that official records show the hotel was benefited with over Nu 76m due to the implementation of additional incentives. It also stated 92 other hotels benefitted from the incentives but over 41 per cent of the total tax exemption amount went in favour of Bhutan Hotel Limited or Le Meridien.
“Lyonpo Yeshey Zimba, being one of the cabinet ministers, had wilfully failed to declare “conflict of interest” as required by law and has apparently committed “official misconduct” in leading the decision making process that has hugely benefited his family member,” says the press release from the Prime Minister.
The government of the day also wants the benefits to be given back to the state if allegations are proven true. To seek the former minister’s opinion, BBS contacted him but was unavailable for comment. BBS also sought views from DPT office but they were unaware of the accusations.
