After the Public Accounts Committee found that the Bhutan Integrated Taxation System (BITS 1.0) led to wasteful and avoidable public spending, the Joint Sitting of Parliament has directed the committee to submit an Action Taken Report. Members of Parliament also called for greater accountability from the agencies involved in the project.
According to the Public Accounts Committee, weaknesses in procurement, project planning and implementation oversight resulted in losses of public funds
The committee also found that officials released advance payments beyond regulatory limits without adequate financial guarantees, incurring a loss of more than 119 million ngultrum.
It added that most components developed under BITS 1.0 could not be reused in BITS 2.0 because the two systems were incompatible.
The Ministry of Finance introduced BITS to modernise tax administration and support the implementation of the Goods and Services Tax.
During today’s Joint Sitting, members called for stronger procurement laws and greater accountability.
“I raised this issue last year as well. We do not have a strong Procurement Bill; instead, we rely on the Procurement Rules and Regulations (PRR), which are merely a policy and remain under full government authority. However, with a robust Procurement Bill in place, misuse could be prevented. The Nu 610 M loss raises a critical question. How can we recover this amount? This must be treated as a top priority,” said Rinchen Wangdi, Bartsham_Shongphu MP, Trashigang, NA.
“It is clear that accountability must be upheld, because if policymakers themselves do not adhere to the law, public trust will be compromised. Therefore, like others before me, I would like to recommend that the committee present an action taken report on this matter,” said Kinzang Wangchuk, Drametse-Ngatshang MP, Monggar, NA.
Trashigang’s Thrimshing MP Damchoe Tenzin said, “We need to chart a clear way forward, and at present, the government holds full authority. It is important to establish a strong legal precedent. While the Royal Audit Authority has carried out the audit, without a concrete Action Taken Report, both the public and I will continue to have doubts. What actions will actually be taken? It cannot remain only on paper.”
“When the report states that over Nu 119 M has been incurred as losses over a meaningless project with no outcome, it is deeply concerning. Therefore, the Royal Audit Authority should clearly outline how the concerned agency will be held accountable. An action-taken report is necessary, and secondly, the Royal Audit Authority must strictly monitor the issuance of audit clearance certificates,” said Tempa Dorji, Menbi_Tsenkhar MP, Lhuentse, NA.
Members said audits alone are not enough. They stressed the need for concrete action and clear accountability to restore public confidence and prevent similar financial losses.
The House directed that an Action Taken Report be presented once it is ready.
It also adopted the Public Accounts Committee’s reports, including the Royal Audit Authority’s Special Audit Report on BITS.
Sonam Yuden & Tashi Dekar
Edited by Sangay Chezom
