The total unresolved irregularities of the three ongoing hydropower projects: Punatsangchhu I and II and Mangdechhu Hydroelectric Project, amount to Nu 577 M as of September, this year.
Public Accounts Committee (PAC), in a Joint Sitting today, while presenting the Annual Audit Report, said the unresolved irregularities of PHPA I and II amounts to Nu 239 M.
Among the three, MHPA has the highest unresolved irregularities of Nu 339.5 M.
The PAC observed that none of the irregularities were resolved as of September 30.
PAC’s Chairperson, Dophu Dukpa said no one has been given responsibilities to monitor such irregularities. “There is a need for inspectors so that RAA can solve such irregularities faster.”
Panbang MP, Dorji Wangdi said such irregularities will impact the cost of electricity and income generation.
He also said the hydropower loan repayment to India will be impacted.
The committee’s members said irregularities of PHPA I were due to non-recovery of interest amounting to Nu 24 M from a contractor and over payment of over Nu 211 M.
They also said even though the management for PHPA I and II are same, the project authorities paid additional allowance to the staff of PHPA I.
The RAA report also found that MHPA made overpayment even though material quality and road works of MHPA were inferior.
MHPA also failed to impose delay penalty on various contractors.
No penalties were imposed in some cases even though there was extension of deadline more than three times.
The Royal Audit Authority recommends strict enforcement and regulations through institutions.
They also said there is a need for standard operating procedures to enhance service delivery of government agencies.
