The Anti-Corruption Commission (ACC) dropped the case of alleged collusion and undue price-fixing in the export of gypsum. According to the ACC, the commission decided to stop further investigation into the case due to a lack of evidence. The ACC received a complaint, last year against the Marketing Specialist and the Director of Marketing & Logistics of State Mining Corporation Limited (SMCL) alleging possible collusion and undue price-fixing in the export of gypsum to Nepal.
According to the ACC, the major decisions of the State Mining Corporation Limited (SMCL) such as fixing mineral prices, providing strategic directions and maximising the shareholders’ wealth and profitability of the company entirely lies upon the Board of Directors. The two officials were neither a part of the Board of Directors nor have any role in the decision-making process but are just involved in operational functions of the company. As per ACC, there is no evidence to suggest their involvement in price fixation to favour the Nepal parties.
The investigation also found out that the allegation on the total export of 1,989,000 metric ton of gypsum in the last three years was found to be baseless as the total production of gypsum itself was approximately 905,153 metric ton in 2019 and 2020. Of the total production in the last two years, the SMCL could only export 816,366 metric ton of gypsum and generated sales revenue of only Nu 1.559bn, which is far behind the amount of Nu 11.536bn alleged as revenue lost to corruption.
Moreover, the investigation revealed that the rates of gypsum export to Nepal during Druk Satair Corporation Limited has remained the same at Nu 1,750 per metric ton during their operation from 2016 to 2018. As per the commission, it revealed that the rates currently applied by the SMCL have increased progressively. The rate has increased to Nu 1,975 for a metric ton in 2020 and 2021.
Meanwhile, the investigation further stated that there is no involvement of the alleged two officials in the transportation of gypsum.
And the ACC also returned the Nu 1.2 M seized from the Marketing Specialist earlier in March this year.
Tshering Zam
