A BBS investigation has revealed that equipment worth millions procured by the Film Association of Bhutan (FAB) through Korea International Cooperation Agency (KOICA) grant is missing.
The Ministry of Information and Communications (MOIC) in collaboration with KOICA had granted USD 180,000 (Nu 9.9M) in 2012 to FAB for the purchase of filming equipment. In 2015, another financial grant worth USD 110892 (Nu 6.9M) was given to FAB for the purchase of film screening equipment.
Through the 2015 grant, FAB procured 120 speakers, 60 amplifiers, 60 projectors, 60 Blue-Ray players, and cables in 2015.
The KOICA assistance was provided as support to enhance the accessibility of films to the unreached areas and also to create additional employment for youth.
MOIC officials told BBS that a joint verification of the equipment was conducted in June 2015 by MOIC and FAB, during which time all equipment were physically verified.
However, when BBS recently approached FAB officials, the office was not able to provide any information regarding the equipment. A source also told BBS that FAB did not have any inventory of the equipment and book of accounts.
Where did the equipment go?
BBS was able to trace 20 sets of film screening equipment with Tandin Wangchuk, the license holder of Bhutan Film Distributor.
He said that the equipment are with his members in different parts of the country. Around 90% of the equipment are in working condition. Each set of equipment comprises a projector, two speakers, an amplifier, a Blue-Ray player and cables.
Tandin Wangchuk assured that Bhutan Film Distributor can produce the equipment any time if they are asked to. He said after handing over 40 sets and keeping 20 sets under a new contract signed in 2017 between him and the then Executive Director of FAB Yeshi Dorji, he had made a presentation to the new board of FAB in 2017 and was waiting for further directives from FAB.
BBS confirmed that Bhutan Film Distributor had handed back 40 out of 60 sets to FAB through a review of the annual audit report of 2017.
Bhutan Film Distributor has been non-operational since 2017. However, between then and now, no officials from FAB had contacted him to recover the equipment.
What does FAB say?
Speaking to BBS, the acting President of FAB, Nidup Dorji, said that he is not aware of when the equipment went missing. “The current board of trustees did not receive the equipment from the former board,” he said.
He also added that the former board had not received the equipment from the former Executive Director of FAB, Yeshi Dorji, and the former ICT officer.
However, the former President of FAB, Mila Tobgay who served until August 2017, told BBS that he had handed over 40 sets of screening equipment to the new board of trustees and the former Executive Director.
Mila Tobgay said that the RAA report 2017 shows that assets worth Nu 13.16M were found lying idle, which includes the 40 sets of KOICA grant equipment.
BBS tried to contact the former Executive Director Yeshi Dorji but was not able to reach him. The recent Executive Director Nawang Tobgay, who has now been relieved by the Board, told BBS that during his time in office a few equipment was in the FAB office.
Audit Findings
The Royal Audit Authority (RAA) audited the Film Association in 2017 and found out that the Association had handed over 60 sets of film screening equipment worth Nu 6.899M funded by KOICA to Bhutan Film Distributor in 2015 based on a hire-purchase system contract.
According to the agreement, Bhutan Film Distributor was supposed to pay a monthly installment of Nu 3,300 per set for three years after two months from the date of release of the first film and after completion of the final installment, the ownership was supposed to be handed over to the distributor.
Even after two years, the Film Association had not received any installment. The RAA report states that there was no record indicating the Association’s effort to realize the installment. After the board’s decision to rescind the contract, 40 sets of the equipment were taken back and 20 sets were left with the distributor under a new contract. However, hire charges amounting to Nu 4.752M was not received from the distributor until the date audit was conducted.
The RAA also found large quantities of fixed assets worth Nu 13.16M lying idle at FAB and had suggested immediate management action for its effective utilization and proper storage or for its disposal was deemed necessary.
The audit issues remained unresolved and the RAA had sent a written a reminder letter to FAB on September 10, 2018.
Sangay Chezom
