The High Court upheld the district court’s judgment to acquit the former Executive Director and two General Managers of the RICBL in the Nubri Capital investment case. The judgment was passed last week. The former ED and General Managers were accused of irrational investment in Nubri Capital, a capital fund management company.
The Office of the Attorney General appealed to the High Court in April accusing the three officials of failing to declare a conflict of interest, abuse of function and forgery.
The OAG also accused the RICBL of bypassing the investment guidelines and investing Nu 100 M in Nubri Capital at an interest rate of nine per cent in February 2013.
After three days, Nubri Capital re-invested Nu 108 M in the RICBL at an interest rate of 11.75 per cent. The OAG stated that this is against the Regulations for the issue of Corporate Bond 2012.
As per the judgment, the decision to invest in Nubri Capital was made by the RICBL’s Asset and Liability Committee. Moreover, the committee had also asked the Accounts and Finance department to compare interest rates offered by banks and fund management companies. It was found that Nubri Capital had the highest interest rate.
The judgment stated that all this proved that the Former Executive Director Sonam Dorji, although a promoter and shareholder of Nubri Capital, had not influenced the management to invest in Nubri Capital. It said the evidence proved that it was done in line with the existing regulations.
Sonam Dorji before setting up Nubri Capital had submitted his resignation to the RICBL. However, the board requested him to continue his service and promoted him to ED.
The judgment also stated that Sonam Dorji’s letter declaring his conflict of interest was not forged. The OAG accused Sonam Dorji of forging a backdated letter declaring a conflict of interest to make it appear that he had given authority to the General Managers in signing the investment contract agreement.
The OAG backed this claim on the fact that the date of the letter fell on the Losar holiday.
However, as per the judgment, the office had been fully operational on that day as audit works were ongoing. While the court acquitted Sonam Dorji of forgery and abuse of function, he was given the benefit of doubt for the charge of failing to declare a conflict of interest.
As per the judgment, while there is circumstantial evidence of conflict of interest since he is the promoter of Nubri Capital, it could not be proven beyond a reasonable doubt. The court, therefore, deferred this charge.
The court also acquitted the two General Managers who were charged with alleged abuse of function as they only executed decisions taken by the committee.
The OAG forwarded the case to Thimphu district court in 2019.
Kinley Dem
Edited by Yeshi Gyaltshen
