The State Trading Corporation of Bhutan Limited (STCBL) is requesting the government not to take over its share of explosive business after the government hinted on assuming control over explosives and handing it to the Royal Bhutan Police (RBP).
In a letter addressed to the government, the corporation mentioned that taking away its explosive business would question its sustainability. Import and distribution of explosive was the second largest revenue earner for STCBL.
The whole issue of government taking over the explosive business arose when the previous government provided clearance to a private firm; Rabdhuen to enter into explosive business, which breached the 1989 explosive rules that states STCBL to be the ‘sole importer and main distributor of explosives.’
Managing director of STCBL Yeshey Selden said if the government was concerned about safety issues, STCBL was its best bet because it has total compliance to safety rules and regulations and transparency.
She said handing over the business to RBP would entail conflict of interest. RBP’s responsibility was to monitor the import and use of explosives. Should they take over distribution, the question was who will monitor them?
STCBL’s chairman Dr. Ugen Dophu said if STCBL had grossly failed in complying with safety norms, then it makes sense for the government to take over, but it has complied with all the rules and regulations.
“If explosive business is taken over by the government, shareholders of STCBL stand to lose. It will significantly affect STCBL’s business and the company should look for other business avenues to sustain.”
Minister for economic affairs Norbu Wangchuk said the government would take the decision that is on the best interest of the nation. He added if the government has to sacrifice STCBL’s interest over national interest, then the government would go ahead.
DHI chairman Dasho Sangay Khandu said it should be carefully studied, who and how explosive business should be carried out.
“Initially, STCBL had the option of offloading its entire share to the public, but the government retained 51 percent shares. The only reason for that was to ensure, government had control over explosives, a highly sensitive substance.”
STCBL will be holding an extraordinary general meeting with its shareholder to discuss on the issue. It will hold a press conference next week.
