The Public Accounts Committee (PAC) says outsourcing consultancy services to the international consultancy firms is depleting the country’s resources.
In a joint-sitting yesterday, the PAC revealed the government spent Nu.4.5 BN consultancy services in the 10th Five Year Plan.
The Economic Affairs Ministry spent Nu.2.3 BN on consultancy services in the 10th Five Year Plan. Consultants were hired for the preparation of detailed project reports, pre-feasibility studies and pre-construction activities of the hydropower projects.
Similarly, the Gross National Happiness Commission had paid McKinsey Nu.430 MN for the Accelerating Bhutan’s Socio-Economic Development projects.
The Public Accounts Committee report stated that a significant portion of the money spent in hiring consultants was financed through external funding amounting to over a billion Ngultrum.
The consultancy services were also availed for preparation of drawings, design of roads, bridges and building, drafting of legislation among others.
The public accounts committee said the present practice of using consultancy services without carrying out proper cost benefit analysis appears to be expensive and undermines optimal use of in house capacities.
To ensure procurement of consultancy services are done economically, the Royal Audit Authority (RAA) recommended for a clear legal and policy framework.
A need for an assessment to identify the actual requirement of consultancy services, and procuring agencies to conduct proper supervision and monitoring of works carried out by the consultants were also recommended.
The RAA also recommended procuring agencies to conduct an evaluation upon completion of the consultancy services.
The public accounts committee endorsed the recommendations made by the RAA.
