Greener Way has not utilised Nu 2.5 million given by the Thimphu Thromde for the construction of 15 semi-permanent low-income houses.
According to the Royal Audit Authority’s (RAA) report for Thimphu Thromde, lack of monitoring from the thromde has resulted in lapses.
The reasons for not constructing the structures as intended and the instances of follow-up action by the thromde management were not on record, the reported stated.
Last year, the thromde was asked to render special help and give advances without interest to Greener Way to construct the structures. Consequently, the thromde sanctioned Nu 19.85 million for the project.
The budget was supposed to be used to purchase equipment and to build infrastructure at the waste management and recycling plant.
RAA said that the thromde management ought to explain why monitoring was not carried out.
RAA recommended the thromde to follow-up with Greener Way to use the advance amount and that the amount should be recovered from the firm. “In the future, thromde should ensure regular monitoring and strict compliance with the agreement and should avoid similar lapses.”
Greener Way’s founder, Karma Yonten, said that RAA should not produce reports without evidence and verification. He said that the audit team did not come for physical verification and findings were not evidence-based.
The report also found irregularities in the thromde vehicles surrendered to the thromde by Greener Way. While clause 15 of the vehicle lease agreement between thromde and company requires the lessee to return the vehicles in running condition within one week from the expiry of the contract period, Greener Way has been found in breach of the contract.
Five vehicles such as dumper and compacters that Greener Way surrendered to the thromde in May last year were in off-road condition and some did not have wheels on them.
There was no supporting evidence for replacing equivalent waste collection vehicles. This is in contravention to clause 16 of the agreement, which states: “In the event of the breakdown, the lessee shall depute another equivalent vehicle upon prior approval from the leaser.”
RAA has asked justification from the thromde’s environment division.
RAA has concluded that non-compliance to the vehicle lease agreement had resulted in the surrendering of the vehicles in bad condition and the thromde should work out cost estimates for repair and maintenance of the surrendered vehicles and that Greener Way should bear the repair cost as per the vehicle lease agreement.
The thromde has been recommended to strictly inspect the vehicles and take to action as per the lease agreement.