Thinley Namgay

The three-day 2024 Anti-Corruption Initiative for Asia and the Pacific’s regional seminar, which began in Thimphu on September 25, highlighted the complex challenge of understanding societal mindsets, often viewed as a root cause of corruption.

Experts at the seminar underscored the importance of individual attitudes in fostering business integrity, ethics, and compliance with regulations.

Bhutan is co-hosting the seminar alongside the Asian Development Bank (ADB) and the Organisation for Economic Cooperation and Development (OECD) under the theme ‘Government Incentives for Corporate Anti-Corruption Compliance’.

This marks Bhutan’s second time hosting the seminar since 2016, bringing together hundreds of delegates and anti-corruption experts from   18 member economies.

With 18,641 operational businesses, Bhutan faces potential risks of corruption, particularly in the forms of nepotism, favoritism, embezzlement, and conflicts of interest arising from its close-knit society.

The secretary for the Ministry of Industry, Commerce, and Employment (MoICE), Tashi Wangmo, highlighted Bhutan’s initiatives over the years to combat corruption, pointing out that since the Anti-Corruption Commission (ACC) Act was amended in 2011, Bhutan has implemented significant reforms, expanding the ACC’s mandate to encompass both public and private sectors.

“Robust mechanisms are in place, such as the National Integrity and Anti-Corruption Strategy, corruption prevention programmes, and tools like Organisational Integrity Plans and Systems, along with the Business Integrity Initiative of Bhutan,” she said.

Bhutan has also aligned its public procurement practices with international standards, adopting measures from the WTO and the UN Commission on International Trade Law. Tools to enhance transparency, such as conflict-of-interest agreements and an electronic government procurement system, have been implemented to ensure accountability.

The MoICE secretary said that the private sector’s corporate governance initiatives encourage businesses to adopt internal controls and governance frameworks. “Some key developments in this area include the introduction of corporate governance guidelines for state enterprises in 2019, which serve as a framework for state enterprises to adopt corporate governance standards based on international best practices.”

The CEO of Druk Holding and Investments (DHI), Ujjwal Deep Dahal, stressed the importance of selecting the right people with the right mindset for corporate governance. However, he highlighted the difficulty in assessing integrity.

He pointed out that DHI’s best practices include a strong recruitment system and independent oversight through internal audits, which report directly to the chairman instead of the CEO, among other best practices.

Officials from the OECD and ADB shared insights on best practices, advocating for the protection of whistleblowers, incentivising compliance, and identifying integrity risks in international business and public procurement.

The assistant director of Singapore’s Corrupt Practices Investigation Bureau (CPIB), Ong Leng Keong, said that the CPIB helps domestic business owners prevent corruption in their companies, a practice that is positively impacting society.

The country director of the Asia Regional Office at the Philippines’ Centre for International Private Enterprise, Ryan Patrick G. Evangelista, discussed efforts to establish regional integrity hubs that facilitate collaboration among governments, private sectors, civil society, and other stakeholders to devise innovative anti-corruption solutions.

Minister for MoICE, Namgyal Dorji, highlighted the importance of a robust business environment underpinned by ethical practices and supportive regulatory frameworks. He called for a collective effort to tackle corruption, aligning with Bhutan’s founding principles and the integrity of its national consciousness.

The Chairperson of the ACC, Deki Pema, said that the National Integrity Assessment (NIA) 2022 shows an increase in experienced  corruption, with respondents admitting to making payments and offering gratifications while availing of services. “In the NIA 2019, one in 379 respondents reported making payments in cash or kind to access public services. In 2022, this ratio jumped to 1 in 74,” she said.   

She said that the absence of corruption ensures effective resource allocation, improved social equity, stronger rule of law, and fosters trust in government institutions. “It also creates a stable environment where citizens and businesses can thrive.”

Bhutan maintained a score of 68 points for the fifth consecutive year and was ranked 25th for the second straight year in Transparency International’s Corruption Perception Index 2022, released on January 31, 2023.