Thukten Zangpo

The finance ministry has terminated the State Trading Corporation of Bhutan Limited’s direct contract of procurement of laptops and desktops for government offices.

The decision follows a directive from the cabinet on December 6, leading the Department of Procurement and Properties (DPP) to issue a 30-day termination notice effective December 11.

Kuensel had earlier reported about this direct award of contract to STCBL, flouting standard procurement rules and regulations.

The DPP is currently working to establish a new procurement mechanism for government computers. Budgetary agencies will soon receive details about the revised system, designed to streamline the procurement process.

This move comes just months after the finance ministry awarded STCBL direct procurement contracts for laptops and desktops for the fiscal year 2024-25. At the time, the ministry justified the direct contract as a means to standardise procedures, enhance efficiency, and minimise risks associated with substandard products.

The decision to grant STCBL direct procurement drew strong opposition from private IT firms, which argued that it was unfair and violated Bhutan’s Procurement Rules and Regulations (PRR) 2023.

The private IT firms requested for open tendering process that ensures equal opportunity for all parties, including STCBL.

Owner of the IT firms also said that there was lack of consultation from the government and breach of PRR 2023.

Under the PRR 2023, open tendering is mandatory for procurements exceeding Nu 15 million.

Limited tendering is allowed for procurements in certain price ranges, such as works between Nu 10 million and Nu 15 million or goods between Nu 50,000 and Nu 1 million.

Direct contracts are limited to works up to Nu 10 million and goods up to Nu 50,000.