A staggering Nu 91 million was spent on hospitality and entertainment expenses across 10 ministries, the Supreme Court, the National Assembly, the National Council, and the Cabinet Secretariat over the past three years. Compounding this, these agencies further spent Nu 35.23 million allocated for discretionary grants during the same period.
The Royal Audit Authority (RAA) revealed this blatant misuse of government funds by the country’s top leaders and officials in its recently released Annual Audit Report 2023-24.
Among the most egregious misuse of public funds were payments made for ngyendhar, semso, and cash soelra, all drawn from hospitality and entertainment budgets. For instance, one soelra payment of Nu 30,000 to a cook was cited by the RAA as a glaring violation of hospitality spending rules. The funds were also misused to pay cash soelra to drivers and security personnel accompanying ministers, purchase of ghos and kiras for constituency visits, and semso to constituents.
The established ceiling of Nu 1.5 million for hospitality and entertainment expenses per cabinet minister or equivalent position was routinely flouted. For example, the hospitality budget for the fiscal year 2022-23 was revised from Nu 18.5 million to Nu 82.71 million, in complete disregard for budgetary norms. Such expenditures drain the national coffer.
The misuse of funds by leaders raises awkward but critical questions about the integrity of those in power. While clearly unreasonable, such overspending is also symptomatic of the deeply entrenched culture of entitlement and impunity within our bureaucracy.
Leaders and top officials are expected to model the highest standards of integrity and fiscal prudence. The opposite apparently seems to be the case.
Lavish spending by a privileged few is clearly a betrayal of public trust. Overspending public funds—the tax money of hardworking citizens—cannot and must not be tolerated.
Towards that end, corrective measures need to be put in place. First, clear regulations must be developed to specify what constitutes allowable hospitality and entertainment expenditures. These regulations should include strict caps for all officials, and stipulate that any excess spending must be refunded.
Second, discretionary grants require tighter oversight. Without defined criteria for their use, these grants risk becoming a form of supplementary income for recipients, as rightly pointed out by the RAA. Therefore, there must be clear guidelines to distinguish legitimate discretionary expenses from misuse.
Third, the government should enhance accountability mechanisms. The RAA’s role in uncovering the misuse is commendable, but it is not good enough if the findings remain confined to audit reports. Public officials found guilty of violating spending rules must face consequences, whether through financial restitution, censure, or other penalties.
It is also important to recognise that such unchecked spending on hospitality and entertainment sends a wrong message particularly at a time when our country is going through difficult economic times.
If leaders and top officials fail to uphold fiscal discipline and transparency, how can they expect to inspire the same from institutions and citizens? Integrity must begin at the top, and it is high time that our leaders hold themselves accountable. For, only through greater accountability, transparency, and adherence to rule of law, can we ensure that public funds are used to serve the people, not the privileged few.
And we, the people, must demand the highest standards of accountability and integrity from those in power.