Dechen Dolkar
In a joint sitting of Parliament yesterday, Members of Parliament (MPs) called for measures to address the repeated appearance of unresolved financial irregularities in the Public Accounts Committee (PAC) report.
The National Council Member from Paro, Ugyen Tshering, said that the same audit issues and observations are presented in Parliament without being resolved every year while the National Council Chairperson, Sangay Dorji, emphasised the need for concrete solutions and better coordination to tackle financial irregularities.
Presenting the certification of the Annual Financial Statements to the joint sitting of Parliament, the Chairperson of the PAC, Eminent Member Phuentsho Rapten, highlighted both resolved and unresolved financial irregularities, along with the PAC’s observations and recommendations.
The Committee pointed out that financial irregularities have become systemic across various agencies, consistently appearing in every Annual Audit Report (AAR). For the Fiscal Year 2022-23, the reported irregularities included Nu 389.08 million in outstanding public works advances, Nu 235.91 million in excess payments, Nu 156.49 million in wasteful expenditure, Nu 39.66 million in uncollected royalties, fines, and penalties, and Nu 21.92 million in inadmissible payments, among others.
The PAC made three new recommendations to the joint sitting, in addition to the seven previously made by the Royal Audit Authority (RAA).
The Committee recommended the government to develop a strategy to address persistent issues such as excess payments, booking expenses without completing work, inadmissible payments, and failure to levy liquidated damages and enhance due diligence and internal control mechanisms.
The PAC also recommended the government to review and address human resource gaps across all sectors in consultation with the Royal Civil Service Commission (RCSC) and prioritise timely replacement given the significant capital budget increase in the 13th Five Year Plan.
The Committee highlighted the alarming trend of civil servant attrition, with 5,202 separations last year compared to 2,646 in 2022, and 524 separations in the first three months of this year alone.
The National Council member from Zhemgang, Tshering Tshomo, attributed the recurring irregularities to shortage of dzongkhag engineers, who are overburdened with work, with some engineers managing up to 30 project sites .
Gangzur Minjey MP, Loday Tsheten, pointed out that engineers are not compensated for daily and travel allowances when monitoring projects, leading them to rely on contractors for transport and meals.
Dramedtse Ngatsang MP, Kinzang Wangchuk, added that while some engineers may be corrupt, the majority face significant challenges and their efforts often go unappreciated. He proposed that the government provide training, upgrade technology, and consider outsour cing projects.
The MPs underscored the urgency of combating rising fraud and corruption by holding individuals accountable and called for stakeholder discussions to reform the system and implement effective solutions.
Finance Minister Lekey Dorji informed the joint sitting of Parliament that the government is working on improving the procurement system and accounting and reporting system with stringent internal controls measures.
Foreign Affairs and External Trade Minister DN Dungyel said that the government is currently discussing with the RCSC on recruiting civil servants for critical services and providing incentives for those overburdened with work. The minister mentioned that there are also plans to outsource certain projects to the private sector.
The joint sitting unanimously endorsed the first two recommendations of the Committee by a show of hands.