For lapses in performing their duties that could have prevented the embezzlement

Update: The Royal Insurance Corporation of Bhutan Ltd (RICBL) has suspended its general manager of finance and the internal auditor for failing to conduct their duty in connection with the embezzlement case where an employee absconded after siphoning off about Nu 91.6M.

Chief Executive Officer Namgyal Lhendup said the management had to take administrative action against the two employees based on the RICBL board’s decision to hold supervisors accountable and for violating the internal service rules. “Had they performed their duties diligently, the embezzlement could’ve been detected,” he said.

Namgyal Lhendup said, as the general manager of finance, the employee had to ensure that the regional offices don’t keep cash beyond Nu 5,000 unless there are payments to be made. To ensure that, the RICBL has its asset liability committee to which the finance general manager had to submit the information. However, during a committee meeting last June, the finance manager reported that the Paro branch had about Nu 130,000.

The internal auditor was suspended for failing to inform the management even after the employee, Rinchen Wangdi, who absconded, confessed to him that he had siphoned off about Nu 6M. The internal auditor was in Paro since June 10 as part of the special audit team to verify the transactions sent to the head office against the bank details during which the discrepancies were found.

“He had the information since June 19 but failed to inform his boss or the management,” Namgyal Lhendup said. “Even on June 20, he informed his boss only around 11.30am and by then the employee had already absconded.”

Rinchen Wangdi was a supervisor with RICBL’s Paro branch. He had absconded since June 20 from Paro.

The suspended employees, according to the RICBL management, would receive 50 percent of their salaries. Officials said the Anti-Corruption Commission that is currently investigating the embezzlement case, would also review the case of the two employees.

“If they prove that there were no lapses on their part, they will be taken back,” CEO Namgyal Lhendup said. “After the investigations are over, if its found that I’ve made blatant mistakes, I’ll have to take moral responsibility as well.”

Meanwhile, despite a reward of Nu 1M, the RICBL Rinchen Wangdi is yet to be traced. RICBL officials said an employee of the finance department who is suspected to have colluded with the absconded employee also resigned recently.

Kinga Dema