RAA Confronts Nu. 2,840.092 Million Financial Irregularities

…𝒇𝒓𝒂𝒖𝒅, 𝒏𝒐𝒏-𝒄𝒐𝒎𝒑𝒍𝒊𝒂𝒏𝒄𝒆, 𝒂𝒏𝒅 𝒔𝒉𝒐𝒓𝒕𝒇𝒂𝒍𝒍𝒔 𝒆𝒙𝒑𝒐𝒔𝒆 𝒈𝒂𝒑𝒔 𝒊𝒏 𝒈𝒐𝒗𝒆𝒓𝒏𝒂𝒏𝒄𝒆 𝒅𝒖𝒓𝒊𝒏𝒈 𝑭𝒀 2022-23 𝑨𝒖𝒅𝒊𝒕

Sonam Deki

In a review of financial accountability, the Royal Audit Authority (RAA) has published 456 audit reports for the fiscal year 2022-23. Among them, 17 reports garnered qualified opinions, while the remaining 439 received unqualified opinions. Notably, the Annual Audit Report 2022-23, a compilation of 379 audit reports replete with findings, provides a comprehensive insight into the fiscal landscape.

In the review period, identified audit findings had a financial impact of Nu. 2,840.092 million. This includes Nu. 39.604 million for ‘Fraud and Corruption,’ Nu. 2,244.804 million for ‘Non-compliances to Laws and Rules & Regulations,’ and Nu. 555.683 million for ‘Shortfalls, Lapses, and Deficiencies.’

According to the report, actions required from the auditees are detailed in individual audit reports, identifying accountable officials for issue resolution, sanctions, and corrective actions.
Of the total irregularities amounting to Nu. 2,840.092 million in fiscal year 2022-23, Nu. 39.604 million was attributed to fraud and corruption, constituting 1.39%.

“These cases were perpetrated with the willful intent of deriving undue benefits, whether monetary or otherwise, and presented prima facie evidence of fraud or deception,” states the report.

In terms of fraud and corruption at the agency level, the Directorate of Services under the then Ministry of Information and Communication (MoIC) emerged with the highest irregularities, totaling Nu. 12.718 million. Following closely is the Dzongkhag Administration in Dagana, reporting irregularities amounting to Nu. 9.213 million, constituting 32.11% and 23.26% of the total, respectively.

Non-adherence to laws, rules, and regulations constituted a significant 79.04% of the total irregularities, amounting to Nu 2,244.804 million. This encompasses deviations from authorities such as acts, rules, regulations, policies, SOPs, and agreements that dictate the operations of agencies.

According to the report, “Non-compliance issues were reported based on qualitative and quantitative aspects that have the potential to undermine the rule of law, a key tenet of good governance.”

Out of the total of Nu. 2,244.804 million documented under Non-compliance to Laws and Rules and Regulations, the instances are categorized into four sub-groups: non-compliance with financial norms amounting to Nu. 621.674 million, non-compliance with procurement norms for works, goods, and services totaling Nu. 1,571.855 million, non-compliance in human resource management accounting for Nu. 8.650 million, and non-compliance with other laws, policies, rules, and directives summing up to Nu. 42.626 million.

Shortfalls, lapses, and deficiencies constituted 19.57% of the overall irregularities, totaling Nu. 555.683 million. These issues were reported based on their material impact, posing a potential threat to the economic and efficient functioning of various agencies.

In the face of Bhutan’s financial challenges, the report serves as a call to action, urging stakeholders to promptly address the identified irregularities, fostering transparency, accountability, and adherence to governance principles for the sustainable and ethical functioning of Bhutan’s administrative landscape.