Increasing fraud and embazzlement

October 23, 2010: The annual audit report says the fraud and embezzlement in government offices is gradually opening up – government losing over Nu 74.1M in the last three years, mainly due to ineffective supervision and lack of systematic internal controls.

According to the report, government lost Nu 43M in 2007, Nu 9.7M in 2008 and Nu 20.7M in 2009. Human Resource Ministry is the top corrupted government body. Of Nu 110M fraud and embezzlement discovered in the ministry, Nu 48M has been sorted out.

Alongside increase in fraud and embezzlement amount, government has been able to increase the recoveries as well. The recoveries in 2009 have been higher by eight percent, as compared to the recoveries in 2008.

Unresolved issues in all ministries, 15 districts, 53 gewogs in 16 dzongkhags, seven autonomous bodies, four corporations and two financial institutions and NGOs account to Nu 348M.

The report mentions that the advances remaining overdue and unadjusted in millions are indicative of lapses in the process of implementation of various investments for the 10th plan. Highest advance amount is reported in education ministry – Nu 60M.

The highest amount of irregularities of Nu 225.6M comes from shortfalls, lapses and deficiences, followed by Nu 66M under violation of laws and rules. Mismanagement amounts to Nu 35.6M and Nu 20.7M in fraud, corruption and misuse.

Among NGOs, an irregularity of Nu 3.903M was found in the National Women’s Association of Bhutan.