Pemagatshel tops in financial irregularities among dzongkhags
Last Updated on December 31, 2024 6:21 am
The Royal Audit Authority (RAA) exposed major financial mismanagement, corruption, and irregularities in Pemagatshel Dzongkhag, making it the worst-performing dzongkhag among those reviewed.
The Annual Audit Report 2023-24 highlighted Nu 4.74 million in misappropriated funds by the Zambala Farmers Group, which operates a Milk Processing Unit (MPU) in Norbugang gewog. Instead of depositing sales proceeds into the designated account, office bearers diverted the funds into personal accounts.
The RAA has flagged this as a severe breach of accountability and transparency.
In addition, the MPU was found to have unverified expenditures amounting to Nu 1.01 million for vehicle maintenance and fuel in 2022. Due to a lack of supporting documents, the RAA has called for a thorough investigation and accountability from those involved.
Numerous irregularities were uncovered in the management of community forests (CFs) in the dzongkhag.
Several CF groups, including Tshelinggore and Gamung Drongdey, were found to have disbursed loans without proper documentation or guidelines. Overdue loans and irregular interest rates were common with some loans granted at the discretion of a few committee members.
Chhimoong Pangthang CF failed to account for Nu 190,000 in timber sales, while Nu 520,000 in unauthorised withdrawals from another CF account lacked supporting evidence.
The Ngangashing Phendey Gyelsey Thrungkar CF leased land to TashiCell for a mobile tower without seeking the requisite approval from the government. The RAA recommended formalising the arrangement to ensure compliance with the law.
Farm road construction projects in Chongshing, Decheling, and Norbugang Gewogs were also flagged for defects valued at Nu 1.47 million. These included faulty drainage systems, substandard masonry work, and inadequate formation cutting.
The RAA has urged immediate rectifications and a detailed report on corrective actions.
Further irregularities were identified at the Dungsam Cement Corporation Limited (DCCL), which underpaid land lease rents by Nu 360,000 over seven years due to mismatched surveyed and leased land areas.
The RAA emphasised the urgent need for strict compliance with financial regulations and laws. It recommended recovering misused funds, improving oversight mechanisms, and holding those responsible for financial mismanagement accountable.