Financial Crime World

Bhutan’s Corruption-Fighting Efforts Get Boost from ADB

Thimphu, Bhutan - ADB Identifies Corruption as Major Risk to Development Efforts

The Asian Development Bank (ADB) has identified corruption as one of the major risks facing Bhutan’s development efforts. Despite this, the country’s robust anti-corruption infrastructure and strong working relationship between government agencies have helped mitigate these risks.

Country Partnership Strategy Highlights Need for Strengthening Capacity in Public Financial Management and Procurement

In its Country Partnership Strategy for Bhutan 2014-2018, the ADB has highlighted the need to focus on strengthening capacity in public financial management (PFM) and procurement to reduce corruption risks. The strategy also emphasizes the importance of building internal control and audit capabilities within government agencies.

Risk Assessment Matrix Identifies Major Risks Facing Bhutan

The ADB’s risk assessment matrix identifies several major risks facing Bhutan, including:

  • Lack of skills in PFM
  • Limited internal control and internal audit capability
  • Fiscal risks from state-owned enterprises (SOEs)

However, the commission has warned of corruption risks emanating from political and electoral processes.

Risk Management Plan to Address Corruption Risks

To address these risks, the ADB has proposed a risk management plan that includes:

  • Supporting institutions such as the Royal Institute of Management in providing relevant training
  • Working with development partners on macroeconomic management
  • Building capacity within government agencies

The plan also aims to:

  • Strengthen internal control and audit capabilities
  • Provide technical assistance to SOEs
  • Enhance procurement planning and monitoring
  • Promote social accountability and foster a culture of transparency and integrity through partnerships with civil society organizations

Conclusion: Combating Corruption Crucial for Bhutan’s Development Success

In conclusion, Bhutan’s efforts to combat corruption are crucial to ensuring the success of its ambitious public investment program. By strengthening capacity in PFM and procurement, building internal control and audit capabilities, and promoting social accountability, the country can reduce corruption risks and ensure that its development gains are sustainable and equitable for all citizens.