Financial Crime World

Financial Fraud Statistics in Bhutan: Nu 8 Million Embezzled from Thimphu Thromde’s Revenue Account

A recent audit report by the Royal Audit Authority (RAA) has revealed a shocking revelation of financial irregularities in Bhutan. The report states that around Nu 8 million is missing from the Thimphu Thromde’s account, which collects revenue and fines from residents.

The Incident

According to the RAA audit report, the shortage was not deposited into the Thromde’s account, resulting in a total short deposit or embezzlement of around Nu 8 million. The report attributes the shortage mainly to irregular deposits of revenue collected during weekends and lockdowns by dealing officials due to inadequate internal controls for revenue management.

Factors Contributing to the Shortage

  • Irregular deposits of revenue collected during weekends and lockdowns
  • Inadequate internal controls for revenue management
  • No requirement for periodic revenue reconciliation and reporting
  • Failure to monitor and supervise the process

Consequences

The RAA has ordered the Thimphu Thromde to recover the amount from the dealing officials and deposit it into the Audit Recoveries Account. The authority has also urged the Thromde to take appropriate actions based on the severity of the offenses and ensure corrective measures to mitigate risks.

However, the Thimphu Thromde management has threatened legal action against a local newspaper that reported on the embezzlement, claiming that the case is still under review by the RAA. The incident marks the first time in the history of the newspaper that a government agency has threatened legal action over a story.

Concerns Over Financial Fraud Statistics

The incident highlights concerns over financial fraud statistics in Bhutan and the need for stronger internal controls to prevent such incidents. It also raises questions about the transparency and accountability of government agencies.

Call to Action

The case serves as a wake-up call for authorities to strengthen internal controls and ensure that public funds are used transparently and accountably. It is essential to hold individuals accountable for financial irregularities and to promote good governance in Bhutan.

Key Takeaways

  • Nu 8 million embezzled from Thimphu Thromde’s revenue account
  • Irregular deposits of revenue collected during weekends and lockdowns contributed to the shortage
  • Inadequate internal controls for revenue management identified as a factor
  • Threats of legal action against local newspaper over reporting of the incident
  • Concerns raised about financial fraud statistics in Bhutan and need for stronger internal controls.