Titles and Headings

Thimphu Thromde Under Investigation for Nu 8 Million Embezzlement

The Thimphu municipal corporation, Thimphu Thromde, is under investigation for the embezzlement of approximately Nu 8 million from its revenue account.

RAA’s Preliminary Performance and Compliance Audit Report

The Royal Audit Authority (RAA) conducted an extensive review of Thimphu Thromde’s financial records from July 2018 to April 2022 and identified shortages totaling over Nu 8 million in the account that collects revenue and fines from Thimphu residents.

Discoveries and Consequences

Shortages in Thimphu Thromde’s Account

The primary cause of the shortage was irregularly deposited revenue during weekends and lockdowns by dealing officials. The effectiveness of Thimphu Thromde’s internal control system for revenue management was determined to be absent or ineffective.

Lack of Monitoring and Supervision

Additionally, there was a lack of monitoring and supervision from Thimphu Thromde’s management, allowing instances of misappropriation to occur without identification in a timely manner.

Thromde’s Response

The Thimphu Thromde communications officer did not address the queries regarding the missing funds or the responsibility of the individuals involved but issued a threat of legal action against the Bhutanese media.

Thimphu Thromde’s Financial Management

Government Account vs Independent Account

Thimphu Thromde’s accounts consist of two main components: a government account and an independent account. The revenue collected by the Thromde is deposited in the latter account, providing financial autonomy for managing operations.

Importance of Transparency and Accountability

As a local government body, Thimphu Thromde can deposit their fines into their own accounts and dispose of them as they deem fit. However, the financial flexibility raises questions regarding transparency and accountability in managing public funds.

Overview of Thimphu Thromde’s Current Situation

Legal Threat to Media Outlet

Thimphu Thromde is the first government agency to threaten legal action against a media outlet over an audit report.

RAA’s Findings and Consequences

The RAA stands firm on its findings and has received acknowledgments from Thimphu Thromde regarding the recovered funds and their efforts to identify and hold the responsible officials accountable.

New Fines Amid Embezzlement Allegations

Thimphu Thromde recently announced a series of large fines while funds are still being collected and deposited into the same account under investigation.

Recommendations

• Enhance oversight mechanisms and establish stronger financial governance and controls to manage public funds more effectively.
• Encourage transparency and accountability at the local level.
• Increase public awareness of the importance of audits and their role in maintaining government accountability.