Financial Crime World

Title: Thimphu Thromde’s Nu 8 Million Revenue Account Discrepancy: Allegations of Embezzlement and an Ongoing Investigation

Overview

  • The Royal Audit Authority (RAA) identified Nu 8 million missing from Thimphu Thromde’s revenue account, leading to embezzlement allegations and an investigation by the Anti-Corruption Commission (ACC)
  • The Thromde maintains two main accounts: one for government funds and a separate account for revenue and fines
  • Missing revenue was discovered between July 2018 and April 2022, totaling approximately Nu 8 million

Discrepancies in Thimphu Thromde’s Revenue Account

Significant Shortage

  • RAA’s performance and compliance audit revealed a significant shortage of more than Nu 7 million in deposited revenue
  • Physical verification on July 22, 2022, identified an additional shortage of over Nu 800,000 based on cash book records

Causes

  1. Irregular deposit practices
  2. Lack of internal control systems
  3. Inadequate monitoring and supervision

Government Response

Thimphu Thromde’s Media Relations Officer

  • Issued a statement acknowledging ongoing audit and changing figures
  • Threatened The Bhutanese with legal action for reporting on the audit findings

The Royal Audit Authority

  • Acknowledged missing funds and recovery efforts
  • Maintained position on holding individuals accountable

Background

  • Thimphu Thromde can deposit fines collected into its own account and use them as it sees fit, unlike most government agencies
  • Recently, Thimphu Thromde announced substantial fines for various infractions, adding to its revenue account

Conclusion

  • The Thimphu Thromde case marks an unprecedented stance by a government agency towards media inquiries and audit findings in Bhutan’s history
  • Investigation into this case continues