Title: Thimphu Thromde Faces Allegations of Nu 8mn Financial Reporting Fraud; RAA Threatens Legal Action against The Bhutanese

Royal Audit Authority Uncovers Potential Fraud in Thimphu Thromde Account

• The Royal Audit Authority (RAA) discovered a financial reporting fraud of around Nu 8 million in Thimphu Thromde’s account.
• The shortfall came to light during a Performance and Compliance Audit conducted from July 2018 to April 2022.

Possible Fraud and Corruption: A Thorough Investigation anticipated

• The case of Nu 8mn shortfall is expected to be referred to the Anti-Corruption Commission (ACC) for further investigation.
• The nature of the issue involves allegations of fraud and corruption.

Thimphu Thromde’s Revenue Collection System Under Scrutiny

• Thimphu Thromde collects revenue and fines from Thromde residents in two main accounts: one from the government and one as its own revenue.
• The discrepancy arose due to the irregular deposit of revenue and fines by dealing officials over weekends and lockdowns.
• The internal control system for revenue management lacked proper oversight and monitoring, and there were inadequate revenue reconciliations and reporting.

Missing Funds: Ongoing Efforts to Recover

• The RAA issued preliminary observations to Thimphu Thromde, urging them to reconfirm and justify the missing funds.
• The missing funds, however, have not been recovered from the dealing officials yet.

Denial and Threat of Legal Action: Thimphu Thromde’s Response

• Thimphu Thromde denied any wrongdoing and issued a vague statement regarding the changing figures in the report.
• They threatened legal action against The Bhutanese over the story’s publication.

A Concern for Financial Transparency and Accountability

• This is the first time in recent history that a government agency has threatened legal action against a media outlet over an audit finding.

The RAA’s Assurance: Thorough Auditing Process and Ongoing Communication

• The RAA assured that they conducted a thorough auditing process and that written acknowledgements have been received from Thimphu Thromde.
• They declined to share the full report due to the pending parliament review.