Year 2004

RAA/AG-SP/2001/620

Dated: 27 March, 2001

Notification

To:
      All Heads of Ministries, Organizations, Corporations and Agencies,
      Royal Government of Bhutan (RGoB).

This is for kind information of all concerned that the Royal Audit Authority (RAA) has observed during the course of auditing that procurement are being made directly from government and joint sector companies without ascertaining the competitiveness of the cost to the public exchequer through call of quotation as per the chapter 17 (Procurement) of the Financial Manual 1988[1]

In view of the above and as support of the RAA for implementing of the Good Governance policies and practices of the Royal Government of Bhutan, such as:

1. promotion of fair business practice, stem monopoly, enable equal opportunity both for the Bhutanese licensed suppliers and manufacturers in the Bhutanese economy;

2. ensure benefit of the competitive prices for public service procurements; and

3. promotion of the sense of accountability, efficiency, effectiveness particularly in the public sector corporations;

any procurement made without quotation from the government, public and joint sector companies, out of government funds, will be considered objectionable in audit.

However, the Auditors shall make exception of purchase of goods without quotation/direct purchase, if:

1. the transaction is conducted in conformity with the Article (17) 2.4(3) of the Chapter 17 (Procurement) of the Financial Manual 1988;

2. a specific product's selling price is fixed by competent authority in writing and for a time- bound period;

3. if it is not allowed to be produced/supplied by more then one national company;

4. the quality of the product is as per the required specification, quality and standard; and

5. the company further, wherever applicable, had allowed a discount on the purchases.

The Royal Audit Authority would request all concerned in your respective organizations be expressedly informed of this Notification.  

(Kunzang Wangdi)
Auditor General of Bhutan

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[1] Amended