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Kudroen
tsochen mije Lhengye zhungtshogi thrizin, Yangbi lopon chog, tshiship gi
tosa dang charo dag my Audit Colleagues, DaZshosdang aums lhengye ga
yalu Joen par legso dang Kuzug zanpo.
May
I now beseiged upon all to seek the permission to present a report to
the Conference and do in our official language.
The
presentation may be little bit long.
I
would therefore like to share that once one former vice president of
India
was invited as a Chief Guest. The
organizer took liberty to use major portion of the time of the ceremony
for his speech. Ultimately
the Chief Guest was invited to give his address.
“May I now request the Hon’ble Chief Guest to give his
address”. The respected
Chief Guest took out his visiting card and handed it over saying here is
my address and he walked away.
While
I cannot resist being the former, I hope our Hon’ble Lyonpo will be
understanding as always.
I
am happy to stand here today and make this report for three things on
behalf of the Royal Audit Authority. First, as the country enters into
the new millennium I have the opportunity to be associated with the IVth
Annual Audit Conference on the theme: “Accountability: A Collective
Responsibility”;
Second,
after having represented in more than three conferences on transparency,
corruption, accountability and integrity, I get the opportunity to say
that without a shadow of doubt,
Bhutan
is the only country in the world, blessed with a political leadership
that is genuinely committed in addressing issues of fighting corruption
and safeguarding integrity. And third we have the presence of Head of
Government, the Hon'ble Lyonpo Yeshey Zimba who is an enthusiastic,
selfless, forbearing and committed to enhancing accountability and
upholding integrity.
The
World Bank and CIDA described Accountability as the "fundamental
prerequisite for preventing the abuse of power and for ensuring that
power is directed towards the achievement of broadly accepted national
goals with the greatest possible degrees of efficiency, effectiveness,
probity and prudence". The aim of accountability is to inform
citizens about the "why" and the "how " of policy
processes and choices, so that they are able to judge and respond to
government actions.
And
“Corruption …as the benefit of an individual or group to whom one
owes allegiance. Corruption occurs when a public official accepts,
solicits, or extorts a payment, or when private agents offer a payment
to circumvent the law for competitive or personal advantage.”
Our
Beloved King firmly believes that the ultimate purpose of governance
must be to promote the happiness and well-being of all the peoples.
According to His Majesty, the GDP, the universal indicator of economic
progress and prosperity, is not adequate to measure the quality of life
of the peoples of a nation. For His Majesty, the economic prosperity
that does not assure the well being of the common people in all corners
of the country is no prosperity.
Such
a goal can materialize only if there exists a system and environment
where there is the permeation of sense of accountability. If we have
integrity we have accountability. Where
integrity is absent, the corruption will be present.
And “Corruption is a symptoms of weakness in political, social,
legal and economic systems”. (Controlling Corruption: A
parliamentarian's Handbook Second Edition)
Addressing
the issues of preventing and fighting corruption continue to be the
concern of His Majesty and we owe it to His Majesty to make it as the
integral component of our Policies and in our daily actions. If we do
not do so, adverse impact that it shall bring on a very small economy
and society is for everyone to guess.
It will be lethal.
According
to Ms. Eveline Herfkens, Dutch Minister for DC “Yes, corruption.
We would probably have to go back to the ice age to find out a
world without corruption. We
all know it exists and that it is a daily hazard but until very
recently, no one dared to acknowledge it.
We took it for granted, assumed no one could resist: look but
don’t touch, touch but don’t taste, taste but don’t swallow; in
the end we all give in. A
collective conspiracy of blindness and silence.
Look away and never name names.
And when we do, it's always the other guy”.
How true is it not? Do
we ever say I am wrong, I am the corrupt, but it is always somebody but
me? It is always somebody
else who is corrupt. “We can hide behind policies and lobbying; but
the truth is: We have met the enemy; and indeed, it is us.”
In
Bhutan
, after I was appointed the Auditor General, a lot of people came and
talk to me. Mostly about
there being rampart corruption in the Civil Service.
Corruption of third parties. It was confusing for me at times
whose corruption we were talking about. Mine, his, hers or some aliens.
Whosoever
when I requested for names and for support and more information,
everyone retracts or they say it is the RGoB to know the details. Or
often ends in shagey deben.
If
all take such an attitude, public services would not be delivered or
would be poorly delivered or delivered at high cost.
Scarce resources would be managed, diverted or supervised poorly.
Individuals would profit from the salaries unearned, for services they
neither perform, nor initiated and innovated.
While such officials are temporarily safe, from not being exposed
to risk, be warned the truth in the precept of Lay Jundey and Tha Damtsi.
As one sows, so one shall reap, what you reap, what you sow to
bear the consequences of having to face the challenges.
Let
us not keep room for short-sightedness and profiteers, to ensure that
the result of the national noble goals and aim are endangered.
I
am happy to report that for the year 2000 - 2001, more than 202 agencies
were audited in the Kingdom, including audit of Country offices and few
bilateral organisations. 183
Inspection Reports were transmitted to various organizations. Follow-up
of more than 59 previous reports are being actively pursued.
Some of these were transmitted as for as beyond 1988.
Special
audits of the all arms of security forces were conducted, as the RGoB's
commitment to enhance accountability of the scarce resources, financial
discipline and integrity that are crucial in safeguarding internal law
and order and the national security.
A
special report on the investment of the RGoB in different investment
schemes under the management of the professional Fund Managers is
submitted for consideration of the Board of Directors of the Royal
Monetary Authority.
Joint
investigations with the Ministry of Agriculture were undertaken. I on
behalf of the Royal Audit Authority (RAA) extend our full-hearted
appreciation particularly to the Hon’ble Minister of Ministry of
Agriculture for his understanding, support, cooperation and commitment
in enhancing accountability and safeguarding integrity in their
establishment.
One
similar audit is taking place currently for the National Women
Association (NWAB) as desired by the HRH, President of the Association.
As such efforts do lend considerable impact in our endeavours.
Further,
we are invited by the Comptroller and Auditor General of India (C &
AG) to work with them in auditing operations of the Food and
Agricultural Organization (FAO).
An
Annual Audit Plan is being adopted as such that there will be regular
auditing of all the organizations while neither any auditor will be
overworked nor any remain under-utilized.
The
Second such plan will be approved by this Conference.
A series of Audit Manuals are being drafted. It is also to uphold
the directives of RGoB that every Auditee agencies to be audited at
least once every two years. All
these must contribute to enhancing the accountability and strengthen
institutional capacity of the Royal Audit Authority.
A
Master Audit Report and Master Audit Schedule that will be discussed,
would go a long way to improve efficiency and accountability of
auditors. The added IT
capacity and infrastructure strengthening must accelerate the pace
further.
The
requirement of the production of Audit Clearance (A.C.) in respect of
the Civil Service and many of the organisations had been found to be an
effective means of assuring accountability of the public funds and
properties. But a great percentage of corrupt practices do remain beyond
the purview of the jurisdiction of the audit clearance.
The
Audit Clearances currently are being obtained by a total of 67
government organizations and autonomous bodies except for the three
financial institutions, Chukha Hydro-Power Corporation and the Security
Forces (including Army Welfare Project).
The
myth that “corporatization, autonomous and privatization of the
government activities will be managed better”, if audit findings are
to be given credence, may not be accepted as a gospel.
We have a long way to go as the same game is played by the same
mindset, the same for similar player that does not make any difference.
More
than Nu. 47 million in cash itself had been collected till spring of
2001. In the year 2000, over Nu. 10 million in cash were recovered to
the RGoB. It amounts to higher than the rural tax of 7.051 million for
the entire nation collected for the fiscal year 1999-2000.
The rural tax includes outstanding due to misuses by revenue
officials etc.
In
the first half of 2001, over a total of Nu. 6.8 millions cash only were
recovered which is a substantial rise over that of the last year.
Ladies
and Gentleman, these figures do not take into account over Nu. 40
million realizable in the form of commercial taxes and the moneys that
are yet to be deposited/recovered in Audit Recovery Account from various
agencies of the Royal Government. If I may beg your indulgence, Power
revenue outstanding is over Nu. 6 millions. Likewise the Telecom revenue
outstanding is Nu. 4 millions. Mineral
royalties is Nu. 5 millions. A
careless or covert trade export transaction had resulted in a financial
damage over Nu. 16 million to the state.
We are happy that at least out of which the Nu. 6 million is now
in hand with the Government while the balance is vigorously pursued.
The
Forest and Security Force recoveries must together touch a minimum of 10
millions.
While
the case of fronting is drastically diminished in the interior, it
appears that it is still rampant in Chukha region.
It is high time that private sector itself take the
responsibility in solving this issue.
The Head of the Government stated in the current National
Assembly:
“A
sustained flow of resources is more important for national security than
adhoc contributions. Therefore,
the business community must invest in economically productive
activities, pay their taxes honestly and on time, generate employment
for the youth, and refrain from fronting and other illegal activities
that compromise national security.”
The
private sector, for that matter all sector, must subscribe to a code of
conduct and ethics. The
Royal Audit Authority had detected from the records of Regional Trade
and Industry Office at least 101 numbers of trade licenses are suspected
of being leased out.
I
hope the authorities and people indulging realise that fronting is the
greatest disservice that one can do to a nation.
The private sector development is not only adversely affected in
short term but it does a long-term damage to all aspects of the noble
goals of His Majesty the King. We
would urge the persons involved that they should stop trading in
licences and start a thriving business in goods and services.
The
Audit Clearance Application Form has been streamlined to make it less
bureaucratic and more sacrosanct. It
is expected that the responsibility to process the same is reposed on
the head of organization/employer instead of the individual “line”
employees who should have no time for the “staff” services.
For
kind information, though in disobedience to His Majesty’s Kasho to
grant Auditors one to three months salary for detection of significant
cases of corruption, in order not to create opportunity to restrain
auditors from temptation, we did not deliberately implemented it.
We would now like to institute an award to be known as AG’s
Compliance Assurance Award to a Division with highest cash recovery for
a particular year.
We
feel, it is high time that the senior officers appreciate the fact that
their success, if any, must be attributed to the dedicated and selfless
service of members of his team. Thus,
the head of organization who extracts work out from his employees is
duty bound and morally obligated to ensure that rewards are given to his
wards justly and timely. Above all in a manner appreciable and
motivating. An organisation
where such a system does not prevail, it would mean there is no merit
& fairness but corruption.
Such
practices and actions support Darwinian actions without any regard for
merit. Such practices and
acts promote organization where an employee has to fight to get his
recognition, promotion, training etc. It would indicate that there is no
leadership or poor leadership.
If
employees can decide their records, argue their case, we are encouraging
collective bargaining while the officials entrusted with the personnel
functions confine themselves in the respective cozy chambers. We expect
to see lesser promotions, PF and AC forms will be handled by the
candidates.
Hon’ble
Chief Guest, ladies and gentlemen, I am happy to state that increasing
number of civil organizations and individuals do appreciate that such
Audit Clearance system has contributed to enhance credibility in their
organizations both for personal and organizational accountability
assurance. The Royal Audit at times has to reluctantly adjust its Annual
Plan to comply with such voluntary requests for auditing.
In
the year 2000 only, clearances were issued in the area of promotion
2,293, training 1,133, resignation 851, and contract extension 291.
In
the context of points made so far, I would now wish to share, with the
permission of the Hon’ble Chief Guest that there are 32 areas where
irregularities are maximum and frequent.
They were reported in the AG – Advisory Series, 2001.
It was submitted to His Majesty and presented to CCM and RCSC for
their action. The Royal
Audit Authority can only report, remind and observe.
It is up to these authorities either to take or not.
Why
and how these are taking place? It is because of all of us:
The auditors, the Lyonpo, Dashos, Ashis, Officers, Officials,
Tshongpons, elected officials and the members of the public.
We do not care or we do not want to care.
We
are familiar with terms Khe mey, gong yang, kidug, rog-ram, charo, rangi
mi rangi matan gagi tani etc. We
give consideration to those who have access to us and those whom we
think will be helpful to ourselves.
In
audit, often explanations are given to observations as Shul zo shag yi,
dog dog zo yi or attaché chi rang ing.
These cost the exchequer substantially now and these irrational
welfare orientation will later have far reaching adverse consequences to
the nation.
I
regret to submit for the year 2000 – 2001 that the Royal Audit
Authority had not been able to implement the Auditee of the Year
Programme. I hope it will
not be so the next year.
If
we who are the decision-makers compromise the qualities and standards
for short-term goals without regard for future and long-term goals, we
may not do justice to our work and ourselves.
We hear again and again that sustainable development is not
borrowing on the future and living on the interest.
It
is not difficult for us to have a society with accountants who will take
care of every chetrum, engineers who will not compromise their
professional standards, executives whose decisions are made on time and
properly, lawful arrests and justified detentions, disciplined and well
schooled schools, the justices prevail, clean streets, better nursed
patients, a fewer wrong diagnosis, complete and useful audit reports,
accounted public properties, transparent and a political technical
assistance, humane lams & lopens, duty-conscious and proactive
security forces, no syndicate, collusion and inside information sharing
and patronage. That is if we
all want and work for it.
We
recommend that the functions that may be prone to abuse must not be
entrusted to the same or persons of known poor accountability. Poor
accountability was found to be due to absence of regular changes in
persons and poor monitoring and evaluation at every level, as well as,
lack of monitoring by supervisors.
Opportunities for corruption should be minimized as much as
possible at all times and all places.
We
are hopeful that the public, private sector, contractors and suppliers
would pledge to promote good business practices in public services and
discourage, and blow the whistle where there is corruption without
hesitating being worried about repercussions.
Excellencies,
Ladies and Gentlemen, We say all problems are due to policies, laws,
rules and regulations or lack of rules.
Time and again, I would wish to state emphatically that Bhutan is
not poor of policies, rules and regulations. But, it is wanting of
persons who will not allow lapses due to deliberate unlawful actions,
poor coordination. A
controls, indifference and inconsistency in their applications by the
supervising and enforcing authorities.
It
is also found to be due to our misplaced Jangchub Sem habit.
We desist from saying “no” where and when it has to be said.
And we are compassionate and generous with state assets and
funds. How many can dispute
that it is not the policies, laws, rules and regulations but it is the
people.
We
are experimenting a different strategy to effect accountability.
Accountability and responsibility for lapses will now be apportioned to
all actors in the act and related to it.
The values of damages where appropriate is made good with
recoveries topped with the commercial interest. The commercial interest
is not to be misunderstood as a penalty not issue of rules by auditors
but realization of the minimum opportunity cost incurred to the state.
The
present audits create impact on by organization specific.
We felt there is need to create impact on the whole society
itself. The present
financial and transaction oversight auditing will continue on a regular
and periodic basis to ensure compliance, efficiency and effectiveness of
implementation of policies, programs and management of funds.
Yet, beginning the year 2001, the theme, core service, issue and
area based cross-sectional inspections audit is being introduced.
We
hope this shall bring accountability in the system in a uniform,
sustainable manner and across the board. While doing so, our focus will
be to understand that the overall achievements of an organization is not
only accomplished but they had contributed to the overall national
strategy & goals.
The
RAA will oversee compliance of the policies, laws and rules with greater
zeal. We shall not confine ourselves to “what is budgeted and done”
but “what ought to have been but not done.”
We are strengthening the technical capacity both in terms of
hardwares and softwares. We
would place the moral responsibility on every supervisor, trainer or
teacher to minimize adverse audit paras progressively in the name of
Palden Drukpa.
Henceforth,
an “AG-Advisory Series” and the Annual Audit Report (AAR) will
become annual feature while the first reports nature and frequency of
categories of offences, the AAR will publicise the defaulters.
We have developed Fraud Indicators.
We expect these shall help us to expose and highlight the major
cases of corruption, fraud and offenses in the public service to further
enhance accountability, transparency and safeguarding Integrity.
Because it will be easy for us to classify the irregularities
correctly.
The
RAA Web Page to be launched in due course can be a great deterrent, as
audit information except those, which may compromise the national
security & interests, will be made accessible to all.
Besides, the auditors will also take an oath of good conduct,
ethics and secrecy at the end of this Conference and when new auditor
joins the service.
I
expect to receive the continued cooperation from the Cabinet, Royal
Civil Service Commission (RCSC), Department of Legal Affairs (DLA) &
Judiciary. Having said so,
we expect that every head of agencies to direct all under their
jurisdiction to be proactive, rule abiding and productive.
We hope the revised Financial Manual issued by the Ministry of
Finance had reviewed all its orders and rules.
Accordingly, those that are not practical and obsolete are
revoked.
His
Majesty King Jigme Singye Wangchuck uncharacteristic of the contemporary
politicians and leaders wanted the theme of celebration of the
commemoration of the 25 years of successful reign to be the elimination
and eradication of corruption in public affairs.
His Majesty commanded that promotion of activities that bring
happiness and prosperity to common men and women.
The RGoB, we all know, to fulfill this wish is drafting an
Auditor General’s Act along-with series of other legislations.
Any
action taken by a single person or agency will make difference and
results into impact only if each one of us are responsible and hold
ourselves answerable and accountable with Lue, Nga, Yea.
A collective effort is the only solution and reform from within
is the only remedy.
The
Council of Ministers, Councillors, RAC, Judges, Chimis must function
worthy of the trust and respect of the public. They must set examples.
No minister or executive can overlook the set procedures.
Where such offences are observed, prompt administrative and legal
action must follow.
The
civil bodies MUST serve as alternatives of delivery of socio-economic
programmes. They may
advocate different means of campaigns against corruption;
The
Bhutan Chamber of Commerce and Industry (BCCI), the MTI and the members
of the business community must be more active and proactive in
promotion, prevention and introduction of healthy business culture.
We must minimize the costs of corruption.
Also make all out and conscientious efforts collectively to
eliminate tolerance for any corrupt behaviour and promote the desired
norms of ethical behaviour
The
donors and technical assistance must refrain from bribing away the
developing nations of its valuable human resources. Instead
unconditional support be provided, whereby, the quality of governance
will enrich in the country and remunerative employment opportunities
generated. At the same time the educated and trained Bhutanese must make
certain sacrifices by greater and selfless participation in introduction
and promotion of good governance.
Do
what I say but not what I do principle has not been helpful in promotion
of good governance.
It
is my observation and also found out from the recent conference that
Bhutan attended the Global Forum II – Fighting Corruption and
Safeguarding Integrity from 28th – 31st May,
2001 at Hague, that donors are neither holier and the developing
countries more evil. They
were urged to be accountable, transparent and adopt good practices.
It
appears that we have a lot of hard work to do. Audit Inspection Reports
(AIR) are needed to be made transparent and acted upon by the audited
organizations. Organizations we expect would stop guarding Audit Reports
as secret documents. They
will make these accessible especially to those whose careers would be
affected by it.
Best
of all, people must stop to commit or omit irregularities, waiting to be
covered or uncovered by the audit. Audit should not be made the
scapegoat. Do what is
morally and legally correct and do nothing that is not correct.
Do not dare contemplate to use or possess what is not ones.
We
would also expect increasingly the observation of the auditors are used
as the essential feedback, so valuable and effective. Above all the
injection of greater sense of the efficiency, effectiveness, economy and
accountability in the system. If
these were timely and seriously heeded, organizations will lose fewer
numbers of experienced hands from disciplinary proceedings and
prosecution.
I
urge my colleagues to be frank and active in their participation in the
Conference and hope the programs preceded were meaningful.
I hope you will be able to do more justice to your job with the
new skills and knowledge.
Let
us try to stand up to the expectation of His Majesty the King &
RGOB.
I
would like to thank the Hon’ble Finance Minister for his support
guaranteed to the Royal Audit Authority in its endeavours.
An effective Audit, I feel, would make an easier work of the
Ministry of Finance. Let us
have a Zero – Tolerance Approach.
Let us in each of our profession pledge that we shall do nothing
that is considered unethical as per the professional codes.
If
a certain Jim Jeffords can change the balance of the US Politics, so can
we in our public affairs? A
little that each of us may do, can make a great deal.
Let us create our public service to be one that each of us can
boast to be – our “NATION'S PRIDE”:
In
our endeavour to pursue and promote accountability and responsibility, a
sustained and full cooperation and commitment of everyone from private
sector, public servants and every Bhutanese is critical. As such while
emphasis will be placed on individual accountability where necessary,
increasingly collective accountability is found to the only solution
with peer, subordinate and supervisory pressure.
Let us therefore, make public accountability the mission of every
Bhutanese and all of us.
May
I also pay my tribute and hail all auditors for the one year of
dedicated and successful service rendered by the Royal Audit Authority.
In particular the field staff who were at times threatened of
being arrested, classified as Zhung Gomju Gie Mi, nga chey tage mey and
bore all un-pleasantries from the affected auditees, interrogated and
threatened with divorce by spouses.
Decried for receiving a special consideration by their monarch.
When auditors eat and drink it’s “corruption.” But when others do
it is entertainment and business promotion. When auditors use a
government conveyance it is “misuse.”
When others use it is a “necessity.”
I hope we know that auditors are being deprived of the comfort of
the shelter, food and fun that other public servants enjoy in a place
called home and affection of the family almost for half the year, every
year.
Despite
all these His Majesty the King has faith in you. The Royal Government
has. I urge you to fuel your fire to take the mission at a higher level.
What you do is a duty to the nation and service to the people of Bhutan.
These are what must be expected of us and what we must be
prepared for.
I
would like to join my colleagues in extending the warmest welcome to the
Hon’ble Chief Guest and all dignitaries.
I sincerely appreciate your presence today as the auditors try to
reflect, refresh and gear up for the next financial year in your
service.
I
would also like to welcome all the audit officers to the Conference in
particular those who had traveled from Samdrup Jongkhar.
With
blessing of Lha Chochung, under the visionary, dynamic and benevolent
leadership of His Majesty, dedicated services of my audit colleagues,
good wishes and support from all believers in truth and justice here and
everywhere, we shall surge ahead.
Lastly,
the three letters in “RAA” shall not only stand for the Royal,
Audit, Authority but Hon’ble Lyonpo and Distinguished Guests,
henceforth it shall stand as our moto:
R
– Reliability,
A
– Assertive, and
A
– Accountability on our march to help in our little way His Majesty
the King to attain the Goal of Gross National Happiness (GNH) for
Bhutan.
Thank
you
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