Basic Skills Development Program case 8 August, 2009 - The royal audit authority (RAA) has confirmed fraud and corruption in the Nu 371.47m basic skills development program (bsdp) case, after the labour ministry’s replies were found unsatisfactory.

The money was given to BSDP, under the department of human resources, to construct vocational training institutes across the country.

RAA is also exploring new areas for fraud and corruption.

Meanwhile, RAA has expressed unhappiness with the ministry for allowing a key accused to leave the country and for not taking action against those named in the report.

A key component of the case is the siphoning of around Nu 4m, which has now been proven, after the ministry could not come up with the money by July 6.

This includes a Nu 1.4m cheque, drawn by project manager, Phuntsho Wangmo, in her name, authorised in May 2008 by project director Sonam Rinchen, to be paid to Nima construction for a riverbank construction work at Rangjung VTI. The money never reached the company.

“It has been confirmed that the money is lost, but we don’t know who took it right now, as Phuntsho Wangmo claims that she gave the money to the project accountant, Samten Wangdi, in her house, while the accountant denies receiving the money,” said the labour secretary Dasho Dr Sonam Tenzin.

The accountant was alleged to have siphoned Nu 500,000 from the bank account by manipulating transaction records. Another Nu 505,458 was withdrawn for fictitious transactions, which included dollar buying, which was never bought.

About Nu 272,000 was also siphoned through non-recording of amounts recovered from Norgay construction and the ministry. About Nu 85,000 from tender sales was also not recorded and spirited away, says an audit report.

Another major component of the case is the MoLHR and RAA finding that most of the Nu 37.92m claimed by Dangling construction was paid in the past. The BSDP project management was nonetheless about to pay the company again, the remaining amount of Nu 17m (Nu 18m was already paid). Labour minister Lyonpo Dorji Wangdi, who joined towards the end of the project, stopped the transaction after the audit report came out.

Meanwhile, RAA has written a letter to MoLHR, with copies to the prime minister, royal secretariat, ACC, RCSC, Parliament and other agencies, criticising MoLHR for allowing Phuntsho Wangmo to go back to Australia.

An exasperated auditor general, Ugen Chewang, told Kuensel, “The ministry, being fully aware of the severity of the case, has allowed her to go back when she was the primary person involved in the fraudulent withdrawn of Nu 1.4m and is accountable in other cases. She was very crucial to the investigations.”

The suditor general also accused MoLHR of not taking action, even after action was recommended, and despite giving sufficient time (3 months) since the report was sent to them. “When ACC went to the ministry, they were sent back, since RAA had given them time to take action, but in the end they’ve failed to take action.”

He also said that nothing has been disproved on the siphoning of funds except for some procedural lapses being clarified.

Labour secretary Dasho Dr Sonam Tenzin said, “Once we formally get a response to our report from RAA, we’ll be forwarding the cases to the office of the attorney general and take actions as per government rules.” He said the three-month period was not to take action but to reply to the RAA findings, since the project manager was in Australia and the accountant in prison over another case when the auditing was done.

He also said that Phuntsho Wangmo was allowed to leave since she had come back from Australia and replied to the audit memos and was getting late for her semester by a week. “However, she has been told that she’ll have to report back if here presence is required,” said the secretary. He said the decision was taken after he received an application and consulted with the minister.

Lyonpo Dorji Wangdi said, “I told the secretary to take appropriate action, depending on the status of discussion and the understanding reached with RAA and RCSC.” He said that the case was being handed by the secretary.