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The Anti-Corruption Commission (ACC) in its annual report brought out details on the corruption in the Engineering Cell of the Paro Dzongkhag Administration.
The ACC said it completed a wide-ranging investigation into systemic corruption within the Engineering Cell of the Dzongkhag Administration, Paro.
The operation was launched on 12 August 2024 following intelligence leads and preliminary assessments that indicated serious ethical and legal breaches in public procurement and infrastructure development activities. The operation led to the arrest and detention of two engineers, with search and seizure operations conducted at both their offices and residences. The investigation, covering the period from 2018 to 2024, revealed entrenched corrupt practices that severely undermined the integrity of the public procurement process and compromised project execution.
The investigation uncovered serious misconduct by engineers, involving abuse of power, manipulation of documents, bribery, and fraudulent practices related to the awarding of tenders and the execution of the projects. Evidence suggests that they partnered with licensed contractors, acting as fronts in bidding processes while holding official positions, and executed projects.
Additionally, evidence suggests that the engineers, while holding positions at the Dzongkhag Administration, conspired with licensed contractors who acted as proxies in the bidding process, ultimately securing the bids, which were then executed by the engineers.
The investigation further revealed that an engineer secretly obtained a construction license while continuing to serve as Chairperson or a member of the Tender Evaluation Committee. He failed to disclose his conflict of interest and instead scored the bid favorably, fully aware that forged documents had been submitted to make the bid appear competitive, thus securing the contract fraudulently.
The site engineer, in collusion with the disguised contractor, compromised quality control and oversight in return for financial benefits. Another engineer manipulated a limited tender process to benefit her spouse, submitting multiple bids under various licenses without the license holders’ knowledge, and fraudulently winning the contract.
An engineer was found to have colluded with a private individual and a Bank of Bhutan Limited official. In exchange for financial incentives, the bank official falsified bank guarantees and misused the bank’s internal systems to divert funds into personal and associated accounts.
Another engineer, in violation of the Civil Service Code of Conduct, inflated cost estimates in the tender document to mislead other bidders. She used a relative’s construction license without disclosure, managed project execution herself, and routed all payments into her personal account, clearly establishing her as the actual beneficiary of the contract.
The ACC’s investigation extended to 17 construction projects, of which 16 were in Paro and one in Haa Dzongkhag. A total of 27 individuals have been implicated, including six public officials (two primary and four additional) and 21 private individuals. The ACC has pursued the recovery of Nu.13 million, representing bribes and illegal gains derived from the corruption scheme. Eight construction licenses have been prohibited for their involvement in fraudulent bidding and execution practices.
ACC said these unethical and fraudulent actions not only violated established procurement norms and compromised the overall integrity of the system but also unjustly denied numerous contractors the opportunities they rightfully deserved.
