The Bhutanese Leading the way.
The ICT Association of Bhutan (ICTAB) has called for greater transparency and competition in government technology procurements following findings by the Royal Audit Authority (RAA) that identified major procurement and governance lapses in the Bhutan Integrated Taxation System (BITS 1.0) project.
According to the audit report presented to the National Assembly by the Public Accounts Committee (PAC), the project contract worth Nu 610.11 million (mn) was directly awarded to DHI Thimphu TechPark Private Limited (TTPL) without open competitive bidding. The RAA stated that this approach reduced transparency and limited assurance that the government obtained the best value for money.
Commenting on the findings, ITCAB Chairman Mani Pradhan said, “For projects of national importance and this scale, open and competitive procurement generally provides the best opportunity to ensure transparency, value for money, and broader industry participation and Bhutan has several experienced ICT firms capable of contributing to large-scale software, systems integration, infrastructure, and hardware projects.”
He said, “Tenders and procurement frameworks should focus on product quality, warranty, service commitments, and technical competence rather than exclusive affiliations that may only be available to few firms.”
He said that an open process allows qualified firms to compete based on technical capability, quality, and cost-effectiveness, while also promoting private sector growth and strengthening national ICT capacity.”
The audit also found that the evaluation criteria used to select the international implementation partner were revised by TTPL without documented justification. According to the RAA, the absence of supporting documentation weakened the transparency and accountability of the procurement process.
Further, the audit noted weak contractual safeguards, including the release of advance payments exceeding regulatory limits without adequate financial guarantees. The RAA found that these weaknesses contributed to inefficient utilization of public resources and resulted in a direct financial loss of Nu 119.11 mn.
The government’s stated objective for the project was to build local ICT capacity. However, Mani Pradhan said capacity building and competitive procurement are not mutually exclusive.
According to him, competitive tendering can encourage collaboration among multiple Bhutanese firms, foster technology transfer, and create opportunities in software development, systems integration, cybersecurity, cloud services, and computer hardware support.
Mani Pradhan said the same principle applies to hardware procurement, where participation in many tenders is restricted to suppliers holding Original Equipment Manufacturer (OEM) dealership certificates or Manufacturer Authorization Forms (MAFs), despite the presence of capable Bhutanese firms that can provide genuine products, competitive prices, reliable after-sales service, and qualified technical support.
He said, “Broader participation would help strengthen the overall ICT ecosystem rather than concentrating opportunities within a limited number of firms.”
He said that Bhutan has several ICT companies with years of experience in enterprise software, systems integration, networking, cybersecurity, hardware supply, and managed services. Many firms also collaborate with international technology partners when specialized expertise is required.
According to him, a procurement and tendering framework that encourages broader participation while maintaining quality standards would better support Bhutan’s long-term goals of digital transformation, self-reliance, technology transfer, and private-sector development.
He said, “Open competition would have allowed capable local companies to participate individually or through consortiums, thereby encouraging innovation, improving quality, and strengthening national capacity.”
He said that open tendering and competitive bidding are fundamental to transparency, fairness, and value for money because they create a level playing field and encourage competition based on merit, quality, technical capability, and cost-effectiveness.
He added that restrictive conditions such as mandatory OEM dealership certificates or narrowly defined technical certifications can unintentionally limit competition and reduce the number of participating firms. Procurement frameworks, he said, should focus on product quality, warranty, service commitments, and technical competence rather than exclusive affiliations that may only be available to a few firms.
The RAA also found that no documented market research or technical capacity assessment was conducted before the project was awarded. Commenting on the finding, Mani Pradhan said market research and technical capacity assessments are essential components of sound procurement practices.
He said, “They help identify available expertise, assess capabilities, and ensure that projects are delivered efficiently and cost-effectively.”
Meanwhile, this paper asked the Ministry of Finance how much it spent on the GST system and the staff hired to implement to the ministry and was denied. The paper asked the same question again in the meet-the-press but this paper has been denied the answer despite the meet-the-press media team also following up with the ministry.
