A few months ago, the Royal Audit Authority (RAA) had issued an audit report to the Jigme Dorji Wangchuck National Referral Hospital (JDWNRH), saying that the former JDWNRH President Lhab Dorji had misappropriated Nu 6.441 million (mn) meant for the Patient Welfare Fund.
The RAA report said that during the audit of JDWNRH, the Anti-Corruption Comission (ACC) shared information to review and confirm the account of a sum of Nu 6.441 mn in the Patient Welfare Fund Account.
Mr Low Kaim Hann, the donor, transferred the amount in piecemeal aggregating to Nu 6.441 mn to A/c 5000067483014 (BNB) belonging to Lhab Dorji, the then President. The money was sent in 8 installments from 2016 to 2019.
RAA, said on review of the operation of the Patient Welfare Fund Account from 1May 2016 to 30 June 2022, the said amount was actually not deposited into the Welfare Fund A/c, but was misappropriated by Lhab Dorji.
At the time of the audit in May and June 2022, JDWNRH had responded saying the JDWNRH management was neither aware of the issue nor have any formal documents. They requested RAA to take up the issue separately.
The hospital said, “Without records of the transactions in our system, there is not much the hospital can do about the issue. We believe the transactions were all carried out in his personal account where the administration has no access.”
However, while the auditing was going on neither RAA nor JDWNRH could get in touch with Lhab Dorji who was behind bars due to the Trongsa Land Case.
It appears that Lhab Dorji did not get the opportunity to present an explanation on why his personal bank account was used for the transaction, and what was done with the money.
The report came out in the open, and Lhab Dorji was essentially charged with embezzling the entire amount.
However, in hindsight, as JDWNRH looked into the issue, the story is more complicated as they have been able to track some cheque payments from the account for buying medical equipment that Mr Low Kaim Hann wanted to donate, in kind.
A JDWNRH source said that the donor wanted to donate equipment, in kind, to the hospital but he did not want to go through the hassle of purchasing it, and so opted to send the money for the things to be purchased.
The source said that even with Lhab Dorji behind bars, they were able to track certain cheque payments coming to under around Nu 2.5 mn.
One was a dialysis machine, another was an ultra sound machine and then 10 LED photo therapy machines were also bought and given to the hospital.
On how the rest of the amount was spent, JDWNRH is not clear as the account was operated by Lhab Dorji, and so only he would know what are the other payments or expenditure.
The source said that the money was never meant to be a financial contribution, but for in kind donations, and Lhab Dorji put the money in his account, as putting it into a government accounts would mean having to follow the drawn out government procedures on withdrawal of the money and purchase of items.
The donor had, in fact, come to Bhutan in the past to inspect some of the items he gave, and also featured in the media, according to the source.
Lhab Dorji, who is currently behind bars in Chamgang, will still have to answer for what happened to the remaining Nu 3.9 mn and also why did he not use a government account, but according the cheque details given by JDWNRH, so far he did not embezzle the entire amount.
It is also clear that Lhab Dorji was not given a fair chance to reply either by RAA or the JDWNRH, as even though he was behind bars, RBP allows visitors.
The source in JDWNRH said that the way the audit report came out has hurt the credibility of the Patient Welfare Fund Account, and people may now be reluctant to donate or even give things, in kind.
The RAA report says the Patient Welfare Fund Account provides financial assistance to economically disadvantaged patients or parties during disposal of dead bodies, discharge of patient from the hospital, patients referred outside the country, mother or relatives after delivery of the baby, and to facilitate the cremation of unclaimed dead bodies for those patients who die in hospital.
RAA had said JDWNRH management should recover Nu 6.441 mn from Lhab Dorji, with the applicable penalty.
A RAA official said that even if the above is true, the direct transfer of amount to Lhab Dorji’s saving account had violated the Public Finance Act 2007, Section 101, which states that ‘The Ministry of Finance, on behalf of the Government, shall receive all grants and loans made to budgetary bodies by a foreign government or any other body or person.’