The Bhutanese Leading the way.
According to the Public Accounts Committee’s findings on Performance Audit Report on Operations of Natural Resources Development Corporation Limited (NRDCL), there was no compliance monitoring and transparency found in the timber pricing. The public is also unaware about the rates fixed by the Natural Resource Pricing Committee (NRPC).
PAC found that in terms of extraction of timber, the NRDCL operates only around 30 percent of the total timber allotted annually for extraction, out of which 50 percent is supplied to Association of Wood Based Industries (AWBI).
The 50 percent supplied to AWBI is distributed among its members, which is represented by 111 wood-based industries but does not represent all license holders (saw millers).
And due to duality of mandates (social and commercial) NRDCL has not been able to achieve its optimal commercial interests.
PAC reasoned that the duality of the mandates does not impede its performance, and because NRDCL is a DHI-owned company, its social mandate is part of the Corporate Social Responsibility (CSR).
While deliberating the report, the possibility of establishing NRDCL’s One-stop Service Centre in each dzongkhags was also discussed.
Member of National Council, Ugyen Namgay, recommended NRDCL to conduct research and establish a one-stop service center in each district so that people can easily obtain stone, wood, and sand and have direct exposure to it in their respective districts
However, the Committee reported that the NRDCL has six regional offices across the country, as well as an online platform, an App called ‘My Resources,’ that allows the public to access services from anywhere.
“There is no need for physical offices to be established as of now since there will be a budget constraint. They can carry out a feasibility study and established later,” said Dil Maya Rai, the Committee’s Chair.
Meanwhile, the Joint Sitting of the Parliament endorsed the Committee’s three recommendations on the Performance Audit Report on Operations of NRDCL.
The recommendations are that the Ministry of Agriculture and Forests to review, enforce and monitor the NRPC rates and raise awareness to the consumers, review Timber Extraction and Distribution Modality (TEDM), 2017 to enable NRDCL as a sole distributor of timber (log form) in the country, and the NRDCL should operationalize its Corporate Strategic Plan (CSP) through annual plans and enhance robust control measures and formalize the Enterprise Resource Planning (ERP) system to optimize cost efficiency and productivity.
The PAC was directed to present a follow-up report on NRDCL operationalizing its Corporate Strategic Plan (CSP) through annual plans and enhance robust control measures, and formalizing the Enterprise Resource Planning (ERP) system to optimize cost efficiency and productivity.
The Speaker also entrusted the responsibility of reporting back to the Joint Sitting in the next session on the follow-up of recommendations on Annual Audit Report (AAR) 2020-21 and follow up on the Review Reports of AAR 2010-20 which were endorsed yesterday, 29 June 2022.
The Prime Minister was requested to report back on the recommendation related to unresolved irregularities categorized under the non-compliance to law, rules, and regulations, shortfalls lapses, and deficiencies, whereas the Minister for Economic Affairs was given the responsibility to report back to the Joint Sitting on the follow-up of the two recommendations under the hydropower sector.
PAC was directed to report on the three recommendations under the follow-up on the Review Reports of the Annual Audit Reports 2010-20.
