During the 6th DPT Meet-the-Press, the Opposition said that the establishment of the Rural Enterprise Development Corporation (REDCL) is a duplication of works and costs of Bhutan Development Bank Ltd (BDBL) and other government agencies.
The Opposition further said huge amount of investment is required for establishing REDCL, impacting the economic and financial state of the country.
The Opposition member Khandu Wangchuk said, “The doubt is cast as the government is really not interested in handing over the responsibility to banks, which could be politically motivated.”
He said that after closing down the Business Opportunity and Information Center (BOiC), the government is yet to establish REDCL, which can be replication of same mistake as BOiC.
“The same function and service can be done by BDBL with its present network without additional administrative and other costs,” MP Khandu Wangchuk said. He added that the creation of the REDCL office in the twenty dzongkhags is a total misuse of money.
The Opposition said the government must focus on the enhancement of revenues and curb the unproductive and unsustainable expenditures for the sake of national goal and achieving self- reliance.
“The government of the day has totally undermined this important goal,” Khandu Wangchuk pointed out. He said that the idea of establishment is unsustainable and it has not made any meaningful investment to increase exports, generate revenue and employment.
However, Finance Minister, Namgay Dorji, said, “We don’t want BDBL to have two different products though they are able to function the same purpose.”
Lyonpo Namgay Dorji said, “We have considered its long term benefit and sustainability,” further adding that the establishment of REDCL would greatly benefit the villagers and farmers with small and irregular income since it no mortgage are required to get the service. He said it would, thus, contribute towards the goal of self-sufficiency.
Lyonpo further added that to start anything new for the long term, investment is required which will help in future. He said the huge investment will make a huge difference.
The Opposition, however, calls on the government to immediately stop the establishment of the REDCL and handover its work and mandate to BDBL and other relevant agencies of the government.
“This is also necessary to ensure that no undesirable precedence is set for future governments establishing such politically motivated agencies,” said the Opposition.