The Bhutanese Leading the way.
There has been much discussion and misinformation on the Media Enterprise Development Program (MEDB). It is incumbent on this paper to share the facts of this public program that has made a major positive impact on the Private Media.
MEDB facts
Since 2010 there was a steady decline in government advertisements, the main source of revenue, for all media in Bhutan and the private newspapers were the hardest hit with 4 private newspapers and two private newsmagazines shutting down.
On top of this, BICMA in April 2018 mandated that English papers print a minimum of 1,200 copies and Dzongkha papers print a minimum of 600 copies. This was outdated in a time of PDF copies, websites and social media, but BICMA insisted. The private papers said such a mandate would impose an additional financial burden when world over papers were going digital.
The second government, in response to the BICMA order, came up with a Printing Subsidy from July 2018 onwards that covered 50% of the printing cost for the private papers. This money did not come to the papers but was paid to the Bhutan Media Foundation (BMF) as a neutral Civil Society Organization in between so that there is no direct contact between the government and media houses. BMF in turn paid the money directly to the printer, Kuensel Corporation, which published the private papers.
In 2018-19 financial year Nu 2.608 million (mn) was paid by BMF to Kuensel Corporation followed by Nu 2.392 mn in 2019-20. The subsidy was publicly done and covered in the media including on the BMF website. The 2019-20 component of the printing subsidy was extended by the former government based on the merits and impact of the program.
In 2020-21 the former government wanted more flexibility in the program beyond just a Printing Subsidy.
This is where the BMF and the erstwhile Department of Information and Media (now merged under Department of Media Creative Industry and Intellectual Property or DoMCIIP) designed three aspects of the program as Content to do with any cost around improving content, Online Transition to help with strengthening the online aspects of the papers and Reach to do with printing and circulation costs. Under this modified program it was to be called the Media Enterprise Development Program (MEDB) to help the overall development of the media house in the three aspects above. However, for 2020-21 only Nu 2.650 mn was released a large chunk of which again went into printing with Kuensel Corporation.
Given the conversion of the Printing Subsidy into the MEDB with three areas and further sub areas under them the former government increased the subsidy to Nu 4 mn in 2021-2022. It released Nu 4.3 mn in 2022-23, 4.3 mn in 2023-24 and 4.2 mn in 2024-25. The majority of the printing component of MEDB in the above years were done with Kuensel Corporation and even when some private papers went online The Bhutanese and Business Bhutan which still print used the MEDB to help meet printing costs while printing in Kuensel Corporation.
Even though it was not mandated, the majority of the above amounts went to the Editorial and specifically reporters.
This meant that a total of Nu 24.3 mn was spent on the Printing Subsidy and the MEDB combined and not a Ngultrum more over 7 years distributed between 6 private newspapers. Before this this there were some piecemeal content grant programs for all media outlets private and state owned and one where some voice recorders and an office printer were bought, but it would be minimal at best.
It is not clear how a ‘Nu 40 mn’ figure in subsidies for the private media was arrived at by anybody.
Auditing and checks
Being a government program the MEDB and its predecessor underwent several layers of checks and auditing.
The Ministry of Finance did the first vetting to ensure that all budgetary and financial rules are followed while releasing the amount to DoMCIIP which in turn set its conditions and did checks before and after the program. DoMCIIP then sent the funds to the BMF which implemented the program stringently.
Newspapers had to first submit a business plan on how they planned to spend the money within the strict parameters laid by BMF and also the larger business strategy of the newspaper. After the program was done newspapers had to submit a report of the money spent complete with money receipts and for many years even complete bank statements that captured all the commercial transactions of the papers even beyond BMF.
The reports and receipts were then audited annually by a combination of an External Auditor appointed by the Royal Audit Authority (RAA) and the RAA, itself, which issued the final report. In a testament to the transparency and success of this program, this may be the only government program where the RAA did not even issue a single Audit memo in the last seven years.
Business Secrets
The BMF Secretariat in its zeal to ensure the success of the program even asked the private newspapers to submit complete bank statements that listed all the bank transactions of the paper in a year which went well beyond the MEDB. The MEDB reports and receipts submitted by the papers would also lay bare all the business strategies and plans of the papers. The information submitted would also include private information like staff pay which can be misused to headhunt their talents by a bigger rival which has happened in the past.
The above information would provide a huge business advantage to any rival newspaper if they got hands on such confidential business and trade secrets.
Given the sensitive nature of the information being shared, the BMF assured the private papers that their data would only be shared with the RAA and relevant government agencies for auditing and checks and would definitely not go to any third party, especially a business rival. This is a reasonable stand that even the Department of Revenue and Customs takes as they cannot share tax information of tax filers with third parties as specifically forbidden by the Income Tax Act.
The private newspapers have no objection to information of the MEDB, figures and even the performance of the papers being shared, but not the business secrets like bank transactions, business plans and private information like pay of individual staff.
The private newspapers were alarmed when there was a breach of privacy and the above vital information was unethically leaked out leading to private papers approaching BICMA for action to prevent conflict of interest revelations of their business secrets.
Like Bhutan Telecom would not want its business secrets to be known by Tashi Cell, the same applies to newspapers.
Why support the private media
Almost all governments across the world support the private media directly or indirectly. These include direct financial support like in France, Italy and many European countries to newspaper print subsidy in India. Recently, a senior French Journalist on a reporting assignment to Bhutan and reading about the controversy could not see what the issue was about as France also has a similar program for private newspapers.
Even the most capitalist economy, in the form of USA, gives postal and tax breaks to its press, including government advertisements as support.
It is ironical that some in Bhutan with its small private sector and small market considers support to private media to be unnatural.
The private media is given enormous social and democratic roles, but gets no priority in support and resources.
Frog in a well
The last story written by The Bhutanese on the MEDB was wrongly confused by some as an ‘opinion,’ however, the entire article then and now is based on hard facts. It cannot be labeled a ‘news story’ when one newspaper writes a piece full of basic factual errors and an ‘opinion’ when mistakes are pointed out and the actual facts are stated in another article.
Journalism in Bhutan is sometimes like a frog in a well. If one picks up an international newspaper one will see long form and investigative news pieces that expertly blend facts, analysis and opinion. In fact, long form investigative journalism requires both hard facts and analysis. There are also new styles of cutting edge news writing where reporters report a story and also give their analysis in the same article to help the reader get a deeper insight and better context. The well is not the ocean.
‘Old and New’
The Bhutanese has always placed the public and national interest at the core of its journalism, as its readers well know, and it does not believe that newspapers or journalists can be equated to loaded phrases of ‘Old Demons being better than New Gods.’ We believe that whether you are ‘new’ or ‘old’ or whatever your background, ethnicity and language, we are all equal under the Constitution and what really counts is one’s service to the society and nation.
Something that His Majesty The King has recognized by awarding the National Order of Merit (Gold) to all media houses in 2011 for their efforts in keeping the public informed and encouraging debate, despite resource limitations and given the media’s vital role in a vibrant democracy.
Serving people and the nation
The Bhutanese is all for media accountability, but accountability must be based on facts and not be driven by wrong information and narrow business rivalry. All that a newspaper has is its credibility and moral authority, and any attempt to undermine it with false information has to be countered.
The collective media reputation has suffered a major setback in the last two weeks, not due to any factual revelations, but due to misinformation driven by business rivalry and the subsequent response and counter responses.
It is now hoped that we can focus on what matters, which is not petty business rivalry or jealousy but the people and the nation.
