The Punatsangchhu Hydropower Project Authority–II (PHPA-II) has accounted for 78 percent of the total Nu 10 billion in audit irregularities identified in the latest national audit report, raising concerns over financial management and project oversight.
According to the findings, the irregularities linked to PHPA-II amount to approximately Nu 7.8 billion and include issues such as non-compliance with financial regulations, procedural lapses in procurement, delays in contract management and weak internal controls. The audit noted that several observations remain unresolved despite being flagged in previous years.
Auditors attributed the high share of irregularities to the project’s scale and complexity, prolonged construction timelines and frequent design and cost revisions. However, the report stressed that these factors do not exempt the project authority from adhering strictly to public finance rules and accountability standards.
Relevant authorities have been directed to take corrective measures, recover amounts where applicable and strengthen internal control mechanisms to prevent recurrence. The audit office also recommended enhanced monitoring by oversight bodies and timely follow-up on outstanding audit observations.
Officials from PHPA-II have stated that efforts are underway to address the issues raised, improve compliance and regularise outstanding matters in coordination with concerned agencies.
The audit report has renewed calls for stronger governance and transparency in large infrastructure projects, particularly those involving significant public expenditure.
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