Audit irregularities have more than doubled in just a year, raising concerns about how public money is being managed. The Royal Audit Authority’s annual report for 2024-2025 shows financial irregularities worth almost Nu 10bn. This is an increase of nearly Nu 6bn compared to the previous financial year.
According to the Royal Audit Authority, financial irregularities for 2024-2025 total Nu 9.98bn, compared to Nu 3.96bn the year before, which is more than two and a half times.
The findings are drawn from 533 reports conducted nationwide during the year.
The RAA this time revised its categorisation framework, classifying irregularities that appeared to involve deliberate wrongdoing under “Fraud” while all other cases were treated as “Errors”.
According to the report, nearly 94.8 per cent pertained to non-budgetary agencies, including corporations and financial institutions, state-owned enterprises, non-governmental organisations, civil society organisations, and hydropower projects.
The remaining 5.16 per cent pertained to budgetary agencies, including ministries and agencies for which annual budgets are included in the appropriation bill and appropriations made by the National Assembly.
Of the total irregularities reported, fraud cases amounted to Nu 8.3 M, while errors in financial records accounted for the majority of the irregularities, amounting to Nu 9.9bn.
The Punatsangchhu Hydroelectric Project Authority II had the largest irregularities falling under the “Errors” category, accounting for over Nu 7.7bn.
A total of over Nu 184.4 M was recovered during the year, including refunds to the Asian Development Bank and adjustments made through running bills.