January 5: The Opposition Leader Tshering Tobgay said a huge amount of the government’s budget has been listed as losses incurred in terms of irregularities in the 9th Plan. The losses are related to procurement and low quality engineering services which he said is a concern.

The Opposition leader said Nu. 7,000 million reported against irregularities is about 9-10% of the total 9th plan budget. He added that the government should try and control and minimize this in the 10th plan.

Member of Parliament from Lhuenste, Karma Rangdol said if the government adheres to the recommendations made by the Royal Audit Authority, it will help minimize the losses of public funds by 40-50%.

While discussing contracts in the construction industry, Member of Parliament from Wamrong, Lhatu said the offering of contract to the lowest bidder is a cause of concern. He said the lowest bidder also comes up with low quality of work which ultimately brings losses as the work has to be done allover again.

The house raised concerns about sub-contracting and fronting in the construction industry. They pointed out when a work is given on sub-contract the quality is compromised and ownership and responsibility is not there. Members said the practice of sub-contracting and fronting should either be discontinued or the government should focus on drawing proper guidelines and strict regulations.

The Zhabtog Lyonpo Yeshi Zimba said there are rules and regulations in place concerning sub-contracting and fronting in the construction industry.

Lyonpo also said most problems could be solved with collective responsibility and cooperation among the individuals and the government. He said quality of work can be assured once the Standard and Quality Control Authority’s Act comes into force.

Discussions will continue tomorrow.