Speeches

BHUTAN STATEMENT AT THE THIRD GLOBAL FORUM FIGHTING CORRUPTION AND SAFEGUARDING INTEGRITY and 11^th IACC “ONGOING CHALLENGES, SHARE RESPONSIBILITIES.” 29^th to 31^st May 2003

Delivered by the Auditor General of Bhutan  

May 2003 

Royal Audit Authority, Thimphu: Bhutan  

BHUTAN STATEMENT AT THE THIRD GLOBAL FORUM FIGHTING CORRUPTION AND SAFEGUARDING INTEGRITY and 11^th IACC “ONGOING CHALLENGES, SHARE RESPONSIBILITIES.”

Mr. Chairman,
Hon’ble Ministers of Justices,
Distinguished delegates.
Ladies and Gentlemen,  

I.        INTRODUCTION:  

First of all, on behalf of His Majesty the King, the Royal Government of Bhutan, my delegation and on my own behalf, I would like to thank the Government of the Republic of Korea for the invitation to attend the Third Global Forum and 11^th IACC. Secondly for the host country for the warm welcome extended to us on arrival here in this beautiful country and the city and the great Korean hospitality.  

Mr. Chairman, distinguished delegates.  

My delegation is happy to be here to attend the Third Global Forum on the Theme Fighting Corruption and Safeguarding Integrity “ongoing challenges, share responsibilities”.  

A few years ago an Annual Audit Conference was conducted on a similar theme “The Accountability: a Collective Responsibility” as this Forum here. It was a resolve to give meaning and substance about the capital C and capital R in the words collective and responsibility in context of our striving to render corruption unwelcome in our society.  

Almost at the same time the Minister of Trade and Industry was addressing the Bhutan Chamber of Commerce and Industry when he said that corruption in governments take in collusion of two parties, the giver and taker. In public dealing it is often between a public functionary and a private authority and/or an individual. He said, like as in clapping you need two hands.  

As much as we recognise that Fighting Corruption and Safeguarding Integrity are “the ongoing challenges,” a shared responsibility may be the best resort.  

Bhutan is a very small country measuring about 46,500 sq. kilometres and with a population of over 700,000. We are a member of the SAARC. It is the smallest in terms of geography and lowest in population. Never experienced colonialism and with a monarchical form of governance.  

Modern Bhutan had inherited a philosophy of governance based on justice, peace and happiness highly influenced by the teachings of Buddha who campaigned the merits of a selfless soul in a selfish world.  

It has become a cliché that one of the means of tackling corruption is through transition to democracy. If that was the right gospel, the United States of America must be cleansed of the disease of corruption ages ago. So must the Great Britain .  

It was in Hague during the Global Forum II; it was almost declared that any country that does not carry label democratic is not a Democracy.  

Only in a Democracy it is expected that there shall greater transparency and more accountability in governance thereby better checks and balances against corruption. Ironically there are, in fact many cases of countries where “democracy” were planted there is actually increased scale of corruption. Right to vote and right to a basic right on their own do not make a world a better haven.  

In the region I belong, we have different shades of democracies. It gives me, more or less to take it for granted to understand for democracy to mean freedom to do whatever one feels like with no responsibility to discharge the obligations or fear consequences and injury to the other. Whenever one feels ones narrow objective is not being met, one exercises the right to resort to hold demonstrations and cause unrestrained destruction.  

I often fear if that is democracy, can we afford the destruction and idleness. In this regard I am not enchanted either with the democracies of the west where leaders are found to be scared of the very people who elected him to power.  

Bhutan at the pressure of the international NGO’s, bilateral donors and so-called champions of democracies is on the receiving end to democratise.  

Bhutan was condemned for keeping away television and Internet which we could not afford. We had to yield to the pressure from doyen of the so-called freedom of expression and speech.  

What is important is not the labels and documents but a need for a country to be endowed with a political institution, call it by any name, with leaders who has the acumen and will to lead a nation to peace and growth. Leaders who has the commitment to strengthen the political or institutional capacity. Half the battle in the fight against corruption is won and thereby integrity is made safer.  

But we are condemned that we do not have a written constitution. So whatever, without this document we are not democratic. I believe the Great Britain does not have one too.  

We are now drafting a constitution. His Majesty had this to say:‘We should not be deterred by the fact that the democratic political systems have not been working in some countries. The principles and ideals of democracy are inherently good and a democratic system is desirable for Bhutan . If lessons of some democracies are not encouraging, it is not because the concept of democracy is flawed: it is because of mismanagement and corruption by those who practice it’.  

Elections have come and more will follow. We are already seeing the tip of the iceberg of the election related corrupt practices. Cost of mounting election campaigns are already being calculated in how much and from where to recover.  

We are now faced with the unmet demands and aspiration, a developing economy with taste and want of an American Culture. a culture where within confines of comfort of the five star hotel, solution to cure the miseries of a slum are discussed.  

We often forget that there is a more serious species of corruption that most modern societies confront. It is the depravity of the morals and cultural values in our societies. The externalisation had brought more questions than solution. Spirituality and the cultural heritages have a dominant role in the manner in which societies thrive. Bhutanese development is guided thus by the principles of appreciation for sustainability, environment and culture.  

So with the onset of democracy and opening of door for freedom this Forum becomes more relevant to Bhutan ’s increasing responsibility to fighting corruption and safeguarding integrity.  

II.       EVALUATION OF DOMESTIC ANTI-CORRUPTUION MEASURES AND BEST PRACTICES:  

A good governance system must be a dynamic one that can withstand candid critique and susceptible to progressive reforms as an ongoing process. A few of the recent reforms and initiatives that are being pursued are, if I may list a few:  

1.                    An Office of Legal Affairs (OLA), an agency that ultimately should grow into as the Ministry of Justice is being established. It is responsible to function as the public prosecutor and legal advisor to the government.  

2.                    An anti-corruption law and consumer protection acts are being drafted that would give authority to detect, prosecute and punish perpetrators of any corrupt practices.  

3.                    In order that Quality of products is maintained, regulatory authorities and bodies are being established for many critical public services.  

4.                    Judicial reforms are actively pursued to modernise the judicial administration. Courses were introduced to conduct studies in relevant subjects and also to educate and train the maximum number of judicial personnel required. Legal units are encouraged to be incorporated in every ministry or public bodies to address legal issues.  

5.                    The Rule of Law must prevail. The Code of Civil and Criminal Procedure in 2001 was adopted. A separate judicial cadre has been formed to enhance the independence of judiciary. The effort to computerise the court record system has speeded up the processing time and reduced the cost of litigation. Public understanding was facilitated by a wide dissemination of laws and legal documents.  

6.       The principal role of the Royal Bhutan Police (RBP) is maintaining law and order to upkeep the stability, act as a friend and guide to the public;   protection of life and property of the public; provide a social service in times of flood, fire hazards, accidents and crowd control: prevention and detection of crime; arrest and charge-sheet of criminals to the court of law; run prison administration; safeguard the public security; run fire fighting units, and traffic administration.  

7.       More qualified candidates are inducted every year in order that well qualified and properly trained force would better ensure law and order. Two training centres were established and courses are conducted both in country and through bilateral human resources development programmes. Prior to 1981, the officers were trained in India .  The judiciary and police cooperate in conducting workshop and seminars with resource persons including those from UN Human Rights and ICRC. Besides the police take advantage of all the technical co-operation programmes towards professionalizing its forces.  

8.       A Youth Development and Rehabilitation centre is being opened in the year 1999 and run by it.  

9.       More women are inducted every year in police force since the year 1984. Many laws were amended.  

10.     Improvements in prison conditions and administrations are made to bring these upto international standards.                  

11.                 Internal Auditors have been appointed in many important organisations. An Audit Act was being drafted with UNDP assistance and submitted to the National Assembly for its consideration in the ensuing session of the Parliament of Bhutan.  

12.                 Procedures for procurement of goods, award of contracts, bidding, licensing and privatisation and divestment were improved with inputs from the ADB. Cumbersome processing and response time for official clearances and permits are being constantly revised to rationalise administrative control and provide efficient services.  

13.                 Civil servants have to take an oath of allegiance. Asset and income of every public official has to be declared. Auditors take an exclusive 16 points Oath of good conduct, secrecy and ethics.  

The kings of Bhutan had never believed the rule by one man and without law as the best system. Nor that power and authority could be best wielded by one single authority. Many political and administrative changes with scope for greater participation and decentralization were initiated from the throne.  

The present King brought in the greatest change in 1998, when executive powers were unilaterally devolved to the Council of Ministers elected by the National Assembly, under protest both from the people and the parliament.  

Mr. Chairman, Ladies and Gentleman,  

If I may indulge I would like to say a few words about my office.  

The Royal Audit Authority was decreed to discharge the auditing function without fear or favour coinciding with devolution of executive authority. Authority can audit, at any time, any public agency, any personality irrespective of their size, and nature of work in the Kingdom.  

Auditing in Bhutan plays a vital role in preventing, detecting and combating corruption. The areas that are prone to corruption in Bhutan are procurement, construction works, stores and equipment, revenue receipts, cash collections and handling, and commission on sales etc.. So far so good, we do not have sever Bank Scams.  

In this respect, the following strategies are being adopted and followed by the Royal Audit Authority;  

          1.       Zero tolerance approach in Auditing  

To uphold the commitment of the Royal Government to safeguarding integrity and enhancing Accountability, the RAA had adopted the Zero Tolerance Approach in Auditing. Bhutan expects the enhancing national accountability as collective responsibility and the duty of every Bhutanese.We strive to make the chances of being detected and cost of corruption, if caught, to be made very high.  We insist the corruption must carry stigma on the individual in society. While at the same time we insist on the system to create an efficient and effective system to protect decent individuals from malicious and frivolous acts of criminals. We have the belief that a Good government is an honest government or vice versa.  

2.       Transparency and Accountability:  

For the first time, the Annual Audit Report was published and placed before the King, government and the public in 2001. Thereafter, the  Annual Audit Report, is made available in all possible mediums, an annual feature. Audit documents are no longer regarded as a secret or scared document to be guarded zealously but open books www.bhutanaudit.gov.bt.  

3.       Informed Service:  

In the course of auditing, several issues of common concern and interest emerge. These are reflected and reported to the concerned competent authorities and general public in the AG’s Advisory Series and AG’s Occasional Paper.  

          4.       Taking care of Pennies:

Towards ensuring the policy of Zero Tolerance, Bhutan had adopted a system whereby the funds detected as irregularities must be deposited in favour of the RAA. An adverse record with RAA would mean that an individual would be denied an Audit Clearance Certificate, a prerequisite for promotion, training, contract extension and to claim retirement benefits.

         5.        Service to the Parliament :

The RAA prevailed during the revision of the Financial Manual 2002, that the consolidated Annual Financial Statements of the Government submitted by the Minister of Finance to the parliament must be certified by the RAA.  

III.      VISION AND DETERMINATION FOR POLICIES AND NORMS TO ENLARGE TRANSPARENCY AND ACHIEVE GOOD GOVERNANCE.  

The Royal Government of Bhutan has initiated the developmental activities since early sixties and has been pursuing a very prudent, planned and balanced socio-economic development policy in the country.  

Bhutan is in its development transition. We are extra vigilant that social evils do not get entrenched in Bhutanese system and the culture. Bhutan in its social and economic development process had adopted a philosophy of development that is attainment of the Gross National Happiness (GNH) for every Bhutanese as against GNP.  A vision of His Majesty, the King, a farsighted and dynamic leader who has the will to create Bhutan a corruption free nation.  

Within this context, good governance is made an important goal in every development strategy, with three pillars of governance as ‘Accountability, Efficiency & Effectiveness and Transparency’.  

IV.      SIGNIFICANCE OF INTERGOVERNMENTAL NETWORK OR OTHER FORMS OF INTERNATIONAL COOPERATION IN FIGHTING CORRUPTION  

While national level solution is within the means and control of every country, there are those that can only be undertaken with inter-governmental or international networking. The Seoul proposal to establish a network would be timely global effort, one that will enjoy the support of the ministers of justices. It shall not only be a forum for sharing our views, ideas and knowledge in fighting corruption but where  collectively, we could come up with common solutions for common problems. This is even more relevant for the lessor developed nations, given the limited resources, to resolve the issues that are more apparent and urgent. Nations, whose interests that often go unheard, crimes that go un remedied. More so, individual voices, which often get shooed down by a more organised and united the voice of the developed and mighty.  

Efforts need to be made to prevail upon the governments and the donors to desist from the practice of encouraging piecemeal, transient, unsustainable and small-scale nature of technical assistance, which only satisfies targets of the donors. A disparate aid participation that buys the loyalties of the decision-makers to an individual donor or a person as against the system and the society that they represent are no lesser an evil that corrupts a society.  

Nations must insist on that all assistance offered be subjected to a full analysis from the point of political, economical, financial, technological, cultural, spiritual and social correctness and sustainability. Technical assistance increases expectations and raises demands.  There is a danger of a donor driven society to become a donor-depended country in perpetuity.  

Countries, where anti-corruption measures were successful could provide guidance to others if a network is established.  

The INTOSAI and ASOSAI have made efforts to address the issues of corruption. However, it is a known fact that SAIs in different countries operate with different mandates. These often do not have teeth and force as much as they may lack the political support under different systems of governance.  

V.       BHUTAN ’S WILL TO BE PART OF IT;  

Existence of corruption be it in the developed or under-developed countries is a hindrance to developmental activities and delivery of public services. Corruption weakens the economy, efficiency and effectiveness of the existing government systems. It also hampers growth of the systems.  

Every effort is made through education by incorporating value education in the education system and also organizing anti-corruption awareness measures nation-wide.  

The Royal Government of Bhutan inspired by His Majesty the King is committed to create a society that has justice, fairness and equality. But the National efforts can be successful to the extent that they enjoy the support and recognition of the larger world. A network we hope will facilitate it to be a reality.

My delegation expresses our solidarity to any regional and international efforts to combat corruption. So let us here at Seoul make a united commitment for a very effective means to curb corruption in all nations. My delegation on behalf of the King, country and the people endorses the Seoul Declaration.