According to the RAA assessment, large investments have not produced any real or economic benefit, and inefficiency and reckless expenditure have led to large losses. When public resources are mishandled as a result of poor planning, financial controls, and risk management procedures, wasteful spending results. These situations frequently arise when investment proposals are submitted without adequate evaluations of the needs, applications, and viability. The audit report referenced many instances in which inadequate evaluations and feasibility studies resulted in investments being deemed worthless.
A coal washery that cost Nu 40.864 million to erect in Samdrupchholing was installed by the State Mining Corporation Limited in Samtse, but it hasn’t been used. According to the RAA, the cumulative effect of unnecessary spending is substantial, impacting public resources and eroding openness and accountability in the allocation of public monies. The RAA suggested that thorough requirements analyses, solid feasibility studies, and efficient monitoring systems be given top priority by the government. In order to stop future financial abuse, it also demanded stricter budgetary controls and risk management procedures.