The establishment of REDCL is politically motivated: Opposition
The Opposition calls on the government to immediately stop the establishment of the Rural Enterprise Development Corporation Limited (REDCL).
The establishment of the REDCL is a duplication of works and costs of Bhutan Development Bank Limited (BDBL) and other government agencies said during the 6th opposition meet-thepress last week.
When the government established the BOIC, the opposition party and the lower house (National Council) claimed the government to stop the establishment of BOIC. However, the government went ahead and started the Business Opportunity and Information Center (BOIC).
The Government closed down the BOIC after repeated objections from the opposition and the National Council.
Lamgong-Wangchang MP Khandu Wangchuk said, “We appreciated the government for closing the BOIC and expected that the government would hand over the money to the BDBL,” further adding that after closing down the BOIC, the establishment of REDCL is yet another decision of the government which is politically motivated, highly undesirable and questionable.
The MP also said huge amount of investment is required to implement the REDCL which leads to impact the economic and financial state of the country.
The MP said that instead of establishing another so called SOE, the fund would be better utilized with far greater outreach and cost effectively by the BDBL with its present network without additional administration and other costs. “The same function and service can be done by BDBL,” he added.
The MP adding that the creation of REDCL office in the twenty Dzongkhags is a total wastage of expenditures and total duplication of the functions of the BDBL.
The opposition said, “We remind the government of the national goal of self-reliance to be achieved through enhancement of revenues and curbing of unproductive and unsustainable expenditures,” further adding the government of the day has totally undermined this important goal.”
According to the opposition, the government has not made any meaningful investments to increase exports, generate revenue and employment.
“The government has allowed expenditure to shoot up on populist programs which are costly and not sustainable,” MP khandu Wangchuk pointed out. He further added that the establishment of the REDCL is a case in point.
“It is also necessary to ensure that no undesirable precedence is set for future Government establishing such politically motivated agencies.” The MP further added.
The Opposition Leader Dr. Pema Gyamtsho said if the government implements REDCL at the low interest (4 percent) for the borrower, there would be another project by the future ruling party which provides at the lowest interest ( 1 percent) or no interest ( zero interest). He said, “The establishment of another project would be allow for the future government and on this matter we are deeply worried.”
The opposition members’ however calls on the Government to immediately stop the establishment of REDCL and hand over its work and mandate to Bhutan Development Bank Limited (BDBL) and other relevant agencies of the government to avoid wasteful expenditure of scare public resources.