The es­tab­lish­ment of REDCL is po­lit­i­cally mo­ti­vated: Op­po­si­tion

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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.

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