Lack of poli­cies in min­ing lost to cor­rup­tion: ACC

Bhutan Times - - Home - Sonam Pen­jor

Much of the min­ing sec­tor is em­broiled in cor­rup­tion ow­ing to in­ef­fi­cient im­ple­men­ta­tion of reg­u­la­tions and poli­cies as well as du­bi­ous prac­tices.

The min­ing in­dus­try is a grow­ing busi­ness in the coun­try with an in­creas­ing trend of con­tri­bu­tion to Gross Na­tional In­come over the years.

The 2015 report of the Anti- cor­rup­tion Com­mis­sion ( ACC) high­lights prob­lems such as con­cen­tra­tion of ben­e­fits from min­ing in the hands of a few and the lack of eq­uity and trans­parency in the al­lo­ca­tion of min­ing re­sources.

ACC in­ter­viewed a to­tal of 207 re­spon­dents com­pris­ing min­ing rep­re­sen­ta­tives, min­ing in­spec­tors, dzongkhag land lease com­mit­tee mem­bers, lo­cal lead­ers and lo­cal com­mu­nity rep­re­sen­ta­tives.

The Royal Au­dit Au­thor­ity ( RAA) report 2014 on the sec­tor es­ti­mates that the av­er­age loss was Nu. 134 mil­lion per year. Fur­ther, us­ing the con­tri­bu­tion by min­ing in­dus­try to Gross Do­mes­tic Prod­uct ( GDP), the loss of GDP over the five years ( 2008- 2012) was es­ti­mated at Nu. 670.81 mil­lion.

The ACC study also iden­ti­fied sev­eral fac­tors that could have made the sec­tor vul­ner­a­ble to cor­rup­tion which in­clude, among oth­ers, the pres­ence of mul­ti­ple mon­i­tor­ing agen­cies which led to mis­com­mu­ni­ca­tion and de­layed de­ci­sion mak­ing, weak DGM power and mon­i­tor­ing, un­clear pro­ce­dures, short lease pe­riod and weak data min­ing.

The report states that if Bhutan had the same level of con­trol of cor­rup­tion as the USA, the SEM pre­dicts an in­crease in the con­tri­bu­tion of the Min­ing and Quar­ry­ing sec­tor of Nu. 56.5 mil­lion per year.

The min­ing re­search ti­tled “Im­prov­ing busi­ness En­vi­ron­ment: The case of Min­ing In­dus­try in Bhutan” was aimed at il­lus­trat­ing cor­rup­tion in the min­ing in­dus­try us­ing cases, eval­u­ate cases and con­se­quences of cor­rup­tion, and pro­vide rec­om­men­da­tions to pro­mote Busi­ness En­vi­ron­ment in Bhutan, lead­ing to re­duc­tion of po­ten­tial cor­rup­tion.

Ac­cord­ing to the report, the main rec­om­men­da­tions from the study in­clude, among oth­ers, the need to im­prove the busi­ness en­vi­ron­ment in the min­ing in­dus­try, to draw up a Min­ing Strate­gic Devel­op­ment Plan, es­tab­lish­ment of an in­de­pen­dent min­ing reg­u­la­tory au­thor­ity for pe­ri­odic mon­i­tor­ing, es­tab­lish­ment of a sys­tem for pe­ri­od­i­cal re­vi­sion and re­al­iza­tion of roy­alty, min­eral rent, li­cense fees and sur­face rent; and strengthen ef­fec­tive com­mu­nity in­volve­ment through pub­lic con­struc­tion and putting in place ap­pro­pri­ate guide­lines for Corporate So­cial Re­spon­si­bil­ity Strat­egy and Ac­tions.

A team of re­searchers from Gedu Col­lege of Busi­ness Stud­ies un­der the Royal Univer­sity of Bhutan, De­part­ment of Ge­ol­ogy and Mines, Royal In­sti­tute of Man­age­ment, and ACC con­ducted the study over a pe­riod of nine months.

Newspapers in English

Newspapers from Bhutan

© PressReader. All rights reserved.