Case

Druk Seed Corporation.

Besides the statutory audit conducted by Chartered Accountant Firms from

India, the Royal Audit Authority also conduct regulatory audit. This includes

corporate bodies where government has major interests and Druk Seed

Corporation (DSC) is one of them. The following personnel occupied the

various portfolios of the corporation in the year 2002.

Summary of major findings is given in the table 1.37 below:

Table 1.37 showing summary of the observation by category code and the amount

involved.

Sl.N

o.

Observation in Brief

Amount

(Nu.Million)

%

Category

code

1. Outstanding Sundry Debtors. 10.61 62.45 2

2. An alarming production expenses than output

generated.

6.02 35.43 18

3. Acceptance of poor quality seeds. 0.20 1.18 10

4. Irregular/inadmissible payment. 0.08 0.47 8

5. Non-deduction of taxes. 0.05 0.29 15

6. Non-accountal/Short accountal. 0.03 0.18 18

Total 16.99 100

Major Findings.

1. Huge outstanding sundry debtors Nu.10.61 million.

Amount aggregating to Nu.10.61 million as at 31st

March 2002 were lyinDruk Seed Corporation

‘Sick company’ to lose corporate status

Henceforth, an agriculture ministry program

Druk Seed Corporation19 February, 2010 - Having sailed over troubled waters for more than a decade, Druk Seed corporation (DSC) in Paro will lose autonomy to function as a separate entity. 

It will instead operate as a programme under the agriculture ministry.

The cabinet reached that decision this week following a thorough discussion on the recommendations of the finance ministry, which found that it failed to function well enough to deserve recognition as a corporation.

“While DSC runs as a programme under agriculture ministry, it will maintain a separate account and with management flexibility,” Tenzin Rigden from the prime minister’s office said.

The DSC management would be reverted to the agriculture ministry.

During deliberations on the issue, some...