Bhutan National Bank Limited (BNBL)
Bhutan National Bank Limited (BNBL) has breached its own human resources (HR) policy by compulsorily retiring 10 support staff who submitted forged documents with service benefits.
This was found when the Royal Audit Authority’s (RAA) conducted compliance auditing in the bank.
BNBL paid Nu 153,932.02 as retirement benefits to the staff.
RAA also found that three staff who submitted forged documents are still serving in the bank and details of two staff who were also accused of submitting false documents could not be verified, as BNBL claimed they couldn’t validate with schools.
RAA pointed out that although the bank was aware of such forgery, the staff were made to resign compulsorily with service benefits instead of terminating them as per the bank’s human resources (HR) policy. “The bank’s management failed to exercise due diligence during the document verification process where most of the staff recruited had forged their academic results.”
Rinzin, Y.C. (2020, April 11). BNBL Recruited Support Staff Who Submitted Forged Documents, Thimphu, Bhutan: Kuensel
- (10 marks) “Although the bank was aware of such forgery, the staff were made to resign compulsorily with service benefits instead of terminating them as per the bank’s human resources (HR) policy.”
With reference to the above mentioned statement, why do you think the board made this decision? Explain your answer with the help of two justifiable reasons.
- (15 marks) With reference to the DHI Code of Corporate Governance, what are the three changes that could have been included in the current operating structure of BNBL, which could have prevented the forgery?
