Samtse Mining Case 13 February, 2010 - The former mining head and national resource development corporation limited (NRDCL) managing director, Sangay Gyaltshen, has been sentenced to seven years and three months in prison in the fraudulent lease and illegal mining case in Samtse.

“He was found involved in the fraudulent leasing and operation of the mine in the name of his cousin, Sonam Tobgay,” stated the court vedict.

Sangay Gyaltshen was booked on 40 offences, which include six counts of forgery, one each of bribery and tampering with public documents, six deceptive practices, 24 counts of official misconduct, a false declaration of assets and one count of restitution of public fund.

The former Samtse mining coordinator, Nagey, was sentenced to seven years and ordered to reimburse Nu 47.8 mn for exporting talc from the Budhuney and Allaypakha talc mine.

Nagey was charged on 37 counts, which include 17 counts of forgery, one each of bribery and tampering with public records, four counts of deceptive practice, three counts of money laundering, seven counts of official misconduct, possession of assets disproportionate to income, false declaration of assets, obstruction of lawful authority, and one count of restitution of public fund.

In April last year, the court began adjudication of the 111 charges against the 15 defendants, seven officials from the department of geology and mines (DGM), seven are businessmen and a former national environment commission (NEC) official.

The court acquitted five defendants, who are spouses and subordinate staff of the two main accused, Sangay Gyaltshen and Nagey. They are Nagey’s wife and sister-in-law, Sangay Gyaltshen’s father and the former director general of DGM, Dorji Wangda.

Nagey’s wife was charged for official misconduct for receiving proceeds of crime, while his sister-in-law was charged on one count of aiding and abetting money laundering, by allowing her husband to deposit the proceeds of his crime in her bank account. Nagey’s friend, who assisted him by fabricating false evidence in concealment of disproportionate assets, was fined an amount of Nu 15,000.

The former DG had seven charges against him, two counts of deceptive practices and five counts of official misconduct, resulting in illegal leasing and operations of several mines.

The court ordered Sangay Gyaltshen’s father, charged for tax evasion and concealment of income, to pay the tax and penalties evaded in the period 2004-07.

The five were acquitted, as it found that there was no criminal intention to deceive the government or enrich themselves unjustly, states the verdict.

The court found the ten accused guilty of several offences of deception, forgery, tampering of official documents, official misconduct, aiding and abetting offences resulting in fraudulent application, leasing and operation of several talc mines from the year 1998 to 2008.

Two DGM officials and an NEC official were sentenced to one-year prison terms each, while six relatives of Sangay Gyaltshen and Nagey were given prison terms, each ranging from three months to one year and six months.

For prison term under three years, the accused can pay a thrimthue (monetary equivalent) in lieu of prison time, according to the PenalCode of Bhutan.

The investigation into the mining scam began following a single complaint in 2008, after which ACC started monitoring the mines and went in for a full investigation in July 2008.

The cases were investigated by the anti corruption commission and prosecuted by the office of the attorney general.

The accused, if not satisfied, can appeal against the judgment to the high court within ten days, said court officials.