Nubri Capital is a privately held Fund Management Bhutanese company. If you have cash to spare and don’t know what to do with it, you can ask Nubri to manage it for you. They will take your money, and make investments. Obiviously, all for a fee.
So why is Bhutanomics talking about Nubri?
- On 5 February 2015, Nubri burrowed Nu. 100,000,000 from RICB at 9.25% annual interest
- On 9 February 2015, RICB burrowed Nu. 108,000,000 from Nubri at 11.75% monthly interest
A little bit of math
- Nubri burrows from RICB: Nu. 100,000,000
- At interest rate: 9.25% annually
- Total interest payable to RICB: Nu. 9,250,000
- RICB burrows from Nubri: Nu. 108,000,000
- At interest rate: 11.75% monthly
- Total interest payable to Nubri: Nu. 13,396,214
- Difference in interests (amount that Nubri pocketed): Nu.4,146,214
In short while you and me were playing Khuru in windy February, and afterwards debating capitalism v socialism over Druk 11000 in Jorden bar, somebody made a cool 41 lakhs in 4 days. And I bet they were drinking champaigne.
How can this happen?
To begin with, how Nubri Capital was licensed by the Royal Monetary Authority (RMA) is shrouded in mystery. A quick google will give you this BBS story from 22 September 2014:
“The Audit Report also says that the RMA failed to carry out inspection of financial institutions for three years from 2011 to 2013. It also found deficiencies in the issuing of licenses to the fund management company known as Nubri-Capital.”
Royal Audit Authority pointed out the problem, but Anti-Corruption Commission tigress Dasho Neten dropped the case because Eden Dema was the RMA Deputy Governor who passed Nubri’s license. For the un-informed, Eden Dema is Dasho Neten’s sister-in-law.
The main people behind Nubri are Sonam Tobgay and Sonam Dorji. Sonam Tobgay was an a senior executive in RICB for a number of years. After learning the ropes, he quit to start Nubri. He also poached many talented people from RICB.
Sonam Dorji is a major share holder in Nubri. Coincidently, he is also a serving Executive Director at RICB.
Nubri has a spacious corner office with a fantastic view of Le Meridien. This fully functional office, beautifully furnished, is under lock and key. The key has been gratefully presented to Eden Dema. She will move here when she completes her term in RMA next year.
How does this impact Bhutan
With his share of 41 lakhs, Nubri CEO Sonam Tobgay bought a fancy BMW. The noisy 800 CC motorbike is a major cause of disturbance in our tranquility.
RICB was started in 1975 as per the Ka-Ja of His Majesty Drukgyal Zhipa to take care of the citizens, and to play a leading role in the economic development of our country. Even though you and I don’t own RICB shares, it very much belongs to us. And just like that, our country has lost 41 lakhs to unpatriotic and scheming individuals with selfish dreams.