Thanks to the help of @pcalkins I could solve my problem using the PageList.mvc helper.
I ended up with the next code in my Action:
  // GET: Bugs
    public ActionResult Index(int? page)
    {
        var qry = db.Bugs
        .Include(e => e.Organization)
        .Include(e => e.AssignedUser)
        .Include(e => e.UpdatedUser)
        .Include(e => e.ReportedUser)
        .Include(e => e.Project)
        .Include(e => e.Category)
        .Include(e => e.Status)
        .Include(e => e.Priority)
        .OrderBy(e => e.BgId).ToList();
        int pageSize = 20;
        int pageNumber = page ?? 1;
        return View(qry.ToPagedList(pageNumber, pageSize));
    }
I had to change the view to get it to work with this PageList helper in:
@model PagedList.IPagedList<IssueTracker.Models.Bugs>
@using PagedList.Mvc;
<link href="~/Content/PagedList.css" rel="stylesheet" type="text/css" />
@{
    ViewBag.Title = "Issuelist";
}
<div class="container pt-5">
    <div class="pb-2">
        <form action="" class="form-inline">
            @Html.ActionLink("Add", "Create", "Bugs", null, new { @class = "btn btn-success mr-sm-2" })
            <div class="form-group mr-sm-2">
                <select class="custom-select">
                    <option selected="">Open this select menu</option>
                    <option value="1">One</option>
                    <option value="2">Two</option>
                    <option value="3">Three</option>
                </select>
            </div>
            <button type="button" class="btn btn-primary mr-sm-2">
                <i class="fa fa-print"></i>
            </button>
            <button type="button" class="btn btn-primary mr-sm-2">
                <i class="fa fa-file-excel-o"></i>
            </button>
        </form>
    </div>
    <div class="table-responsive">
        <table class="table table-hover tauw-table table-sm" id="tauw-table">
            <thead>
                <tr>
                    <th scope="col">
                        ID
                    </th>
                    <th scope="col">
                        Description
                    </th>
                    <th scope="col">
                        Reported by
                    </th>
                    <th scope="col" style="width:120px">
                        Reported on
                    </th>
                    <th scope="col">
                        Status
                    </th>
                    <th scope="col">
                        Priority
                    </th>
                    <th scope="col">
                        Organisation
                    </th>
                    <th scope="col">
                        Category
                    </th>
                    <th scope="col">
                        Project
                    </th>
                    <th scope="col"></th>
                </tr>
            </thead>
            <tbody>
                @foreach (var item in Model)
                {
                    <tr>
                        <th scope="row">
                            @Html.DisplayFor(modelItem => item.BgId)
                        </th>
                        <td>
                            @Html.DisplayFor(modelItem => item.BgShortDesc)
                        </td>
                        <td>
                            @Html.DisplayFor(modelItem => item.ReportedUser.UsUsername)
                        </td>
                        <td>
                            @Html.DisplayFor(modelItem => item.BgReportedDate)
                        </td>
                        <td>
                            @Html.DisplayFor(modelItem => item.Status.StName)
                        </td>
                        <td>
                            @Html.DisplayFor(modelItem => item.Priority.PrName)
                        </td>
                        <td>
                            @Html.DisplayFor(modelItem => item.Organization.OgName)
                        </td>
                        <td>
                            @Html.DisplayFor(modelItem => item.Category.CtName)
                        </td>
                        <td>
                            @Html.DisplayFor(modelItem => item.Project.PjName)
                        </td>
                        <td style="width:50px;">
                            <a href="@Url.Action("Edit", "Bugs",new { id = item.BgId })" class="fa fa-edit"></a>
                            <a href="@Url.Action("Delete", "Bugs",new { id = item.BgId })" class="fa fa-trash"></a>
                        </td>
                    </tr>
                }
            </tbody>
        </table>
        <br />
        Page @(Model.PageCount < Model.PageNumber ? 0 : Model.PageNumber) of @Model.PageCount
    @Html.PagedListPager(Model, page => Url.Action("Index",
        new { page, sortOrder = ViewBag.CurrentSort, currentFilter = ViewBag.CurrentFilter }))
</div>
I couldn't get it to work right away. It only showed me sometimes one record sometimes 4, very unpredictable. When I tried debugging I saw an error like: "There is already an open DataReader associated with this Connection which must be closed first." When I searched for an answer I came across this site which suggested using the ToList() function with the include() options. This solved my problem for the paging. Hope this can help others as well.