Staff Reporter :
The office of the Comptroller and Auditor General (CAG) of Bangladesh brought 285 objections in its 17 audit reports on financial dealings by various government organisations that involved an amount of Tk 6,195 crore.
Various government organisations, financial institutions and service operators under the ministries of post and telecommunications, power and energy, finance, railway, shipping, foreign affairs and local government and cooperatives were found involved in the irregularities.
Such irregularities were compiled in the reports for 10 years since the fiscal 2001-02, leaving out what happened thereafter.
Comptroller and Auditor General (CAG) Masud Ahmed disclosed the findings on financial flaws at a press conference held at the Audit Bhaban at Kakrail in the city on Monday.
The Comptroller and Auditor-General recently submitted the audit reports, from fiscals 2001-02 to 2009-10, to the President.
The reports bear 285 audit objections involving about Tk 6,195.85 crore. Of the audit reports, six are annual, another six special, two issue-based and one on performance basis.
The Telegraph and Telephone Audit Directorate of the Comptroller and Auditor General identified irregularities involving the highest amount of Tk 2,628 crore in the Bangladesh Telecommunications Regulatory Authority (BTRC).
Non-payment of spectrum charges by various telecom operators, dues and other charges, including fines and compensation for illegal use of VOIP, violation of the licence agreement and non-compliance with telecommunications laws are some of the allegations brought against the company that incurred the huge amount of loss.
Although office of the CAG submitted the audit reports on the organisations from fiscal 2001-02 to 2009-10, it failed to produce the latest reports.
Lack of manpower and fund constraints were cited as the main reasons behind the delay in finding what happened thereafter in financial matters of government organisations.
Asked whether they initiated any investigation against the organisations for irregularities, CAG said they just identified the irregularities and suggested recovery.
“Now it is the responsibility of the departments concerned to take action,” he said.
This happens to be the first time the highest audit authority of the republic made the audit reports public.
The Commercial Audit Directorate of the CAG identified eight financial institutions, four of them state-owned banks and three specialised banks, for their involvement in various irregularities during the period.
A total of 122 objections were filed against the banks involved in irregularities worth about Tk 30.53 billion in various cases.
The banks are Janata Bank, Sonali Bank, Agrani Bank, Rupali Bank, Rajshahi Krishi Unnayan Bank, ICB, BASIC Bank and Bangladesh Development Bank.
Most of the objectionable acts found with the banks include irregularities in rescheduling loans, inadequate collateral, indiscretion in loan sanction, lending without down payment, and loans sanctioned against unfinished projects.
Non-compliance with banking rules and regulations, lack of supervision and negligence in realising the loans are learnt to be the main features of the irregularities.
Audit objections were also brought against 38 branches of 22 commercial banks for their irregularities in handing out cash incentives.
Railway Audit Directorate submitted 13 audit objections involving an amount of Tk 155 crore on account of illegal occupation of rail land, non-eviction of illegal landholders and non-realisation of licence fees, VAT and fines.
Bending the rules and regulations and enforcement of notices are learnt to be the main reasons behind the irregularities.
Another raft of 16 objections were brought against Dhaka Power Distribution Company Ltd (DPDC), involving an amount of Tk 880 million, for non-compliance with government instructions for realising increased power rates, failure to control system loss, disconnecting power lines and non-realisation of bill and delayed fines.
The Mission Audit Directorate also submitted 20 objections for claiming excess air fair, education expenses, medical allowances, transit allowance and terminal charges.
Non-compliance with government rules and taking excess remuneration and allowances beyond government rules were identified as the major deviations.
Besides, a total of 11 objections are against the Ministry of Power and Energy, mainly for non-implementation of projects in time, signing agreements with inflated rates, procurement of low-quality materials and fund transfer.
Some 20 objections were submitted against the Local Government Engineering Department of LGRD Ministry. The objections are linked to the signing of agreements based on false tendering, completion of work without tenders, false billing, excess bill than the work performed.
Audit abjections were also submitted against various customs, excise and VAT circles for not realising various levies, duties, taxes and VAT.
The office of the Comptroller and Auditor General (CAG) of Bangladesh brought 285 objections in its 17 audit reports on financial dealings by various government organisations that involved an amount of Tk 6,195 crore.
Various government organisations, financial institutions and service operators under the ministries of post and telecommunications, power and energy, finance, railway, shipping, foreign affairs and local government and cooperatives were found involved in the irregularities.
Such irregularities were compiled in the reports for 10 years since the fiscal 2001-02, leaving out what happened thereafter.
Comptroller and Auditor General (CAG) Masud Ahmed disclosed the findings on financial flaws at a press conference held at the Audit Bhaban at Kakrail in the city on Monday.
The Comptroller and Auditor-General recently submitted the audit reports, from fiscals 2001-02 to 2009-10, to the President.
The reports bear 285 audit objections involving about Tk 6,195.85 crore. Of the audit reports, six are annual, another six special, two issue-based and one on performance basis.
The Telegraph and Telephone Audit Directorate of the Comptroller and Auditor General identified irregularities involving the highest amount of Tk 2,628 crore in the Bangladesh Telecommunications Regulatory Authority (BTRC).
Non-payment of spectrum charges by various telecom operators, dues and other charges, including fines and compensation for illegal use of VOIP, violation of the licence agreement and non-compliance with telecommunications laws are some of the allegations brought against the company that incurred the huge amount of loss.
Although office of the CAG submitted the audit reports on the organisations from fiscal 2001-02 to 2009-10, it failed to produce the latest reports.
Lack of manpower and fund constraints were cited as the main reasons behind the delay in finding what happened thereafter in financial matters of government organisations.
Asked whether they initiated any investigation against the organisations for irregularities, CAG said they just identified the irregularities and suggested recovery.
“Now it is the responsibility of the departments concerned to take action,” he said.
This happens to be the first time the highest audit authority of the republic made the audit reports public.
The Commercial Audit Directorate of the CAG identified eight financial institutions, four of them state-owned banks and three specialised banks, for their involvement in various irregularities during the period.
A total of 122 objections were filed against the banks involved in irregularities worth about Tk 30.53 billion in various cases.
The banks are Janata Bank, Sonali Bank, Agrani Bank, Rupali Bank, Rajshahi Krishi Unnayan Bank, ICB, BASIC Bank and Bangladesh Development Bank.
Most of the objectionable acts found with the banks include irregularities in rescheduling loans, inadequate collateral, indiscretion in loan sanction, lending without down payment, and loans sanctioned against unfinished projects.
Non-compliance with banking rules and regulations, lack of supervision and negligence in realising the loans are learnt to be the main features of the irregularities.
Audit objections were also brought against 38 branches of 22 commercial banks for their irregularities in handing out cash incentives.
Railway Audit Directorate submitted 13 audit objections involving an amount of Tk 155 crore on account of illegal occupation of rail land, non-eviction of illegal landholders and non-realisation of licence fees, VAT and fines.
Bending the rules and regulations and enforcement of notices are learnt to be the main reasons behind the irregularities.
Another raft of 16 objections were brought against Dhaka Power Distribution Company Ltd (DPDC), involving an amount of Tk 880 million, for non-compliance with government instructions for realising increased power rates, failure to control system loss, disconnecting power lines and non-realisation of bill and delayed fines.
The Mission Audit Directorate also submitted 20 objections for claiming excess air fair, education expenses, medical allowances, transit allowance and terminal charges.
Non-compliance with government rules and taking excess remuneration and allowances beyond government rules were identified as the major deviations.
Besides, a total of 11 objections are against the Ministry of Power and Energy, mainly for non-implementation of projects in time, signing agreements with inflated rates, procurement of low-quality materials and fund transfer.
Some 20 objections were submitted against the Local Government Engineering Department of LGRD Ministry. The objections are linked to the signing of agreements based on false tendering, completion of work without tenders, false billing, excess bill than the work performed.
Audit abjections were also submitted against various customs, excise and VAT circles for not realising various levies, duties, taxes and VAT.
