TIB questions car allowance u-turn

Transparency International Bangladesh (TIB) has questioned the Finance Ministry’s decision to put on hold a proposal to halve the monthly vehicle maintenance allowance for officials eligible for interest-free car loans, arguing that the move undermines the government’s austerity efforts and reflects the influence of a privileged section of the bureaucracy.

In a statement issued on Sunday, TIB Executive Director Dr Iftekharuzzaman questioned why the government had withdrawn what he described as “a positive austerity measure”, despite the prime minister’s directive to reduce the allowance and abolish the interest-free vehicle loan facility.

The proposal sought to reduce the monthly vehicle maintenance allowance from Tk50,000 to Tk25,000, aiming to promote prudent use of public funds, curb unnecessary expenditure and address what TIB described as discriminatory privileges enjoyed by a small group of officials.

“The government’s retreat from that decision raises questions about whose influence has forced it to step back from an austerity measure despite goodwill at the highest level,” Dr Iftekharuzzaman said.

He also criticised what he termed the “preferential treatment” afforded to around 2,400 officials eligible for the facility, arguing that it created inequality within the civil service and undermined the morale of officers in other cadres and services holding equivalent ranks.

Dr Iftekharuzzaman urged the government to abolish what he called the “discriminatory system” under which a select group of officials receive monthly vehicle maintenance allowances from the public exchequer.

He further questioned whether officials benefiting from the scheme had drawn any lessons from the prime minister’s decision to use his personal vehicle and bear its fuel costs.

Referring to the government’s planned salary increase for public servants, the TIB executive director noted that the authorities had previously rejected the organisation’s proposal to make asset declarations mandatory for government officials.

He argued that restoring the full vehicle maintenance allowance while increasing salaries raised broader questions about accountability and the quality of public services.

On 16 July, the Finance Division instructed the Ministry of Public Administration not to proceed with its earlier proposal to reduce the monthly vehicle maintenance allowance from Tk50,000 to Tk25,000 for officials entitled to interest-free vehicle loans.