Biman's Tk 753 crore audit objections: panel orders report and accountability within a month

Information has emerged that about Tk 753.50 crore is involved in 111 pending audit objections against Biman Bangladesh Airlines. The parliamentary Committee on Government Institutions has directed that these audit objections be settled quickly, the outstanding money recovered, and those involved in irregularities and corruption brought to account.

The directive was given at a progress-review meeting of the sixth meeting of the Committee on Government Institutions of the 13th National Parliament, held at the National Parliament building on Tuesday (November 10). The meeting was chaired by the committee president and Chief Whip of the National Parliament, Nurul Islam Moni.

Alongside reviewing progress on the committee's previous directives, the meeting discussed in detail various audit objections, irregularities in aircraft purchase and operation, weaknesses in the reservation and passenger service system, irregularities in revenue collection, and the operation of loss-making routes.

The meeting was told that about Tk 753.50 crore is involved in 111 pending audit objections of Biman from 1996 to 2021. Of the 45 objections concerning recovery of money directed by the audit, the Biman authorities could not show any valid bank statement in support of the claimed money for eight objections. The audit department therefore rejected them.

The issue of outstanding money was also discussed. The Biman authorities have been directed to submit a report within the next month, with a specific time-bound action plan, on settling these objections, recovering the outstanding money, and the progress of related cases.

Despite Biman's purchase policy offering no scope to buy old aircraft, two 15-year-old leased Dash-8 aircraft were bought after the lease period ended. Afterwards, a huge amount of public money was wasted on them, including operating costs. The committee directed that the list of members of the then board of directors and purchase committee involved in this decision and purchase be submitted within 15 days to one month. It also directed that responsibility for the wastage of public money be fixed and necessary legal action taken against those responsible.

The audit found huge revenue losses due to weaknesses in the Departure Control System and Rapid software. Although extra money was collected by upgrading passengers on international flights from economy class to business class, it was not deposited in Biman's accounting system. To prevent this irregularity and revenue evasion, the Office of the Comptroller and Auditor General has started a full IT audit of Biman. As part of this, all data from last July to October have been directed to be supplied to the auditors.

Questions were raised about operating various loss-making routes on board decisions without verifying commercial feasibility. The committee directed that the documents on the board's decisions and detailed income-expenditure information for each route be submitted as a report.

The meeting also discussed that full payment was made to Sabre, the passenger service system provider, even though 100 per cent of the work was not received under the contract. Biman and the audit department have been directed to submit a joint written report on this within the next seven days.

At the same time, as the contracts and bill documents relating to the expenses of the two leased aircraft could not be shown to the auditors, they have been directed to be presented within 15 days. The Biman authorities have pledged to submit these documents within the stipulated time.

The audit also raised allegations that during Covid, the fare of chartered cargo flights operated on the Dhaka-Guangzhou route was shown lower, and the excess money was not deposited in the government treasury. The committee directed that an internal investigation be completed within a month to identify this irregularity and a full report submitted. It said administrative and legal action should be taken against those found guilty in the investigation.

The meeting stressed turning Biman Bangladesh Airlines into a corruption-free, modern, efficient and profitable institution. In the closing part of the meeting, emphasis was placed on taking effective steps to ensure Biman's financial discipline and to recover outstanding revenue quickly.

Committee members and whips Mia Nuruddin Ahmed Apu, Whip Md. Akhtruzzaman Mia, Mosammat Tahsina Rushdir, Khondkar Abu Ashfaq, Mohammad Koysor Ahmed, Biswas Jahangir Alam, Mohammad Nazibur Rahman and Mohammad Kamal Hossain were present at the meeting. The Comptroller and Auditor General, the secretary of the Ministry of Civil Aviation and Tourism, the managing director of Biman Bangladesh Airlines, and senior officials of the Parliament Secretariat, the ministry concerned and Biman also took part.