SM Mizanur Rahman :
The Commercial Audit Directorate (CAD) in its initial report detected financial anomalies amounting to over Tk one thousand crore, fifty-five lakh and 74 thousand at the national flag carrier Biman Bangladesh Airlines.
The report titled ‘special audit report on Biman Bangladesh Airlines 2012-13’ signed by Mujibul Haque, Audit and Accounts Officer, CAD, has been sent to the Civil Aviation and Tourism Ministry, Biman chairman and managing director and chief executive officer.
A five-member team worked for the report till June 30 last year, Mujibul Haque told The New Nation on Thursday. The CAD has raised 72 objections to those irregularities in its audit report. Out of 72 objections, 33 have been identified as serious financial irregularities.
As the Biman is facing challenges to survive, the government is worried about its future. But it has failed to come up with a solution, according to the Biman officials.
The government has taken various measures, including adding fourth generation Boeing aircraft to the fleet and appointment of pilots. But the measures failed to attract passengers and make the organisation profitable.
The latest officials and employees involvement in gold trafficking has rubbed salt into the wounds of Biman, which is facing corruption, leadership crisis, mismanagement, flight disruption, as well as excess fuel cost.
Equipment worth over Tk four crores were purchased without approval. Various apparatus worth Tk 183.55 crore for operating the group service equipment department (GSE) remained uncared for a long time and it cost another Tk 154. 32 crore for failure of running Biman, quoting report Mujibul Haque said.
Besides, Biman continued to retain its service manpower though planes remained grounded, and giving promotion to stewards bred corruption, and thus, a total of Tk one thousand crore, fifty-five lakh, 74 thousand and 354 hundred were misappropriated by a section of officials and employees of the Biman.
The report mentioned that the corruption and irregularities took places due to misappropriation of money by a section of officials and employees of the Biman.
When contacted, Tanzila Chowdhury, Deputy Director, CAD, also a team member said, the report has been prepared maintaining all procedures in order to make it transparent and accountable.
“Before completing the report we talked to the concerned Biman officials. Apart from these, the report has also been checked and crosschecked
before submitting to the concerned ministry,’ she told The New Nation on Thursday.
Replying to a query Tanzila said, official procedures are still on to clarify the audit objection.
“The Civil Aviation and Tourism Ministry has said if the audit objections are not disposed, we will send the report to the parliamentary standing committee on public account for recommendations,”
She said that parliamentary standing committee on public account would take the final decision after placing the report before it.
However, talking to The New Nation, Manjur Iman, Director (Finance), Biman said, all 72 objections on account of irregularities in Commercial Audit Directorate audit report will be cleared.
“Actually we are working in a modern technology based organisation. And it is very unfortunate for Biman that the audit report is prepared by the non-technical persons who don’t have any idea about technical issues,” he said.
Replying to a query, he said a tripartite meeting will be held to settle the issues.
“Officials of civil aviation and tourism ministry, Biman and CAD will sit soon to dispose the objection. If we are able to dispose the audit objections, the problems will be solved. Otherwise, the report will be sent to the parliamentary standing committee on public account for recommendations,” he said.
Mujibul Haque, Audit and Accounts Officer, CAD, said, the issues which were not solved after instant reply from the Biman authority, have been described in the report.
“Biman’s reply has not been accepted regarding those issues. So, we have mentioned the issues in the report,” he said
According to the report, the irregularities took place in floating tender for purchasing aircraft and repaying dues.
Without scrutiny and certificate, the Global Distribution System (GDS) Company has been awarded to sell tickets, booking and other work. As a result Tk 96.99 crores were misprinted.
Besides, the Biman signed an agreement with Amadeus for selling ticket that cost Tk about 10 crore.
The in-flight entertainment video facilities have been taken through three organisations. And thus cost Tk 2.28 crore, the report said adding that showing an emergency cause, machinery were purchased for pushback tractor. But these machinery remained idle. As a result the Biman had to incur loss of Tk 39 lakh.
Apart from these, the report said that the state-run Biman incurred loss of Tk 154.32 crore as it failed to operate the aircraft.
Biman carried 11.77 lakh passengers in 2012-13, while the number of passengers declined in 2013-14 to 9.50 lakh passengers. Biman earned Tk 2,282.48 crore in 2012-13 and Tk 1,868.27 crore in 2013-14.
According to the Centre for Asia Pacific Aviation (CAPA), an aviation information consultancy, Biman had the capacity to carry 26 per cent passengers from Bangladesh on international routes in 2011.
When some aircraft, including fourth generation Boeing, were added to the fleet, its capacity increased by 28 per cent in 2012. But passengers on international flights declined by 26 per cent in 2014.
At present, Biman operates flights on 19 international routes, while two new routes are likely to be opened in the next couple of months.
Biman is operating its flight service with a 747-400, three 777-300ER, two Airbuses — B737-800 — and a lease aircraft Boeing-777-200ER in the national fleet.
Biman has an agreement with the US Company for four Boeing 737-800s and two Boeing 787-8s. They will be added to the fleet by 2019. Of them, two Boeing 737-800s will be received by the end of the current year (2015), a Biman official said.
The Commercial Audit Directorate (CAD) in its initial report detected financial anomalies amounting to over Tk one thousand crore, fifty-five lakh and 74 thousand at the national flag carrier Biman Bangladesh Airlines.
The report titled ‘special audit report on Biman Bangladesh Airlines 2012-13’ signed by Mujibul Haque, Audit and Accounts Officer, CAD, has been sent to the Civil Aviation and Tourism Ministry, Biman chairman and managing director and chief executive officer.
A five-member team worked for the report till June 30 last year, Mujibul Haque told The New Nation on Thursday. The CAD has raised 72 objections to those irregularities in its audit report. Out of 72 objections, 33 have been identified as serious financial irregularities.
As the Biman is facing challenges to survive, the government is worried about its future. But it has failed to come up with a solution, according to the Biman officials.
The government has taken various measures, including adding fourth generation Boeing aircraft to the fleet and appointment of pilots. But the measures failed to attract passengers and make the organisation profitable.
The latest officials and employees involvement in gold trafficking has rubbed salt into the wounds of Biman, which is facing corruption, leadership crisis, mismanagement, flight disruption, as well as excess fuel cost.
Equipment worth over Tk four crores were purchased without approval. Various apparatus worth Tk 183.55 crore for operating the group service equipment department (GSE) remained uncared for a long time and it cost another Tk 154. 32 crore for failure of running Biman, quoting report Mujibul Haque said.
Besides, Biman continued to retain its service manpower though planes remained grounded, and giving promotion to stewards bred corruption, and thus, a total of Tk one thousand crore, fifty-five lakh, 74 thousand and 354 hundred were misappropriated by a section of officials and employees of the Biman.
The report mentioned that the corruption and irregularities took places due to misappropriation of money by a section of officials and employees of the Biman.
When contacted, Tanzila Chowdhury, Deputy Director, CAD, also a team member said, the report has been prepared maintaining all procedures in order to make it transparent and accountable.
“Before completing the report we talked to the concerned Biman officials. Apart from these, the report has also been checked and crosschecked
before submitting to the concerned ministry,’ she told The New Nation on Thursday.
Replying to a query Tanzila said, official procedures are still on to clarify the audit objection.
“The Civil Aviation and Tourism Ministry has said if the audit objections are not disposed, we will send the report to the parliamentary standing committee on public account for recommendations,”
She said that parliamentary standing committee on public account would take the final decision after placing the report before it.
However, talking to The New Nation, Manjur Iman, Director (Finance), Biman said, all 72 objections on account of irregularities in Commercial Audit Directorate audit report will be cleared.
“Actually we are working in a modern technology based organisation. And it is very unfortunate for Biman that the audit report is prepared by the non-technical persons who don’t have any idea about technical issues,” he said.
Replying to a query, he said a tripartite meeting will be held to settle the issues.
“Officials of civil aviation and tourism ministry, Biman and CAD will sit soon to dispose the objection. If we are able to dispose the audit objections, the problems will be solved. Otherwise, the report will be sent to the parliamentary standing committee on public account for recommendations,” he said.
Mujibul Haque, Audit and Accounts Officer, CAD, said, the issues which were not solved after instant reply from the Biman authority, have been described in the report.
“Biman’s reply has not been accepted regarding those issues. So, we have mentioned the issues in the report,” he said
According to the report, the irregularities took place in floating tender for purchasing aircraft and repaying dues.
Without scrutiny and certificate, the Global Distribution System (GDS) Company has been awarded to sell tickets, booking and other work. As a result Tk 96.99 crores were misprinted.
Besides, the Biman signed an agreement with Amadeus for selling ticket that cost Tk about 10 crore.
The in-flight entertainment video facilities have been taken through three organisations. And thus cost Tk 2.28 crore, the report said adding that showing an emergency cause, machinery were purchased for pushback tractor. But these machinery remained idle. As a result the Biman had to incur loss of Tk 39 lakh.
Apart from these, the report said that the state-run Biman incurred loss of Tk 154.32 crore as it failed to operate the aircraft.
Biman carried 11.77 lakh passengers in 2012-13, while the number of passengers declined in 2013-14 to 9.50 lakh passengers. Biman earned Tk 2,282.48 crore in 2012-13 and Tk 1,868.27 crore in 2013-14.
According to the Centre for Asia Pacific Aviation (CAPA), an aviation information consultancy, Biman had the capacity to carry 26 per cent passengers from Bangladesh on international routes in 2011.
When some aircraft, including fourth generation Boeing, were added to the fleet, its capacity increased by 28 per cent in 2012. But passengers on international flights declined by 26 per cent in 2014.
At present, Biman operates flights on 19 international routes, while two new routes are likely to be opened in the next couple of months.
Biman is operating its flight service with a 747-400, three 777-300ER, two Airbuses — B737-800 — and a lease aircraft Boeing-777-200ER in the national fleet.
Biman has an agreement with the US Company for four Boeing 737-800s and two Boeing 787-8s. They will be added to the fleet by 2019. Of them, two Boeing 737-800s will be received by the end of the current year (2015), a Biman official said.
