Staff Reporter:
The Parliamentary Standing Committee on Public Undertakings yesterday directed Biman Bangladesh Airlines to identify those responsible for financial irregularities, waste of public money and revenue losses and take necessary legal action against them.
The directives came at the progress review meeting on the committee’s sixth meeting, held at the Jatiya Sangsad (JS) Bhaban with its Chairman and Chief Whip Md. Nurul Islam Moni in the chair.
The committee reviewed the implementation progress of its previous directives concerning Biman Bangladesh Airlines and discussed various audit objections, irregularities in aircraft procurement and operations, weaknesses in the reservation and passenger service systems, revenue collection anomalies and losses from operating unprofitable routes, said a press release of parliament secretariat.
During the meeting, the committee expressed concern over the purchase of two 15-year-old Dash-8 aircraft, which Biman had taken on lease, despite its procurement policy not allowing the purchase of old aircraft.
The committee also discussed the subsequent operational costs and alleged wastage of public funds arising from the decision.
It directed Biman to submit, within 15 days to one month, a list of members of the then board of directors and procurement committee involved in the purchase and related decisions.
It also instructed the authorities to determine responsibility for the misuse of public money and take necessary legal action against those responsible.
The committee was informed that weaknesses in the Departure Control System and Rapid software had resulted in substantial revenue losses, according to audit findings.
The audit revealed that passengers on international flights were upgraded from economy to business class after paying the required charges, but the additional revenue was not deposited in Biman’s accounting system.
To prevent such irregularities and revenue evasion, the Office of the Comptroller and Auditor General (OCAG) has initiated a comprehensive IT audit of Biman.
The committee directed the airline to provide auditors with all relevant data and information from July to October this year.
The meeting also discussed financial losses resulting from operating different routes based on board decisions without proper commercial feasibility assessments.
The committee asked Biman to submit relevant board decision documents and detailed income and expenditure statements for each route.
It also reviewed allegations that Biman had paid the full amount to Sabre, the provider of its Passenger Service System, despite the company failing to deliver the entire work specified in the contract.
The committee directed Biman authorities and the audit department to jointly submit a written report on the matter within seven days.
Regarding the two leased aircraft, the committee expressed concern that Biman had failed to produce relevant contracts and bills concerning expenditure incurred against the aircraft before the auditors.
It directed the airline to submit all related documents to the auditors within 15 days. Biman authorities assured the committee that they would comply with the directive within the stipulated timeframe.
The committee also reviewed an audit objection alleging that Biman understated chartered cargo flight fares on the Dhaka-Guangzhou route during the COVID-19 pandemic, resulting in the non-deposit of additional money into the government treasury.
It directed the airline to complete an internal investigation within one month and submit a comprehensive report. It also instructed the authorities to identify those involved in the irregularities and take administrative and legal action against them.
The meeting was further informed that 111 unresolved audit objections involving around Tk 753.50 crore had remained pending against Biman for the period from 1996 to 2021.
Of the 45 audit objections relating to the recovery of money, the audit department rejected Biman’s claims concerning eight objections as the airline failed to provide valid bank statements as evidence of the claimed
recoveries.
The committee also discussed outstanding dues and directed Biman to submit a report within one month, outlining a time-bound action plan for settling the audit objections, recovering outstanding amounts and updating the progress of relevant cases and legal proceedings.
The committee stressed ensuring financial discipline at Biman, settling audit objections promptly, recovering outstanding revenue and bringing those involved in irregularities and corruption under accountability.
It also directed the airline to take effective measures to transform it into a corruption-free, technologically modern, efficient and profitable organization.
Committee members and Whips Miah Nuruddin Ahmad Apu and Md Akhtaruzzaman Mia, and MPs Mst. Tahsina Rushdir, Khondoker Abu Ashfaque, Mohamed Koysor Ahmed, Bishwas Jahangir Alam, Mohammad Nazibur Rahman and Mohammad Kamal Hossain attended the meeting.
The Comptroller and Auditor General, Secretary of the Civil Aviation and Tourism Ministry, Managing Director of Biman Bangladesh Airlines and senior officials of the Parliament Secretariat, the ministry and Biman were also present.
