CAG unearths irregularities in state-owned financial entities

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Sheikh Shahariar Zaman
The Office of Comptroller and Auditor General (CAG) has unearthed 26 serious irregularities in state-owned financial organisations and Bangladesh Bank involving Tk 4.33 billion.
The financial organisations are Sonali Bank, Rupali Bank, Agrani Bank, Janata Bank, Rajshahi Krishi Unnayan Bank (Rakub), Bangladesh Krishi Bank (BKB), House Building Finance Corporation (HBFC) and Karmasangsthan Bank.
The CAG report raised objections to issues involving over Tk 2.67 billion in BKB, Tk 610 million in Rupali Bank, Tk 563 million in HBFC, Tk 295 million in Agrani Bank, Tk 86 million in Janata Bank, Tk 50 million in Bangladesh Bank, Tk 43 million in Sonali Bank, Tk 10 million in Rakub and Tk 0.5 million in Karmasangsthan Bank.
The report revealed that since 1973-74, the CAG submitted 25 audit reports and unearthed 436 irregularities of the finance ministry but the ministry settled only 109 disputes. It also said that it submitted nine special audit reports on classified loans and found 167 irregularities of which only 18 disputes were resolved.
CAG Audit teams visited 21 branches of four state-owned commercial banks and found that no proper steps were taken to recover bad loans worth Tk 90 million.
When asked about the irregularities, the banks replied that they were taking measures to recover the loans and the CAG office recommended that the entire amount should be recovered following proper rules and guidelines.
After auditing four branches of BKB and Rakub, the audit teams unearthed Tk 2.68 billion irregularities.
The banks did not follow proper lending guidelines and gave loans without collateral and ensuring equity financing.
Officials of five branches of Agrani and Janata misappropriated Tk 50 million through forgery, the report revealed.
The officials collected deposits and received electricity bills but siphoned off the money. The CAG sent a letter to the finance secretary but no reply was received, the report said.
The CAG office found that the recovery of Tk 44.7 million loans from retired and sacked officials of the Bangladesh Bank was uncertain.
The central bank informed the CAG office that it would adjust the loan amounts with the retirement benefits of the officials but the benefits are lower than the loan amount.
The CAG recommended that the central bank should recover the amounts from the officials.
HBFC gave loans without following proper guidelines and for that the government incurred loss of Tk 563 million, the report said.
The borrowers did not submit authorised plans of building and did not give undertaking before taking the house-building loans and now they are not repaying the loans, the report added.
Some officials of the Bogra office of the central bank received Tk 0.7 million house rent even though they were not entitled to get the benefit.
According to the rules, if the organisation provides housing facility to its officials, they are not entitled to house rent benefits. The officials resided at the quarters of the central bank and also received house rent from the organisation.