CA orders probe into BPC's 'lackadaisical' approach
Sunday, 26 October 2008
Shakhawat Hossain
A furious Chief Adviser Dr. Fakhruddin Ahmed has ordered a probe into the state-owned Bangladesh Petroleum Corporation (BPC)'s laggard approach to reduce system losses and its failure to come up with an action plan.
"I am surprised at the lackadaisical way the instruction of the Chief Adviser was dealt with," Dr. Ahmed wrote in a recent letter, copy of which has been obtained by the FE.
"I ask that inquiry be held to determine why Chief Adviser's instruction was not followed in a timely manner, identify the persons responsible for causing the delay and prepare actions against them," he said.
Ahmed sent the angry missive posted on Tuesday after BPC and the energy division failed to act on his May 2007 instructions to adopt a programme in three months to cut back on system losses in the heavily subsidised corporation.
The instructions from the country's chief executive, however, fell into the deaf ears as both the energy division and its subsidiary BPC sat on the orders for about 16 months, failing to come up with any specific recommendations.
"That period of three months and many more months have gone (by). I believe the recommendations are yet to come," said the Chief Adviser.
The BPC, the country's lone oil importer, spent $3.1 billion in 2007-8 fiscal year--- more than a billion up than the previous fiscal --- to import 3.6 million tonnes crude and refined oils
It incurred losses worth nearly Tk70 billion due to the government's continued policy to sell cheap oil in the local filling stations regardless of their prices in the international market.
But despite it is heavily subsidised, the petroleum behemoth lost substantial amount of its imported fuels on system losses such as stealing at the depot and evaporation. Officials did not give the exact system loss figures.
The chief adviser last year demanded the action plan after the country faced one of the toughest fiscal challenges in its history when it had to borrow Tk 199.23 billion from the banking system to bolster BPC's finances.
In the last two fiscal years budgetary support worth nearly Tk 150 billion was given to keep the BPC afloat, after a record rally in global oil prices and a spike in BPC's operational costs.
The BPC has already received Tk 40 billion in the first quarter of the current fiscal to foot its oil bill.
The Chief Adviser has also been critical about the role of the energy ministry due to its 'non-committal' attitude on another directive given last month.
Dr. Ahmed wanted a review of certain costs such as bank commission, insurance, handling commission and miscellaneous expenditures while importing crude and refined oils in the country.
He gave the directive following findings that the BPC adds some charges to the CIF (cost, insurance and freight) to determine the final prices, which are hurting the consumers.
A furious Chief Adviser Dr. Fakhruddin Ahmed has ordered a probe into the state-owned Bangladesh Petroleum Corporation (BPC)'s laggard approach to reduce system losses and its failure to come up with an action plan.
"I am surprised at the lackadaisical way the instruction of the Chief Adviser was dealt with," Dr. Ahmed wrote in a recent letter, copy of which has been obtained by the FE.
"I ask that inquiry be held to determine why Chief Adviser's instruction was not followed in a timely manner, identify the persons responsible for causing the delay and prepare actions against them," he said.
Ahmed sent the angry missive posted on Tuesday after BPC and the energy division failed to act on his May 2007 instructions to adopt a programme in three months to cut back on system losses in the heavily subsidised corporation.
The instructions from the country's chief executive, however, fell into the deaf ears as both the energy division and its subsidiary BPC sat on the orders for about 16 months, failing to come up with any specific recommendations.
"That period of three months and many more months have gone (by). I believe the recommendations are yet to come," said the Chief Adviser.
The BPC, the country's lone oil importer, spent $3.1 billion in 2007-8 fiscal year--- more than a billion up than the previous fiscal --- to import 3.6 million tonnes crude and refined oils
It incurred losses worth nearly Tk70 billion due to the government's continued policy to sell cheap oil in the local filling stations regardless of their prices in the international market.
But despite it is heavily subsidised, the petroleum behemoth lost substantial amount of its imported fuels on system losses such as stealing at the depot and evaporation. Officials did not give the exact system loss figures.
The chief adviser last year demanded the action plan after the country faced one of the toughest fiscal challenges in its history when it had to borrow Tk 199.23 billion from the banking system to bolster BPC's finances.
In the last two fiscal years budgetary support worth nearly Tk 150 billion was given to keep the BPC afloat, after a record rally in global oil prices and a spike in BPC's operational costs.
The BPC has already received Tk 40 billion in the first quarter of the current fiscal to foot its oil bill.
The Chief Adviser has also been critical about the role of the energy ministry due to its 'non-committal' attitude on another directive given last month.
Dr. Ahmed wanted a review of certain costs such as bank commission, insurance, handling commission and miscellaneous expenditures while importing crude and refined oils in the country.
He gave the directive following findings that the BPC adds some charges to the CIF (cost, insurance and freight) to determine the final prices, which are hurting the consumers.