Cost of car advances to govt officials escalates

Government expenditure on advances to officials for car purchases and their upkeep has been on the rise in recent years. And mass promotions in the bureaucracy played a pivotal part in the cost escalation, sources said.
Many argue this has a rational in comparison to the cost of maintaining transport pool. Others say this is unproductive as the government employees of the day are largely "inefficient" and their size is larger than a right-sized bureaucracy.
The critics also pointed out that the officials promoted to the rank and status of joint secretary actually were now doing what they used to do in their previous ranks.
The government in the last fiscal year (2014-15) allocated Tk 600 million for the purpose but later it was revised upward by another Tk 250 million following mass promotions.
However, the government has downsized the allocation to Tk 800 million in the ongoing financial year. But, people familiar with the matter said this again might be upped at the fag-end of the fiscal.
According to establishment manual, a joint secretary is entitled to a full-time transport. As the government has shortage of motor vehicles to meet the growing demand, it introduced a provision of advancing money to the joint secretaries for the purchase of cars of their own.
The joint secretaries, who now number 910, also get Tk 45,000 each as maintenance and driver allowances every month.
The joint secretaries are allowed to take a maximum of Tk 2.5 million each as advance on account of car purchase. The amount includes the cost of registration and insurance. And Tk 20,835 is deducted monthly from their salaries.
The duration for repayment of the loan that carries no interest is eight years and 10 per cent depreciation cost calculated from the second year.
A senior official at the ministry of public administration, which sanctions the car loan, told the FE that they had fund shortages in May and June last year.
"We had to revise the fund upward to Tk 250 million to meet their demand for car loans," said a senior official at the MPA.
In the last financial year, the ministry finalised deals with 340 joint and additional secretaries in relation to purchase of vehicles.
The MPA announced promotions of 343 deputy secretaries from senior assistant secretary and 299 joint secretaries form deputy secretary in April 2015.
During the time, 231 were also promoted to the rank and status of an additional secretary from among joint secretaries.
The government had promoted twice in 2013 a total of 396 to the post of joint secretary from the rank of deputy secretary. A group of 326 deputy secretaries were first elevated onto the next rung in the bureaucracy -- joint secretary. Then again, in October that year, another 70 deputy secretaries also got promoted to the post of joint secretary.
Many were also attached to the public administration ministry as officers on special duty (OSD) -- who, practically, have no duty until next postings are given.
The Awami League-led coalition during its previous 2009-13 term had elevated 2,528 officials.
However, senior officials at the finance division said this sort of managing vehicles is rational considering the government liabilities in relation to salaries and pensions of drivers and regular maintenance of transport.
They said if another round of promotions takes place, the allocation for the head would need to be raised.
An economist at a private think tank said providing car loan has justification but "the bureaucracy is not efficient to serve the people".
On a further note of scepticism he also said, "The promotion to the upper levels is mostly done on political considerations rather than their approved posts."
However, MPA sources said, the officers who take the loan convert their cars to compressed natural gas at their own cost.
They studied that if any officer converts to CNG, they can save Tk 15,000 from the Tk 45,000 lump-sum maintenance cost.
They also said many purchase comparatively cheaper vehicles in order to save a handsome amount of money.
On the other hand, a number of officers add up to the government loans to purchase more sophisticated cars.
The MPA officials said at times they take undertakings from the officials concerned to the effect that the latter would show money receipts.
But they never put up any challenge on the money receipts submitted by the government officials as a proof.
Bangladesh's bureaucracy has 1,412 high officials from joint secretary to the position of senior secretary.
There are 914 joint secretaries, 427 additional secretaries and 71 secretaries and senior secretaries in the administrative setup.
According to the MPA they have so far lent out advances for more than 1,000 cars, mostly of Toyota Allion, Axio and Premio brands.
    jasimharoon@yahoo.com