BRTC in fund constraint as buses stay off roads

The Bangladesh Road Transport Corporation (BRTC) is facing a severe financial constraint paying its several thousand staff members, as the ongoing political conflict is forcing it to suspend almost all transport services to avert damage.

Officials said the corporation's revenue earnings drastically dropped during the last few months. However, it might be almost nil in the current month.

 "Up to today we could not earn anything. It has not been possible for us to run our bus services to avert attacks as the BRTC buses remain at the centre of attacks by trouble makers," said an official preferring not to be named.

He said in some deadly attacks the BRTC already faced losses to the tune of Tk 450 million and they were having trouble managing monthly expenditure including payment of all debts.

During the opposition-enforced programmes, the BRTC had been running only 151 staff buses, out of 255, at a subsidised rate. But there was none of the 1,250 fit buses on the streets.

The BRTC has 1550 buses and trucks, of which around 1,250 buses were being run on different routes in the city.

It has, however, debts to the tune of about Tk 8.0 billion, a major portion of which is payable to retired employees and officials.

The non-profitable corporation has also a burden of loans as it imported 925 buses recently with funds from India, Korea and India.

Due to the attacks on BRTC buses, including its articulated buses and double-deckers, the officials claimed that the corporation already faced losses to the tune of over Tk 450 million and its monthly profit earnings dropped to Tk 110 million in October from Tk 180 million in July last.

The self-finance corporation of the government manages the monthly salaries of over 3,500 staff members and repays monthly installments of debts. It spent Tk 1.98 billion during the fiscal year 2012-13 against Tk 1.7 billion in the previous fiscal year.

"If the volatile political situation continues for another month, the corporation will lose its capacity to function," said the official.

BRTC Chairman Jasim Uddin Ahmed, however, said whatever the amount of BRTC loss was, it could be made up for, if the service could be restored immediately.

"If we can run our 1,200 buses and trucks under proper management, we may come out of the adverse situation," he told the FE.

Sources said the corporation was so far paying Tk 250 million to Tk 350 million every month in debt servicing. However, it came down to Tk 110 million in November last.