Realisation of more than Tk 23.57 million as premium and compensation from the lessees of various subsidiaries of the state-owned parjatan corporation has become uncertain due to failure of the corporation to take legal steps to collect the amount, a CAG official said.
Office of the Comptroller and Auditor General (CAG) of Bangladesh revealed this in its initial audit report for the FY 2011-2012 recently.
The CAG also recommended that the authorities should inform its office about the steps taken regarding realisation of the fund from the lessees.
The five companies which took lease of various commercial entities of Bangladesh Parjatan Corporation (BPC) are: M/S Injen Technology Ltd, M/S Café Link Ltd, M/S Sylhet Shishu Park Ltd, M/S Subarna Enterprise and M/S Best Eastern.
Of them, Injen Technology had an agreement to run Madhabkundu Parjatan Restaurant signed in 2008, Café Link got the lease of parjatan cottage, bar and auditorium in Rangamati in 2007, Sylhet Shishu Park got the lease of Sylhet Children's Amusement Park in 2003, Subarna Enterprise got the lease of Saikat motel and bar in Chittagong in 2010 and Best Eastern got the lease of Motel Laboni in Cox's Bazar in 2004.
All the lease agreements were signed for 15 years and the lease premiums were supposed to be paid two months before signing of the agreement.
Only Injen Technology and Café Link got the possession of the BPC commercial entities in 2012 although the agreements were signed in 2008.
As per the agreement, in FY 2011-2012 Injen Technology was due to pay Tk 0.64 million to the BPC as premium while Café Link owe Tk 0.86 million, Sylhet Shishu Park Tk 0.58 million, Subarna Enterprise Tk 3.4 million and Best Eastern Tk 7.9 million the corporation, the audit report said.
The rest amount is considered as the compensation and VAT and tax at source.
It said five tourism infrastructures including restaurants/motels, cottage, bar, auditorium and amusement park under BPC were leased out to different private lessees. But the lessees did not pay premium and compensation along with VAT and tax at source according to the terms and conditions of the agreement. It has realised money from the defaulter lessees who are no longer in the possession of the above mentioned infrastructures.
The CAG official said although BPC cancelled the lease agreement with lessees Injen Technology and Café Link and established the corporation's own possession, it has never taken any legal step to realise the outstanding premium and compensation for the damage to properties and assets while running the commercial entities of BPC.
Although the lessees of Sylhet Shishu Park, Subarna Enterprise and Best Eastern were irregular in paying premium, BPC never took legal actions nor cancel the lease agreement with the company, the CAG official said. A total of Tk 20.86 million is due as VAT and premium with the companies.
Besides, BPC could not ensure deposit of VAT and tax at source by realising premium with the government exchequer which has caused the state revenue loss to more than Tk 2.7 million.
In its comment the audit report said the authorities have failed to realise the money involved in the audit object due to absence of proper monitoring and failure to take legal actions. The CAG office issued an advance para to the ministry on 16 february of 2013. As CAG did not get any answer, it again issued a letter to the secretary of the ministry on 05 June 2013. The ministry replied that the realisation process of premium and compensation as per the agreement from the lessees is ongoing.
The CAG, however, said the answer was not satisfactory. On 01 April of 2014 a reply was sent from the ministry where it said that they will submit the vouchers along with premium and compensation money. But still there is no such reply from them, the audit report said.
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