DoC set to take action against some errant audit officers

The Department of Cooperatives (DoC) is going to take action against a good number of its audit officers for their alleged negligence in auditing multipurpose co-operative societies which resulted in massive financial loss to hundreds of thousands of people across the country, sources said.  

In the face of widespread allegations against the audit officers, the DoC authority on July last issued letters to its joint registrars in all the divisions to provide report on the issue within three months following which the department can take further steps.

But the department later extended the time frame following request from the divisional offices.  

 "The department has decided to file cases against the audit officers who have been initially identified as guilty for not performing their duties accordingly. Their negligence caused immense sufferings to a large segment of people of the country," additional registrar (admin) of DoC, Amiya Kumer Chattapadhya told the FE.

According to him, the department so far has received twelve auditors' name from five divisional offices regarding their alleged major irregularities in duties.

 "Departmental action would be taken against the officers who have been identified for massive negligence in their duties. Besides, divisional action would also be taken against the officers whose offences found comparatively minor," he added.

According to Mr Chattapadhya, the DoC has so far received twelve audit officers' name from five divisional offices regarding their alleged involvement in major irregularities.

 "Reports against a number of other audit officers are on the way to reach the department."

Besides, divisional heads in the meantime have also decided to file cases against ten other auditors for their minor offences, he informed.

According to the additional registrar, actions like increment held-up, demotion, putting to the lowest of time scale might be taken in the case of minor irregularities.

In the case of major irregularities, if the allegations are proved then the auditors might face putting to the lowest of time scale, demotion, suspension or termination.

However, according to different divisional and district heads of the department, most of the auditors either innocently or intentionally overlooked implementing many clauses while audited MCSs caused devastating financial irregularities in the country.

 "The audit officers mostly could not imagine the future impact of their negligence. According to our findings, most of the auditors gave audit clearance in exchange of money," a joint registrar told the FE preferring anonymity.

He also said if the department decides to take stern action against all the irregularities, then ninety five per cent of the auditors would be found guilty for more or less mistakess.

There are widespread allegations that taking the advantage of carelessness or unholy involvement in auditing by the auditors, the managements of the multipurpose cooperative societies (MCSs) succeeded in cheating a large segment of people financially.

The MCSs collected billions of taka mainly from the housewives, local guardians of non-resident Bangladeshis and pensioners enticing them of higher rate of interest against their deposits.

Later on, at one stage of their collections, the management of MCSs went into hiding depriving hundreds of thousands of innocent people across the country.