JS Committee Directs Biman to Investigate Financial Irregularities in Aircraft Purchases

Dhaka:A parliamentary committee has instructed Biman Bangladesh Airlines to identify those responsible for financial irregularities, recover outstanding revenues, and take legal action over alleged misuse of public funds. The issues include irregularities in the purchase and operation of two leased aircraft.

According to United News of Bangladesh, the Parliamentary Standing Committee on Public Undertakings has asked the national flag carrier to provide a list of former board members and purchase committee members involved in the aircraft decisions within 15 days to one month.

The directives were issued at a progress review meeting at the Jatiya Sangsad Bhaban, chaired by Chief Whip Nurul Islam Moni. The meeting addressed various audit objections, procurement and operational irregularities, and weaknesses in reservation systems and revenue collection. It was revealed that Biman purchased two 15-year-old Dash-8 aircraft at the end of their lease periods, which was against their procurement policy.

The committee also examined allegations of public fund wastage related to the aircraft purchases and operating costs. Additionally, the meeting was informed of weaknesses in the Departure Control System and Rapid software, leading to substantial revenue losses. Audit findings showed that payments made by passengers upgrading from economy to business class were not deposited in Biman's accounting system.

The Office of the Comptroller and Auditor General is conducting a comprehensive IT audit of Biman to detect and prevent revenue leakage. Biman has been instructed to provide auditors with all relevant data from July to October.

The committee also demanded detailed reports on financial losses from operating unprofitable routes and instructed Biman to submit board decisions and financial statements for each route. Payments to Sabre, the provider of Biman's Passenger Service System, were scrutinized, with Biman directed to submit a joint written report with the audit department within seven days.

Biman was also asked to provide all contracts, bills, and documents related to the two leased aircraft to the auditors within 15 days. An audit objection regarding under-reporting of cargo flight fares on the Dhaka-Guangzhou route during the Covid-19 period was reviewed, with Biman directed to complete an internal investigation within a month.

The meeting highlighted that 111 unresolved audit objections involving Tk753.50 crore have been pending against Biman from 1996 to 2021. The audit department rejected eight of 45 objections related to money recovery due to lack of valid evidence provided by Biman. The committee directed Biman to submit a time-bound action plan for settling audit objections and recovering unpaid amounts.

Emphasizing the need for financial discipline, the committee called for quick settlement of audit objections, recovery of revenues, and accountability for those involved in irregularities. It also urged for measures to transform Biman into a corruption-free, technologically advanced, efficient, and profitable organization.