BTRC to open fresh audits into GP, Robi

The telecom regulator has decided to carry out information system audits into Grameenphone and Robi Axiata in the years since 2015 and form committees to start the process of appointing auditors.

The Bangladesh Telecommunication Regulatory Commission (BTRC), at a meeting last month, approved the setting up of two committees in order to hire the audit firms.

Two tender evaluation committees for the audit process will also be formed, according to the meeting documents.

The information system audit aims to ensure that the equipment and processes within GP and Robi adhere to the guidelines of the commission. It makes sure compliance with rules and regulations, including the verification of revenue collected by the companies, so that the government receives its due share.

The decision to carry out the audits comes although the claims of the first audits into the operators haven't been settled yet.

The telecom regulator ran separate audits into the two operators from their inception to December 2014 and claimed Tk 12,579 crore from GP and Tk 867 crore from Robi.

The claims include the amounts for unpaid annual spectrum fees, value-added tax, and revenue sharing. However, both operators disputed the sum and claimed that they did not evade any taxes.

The dispute triggered a legal battle between the operators and the BTRC, with the companies filing cases in 2019.

Based on the audit of GP from 1997 to 2014, the BTRC sent a demand notice in April 2019, asking it to clear the payments.

Later, GP filed the case before the district court against the claim. The Supreme Court in November of that year ordered the operator to give Tk 2,000 crore in three months to the commission.

Afterward, the appellate division directed the largest mobile phone operator of the country to deposit Tk 1,000 crore by February 2020 and another Tk 1,000 crore by May 2020. GP complied.

Of the Tk 12,579 crore, the operator hasn't yet cleared more than Tk 6,100 crore slapped as a late fee.

Additionally, it paid over Tk 2,392 crore out of Tk 4,085 crore owed to the National Board of Revenue.

GP did not respond to The Daily Star's request for comments yesterday regarding the BTRC's new audit process.

"We want an amicable solution on the rest of the dues claimed in the audit," Yasir Azman, chief executive officer of GP, told The Daily Star recently.

Out of Tk 867 crore, Robi, the second-largest operator of Bangladesh, paid Tk 138 crore in five instalments by May 2020 to comply with the order of the High Court Division.

According to Robi's annual report for 2022, a substantial part of the BTRC's claim includes the VAT on spectrum fees and VAT rebate/credit cancellation, which are either part of other ongoing litigations or in respect of which the BTRC has no jurisdiction to claim relevant amounts.

"We filed a general petition with the court five years ago, challenging the outcomes of the previous audit. The telecom regulator is yet to respond to the petition. Therefore, we haven't seen any progress on the sub judice matter," Shahed Alam, chief corporate and regulatory officer at Robi Axiata, told The Daily Star.

"We hope the regulator will take necessary steps to resolve pending issues of the previous audit."

The regulator also conducted audits into Banglalink from 1996 to 2019 and asked the operator to pay more than Tk 820 crore last year.

Of the figure, Tk 390 crore has been sought as VAT, tax and fees, and outstanding dues related to revenue-sharing, handset royalty, access frequency and microwave frequency payments, and the licence fees as principal amount. The rest, or Tk 430 crore, was claimed as late fees.

The operator has deposited Tk 335 crore of the principal amount as of now and will pay the rest of the principal amount of Tk 390 crore in instalments, according to an official of the operator.

Banglalink is trying to mutually resolve the BTRC's audit outcome, so it hasn't filed any case.

An official of the BTRC told The Daily Star that the commission has sent a letter to the government on waiving the late fees.

The BTRC also took the initiative to audit other state-owned and private companies in the telecommunication ecosystem.

It has recently demanded payments from state-run Teletalk Bangladesh and Bangladesh Telecommunications Company Limited, asking them to clear dues amounting to a staggering Tk 3,000 crore collectively.