Ghost purchases

Comptroller and Auditor General (CAG) has found several "ghost equipment"-purchases, worth several crore taka, made by the Civil Aviation Authority of Bangladesh (CAAB).

In its audit report, CAG has revealed gross irregularities and corruption involving around Tk 25 crore in at least three cases of purchasing equipment, which include computer accessories and furniture for CAAB.

The auditing authority said in reality, the body did not buy the equipment at all, as it was never registered in stock.

It also identified gross anomalies while auditing CAAB's financial accounts for the 2015-16 and 2016-17 fiscal, and different departments under the organisation.

Regarding the first case, CAG's annual report said CAAB's four departments bought equipment for Tk 6.83 crore, but it was not registered in stock.

Describing the irregularities, the auditing authority said through analysing different bill vouchers and documents of executive engineer, civil department 2 and 3, and executive engineer, E/M department 2 and 3, it was found that there was no account of machinery, computer equipment and furniture purchased by the departments.

The four departments in 57 bills showed Tk 6.83 crore as the cost of those items.

About the anomalies, CAG said CAAB showed the expenditure without preserving the stock register of the equipment, which violates general financial rules.

According to the rules, an entry in the stock register in case of purchasing goods is a must. "But in this case, no such information was found," CAG said in the audit report.

In response to CAG's query, the CAAB said it will reply to the auditing authority after analysing the relevant documents. But CAG mentioned that it has raised the questions by analysing the very same documents.

Regarding the second case, CAG said after evaluating bill vouchers and documents of superintendent engineer, E/M circle, it found that equipment worth Tk 1.40 crore was provided to the airport and civil aviation training centre. But no account of such purchases was available at the offices concerned.

The auditing authority said it seems that CAAB did not buy the equipment at all.

Describing the anomalies, CAG said according to the general financial rules, purchased goods have to be received after examining, counting and measuring weight.

The office staff receiving the goods should give a certificate stating that they have received the goods after ensuring weight and quality. They will also give a certificate stating that the stock was registered properly.

In the audit report, CAG said it found no such register or accounts. "Purchasing of goods cannot be verified if the stock register is not preserved. Despite this fact, the field level offices of CAAB in Dhaka do not preserve any stock register."

CAG said CAAB did not give any reply about the anomalies in this case, adding that the local authorities did not come up with any reply as they did not have any proper answer.

In its recommendation for both cases, CAG suggested intensifying the internal control system and properly depositing money to funds of the concerned authorities.

In another instance of irregularity, CAG said CAAB showed a stock balance of Tk 16.38 crore through "imaginary" statements of different purchased equipment and mechanical parts.

CAG said the executive engineer, E/M division-1 and 2 of CAAB, showed through a work order that different machinery parts were purchased.

The auditing authority also said although CAAB replaced old machinery, it did not properly deal with the old equipment or preserved no stock register or list. "Therefore, it cannot be ascertained that the new equipment replaced [old equipment]."

CAAB did not give any reply about this objection, meaning that CAAB has accepted the anomalies, said CAG.

In the recommendation, CAG asked to preserve old equipment and verify the stock balance every year. It also recommended selling the old machinery.

In all three cases, CAG said the response of the civil aviation ministry secretary about anomalies was not proper and acceptable.

As part of the latest measures, CAG issued demi-official letters for all three cases in August 2018 to the secretary but he did not reply.

Asked Iftekharuzzaman, executive director, Transparency International Bangladesh (TIB), said CAG has done its professional duty and not only identified specific instances of corruption but also made concrete recommendations.

"It is now incumbent upon CAAB to act accordingly and particularly recover the misappropriated public money to ensure accountability," he said.

Asked, CAAB Chairperson Air Vice Marshal M Mafidur Rahman told this correspondent that they are replying to CAG regularly.

"We are also holding meetings with CAG officials every month on different audit objections," he said. "In case of failure to settle any objections, those are sent to the Public Accounts Committee of parliament for settlement."

Besides, the CAAB boss said they also carry out internal audits in response to anomalies, like those identified in CAG's report.

"We will take action if anyone is found involved in irregularities," he said.