| Bangladesh: Integrity Scorecard Report > Sub-Category: State-Owned Enterprises | ||
| Indicators | Score | |
| 64 | In law, is there an agency or equivalent mechanism overseeing state-owned companies? | 100 |
| 65 | Is the agency or equivalent mechanism overseeing state-owned companies effective? | 40 |
| 66 | Can citizens access the financial records of state-owned companies? | 30 |
Indicator and sub-Indicator Details
| 64 | In law, is there an agency or equivalent mechanism overseeing state-owned companies? | |||||||
| 64: In law, is there an agency or equivalent mechanism overseeing state-owned companies? | ||||||||
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Comments: Every public department and/or companies are controlled by their line ministries. Besides, there is the office of Comptroller and Auditor General and Standing Committee on Public Accounts who are responsible to monitor all state-owned organizations, including ministries. Article 18 (1-4) of the Bangladesh Constitution states that The public accounts of the Republic and of all courts of law and all authorities and officers of the government shall be audited and reported on by the Auditor-General and for that purpose he or any person authorised by him in that behalf shall have access to all records, books, vouchers, documents, cash, stamps, securities, stores or other government property in the possession of any person in the service of the Republic. (2) Without prejudice to the provisions of clause (1), if it is prescribed by law in the case of any body corportate directly established by law, the accounts of that body corporate shall be audited and reported on by such person as may be so prescribed. (3) Parliament may by law require the Auditor-General to exercise such functions, in addition to those specified in clause (1), as such law may prescribe, and until provision is made by law under this clause the President may, by order, make such provision. (4) The Auditor-General, in the exercise of this function under clause (1), shall not be subject to the direction or control of any other person or authority . Article 76 (1) of the Constitution states that "Parliament shall appoint from among its members the following standing committees, that is to say- (a) a public accounts committee (PAC); (b) committee of privileges; and (c) such other standing committees as the rules of procedure of Parliament require. The PAC is directly responsible and authorized to scrutinize the Appropriation Accounts of the government and the report of the Comptroller and Auditor-General thereon. The Rules of Procedure provides that in doing so, it shall be the duty of the Committee to satisfy itself - a) that the moneys shown in the accounts as having been disbursed were legally available for, and applicable to, the service or purpose to which they have been applied or charged; b) that the expenditure conforms to the authority which governs it; and c) that every re-appropriation has been made in accordance with the provisions made in this behalf under rules framed by competent authority. It shall also be the duty of the Committee - a) to examine the statement of accounts showing the income and expenditure of state corporations, trading and manufacturing schemes, concerns and projects together with the balance-sheets and statements of profit and loss accounts which the President may have required to be prepared or are prepared under the provisions of the statutory rules regulating the financing of a particular corporation, trading or manufacturing scheme or concern or project and the report of the Comptroller and Auditor-General thereon; b) to examine the statement of accounts showing the income and expenditure of autonomous and semi-autonomous bodies, the audit of which may be conducted by the Comptroller and Auditor-General of Bangladesh either under the directions of the president or by a statute of Parliament; and c) to consider the report of the Comptroller and Auditor-General in cases where the president may have required him to conduct an audit of any receipts or to examine the accounts of stores and stocks." References: The Constitution of the Peoples Republic of Bangladesh, [ LINK ]
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| 65 | Is the agency or equivalent mechanism overseeing state-owned companies effective? | |||||||
| 65a: In law, the agency or equivalent mechanism overseeing state-owned companies is protected from political interference. | ||||||||
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Comments: Politization has taken a heavy toll on our bureaucracy. Ministers try to influence the public officials to make administrative decisions in their favor. Even the ministers or MPs threat with awful consequence the officials, if their demands are not met.
References: Office of the Comptroller and Auditor General of Bangladesh [ LINK ] BRAC University, Center for Governance Studies, The State of Governance in Bangladesh 2006, p-53-60 Dhaka, December 2006, www.cgs-bu.com Interview with Lt. Col. (Rtd.) Farouque Khan, former member of Parliament (MP), Dhaka, Sept. 6, 2007 at 10.30 a.m. (over phone). Transparency International Bangladesh, August, 2007, Biman Bangladesh Airlines: A Diagnostic Study , [ LINK ]
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| 65b: In practice, the agency or equivalent mechanism overseeing state-owned companies has a professional, full-time staff. | ||||||||
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Comments: References: Interview with Md. Motiur Rahman, Joint commissioner (Customs), Chittagong Customs House, Bangladesh, Aug. 18, 2007 Interview with A K Azad Khan, deputy director, Local & Revenue Audit Directorate, Audit Complex, Segunbagicha, Dhaka, Sept.1, 2007, at 11.00 a.m. Interview with G M Kader, former member of Parliament (MP), Dhaka, Sept. 6, 2007, at 10.30 a.m. (over phone). Interview with Lt. Col. (Rtd.) Farouque Khan, former member of Parliament (MP), Dhaka, Sept. 6, 2007 at 10.30 a.m. (over phone).
Peer Review Comments: In most cases, the staff of state-owned enterprises are not skilled to the required levels.
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| 65c: In practice, the agency or equivalent mechanism overseeing state-owned companies receives regular funding. | ||||||||
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Comments: References: Interview with Md. Motiur Rahman, Joint commissioner (Customs), Chittagong Customs House, Bangladesh, Aug. 18, 2007 Interview with A K Azad Khan, deputy director, Local & Revenue Audit Directorate, Audit Complex, Segunbagicha, Dhaka, Sept. 1, 2007, at 11.00 a.m. Interview with G M Kader, former member of Parliament (MP), Dhaka, Sept. 6,, 2007 at 10.30 a.m. (over phone). Interview with Lt. Col. (Rtd.) Farouque Khan, former member of Parliament (MP), Dhaka, Sept. 6, 2007, at 10.30 a.m. (over phone). Transparency International Bangladesh, August, 2007, B iman Bangladesh Airlines: A Diagnostic Study , [ LINK ] MInistry of Finance, Government of Bangladesh [ LINK ] Office of the Comptroller and Auditor General of Bangladesh [ LINK ]
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| 65d: In practice, when necessary, the agency or equivalent mechanism overseeing state-owned companies independently initiates investigations. | ||||||||
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Comments: References: Office of the Comptroller and Auditor General of Bangladesh [ LINK ] BRAC University, Centre for Governance Studies, Dhaka, The State of Governance in Bangladesh 2006, p-53-60 December 2006, www.cgs-bu.com Interview with A K Azad Khan, deputy director, Local & Revenue Audit Directorate, Audit Complex, Segunbagicha, Dhaka, Sept. 1, 2007, at 11.00 a.m. Interview with G M Kader, former member of Parliament (MP), Dhaka, Sept. 6,, 2007 at 10.30 a.m. (over phone). Interview with Lt. Col. (Rtd.) Farouque Khan, former member of Parliament (MP), Dhaka, Sept. 6, 2007, at 10.30 a.m. (over phone). Transparency International Bangladesh, August, 2007, B iman Bangladesh Airlines: A Diagnostic Study , [ LINK ]
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| 65e: In practice, when necessary, the agency or equivalent mechanism overseeing state-owned companies imposes penalties on offenders. | ||||||||
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Comments: References: Interview with Md. Motiur Rahman, Joint commissioner (Customs), Chittagong Customs House, Bangladesh, Aug. 18, 2007 Interview with A K Azad Khan, deputy director, Local & Revenue Audit Directorate, Audit Complex, Segunbagicha, Dhaka, Sept. 1, 2007, at 11.00 a.m. Interview with G M Kader, former member of Parliament (MP), Dhaka, Sept. 6, 2007, at 10.30 a.m. (over phone). Interview with Lt. Col. (Rtd.) Farouque Khan, former member of Parliament (MP), Dhaka, Sept. 6, 2007, at 10.30 a.m. (over phone). Transparency International Bangladesh, August, 2007, Biman Bangladesh Airlines: A Diagnostic Study , [ LINK ] Office of the Comptroller and Auditor General of Bangladesh [ LINK ] BRAC University, Centre for Governance Studies, The State of Governance in Bangladesh 2006, p-53-60, Dhaka, December 2006, www.cgs-bu.com World Bank, 1999, Bangladesh, The experience and perceptions of public officials, [ LINK ] ; [ LINK ]
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| 66 | Can citizens access the financial records of state-owned companies? | |||||||
| 66a: In law, citizens can access the financial records of state-owned companies. | ||||||||
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Comments: References: The Official Secrets Act, 1923 The Government Servants (Conduct) Rules, 1979, Government of Bangladesh. The Government Servants Discipline and Appeal Rules, 1985, Government of Bangladesh.
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| 66b: In practice, the financial records of state-owned companies are regularly updated. | ||||||||
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Comments: References: Office of the Comptroller and Auditor General of Bangladesh [ LINK ] BRAC University, Center for Governance Studies, The State of Governance in Bangladesh 2006, p-53-60, Dhaka, December 2006, www.cgs-bu.com World Bank, 1999, Bangladesh, The experience and perceptions of public officials, [ LINK ] ; [ LINK ] Interview with Md. Motiur Rahman, Joint commissioner (Customs), Chittagong Customs House, Bangladesh, Aug. 18, 2007 Interview with A K Azad Khan, deputy director, Local & Revenue Audit Directorate, Audit Complex, Segunbagicha, Dhaka, Sept. 1, 2007, at 11.00 a.m. MInistry of Finance, Government of Bangladesh [ LINK ]
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| 66c: In practice, the financial records of state-owned companies are audited according to international accounting standards. | ||||||||
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Comments: References: Interview with Abdullah Al Mahmud, Chartered accountant, Haque Shah Alam Manshur & Co., Dhaka, Sept.10, 2007, at 10.30 a.m. (over phone). Interview with A K Azad Khan, deputy director, Local & Revenue Audit Directorate, Audit Complex, Segunbagicha, Dhaka, Sept. 1, 2007, at 11.00 a.m.
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| 66d: In practice, citizens can access the financial records of state-owned companies within a reasonable time period. | ||||||||
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Comments: References: Interview with Abdullah Al Mahmud, Chartered accountant, Haque Shah Alam Manshur & Co., Dhaka, Sept.10, 2007, at 10.30 a.m. (over phone). Interview with A K Azad Khan, deputy director, Local & Revenue Audit Directorate, Audit Complex, Segunbagicha, Dhaka, Sept. 1, 2007, at 11.00 a.m.
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| 66e: In practice, citizens can access the financial records of state-owned companies at a reasonable cost. | ||||||||
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Comments: References: Interview with Abdullah Al Mahmud, Chartered accountant, Haque Shah Alam Manshur & Co., Dhaka, Sept.10, 2007, at 10.30 a.m. (over phone). Interview with A K Azad Khan, deputy director, Local & Revenue Audit Directorate, Audit Complex, Segunbagicha, Dhaka, Sept. 1, 2007, at 11.00 a.m.
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