Many SOEs will be abolished if financial reports followed

ays comptroller and auditor general

Comptroller and Auditor General (CAG) Masud Ahmed yesterday said many state-owned enterprises (SOEs) would have been 'abolished' for various irregularities had the CAG reports been followed, reports UNB.
"In fact, the (financial) reports have not yet been followed for various social reasons... If so, many state-owned enterprises would have been abolished on the basis of my reports leading to huge job cut," he said while addressing a workshop in the city.
The Institute of Chartered Accountants of Bangladesh (ICAB) and the World Bank jointly organised the workshop titled 'Roadmap to Strengthening Financial Reporting Framework for Public Sector Entities' at Pan Pacific Sonargaon Hotel.
"In many of our reports, we tell the government that there are additional employees in stated-owned enterprises and they don't work properly," he said.
Noting that the government is still one of the big employers in the country, the CAG said the financial report is not used due to social reason and considering the population.
Huge employees were recruited unnecessarily in the state-owned business enterprises, he said, adding: "They (employees) draw allowances, honorariums, salaries and different privileges like the private sector distorting worker definition."
Masud said it would take a long time to adopt the accounting and auditing standards by the government in public sector entities. The government would not buy it easily, though the World Bank and ICAB members are consistently advocating for it, he added. "You place an excellent report so that I can take most logical decision using data of the report. But the government shows a logic here, which I completely oppose, that a portion of manpower is inefficient who won't be able to manage job in the private sector," he said.
ICAB President Adeeb Hossain Khan FCA said the financial reporting framework for the country's private sector is sufficiently comprehensive and satisfactorily documented. But such a framework is also a long overdue for the public sector.
Explaining the government's total financial system and accounting system, Additional Secretary to the Finance Division Mohammad Muslim Chowdhury said the improvement in the auditing system in public sector entities is necessary. "ICAB and OCAG should take joint initiatives to strengthen the auditing system in public sector taking instance from our neighboring countries," he said.
ICAB Vice President Mahamud Hosain FCA said Bangladesh Financial Reporting Standard should also be followed in preparation of financial statements by state-owned enterprises, particularly government business enterprises (GBEs) like Bangladesh Biman and BRTC.
Burhanuddin Ahmed FCA presented the keynote paper, while World Bank Task Team Leader Mohammad Atikuzzaman FCA presented an overview of Strengthening Financial Reporting Framework for Public Sector Entities.
World Bank Lead Financial Management Specialist Suraiya Zannath Khan FCA also spoke on the occasion.

 

 

Many SOEs will be abolished if financial reports followed

ays comptroller and auditor general

Comptroller and Auditor General (CAG) Masud Ahmed yesterday said many state-owned enterprises (SOEs) would have been abolished for various irregularities had the CAG reports been followed, reports UNB. In fact, the (financial) reports have not yet been followed for various social reasons... If so, many state-owned enterprises would have been abolished on the basis of my reports leading to huge job cut, he said while addressing a workshop in the city. The Institute of Chartered Accountants of Bangladesh (ICAB) and the World Bank jointly organised the workshop titled Roadmap to Strengthening Financial Reporting Framework for Public Sector Entities at Pan Pacific Sonargaon Hotel. In many of our reports, we tell the government that there are additional employees in stated-owned enterprises and they dont work properly, he said. Noting that the government is still one of the big employers in the country, the CAG said the financial report is not used due to social reason and considering the population. Huge employees were recruited unnecessarily in the state-owned business enterprises, he said, adding: They (employees) draw allowances, honorariums, salaries and different privileges like the private sector distorting worker definition. Masud said it would take a long time to adopt the accounting and auditing standards by the government in public sector entities. The government would not buy it easily, though the World Bank and ICAB members are consistently advocating for it, he added. You place an excellent report so that I can take most logical decision using data of the report. But the government shows a logic here, which I completely oppose, that a portion of manpower is inefficient who wont be able to manage job in the private sector, he said. ICAB President Adeeb Hossain Khan FCA said the financial reporting framework for the countrys private sector is sufficiently comprehensive and satisfactorily documented. But such a framework is also a long overdue for the public sector. Explaining the governments total financial system and accounting system, Additional Secretary to the Finance Division Mohammad Muslim Chowdhury said the improvement in the auditing system in public sector entities is necessary. ICAB and OCAG should take joint initiatives to strengthen the auditing system in public sector taking instance from our neighboring countries, he said. ICAB Vice President Mahamud Hosain FCA said Bangladesh Financial Reporting Standard should also be followed in preparation of financial statements by state-owned enterprises, particularly government business enterprises (GBEs) like Bangladesh Biman and BRTC. Burhanuddin Ahmed FCA presented the keynote paper, while World Bank Task Team Leader Mohammad Atikuzzaman FCA presented an overview of Strengthening Financial Reporting Framework for Public Sector Entities. World Bank Lead Financial Management Specialist Suraiya Zannath Khan FCA also spoke on the occasion.