The telecom regulator is going to launch a fresh initiative, after two failed attempts earlier, to audit the information systems of mobile phone operators in Bangladesh to see whether they comply with the regulations.
The official examination would facilitate Bangladesh Telecommunication Regulatory Commission (BTRC) to check how the operators were maintaining books of fees and charges as well as revenues payable to the national exchequer.
The BTRC would invite expressions of interest (EOI) from the intending audit firms through newspaper advertisements within a day or two, officials said.
According to a draft of the advertisement which the Dhaka Tribune obtained yesterday, the audit firms, to be appointed through due process, should examine the accounts like revenue sharing, spectrum charges, license fees, royalty, VAT, tax and other fees/charges etc. which is payable to BTRC or National Board of Revenue (NBR).
The commission has the authority “to get the operator’s procedure and systems audited so as to be satisfied about the compliance of the directions issued by the commission, and to examine the propriety of the reporting system of the operators, and to give directions on these matters.”
In accordance with the authority, BTRC audited Grameenphone in 2011, but was declared illegal by the apex court of the country.
On January 9 last year, BTRC again invited EOI for appointment of new audit firms but the process faced a challenge from the Institute of Chartered Accountants of Bangladesh (ICAB).
ICAB had argued that international firms could take part in the bid but local firms will have to take a lead under a joint venture.
BTRC then sought legal opinion from its consulting firm, Lex Counsel, which suggested the regulator to go for a fresh initiative.
Barrister Khandaker Reza-E-Raquib, legal adviser to BTRC, said: “We also found legality of ICAB’s claim and requested the telecom regulator for inviting a fresh EOI.”
Earlier, on the basis of previous EOI, the telecom watchdog made a shortlist of Request for Proposals (RFP) from six international audit firms and disqualified five other firms.
According to BTRC high officials, audit firms needs to find out the actual revenue generated and the calculation procedure to make the payment to BTRC, NBR or other agencies for a particular or whole licensing period and reconcile those with the operator’s financial statements.
They also need to analyse audit reports to discover understatements, misstatements or manipulation of any facts.
The regulator will also examine suspicious invoicing by the operators for importing hardware or software, according to BTRC officials.
On the basis of the audit reports, the regulator will take action against any operator, if found guilty, said the officials.
Following the audit of mobile operators, all the private land phone operators, internet service providers, international gateways, inter-connectivity exchanges, international internet gateways, and WiMax operators, among others, would come under the audit process.
On May 2011, the telecom regulator appointed a firm that audited the largest mobile operator, Grameenphone, and submitted a report in October. It claimed that Tk3,034 crore in revenue had remained unpaid.
The High Court ruling in the same year that declared illegal the appointment of audit firms by the telecom regulator in opening audits was also upheld by the Supreme Court on December 9 last year.
BTRC had sent an audit firm to the second largest operator, Banglalink, but it could not complete their task.