There has been missappropriation of over Tk5 crore at the state-owned Petrobangla as it transferred money meant for the deficit oil head margin for Bapex sector to the price deficit fund sector instead, said the audit report from the Commercial Audit Directorate.
The report also said Petrobangla had incurred a loss of over Tk16 lakh in the fiscal 2012-13 as it accepted the tender for lift maintenance placed by the second lowest bidder instead of the lowest bidder.
A four-member team from the Commercial Audit Directorate took nearly two months, from February to March this year, to audit the company’s 2012-13 statement. The team submitted the audit report to the Director-General of the directorate on April 10.
As for the misappropriation, the report revealed that gas distribution companies under Petrobangla, including Titas Gas Transmission and Distribution Company Ltd, Bakhrabad Gas Distribution Company Limited, Pashchimanchal Gas Company Ltd, Jalalabad Gas Transmission and Distribution System Limited and Karnaphuli Gas Distribution Company Limited, pay Bapex Tk25 for each mcs of gas.
In order to meet the deficit in the gas production cost by Bapex, these distribution companies send money to Petrobangla’s account at a specified rate in the deficit oil head margin for the Bapex sector, which, according to the rule, should be sent to the Bapex account by Petrobangla.
Petrobangla authorities, however, transferred a portion of the sum collected from the distribution firms to its own price deficit fund. In the fiscal 2012-13, Petrobangla transferred Tk51,828,838 to the fund which was supposed to go to the Bapex account.
The price deficit fund sector was created to adjust the subsidy paid at the consumer level in the wake of a hike in the price of gas obtained from the International Oil Company. Thus, transferring the money paid by distribution firms for the deficit oil head margin for Bapex sector to the price deficit fund sector is a violation of the rules.
The audit team has recommended informing it after transferring money from the deficit oil head margin for Bapex sector to the price deficit fund sector.
Petrobangla Chairman Hossain Monsur told the Dhaka Tribune that it will be inappropriate to comment before seeing the audit report.
In addition, the report revealed that, according to tender opening sheet, six bidders submitted bids for the contract to repair and maintain five Petrobangla lifts and Benfix Technology was given the work order dated 30th June, 2011, as the lowest bidder and the contract price was Tk4,358,908.80.
The report further revealed that Kecco Limited bid Tk2,754,000 for the five lifts for 36 months, with Tk15,300 for each lift per month. The tender evaluation committee, however, declined Kecco Limited’s bid on the grounds that the firm did not have any prior experience in running and maintaining LG lifts, and that the bid placed by it was less than the estimated bid. The tender thus went to Benfix Technology.
However, Kecco Limited’s bidding document showed it had experience in maintaining LG lifts, meaning its bid was wrongly cancelled which led to a loss of Tk1,604,909.
Speaking on the issue, Hossain Monsur told the Dhaka Tribune everything was done according to the tender evaluation committee’s report.
The committee is not supposed to give a report that could lead to a loss for Petrobangla, he added.