Despite strong opposition from the country’s chartered accountants against the draft Financial Reporting bill, the government is going to place it in the parliament in next session.
While talking with the journalists at the Secretariat in Dhaka Thursday, Finance Minister AMA Muhith informed it.
Criticising the chartered accountants, he alleged they do not prepare reports carefully and make mistakes.
“Allegations are huge against the country’s chartered accountants. The stock exchanges have already started speaking against the reports made by them,” said finance minister.
According to Muhith, there are allegations that the chartered accountants have destroyed the stock markets as they prepare reports which are not consistent at all with the reality.
The last caretaker government made an ordinance on financial reporting, but the current elected government did not pass into law and proposed a new bill.
A committee was formed to prepare the draft financial reporting act after four years of discussion.
“Although the committee held discussions with the stakeholders in last four years before drafting the bill, the chartered accountant are now opposing it. They are putting pressure on the government not to pass it,” said Muhith.
Under the draft law, the provision of five years in prison and fine of Tk100,000 or the both will be kept in the new law as punishment for violating the law.
If any person or institution continues violating the law, they will receive a penalty of Tk5,000 for every day.
Under the act, audit firms’ financial reports will be re-examined and those found guilty of placing fabricated reports will face punishments.
Earlier, the draft was placed in the cabinet committee twice for approval but the cabinet asked for doing some corrections in the draft without suggesting any specific changes.
The draft has been prepared by the Banking Division as per the recommendations and opinions of stakeholders.
