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Tk 187.35 crore audit objection to army men's foreign earnings

Staff Correspondent
Auditors have found irregularities in the handling of Tk 187.35 crore earned by the army personnel as foreign allowance.
The money was not deposited with the government as required by the rules. Instead, a substantial amount of the money was transferred to a Fixed Deposit Receipt (FDR), certain portion was disbursed as loan and the rest kept in a
current account.
This was revealed in an audit report by the comptroller and auditor general of Bangladesh tabled in parliament last night by State Minister for Finance Shah Md Abul Hossain.
The audit report on the institutions under the defence ministry said while auditing the 1999-2001 period's accounts of the welfare and rehabilitation directorate and
army headquarters, it was found that in violation of the defence ministry's instruction to deposit the payable amount of army personnel's foreign allowance to the government treasury, separate funds were created with the money.
Of the Tk 187.35 crore, meant for government treasury, Tk 139.57 crore was deposited in an FDR, Tk
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47.30 crore was disbursed as credit and the remaining amount kept in a current account.
The audit report also stated that when relevant documents were sought about non-payment of the money to the government treasury, the people concerned said it was not possible to present the documents without permission of the higher authorities.
The army personnel concerned declined to make any comment on the financial irregularity when the auditing authorities raised the primary objection; rather, a request was made to withdraw the objection.
As the auditors got no response from the army unit concerned on this particular audit objection, the issue was identified as a financial irregularity and a note was sent out to the secretary of the defence ministry on December 4, 2001.
But as no response for resolution of the audit objection was made from the ministry as well, a demi-official letter was sent to the defence secretary on March 5 last year requesting him to respond to the issue within four weeks.
But no response came till date, the CAG's audit report said adding that the Tk 187.35 crore along with the interests should be deposited with the government coffer immediately.
The audit report of FY 20002001 on the defence sector, which was tabled in the House yesterday, also gave brief accounts of some other financial irregularities in various institutions under the defence ministry.