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Biman crashlands into losses

Faces Tk 250cr loss in FY05 against Tk 44cr profit forecast

Staff Correspondent
Bangladesh Biman has incurred a loss of about Tk 250 crore, highest in a decade, in the last fiscal year against its projected Tk 44 crore profit, a parliamentary body said yesterday.
The parliamentary standing committee on government undertakings at a meeting blamed the huge loss on Biman's internal mismanagement and irregularities. But Biman officials defended by pinning the blame on price hikes of oil on several occasions.
The committee blasted the Biman officials for providing it with false and incomplete information, and asked them to submit accurate and detailed information at the next meet.
Biman in its report claimed none of its fleet of 13 aircraft is out of order now, meeting sources said.
"If your claim is true, then what is the current status of the two aircraft that crash-landed in Chittagong and
Sylhet airports," committee member Farukh Khan asked Biman officials.
Echoing the same view, Committee Chairman Abdul Alim asked the officials in which category they have enlisted the two aircraft.
Talking to reporters after the meeting, Alim said the overall condition of Biman is notgood.
"Biman has incurred a loss of Tk 586 crore since the 1995-96 fiscal year including the highest loss of about Tk 250 crore in the last fiscal year," he added.
Biman in accordance with its report made a profit of Tk 34.8 crore in FY 1995-96, Tk 16.3 crore in FY 1998-99, Tk 13.16 crore in FY 1999-2000 and Tk 34.04 crore (provisional) in FY 2003-2004.
On the other hand, it incurred a loss of Tk 81.4 crore in FY 1996-97, Tk 44.5 crore in FY 1997-98, Tk 93.06 crore in FY 2000-01, Tk 73.73 crore in FY 2001-02 and Tk 44.28 crore in FY 2002-03, the report says.
But Biman did not prepare the
information on station basis, and even did not give accurate information about the loss in the last FY. The committee asked the authorities for station basis information.
The committee also observed a huge number of pending audit objections since FY 1995-96 proves Biman's mismanagement and irregularities.
Biman in its report however did not give detailed information about how much money is involved in the 1,409 auditobjections.
"We are not satisfied with the report and have asked the authorities to prepare a complete report," Awami League lawmaker Farukh Khan told reporters after the meeting.
A senior Biman official however blamed a large number of trade unions in the organisation for the mismanagement.
"There are 10 trade unions in the organisation, though the existing law allows only three," he said, adding, the autonomy of the corporation is only in book.
The parliamentary body also discussed the activities of the tourism directorate under the civil aviation and tourism ministry.