Salehuddin stressed the importance of audit and accounting in ensuring transparency and accountability in the financial system
Finance Adviser Saluhuddin Ahmed spoke at a post-budget press conference at Osmani Auditorium in the capital today (3 June). Photo: Rajib Dhar/TBS
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Finance Adviser Saluhuddin Ahmed spoke at a post-budget press conference at Osmani Auditorium in the capital today (3 June). Photo: Rajib Dhar/TBS
Finance Adviser Salehuddin Ahmed stated that reforms in Bangladesh’s financial sector face significant hurdles, but they are not solely driven by the World Bank or International Monetary Fund (IMF).
According to him, many believe that these reforms are being undertaken on the initiative of international financial institutions, but in reality, the government is taking its own initiatives as well. “If there are good suggestions from others, why shouldn’t we accept them?” he added while speaking as the chief guest at the “Audit and Accounting Summit” held at the Hotel Sonargaon in Dhaka today (9 July).
During the event, Dr Sazzad Hossain Bhuiyan, chairman of the Financial Reporting Council (FRC), presented a keynote paper.
Salehuddin stressed the importance of audit and accounting in ensuring transparency and accountability in the financial system. However, he noted that the integrity and transparency of those involved in auditing and accounting are even more critical.
“Many organisations submit papers that lack quality,” he said.
Regarding the National Board of Revenue (NBR), he said proper auditing is crucial, especially when 70 out of every 100 taxpayers reportedly declare zero income tax. “This is unbelievable and deserves thorough scrutiny,” he noted.
He added, “Auditors must be transparent themselves. It’s not just about arithmetic, auditors must observe with insight and identify risks.”
‘Shocking discrepancy in loan default reporting’
Bangladesh Bank Governor Ahsan H Mansur revealed that several bank audit reports contain fictional data. “One bank claimed its non-performing loan (NPL) ratio was 4%, but upon auditing, we found it was actually 96%,” he said.
He emphasised the need for accurate and transparent audit reports to gain trust from both domestic and foreign investors. Bangladesh Bank, he said, will work jointly to ensure this standard.
Anti-Corruption Commission urges auditor integrity
Abdul Momen, chairman of the Anti-Corruption Commission (ACC), warned that if current audit reports were used to make judgments, it would be difficult to find any truly honest auditors. He cited major scandals at IFIC Bank, where with the help of auditors, inflated financials were used to secure funds for a paper company allegedly linked to Salman F Rahman.
“There have been repeated financial irregularities in the banking sector during the previous administration,” he said, adding that Bangladesh Bank had identified several top audit firms involved in covering up such corruption. While this identification is commendable, he lamented that no visible punitive action has been taken against them yet.