Public Audit Bill: TIB seeks scope to audit accuracy in determining revenue

It warns lack of such a clause will leave the government’s entire revenue process “beyond accountability”

Transparency International Bangladesh (TIB) has recommended including provisions in the draft Public Audit Bill-2024 to ensure the “audit of revenue assessment and collection” and the “pre-eminence and effectiveness” of the Office of the Comptroller and Auditor General (OCAG).

It said in a media statement on Monday that these recommendations have been sent to the interim government for consideration.

According to the statement, the proposals focus on securing the authority to audit national revenue and receipts, ensuring the accountability of relevant employees in audited institutions, granting the Comptroller and Auditor General (CAG) the power to appoint its own staff, and enabling rule-making authority.

TIB criticised the initiative to finalise the draft of the bill, which was shaped through an “opaque process” involving the Ministry of Finance, some government agencies, a donor organisation, and the OCAG.

The anti-corruption watchdog had called for the bill to be opened for consultation with relevant stakeholders and experts in the “public interest” on Feb 20.

Later, when the draft ordinance came to TIB, the organisation made five key recommendations.

It suggested adding a provision that would allow the CAG to audit whether all government revenue and receipts have been accurately determined, collected, deposited, and accounted for according to laws, regulations, and procedures.

In addition, TIB recommended ensuring the accountability of employees by making them responsible for providing information and offering full cooperation in the auditing process.

It also called for the inclusion of neutral sector experts and civil society representatives in the independent monitoring committee formed by the CAG.

This committee, according to TIB’s suggestion, should report to the Public Accounts Committee of the parliament, and the findings should be made publicly available.

It also suggested including a provision that would empower the CAG to hire all personnel for its office and manage the office according to its own human resources policies.

TIB Executive Director Iftekharuzzaman said the absence of an opportunity to audit the accuracy of revenue determination in the proposed ordinance would leave "the entire government revenue determination and collection process beyond accountability."

He pointed out that one of the main ways of tax evasion in Bangladesh is fraudulent revenue determination through collusion between some tax officials and dishonest taxpayers.

Numerous instances of this have been reported by reliable sources.

This, he said, is undoubtedly one of the causes behind the concerning tax-to-GDP ratio in the country.

The TIB chief said, "To overcome this, it is essential to include revenue determination in the audit process.

“We hope the interim government will make the right decision without yielding to any unethical demands or pressures," he concluded.