Audit finds irregularities in 118 areas at 24 public universities, Tk 2,031 crore loss

An Education Audit Directorate report has identified irregularities in 118 areas across 24 public universities in Bangladesh, resulting in financial losses of more than Tk 2,031 crore to the government and universities during the 2024-25 fiscal year.

The findings include unauthorised payments of salaries and allowances, irregular appointments and promotions, failure to collect government taxes and fees, excessive benefits, and failure to recover dues, according to the recently published audit report.

Among the findings, university authorities allegedly calculated the retirement age of officials and employees beyond the legally prescribed 59 years, resulting in excess salary and allowances and leave encashment benefits worth Tk 21.92 crore.

The report also found that universities deducted house rent allowances from teachers and officials living in university quarters at rates lower than prescribed, causing a financial loss of Tk 20.42 crore.

The 24 audited institutions are Dhaka University, Rajshahi University, Chittagong University, Jahangirnagar University, Rajshahi University of Engineering and Technology, Islamic Arabic University, Chattogram Veterinary and Animal Sciences University, Sher-e-Bangla Agricultural University, Khulna University of Engineering and Technology, Jatiya Kabi Kazi Nazrul Islam University, Bangladesh Agricultural University, Hajee Mohammad Danesh Science and Technology University, Begum Rokeya University, Bangladesh Open University, Shahjalal University of Science and Technology, Bangladesh University of Engineering and Technology, Mawlana Bhashani Science and Technology University, Bangladesh Medical University, Bangladesh University of Textiles, Islamic University, National University, Dhaka University of Engineering and Technology, Khulna Agricultural University and Jagannath University.

Irregular retirement and allowances

According to the audit report, universities paid leave encashment, gratuity and monthly pension benefits to teachers and employees who had voluntarily retired without completing the required pensionable period. The practice caused a financial loss of Tk 1.52 crore.

Universities also failed to recover salaries and allowances paid to teachers who did not return to their institutions after completing educational leave, resulting in a loss of Tk 25.84 crore.

The report identified another Tk 14.63 crore in losses from paying house rent allowances at rates higher than those employees were entitled to receive.

“This happened before we took responsibility. These irregularities may have occurred as part of the continuation of irregularities committed in the past. The irregularities will certainly be investigated, and action will be taken against those responsible according to the rules.”

UGC member Prof Dr Abdullah Al Mamun told The Daily Campus that the commission would examine the audit findings.

Unauthorised appointments and promotions

The audit also identified financial losses linked to appointments of people who did not meet the qualifications or experience requirements specified in recruitment notices. Such payments resulted in a loss of Tk 3.44 crore.

Universities also incurred Tk 3.32 crore in losses by granting higher grades and upgrades in violation of applicable rules.

The report found Tk 46.50 lakh in losses from appointments to posts outside approved organograms or to additional posts.

Another Tk 1.90 crore was lost through additional increments granted to teachers, officials and employees despite them not being entitled to the benefits, including increments granted during educational leave.

The largest loss among the cited personnel-related irregularities was Tk 47.38 crore, resulting from promotions to posts outside approved organograms followed by payment of salaries and allowances.

The report also identified Tk 4.70 crore in losses from paying arrear salaries and allowances to employees who were not entitled to them.

Tax, VAT and revenue losses

Universities also failed to properly deduct withholding income tax from bills submitted by suppliers, contractors and consultants, causing a government financial loss of Tk 1.21 crore. Failure to deduct VAT, or deducting it at lower-than-prescribed rates, from shop and facility rents and supplier bills resulted in another Tk 82.20 lakh in lost government revenue.

The audit found Tk 6.82 crore in losses because interest earned on security deposits deducted from project contractors' bills was not deposited into the government treasury. Universities also failed to collect VAT on insurance premiums, resulting in a revenue loss of Tk 1.16 crore. Failure to deduct withholding income tax from honorariums caused another Tk 3.12 crore in government losses.

Excess benefits and unrecorded income

The report identified a range of other irregular benefits paid to university staff. These included Tk 1.77 crore in subsidies on electricity, gas and water bills for residential quarters despite UGC instructions; Tk 1.53 crore in mobile allowances paid to teachers and officials who were not entitled to them; and Tk 1.85 crore in excess telephone cash benefits.

Universities also paid Tk 10.29 crore in excess duty allowances to teachers in violation of rules. The audit found Tk 1.97 crore in losses from excessive book allowances and Tk 5.51 crore from irregular research allowances.

Another Tk 3.27 crore was lost through various allowances paid to teachers, officials and employees who were not entitled to them. In one case, audit records were not produced for examination. According to the available records, the universities' total expenditure amounted to Tk 43.82 crore.

The report also identified Tk 2.12 crore in losses from appointing teachers for on-campus learning activities in violation of rules.

Revenue and contractual failures

The universities failed to show Tk 12.69 crore generated from first-year admission form sales and admission fees in their budgets, according to the audit findings.

Another Tk 44.92 crore in government financial losses was identified because income from various university sources was not reflected in the budgets.

The audit also found that universities failed to confiscate performance security despite contractors not completing work as required under their contracts, resulting in a loss of Tk 5.79 crore.

Contractors were allegedly paid Tk 3.10 crore more than the contractual value of their work. Failure to impose delay penalties despite contractors missing contractual deadlines resulted in a further loss of Tk 58.41 crore.

Other findings included failure to recover outstanding shop and market rents, unpaid electricity bills from university-allocated shops, failure to adjust advances paid to teachers and employees, and payments of salaries and allowances to staff appointed without UGC approval or applicable recruitment rules.

UGC promises action

UGC member Prof Dr Abdullah Al Mamun said the commission would investigate the irregularities identified by the audit.

“This happened before we took responsibility. These irregularities may have occurred as part of the continuation of irregularities committed in the past. The irregularities will certainly be investigated, and action will be taken against those responsible according to the rules.”

UGC Chairman Prof Dr Mamun Ahmed said the commission would take action if university authorities were found involved in irregularities.

“I would urge universities to ensure that there are no irregularities of any kind. At the same time, if any authority is involved in an irregularity, the UGC will examine the matter and take appropriate action.”