Photo: Messenger
Allegation of widespread corruption and irregularity has been raised now against a long-term profitmaking state-owned listed company, which has incurred loss for the first time recently in its six-decade-long journey.
Sources concerned said corruption has deeply penetrated the state-owned Titas Gas Transmission and Distribution Company Limited. Numerous allegations of corruption and irregularities plague company officials, ranging from the fourth-level to the third-level to the managing director.
In the midst of these allegations, the publicly-listed company suffered its first-ever loss in FY 2022–2023, ending a six-decade streak of profitability.
There are many complaints against the officers and employees of the company, including illegal connections, meter manipulations, showing system loss despite supplying less gas, and embezzlement of money by giving industrial-class connections to commercial customers.
Customers have repeatedly voiced their concerns, but their grievances have fallen on deaf ears. The personal interests of Titas employees have been prioritized, despite the organization's significant financial losses due to corruption.
In 2019, the Anti-Corruption Commission (ACC) made several recommendations to curb corruption, such as introducing prepaid meters, halting illegal connections, implementing regular transfers, hiring skilled personnel, and holding those responsible accountable.
Unfortunately, Titas has struggled to fully implement these recommendations. Many high-level officials within the organization appear more focused on amassing personal wealth than on the company's financial health. As a result, Titas incurred losses for the first time in its history.
Established in 1964, Titas had maintained a consistent history of profitability until the last financial year when it deviated from this trend.
A company official attributed the loss to a reduction in the distribution margin from Tk 0.25 to Tk 0.13 per cubic meter. Industrial entrepreneurs point out that residential gas connections have been halted since 2010, and industrial connections are often only granted with bribes.
According to Dhaka Stock Exchange (DSE) data, the company posted a loss of Tk 167 crore in FY 2022–23. Surprisingly, despite the losses, the company declared a 5 percent cash dividend for shareholders, down from the 10 percent cash dividend in the previous financial year.
Titas Gas relies primarily on its distribution margin and investment income as sources of revenue. Company officials attribute the loss to two factors: the Bangladesh Energy Regulatory Commission halved the distribution margin in the previous year, and system losses from household gas consumption.
Energy experts believe that many Titas officials are involved in irregularities. Professor M. Shamsul Alam, the energy advisor of the Consumers Association of Bangladesh (CAB), suggests that customers are paying significant bribes to obtain meters and that Titas employees openly accept these bribes.
To restore profitability, experts emphasize the need to tackle corruption and customer harassment at Titas.
Company officials have requested the government to increase the distribution margin for gas. The Bangladesh Energy Regulatory Commission (BERC) recently set the gas delivery margin at Tk 0.21 per cubic meter for Titas for the current fiscal year. While this margin may not be sufficient, officials hope it will provide some relief by increasing the company's income and potentially returning it to profitability.
An official from Titas Gas' finance department, who preferred to remain anonymous, claims that the National Board of Revenue (NBR) has collected Tk 562.95 crore in advance income tax (AIT) from Titas gas sales, which should be refunded to the company. However, despite several letters, the refund has not been processed, leading to financial strain on the company.
Additionally, the Managing Director of Titas Gas, Harunur Rashid Mollah, faces allegations of various irregularities and corruption, including defying government instructions, increasing system losses, and granting gas connections to industrial establishments in exchange for bribes. There are even accusations of him defaming the name of Prime Minister and Minister of Power, Energy, and Mineral Resources Sheikh Hasina while engaging in irregularities.
In response to these allegations, Bangladesh Oil, Gas, and Mineral Resources Corporation (Petrobangla) formed an investigation committee in September. The preliminary inquiry confirmed some irregularities, but a final decision awaits a thorough investigation and document verification.
It's important to note that Titas Gas was directly listed on the stock market by offloading 25 percent of shares on the Dhaka and Chittagong Stock Exchanges in 2008. Currently, 75 percent of the company's shares are held by Petrobangla, while foreign investors hold 0.18 percent, institutional investors hold 15.04 percent, and common shareholders hold 9.78 percent.
Messenger/Sajib
