The auditors, during the audit conducted in May-September 1999, found five serious irregularities involving Tk 46.10 lakh at the Chittagong office of the BSC during fiscals 1995-1998.

The report of the Comptroller and Auditor General (CAG) highlighted excess shore allowance, expenses for telephone, entertainment, medical treatment, and excess daily allowance and unauthorised purchase of pager and mobile phones as the heads that caused a loss of Tk 135.19 crore during 1997-1998 fiscals.

The special CAG report suggested for reducing expenditure, proper use of assets, increasing skills, bringing transparency in financial matters, restoring financial discipline and ensuring accountability in all spheres for optimum benefit of the government commercial institution.

According to the audit report, 15 officials of BSC were given Tk 4.92 lakh as shore compensatory allowance while Tk 36.80 lakh was spent in excess for telephones, trunk calls, entertainment and medical treatment.

Excess payment of daily allowance also caused a loss of Tk 1.16 lakh while unauthorised purchase of pager and mobile phones caused a loss of Tk 79.53 thousand to the government exchequer. Unrealised shipping fares also caused a loss of Tk 2.42 lakh.

Apart from these irregularities, the BSC has been counting a huge loss while running as a public sector enterprise.

During the 1995-96 fiscal, the BSC's income target was Tk 226.45 crore. But it earned Tk 218.38 crore, leaving a deficit of Tk 8.07 crore. In the next fiscal 1996-97, the deficit shot up to Tk 19.91 crore as the BSC again failed to attain the income target. In 1997-98 fiscal year, the deficit was Tk 9 crore.

The CAG report suggested for taking immediate steps to reverse the situation. "Or else, Bangladesh Shipping Corporation would become a burden for the government in the near future," the report observed.