Press Release
Dhaka, 08 May 2025: Transparency International Bangladesh (TIB) has expressed its concern over the Public Audit Ordinance, 2025, stating that it undermines the constitutional status of the Comptroller and Auditor General (CAG). Terming the ordinance conflicting with the Constitution, TIB noted that it is a pro-corruption legal instrument that, instead of preventing irregularities and collusive fraud in revenue assessment and collection, effectively protects such malpractice and creates scope for tax evasion. TIB has urged the government to immediately undertake appropriate amendments to the ordinance to safeguard the impartiality and constitutional authority of the CAG.
TIB Executive Director Dr. Iftekharuzzaman in a statement said, “Through this ordinance, the constitutional status of the CAG has been significantly diminished. Several provisions in the enacted ordinance will directly obstruct the CAG, a constitutionally mandated independent institution, from operating free of government control. This ordinance, in effect, enables tax evasion and corruption, which is deeply alarming. We had expected that the interim government would take a rational and ethical position in this regard without yielding to any undue and immoral pressure or demand. It is both disappointing and condemnable that the ordinance has been passed while entirely disregarding the recommendations of relevant stakeholders.”
He further noted, “The ordinance permits the government to oversee crucial aspects such as rule formulation, contract execution, the organizational structure of the CAG’s office, the designation framework, and the merging, separation, or dissolution of departments. By granting these powers to the executives, the ordinance creates a scope that essentially diminishes the CAG to a government-dependent entity. This clearly violates Article 128(4) of the Constitution, which explicitly stipulates that the CAG shall not be subject to the direction or control of any other authority. Moreover, despite the Supreme Court's directive, the ordinance has kept revenue assessment and collection outside the scope of audit for the CAG. This exclusion undermines accountability in government finance management. As the sole constitutionally authorized audit institution for all public accounts, there is no alternative to ensuring the complete independence of the CAG, free from executive interference or influence. Additionally, the interim government's disregard for the fact that tax evasion in Bangladesh is significantly driven by irregularities and collusive fraud in revenue assessment and collection is incomprehensible. We anticipated that the interim government would demonstrate more responsibility and sensitivity in this matter. In a period marked by state structure and institutional reforms, the issuance of an ordinance that undermines a constitutional institution is concerning and directly contradicts the spirit and aspirations of the July movement.”
TIB earlier had submitted a set of recommendations to the interim government for consideration during the drafting phase of the Public Audit Ordinance, 2025. Highlighting that all those recommendations were tactically ignored in the final version, Dr. Zaman said, “We had proposed ensuring the CAG’s authority to audit national revenue and receipts, holding officials of audited entities accountable, enabling autonomous recruitment of CAG staff, and empowering the CAG to frame its own rules. Several relevant advisers had assured us of due consideration for these proposals. However, it appears that key conditions essential to ensuring transparency and accountability have been selectively excluded. We have also learned from media sources that the provision — included in the CAG office’s original draft — to bring the accuracy of revenue assessment under audit was removed by the Finance Division. In light of the current situation, it is understandable to question whether the ordinance was intentionally designed to safeguard avenues for potential tax evasion by unscrupulous taxpayers in collaboration with some officials. TIB urges the government to promptly and suitably revise this deficient ordinance to reinstate oversight over revenue assessment and collection, thereby enhancing the authority and efficacy of the CAG.”
Media Contact:
Mohammad Tauhidul Islam
Director, Outreach and Communication
Phone: +8801713107868
Email: tauhidul@ti-bangladesh.org
