TIB slams Public Audit Ordinance 2025 for undermining CAG's authority and enabling tax evasion

The Transparency International Bangladesh (TIB) has strongly criticised the recently approved Public Audit Ordinance, 2025, calling out key provisions that it claims weaken the constitutional authority of the Comptroller and Auditor General (CAG) and open the door to tax evasion and corruption.

In a statement today (25 April, TIB stated that despite objections and specific recommendations from stakeholders, the interim government's Advisory Council has approved the ordinance in principle.

TIB expressed particular concern over the exclusion of revenue assessment and collection from the CAG's audit scope, a decision that defies the Supreme Court's directives and potentially removes a critical area of government finance from independent oversight.

TIB Executive Director Dr Iftekharuzzaman warned that "excluding revenue assessment and collection under Section 7 of the ordinance effectively removes accountability from one of the most corruption-prone areas of governance."

He added, "This not only violates the spirit of the Constitution but also raises serious questions about undue influence from vested interest groups such as the National Board of Revenue (NBR)."

The ordinance also includes clauses requiring prior government approval for the CAG to enter into international agreements or frame internal rules (Sections 17 and 18), the statement reads.

TIB considers these clauses a direct infringement on the constitutional independence of the CAG.

Iftekharuzzaman pointed out that other constitutional bodies like the Public Service Commission are allowed to formulate their own rules without prior government approval — so the same autonomy should be granted to the CAG.

TIB noted that the secrecy surrounding the drafting of the Public Audit Bill 2024, which preceded the ordinance, was also a matter of concern.

The organisation had submitted five specific recommendations on the draft ordinance to the ministries of Law, Justice, and Finance but fears these were overlooked.

"If implemented in its current form," said Iftekharuzzaman. "The ordinance will compromise the independence, neutrality, and effectiveness of the CAG, ultimately weakening transparency and accountability in public financial management."

TIB urged the interim government to reconsider the ordinance, taking into account constitutional principles and the need for robust institutional checks and balances.