Financial sector reforms not only driven by IMF, World Bank; govt taking initiatives as well: Finance adviser

Finance Adviser Salehuddin Ahmed stated that reforms in Bangladesh's financial sector face significant hurdles, but they are not solely driven by the World Bank or International Monetary Fund (IMF).

According to him, many believe that these reforms are being undertaken on the initiative of international financial institutions, but in reality, the government is taking its own initiatives as well.

"If there are good suggestions from others, why shouldn't we accept them?" he added while speaking as the chief guest at the "Audit and Accounting Summit" held at the Hotel Sonargaon in Dhaka today (9 July).

During the event, Dr Sazzad Hossain Bhuiyan, chairman of the Financial Reporting Council (FRC), presented a keynote paper.

Salehuddin stressed the importance of audit and accounting in ensuring transparency and accountability in the financial system. However, he noted that the integrity and transparency of those involved in auditing and accounting are even more critical.

"Many organisations submit papers that lack quality," he said.

Regarding the National Board of Revenue (NBR), he said proper auditing is crucial, especially when 70 out of every 100 taxpayers reportedly declare zero income tax. "This is unbelievable and deserves thorough scrutiny," he noted.

He added, "Auditors must be transparent themselves. It's not just about arithmetic, auditors must observe with insight and identify risks."

ACC urges auditor integrity

Addressing the event, Anti-Corruption Commission (ACC) Chairman Abdul Momen cited major scandals at IFIC Bank, where, with the help of auditors, inflated financials were used to secure funds for a paper company allegedly linked to Salman F Rahman.

"There have been repeated financial irregularities in the banking sector during the previous administration," he said, adding that Bangladesh Bank had identified several top audit firms involved in covering up such corruption.

While this identification is commendable, he lamented that no visible punitive action has been taken against them yet.