BSEC to appoint special auditor at United Airways
Highlights
● Raised Tk100cr through IPO in 2010
● Also issued right shares in 2011
● Directors hold only 2.5% share
● Current paid-up Tk828cr
● Total debt around Tk800cr
The Bangladesh Securities and Exchange Commission (BSEC) is going to appoint a special auditor at United Airways (BD) Ltd to review the company's financial statements for ten years starting from 2012.
The commission has recently published a tender notice in this regard.
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After receiving all the applications, the BSEC will select an auditor who would charge the least.
In March this year, the BSEC decided to take action against the former board of directors of United Airways. The company had ceased operations in September 2014.
In September last year, the BSEC formed a five-member inquiry committee to investigate the company's affairs. A BSEC official, who wished to remain anonymous, said most of the irregularities occurred during the tenure of former Managing Director Tasbirul Alam Chowdhury.
The inquiry team examined various issues, including the suspension and resumption of operations, the reconstruction of the board of directors, the trading pattern of securities, and the overall status of the company.
In March 2022, the commission instructed the company to regularise its annual general meetings and complete audits that had been pending for the past four fiscal years.
In June 2021, the BSEC delisted the company from the main board of stock exchanges and transferred it to the over-the-counter (OTC) market due to its weak fundamentals.
To revive operations, the market regulator restructured the company's board of directors in February 2021. It nominated seven independent directors, including Kazi Wahidul Alam, an aviation expert and editor of Bangladesh Monitor, as chairman, and removed former Managing Director Tasbirul Alam Chowdhury from the board.
Sources said that the company currently has liabilities of around Tk800 crore, of which Tk355 crore is owed to the Civil Aviation Authority, and the remaining debt is to banks and other sources.
Established in 2005, United Airways raised Tk100 crore through an initial public offering (IPO) in 2010. It also issued rights shares in 2011.
When the company did not have the funds to cover the cost of operating flights, officials announced an indefinite suspension of all domestic and international flights.
Later, the company resumed its domestic Dhaka-Saidpur flights. However, in March 2016, all domestic and international flights of the company were suspended indefinitely.
The company's paid-up capital is currently Tk828 crore. Sponsors and directors jointly hold only 2.5% of shares, while general investors own 86.43%.
