VIOLATION OF LICENSING AGREEMENT
BTRC fined Robi only Tk 3 lakh instead of Tk 500cr: CAG audit
The government lost Tk 499.97 crore in revenue as the telecom regulator had charged only Tk 3 lakh fines on TM International Bangladesh Ltd in 2009, instead of Tk 500 crore, when it changed its name to Axiata Bangladesh Ltd (Robi) violating licensing agreement,
finds a government audit recently.The BTRC charged Tk 3 lakh administrative fines after the TMIB had changed the name on May 15, 2009 without prior approval of the telecom regulator and also did not follow the other procedures, said the audit report of the Comptroller and Auditor General’s office which will be placed to the parliament soon.
The BTRC, after its 75th commission meeting, asked for clarification from the TMIB as the company violated clause 11.6 and 20 of the licensing agreement with the commission.
The TMIB in reply said that the company was not aware of the aforesaid clauses but the BTRC found the reply unsatisfactory.
The BTRC in its 78th commission meeting decided, ‘TM International Bangladesh Ltd will be fined Tk 3 lakh as per the Telecommunication Act 2001 and also will be warned firmly for not violating any clause of the licensing agreement in future.’
According to the clause 58 of amended telecommunication act of 2008, which came into effect from December 22, 2008, the amount of administrative fine will be Tk 500 crore instead of Tk 3 lakh, said the audit report.
‘Although the BTRC imposed the fine on 2009, it did not take the amended act of 2008 into consideration and fined the TMIB as per the rule of 2001,’ it said.
In reply to the audit objection the BTRC admitted that the fine was imposed according to the telecommunication law of 2001 but failed to specify any reason why the commission did not take the amended law into consideration.
The posts and telecommunications ministry also avoided replying the audit objection and sought more time from the CAG office.
The telecommunication ministry in its reply also said that it would inform the audit office soon after collecting the full details of the matter.
The CAG office, however, rejected the BTRC reply and recommended for collecting Tk 499.97 crore from Axiata Bangladesh Ltd.
‘The reply of the audited agency (BTRC) was not satisfactory. The BTRC imposed the fine after the amendment to the law in 2008 so the rest of the amount, Tk 499.97 crore, should be collected from the operator concerned,’ it said.
Asked about the issue BTRC chairman Sunil Kanti Bose told New Age that the commission placed its reply to the audit office about the matter.
‘We have given our reply to the audit office. If the CAG office is not satisfied with our reply it can place the objection before the parliament. Then we will take action as per the decision of the Public Accounts Committee of the parliament,’ he told New Age when asked about the audit objection.
When asked about the issue Robi Axiata Ltd said the company followed the law while changing its name.
‘It’s the responsibility of the RJSC under the Company’s Act to approve a name change. This has been done as per law. That the BTRC raised a concern about the name change is beyond its scope. Nonetheless we paid the fine imposed,’ it said in a statement to New Age.
‘Subsequently the Telecommunication Act 2001 was amended in 2010 and fine amount changed from Tk 3 lakh to “not more than” Tk 300 crore; not as a flat Tk 300 crore as suggested,’ it said.
Robi also said, ‘Our fine was Tk 3 lakh as our name was changed on May 28, 2009 (Axiata Bangladesh from TM International) and the amended law (BTA 2010) came into effect from August 18, 2010. In accordance with the general principle of law, a fine should be imposed based on the severance of the wrongdoing or offence. We also believe that the basis of auditor’s recommendation is not in line with the law.’
-With New Age input
