The government has formed a seven-member committee to investigate irregularities in the disbursement of Tk1,247.42 crore in Ex-Gratia, Workers’ Profit Participation Fund (WPPF), and incentive bonuses over the past five years by 13 subsidiaries of Petrobangla.
The committee is headed by Hafizur Rahman, Chairman of the state-owned Gas Transmission Company Limited (GTCL). The Energy and Mineral Resources Division (EMRD) has already suspended incentive and bonus payments, drawing disappointment from the affected companies.
An EMRD review flagged serious financial indiscipline, revealing that several loss-making firms, including Titas Gas, Bakhrabad Gas Transmission, and Madhapara Granite Mining, disbursed hefty Ex-Gratia and incentive payments despite reporting negative net profits.
The review also highlighted the rising burden of subsidies. Between FY2018-19 and FY2024-25, the government provided Tk36,712.68 crore in subsidies, of which Tk30,712.68 crore was spent in the last five years alone. Yet, Petrobangla subsidiaries distributed Tk1,247.42 crore in bonuses and incentives during the same period. Subsidy allocations rose from Tk2,500 crore in FY2018-19 to Tk8,900 crore in FY2024-25, the highest to date.
Company-wise analysis shows Karnaphuli Gas Distribution Co. Ltd paid the highest WPPF (Tk182.34 crore), Bangladesh Gas Fields Co. Ltd the highest Ex-Gratia (Tk63.85 crore), and Titas Gas the highest incentive bonus (Tk46.05 crore). Other significant payers include GTCL, Sylhet Gas Fields, Sundarban Gas Company, and Rupantarita Prakritik Gas Company.
Audit observations flagged bonuses given despite losses, WPPF payouts without proper surplus calculations, and incentives disbursed without considering key performance indicators (KPIs).
The EMRD has proposed new guidelines restricting bonuses in loss-making firms, limiting incentives to special contributions, and ensuring approval only when companies meet profitability and compliance criteria.
“We are working to make incentive distribution in the energy sector more transparent,” EMRD Secretary Mohammed Saiful Islam told Just Energy News.