A government investigation into Padma Oil’s handling of US dollar earnings from jet fuel sales remains incomplete after five months. The probe was ordered after reports alleged the state-owned company incurred financial losses through its currency conversion practices.
The Energy and Mineral Resources Division formed a three-member committee on April 27 with a five-working-day deadline to submit findings. However, the report has yet to be delivered, according to a division official who spoke anonymously.
Delayed Report Leaves Key Questions Unanswered
The delay has left unanswered questions about whether Padma Oil’s previous practice of converting dollars to taka caused losses, the amount involved, and potential responsible parties. The committee is headed by Irshad Reza, deputy secretary of the Energy and Mineral Resources Division.
Other members include Asadul Haque, director of planning at Bangladesh Petroleum Corporation (BPC), and SM Jakaria, deputy secretary of the division’s planning section. Haque stated that financial investigations are time-consuming and require extensive data collection and review.
Currency Conversion Practices Under Scrutiny
The investigation was prompted by media reports questioning Padma Oil’s practice of converting dollars earned from foreign airlines into taka. This process allegedly exposed BPC to exchange-rate losses of up to Tk2 per dollar when purchasing dollars for petroleum imports.
Padma Oil and BPC have since opened foreign-currency accounts to avoid repeated conversions. In the past five months, jet fuel sale proceeds have been deposited into these accounts, with BPC recently using the funds to open an import letter of credit for petroleum products.
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While the new arrangement addresses currency conversion issues, the investigation must determine if the previous practice caused losses, who approved it, and why the foreign-currency mechanism wasn’t implemented earlier.
ACC Investigates CFO Over Misconduct Allegations
Separately, the Anti-Corruption Commission (ACC) is investigating allegations against Padma Oil’s Chief Financial Officer and acting general manager of finance and accounts, Kanchan Chandra Shome. The probe was initiated based on a complaint filed by a Padma Oil employee on September 1.
The complaint alleges irregularities in Shome’s recruitment, financial management, bank deposits, foreign travel, promotions, and influence over administrative decisions. It also claims that over Tk300 crore in company funds was invested in fixed deposits, with a significant amount unrecovered.
The ACC will determine the validity of these allegations and whether any financial or administrative wrongdoing occurred. Despite attempts to contact Padma Oil’s managing director and Shome for comment, neither responded before publication.
Recent Fuel Purchase and Official Responses
BPC recently utilized funds from jet fuel sales to open an import letter of credit for petroleum products, marking the first time it purchased fuel using foreign currency generated directly from these sales. TBS reached out to Padma Oil’s managing director and Shome for comment on the allegations and the delayed government probe.
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