Photo: Collected
Titas Gas Transmission and Distribution Company Limited has released its unaudited financial report for the third quarter ending on March 31, 2024. The company posted a loss of Tk 2.14 per share in the third quarter of the current financial year, while it logged a loss of Tk 1.19 per share during the same period last year.
The report was released after its review and approval at the company’s board meeting held on Monday (April 29). According to company sources, Titas incurred a loss of Tk 1.67 per share in three quarters (July 2023-March 2024). During the same period last year, the income was Tk 0.8 per share.
The company’s cash flow per share during the period under review was Tk 3.31 as compared to Tk 23.47 in the same period last year. Its net asset value per share (NAVPS) as on March 31, 2024 was Tk 69.99.
Allegations of widespread corruption and irregularity have been raised now against a long-term profitmaking state-owned listed company, which has incurred loss recently in its six-decade-long journey.
Sources concerned said corruption has deeply penetrated the state-owned company. Numerous allegations of corruption and irregularities plague company officials, ranging from the fourth level to the managing director.
In the midst of these allegations, the publicly-listed company suffered its first-ever loss in FY23, ending a six-decade streak of profitability.
There are many complaints against the officers and employees of the company, including illegal connections, meter manipulations, showing system loss despite supplying less gas, and embezzlement of money by giving industrial-class connections to commercial customers.
In 2019, the Anti-Corruption Commission (ACC) made several recommendations to curb corruption, such as introducing prepaid meters, halting illegal connections, implementing regular transfers, hiring skilled personnel, and holding those responsible accountable.
Unfortunately, Titas has struggled to fully implement these recommendations. Many high-level officials within the organisation appear more focused on amassing personal wealth than on the company's financial health.
As a result, Titas incurred losses for the first time in its history. Established in 1964, it had maintained a consistent history of profitability until the last financial year when it deviated from this trend.
According to the Dhaka Stock Exchange (DSE) data, the company posted a loss of Tk 167 crore in FY23. Surprisingly, despite the losses, the company declared a 5 per cent cash dividend for shareholders, down from the 10 per cent cash dividend in the previous financial year.
Energy experts believe that many Titas officials are involved in irregularities. Professor M Shamsul Alam, the energy advisor of the Consumers Association of Bangladesh (CAB), suggests that customers are paying significant bribes to obtain meters and that Titas employees openly accept these payments. To restore profitability, experts emphasise the need to tackle corruption and customer harassment at Titas.
Reports indicate that system losses have escalated since Haronur Rashid Mullah assumed the role of managing director at Titas. While the system loss was previously estimated at 5-6 per cent, it has now risen to 8-9 per cent. However, parties concerned suggest that the actual system loss may be as high as 12-13 per cent.
This marks the first financial loss in Titas Gas's 58-year history under the leadership of Haronur Rashid Mullah. The company's accumulated dues, which stood at Tk 6,000 crore before his tenure, have now surpassed Tk 9,000 crore.
Allegations suggest that he has failed to take action despite a verdict calling for the recovery of over Tk 1,000 crore owed by two private power plants.
Messenger/Disha
