BPC Forms Seven-Member Probe Committee Over Tk 4,813 Crore in Bank Deposits

The decision by the Bangladesh Petroleum Corporation (BPC) and its affiliated entities to place more than Tk 4,813 crore in fixed deposits with financially distressed and weak private banks has sparked widespread concern. In response, the state-owned corporation has formed a seven-member high-level investigation committee to examine the security of the public funds, the decision-making process, and allegations of possible irregularities or commission-related transactions.

According to an office order signed by BPC Secretary Shahina Sultana, the committee was formed on November 3. Naznin Parvin, Director (Finance) of BPC, has been appointed convener, while Md. Al-Amin, Manager (Accounts/Fund), will serve as member secretary. The committee has been instructed to submit a detailed report to the BPC chairman within one month.

Analysts say BPC maintains substantial financial reserves to meet critical national requirements, particularly the import of petroleum products. These funds are deposited in various state-owned and private commercial banks through fixed deposit receipts (FDRs). However, amid governance concerns and liquidity pressures in parts of the banking sector, questions have emerged over how such a large amount of public money was placed in financially vulnerable institutions.

The investigation committee will examine several key issues, including the process through which the deposits were made, the individuals or authorities who recommended the decisions, and the financial and business criteria considered before placing the funds in the banks.

The committee will also investigate whether any officials received personal benefits, bribes or illegal commissions in connection with the deposits, particularly in response to comparatively high interest-rate offers from the banks. Any allegations of misconduct will need to be established through the investigation.

Another major responsibility of the committee will be to recommend a practical and effective strategy for safely recovering Tk 4,813.32 crore currently held in FDR accounts at financially vulnerable banks.

In addition, the committee will consider developing a stronger policy framework for future deposits by BPC and its affiliated entities. The proposed framework is expected to emphasise assessments of banks' actual financial strength, liquidity position, cash flow and long-term reliability.

Funds held by state-owned and statutory corporations are public assets and must be managed with transparency, accountability and sound risk-management practices. The BPC investigation could therefore play an important role not only in assessing past decisions and determining possible accountability but also in strengthening financial discipline across the energy sector.

The safe recovery of the funds and the introduction of effective safeguards against similar risks will remain major challenges for the corporation.