To get rid of problems in any sector in a developing country like Bangladesh either merger or separation is being prescribed. This is a situation analogous to that of an irresponsible physician who before listening to the medical condition and history of the patient in detail starts prescribing some nux-vomica as he believes in placebo effect of any medicine.
Recently, for five sick Islamic banks, which were facing looting during last 15 years, merger was proposed by Bangladesh Bank without thinking of (financial) nosocomial infection which takes place in a hospital.
Similarly, to get rid of irregularities and graft in financial governance, separation of Audit and Accounts Cadre is being prescribed. Separation or merger can't be the panacea for all woes and ills of Bangladesh which aspires sweeping reform in sectors plagued by plethora of problems. The reform and solution should be customized not one-size-fits-all type of suggestion. It may invite trouble too. Some sectors may need change in manpower, warranting some staff and officers with morality while some others may need change in framework or legal or structural, necessitating rewriting even constitution.
In any state, especially in a developing country like Bangladesh, the financial management system must be built on three core pillars: transparency, efficiency, and accountability. To reinforce these pillars, a robust system of checks and balances over the public treasury is essential. Historically and constitutionally, this is why the Office of the Comptroller and Auditor General (CAG) in Bangladesh has unified control over both Audit and Accounts Services, officially known as the BCS Audit and Accounts Service.
This unified structure mirrors that of many Commonwealth nations, where financial discipline was ensured by placing both audit and accounting under a single independent authority. In countries facing high corruption risks and weak institutional control, this integrated model offers critical initial control over public spending, significantly enhancing financial oversight.
Historical and Constitutional Context: Supreme Authority of the CAG and Legal Mandate: The rationale for keeping Audit and Accounts together under the CAG is not just historical-it is strongly grounded in the Constitution of Bangladesh and the broader Commonwealth tradition.
a) Constitutional Provisions and Their Implications
* Article 128 (1) & (4): Ensures the independence of the CAG, stating that in the exercise of his duties, the CAG shall not be subject to the direction or control of any other authority. Transferring accounts management to the executive would expose the CAG to political and bureaucratic pressure, compromising audit independence.
* Article 131: Grants the CAG the exclusive authority to determine the form and manner in which the accounts of the Republic shall be maintained. Any separation of services that removes this authority from the CAG would directly contradict this constitutional mandate.
b) Commonwealth Tradition and Institutional Knowledge
In many Commonwealth countries, integrated financial management under the CAG ensures smoother information flow, consistency, and rapid analysis of financial data. Moreover, retaining institutional knowledge in one place strengthens both audit and accounts functions. Officers of the BCS Audit and Accounts Service are trained in both domains, making separation a threat to this hard-earned efficiency.
Practical Realities: The Necessity of Pre-Audit and the Limitations of Post-Audit: In a high-corruption environment like Bangladesh, pre-audit plays a vital role in proactively controlling irregular expenditures. Placing accounts under the executive or finance ministry would effectively eliminate this system.
a) Pre-Audit: A Proactive Defense Against Corruption
* Checks Before the Expense: Pre-audit validates the legality, compliance, and authenticity of a bill before funds are disbursed, preventing misappropriation at the source.
* Promoting Compliance and Accountability: When officials know that bills will be scrutinized beforehand, they are more likely to adhere to financial regulations and act responsibly.
b) Post-Audit: Limited Scope and Reactive Approach
* Narrow Coverage: Post-audit is conducted selectively based on risk assessments, meaning that over 90% of public spending escapes thorough audit in real-time.
* Delayed Remediation: Once funds are misused, recovering them is extremely difficult. Reports from the CAG regularly highlight systemic failures in internal controls and fund recovery. Thus, post-audit can never substitute pre-audit.
Unified Audit and Accounts: A Governance Imperative in Light of the "July Charter"
a) Objectives and Relevance of the July Charter
The July National Charter 2025 envisions rebuilding the state on democratic and humane values by reforming the constitution, judiciary, public administration, and anti-corruption mechanisms. While the Charter proposes separating Audit and Accounts to align with international norms, Bangladesh's specific socio-political realities and constitutional constraints argue against such a move.
Lastly, Reform Through Integration, Not Separation: To achieve the key goals of the July National Charter 2025-transparency, efficiency, and accountability-the path forward is not separation, but strengthening the unified Audit and Accounts Service.
In Bangladesh's current socio-political landscape, with high corruption risks and fragile institutions, the pre-audit system and constitutional safeguards under the CAG offer the only viable path to financial discipline and good governance.
Separating the services and placing accounts under the executive would:
* Dilute audit independence,
* Institutionalize conflicts of interest,
* And open the floodgates to unchecked misuse of public funds.
On the other hand, reforming and modernizing the existing unified service, while reinforcing the CAG's independence, is a constitutionally sound and strategically effective approach. All relevant stakeholders-Parliament, the judiciary, the executive, and civil society-must come together in a united effort to preserve and strengthen this critical system.
Ultimately, in the pursuit of a graft-free and accountable governance framework, the only practical solution is a well-resourced, morally reformed, and unified Audit and Accounts Service under the constitutional guardianship of the CAG.
The writer is a senior journalist, The Daily Observer
