Staff Correspondent:

Bangladesh Road Transport Corporation (BRTC) is Bangladesh’s only state-run road transport agency. Despite receiving various government facilities, its service quality has not yet met a satisfactory level. Persistent irregularities, corruption, and operational inefficiencies have pushed the organization into repeated financial losses. A recent independent performance evaluation (IPE) on 20 state-owned and autonomous entities conducted by the Ministry of Finance placed BRTC in the lowest position. Citing the corporation’s weak IPE score, the ministry’s Performance Improvement Strategy (PIS) report recommends several reforms such as establishing good governance, enhancing efficiency level, and introducing a modern management system alongside a three-year plan covering short-, medium-, and long-term measures.

According to the report, BRTC still operates under a traditional fixed-route model, where administrative decisions often outweigh actual passenger demand. As a result, high-demand and profitable routes suffer from inadequate bus allocation, while low-demand routes see more buses than needed. Running empty buses has deepened the corporation’s financial burden.

Apart from this, modern transport management now relies on tools such as GPS tracking, e-ticketing, and route-optimization software. BRTC, however, continues to operate under outdated systems, leaving it unable to compete with private operators, the report further notes.

Alongside operational weaknesses, the PIS report identifies a shortage of skilled manpower, according to the Finance Ministry’s PIS report. One-third of the approved positions at BRTC remain vacant, particularly in technical and managerial roles. Due to an ineffective human resources system, the organization also lacks structured training and performance evaluation processes, which has weakened staff motivation.

Financial irregularities and inefficiency are another major concern highlighted in the report. BRTC failed to prepare its financial statements in accordance with international accounting standards between 2021 and 2024. The corporation also lacks a fixed assets register to keep accurate records and maintains fully manual accounts. There are no chartered accountants or cost management accountants in its accounts and finance department. The report also warns that inefficient personnel are overseeing transactions worth billions of taka—significantly increasing the risks of waste and leakage.

The PIS report also accounted for BRTC’s organizational structure for its overall weakness and failure. Under the BRTC Act 2020, the chairman simultaneously serves as chair of the board of directors. The report describes it as a ‘conflict of interest’. All other board members are government officials, alongside working in their own responsibilities, leaving no effective mechanism for holding them accountable for any wrong decision. Moreover, BRTC also lacks key board committees—such as audit, nomination, and remuneration committees—that are considered essential for modern corporate governance.

Against this backdrop, the finance ministry’s PIS report proposes short-, medium-, and long-term plans to transform BRTC into a profitable and public-friendly institution.

For short-term measures to be implemented within one year, the report recommends preparing financial statements in line with International Accounting Standards (IAS) or International Financial Reporting Standards (IFRS), along with quarterly cash-flow reports and analyses of budget deviations.

Within one to two years, the report suggests reducing the board size to 7 to 9 members, separating management from the board, shifting to demand-based route operations, and recruiting qualified professionals for key positions in audit and accounts.

For long-term reforms within three years, the report calls for amending the BRTC Act 2020 to fully separate board and management roles, appointing independent directors, and placing the human resources division under the leadership of a skilled professional.

Despite the Finance Ministry preparing the PIS report, BRTC chairman Abdul Latif Mollah said he is not yet aware of the report. “We have not received the document so far. Once we receive it, we will take necessary steps accordingly,” he told journalistswhen approached for comment.