Home ›› 06 Sep 2022 ›› Stock
The Bangladesh Securities and Exchange Commission (BSEC) has taken several measures to help United Airways (BD) Limited take off, but to no avail.
To look into the reasons for the private airlines’ collapse, the regulator formed an inquiry committee on Monday as a last-ditch attempt to restart its operations.
The five-member committee headed by BSEC Additional Director Ohidul Islam has been given 30 days to submit the probe report. Other four members included Shabrier Perves, Deputy Director, Md Shahnows, Deputy Director of BSEC, an official from the Civil Aviation Authority of Bangladesh, and a representative from the Dhaka Stock Exchange.
The commission intends to conduct an investigation into the issues surrounding the suspension of operations, reconstruction of the board of directors, resumption of operations, and trading pattern of United Airways securities since its debut on the stock exchanges.
Meanwhile, the BSEC recently has decided to appoint a special auditor to conduct special audit of 2012-2021 fiscal years statement at United Air.
Established in 2005, United Airways was listed on the Dhaka Stock Exchange (DSE) in 2010. In February 2016, it ceased flight operations without any announcement amid mounting losses due to massive irregularities and corruption by its directors.
To revive the airlines, the BSEC took a series of measures. Its board was restructured on February 28, 2021, and eight independent directors were appointed on March 4.
The board held its last meeting on August 11, where the new directors opined that United Airways can be revived only when the existing dues are waived.
In January of last year, the company was sent to the over-the-counter (OTC) market due to its worst performance.
In September of last year, BSEC Chairman Shibli Rubayat-Ul-Islam wrote to the Ministry of Civil Aviation and Tourism to exempt United Airways from paying its Tk 355.36 crore debt to the Civil Aviation Authority, to safeguard the investors’ interest.
United Airways that remained out of operations since 2015 owes the amount as different fees to the CAAB.
According to the BSEC, its net due to the CAAB is around Tk 56.87 crore, with a value-added tax of Tk 5.65 crore and an income tax of Tk 2 lakh.
The remaining Tk 292.81 crore was counted as a surcharge at an annual rate of 72 per cent. The debt is swelling every year due to the compound surcharge method. The BSEC said the airline company can’t pay the debt as it currently has nothing but a few unusable aircraft.
Against such a backdrop, it requested the government to waive the debt and make necessary arrangements for renewal of the airline’s Air Operator Certificate (AOC), to protect the interests of its 1.6 lakh investors.
On September 19, the BSEC also wrote to the Registrar of Joint Stock Companies and Firms (RJSC) to ensure that the United Airways’ existing board remains active until the new directors are elected.
