The administrator of Dhaka North City Corporation (DNCC) Md Shafiqul Islam Khan on Thursday clarified the corporation’s financial position following confusion over claims about the amount of money held in its bank accounts.
The clarification came after the former DNCC administrator stated on the day of handing over charge that the corporation had Tk1,260.15 crore across 26 bank accounts.
Addressing the issue, the current administrator explained that a large portion of the funds mentioned is allocated to specific accounts and cannot be used for general expenditures.
He said salaries and allowances of DNCC officials and employees, as well as payments to contractors, are made from the corporation’s general fund.
When he assumed office on 25 February, the general fund had a cash balance of Tk25 crore, while Tk642 crore was kept in fixed deposits reserved to meet emergency liabilities.
Shafiqul Islam Khan also noted that during the tenure of former mayor Atiqul Islam, the corporation’s general fund had a balance of around Tk597 crore at the end of the 2023–24 fiscal year.
He emphasised that maintaining financial security and stability of the city corporation is a priority, and therefore he is committed to not encashing the fixed deposits unless absolutely necessary.
The DNCC administrator further explained that nearly Tk13 crore from the available cash balance had already been set aside to pay the salaries and allowances of officials and employees for the current month. As a result, only about Tk 12crore remained available for settling contractors’ bills.
He added that a significant portion of the amount mentioned by the former administrator is held in fixed deposits under various designated funds such as security deposits, pension funds, education funds and the General Provident Fund (GPF).
These funds are earmarked for specific purposes and cannot be used for paying staff salaries or contractor bills.
Shafiqul Islam Khan said it was important to present accurate financial information to the public, and the explanation was provided to remove any misunderstanding regarding the corporation’s financial condition.
