Private universities have increasingly transformed into commercial enterprises rather than remaining non-profit institutions. Yet every private university is established under a non-profit trust. With the annual rise in student enrollment, income has increased — and so have allegations of corruption. Transparency and accountability in income and expenditure remain limited. Ignoring legal provisions, members of the Board of Trustees (BOT) are allegedly embezzling vast sums of money through various tactics.
Section 45 of the Private University Act 2010 states that universities must conduct financial audits through audit firms designated by the Ministry of Education. However, most universities reportedly disregard this requirement. Many have failed to submit audit reports to the Ministry or to the University Grants Commission (UGC) since their establishment.
Officials from the Ministry and the UGC claim that some BOT members avoid submitting audit reports to conceal irregularities and corruption. Disregarding the law, they allegedly misappropriate funds from the university’s general fund. In some cases, fake documents and forged signatures have reportedly been used in the name of the university to secure bank loans against reserve funds.
Each university has a 12-member syndicate representing eight categories. For attending meetings, a syndicate member may receive up to Tk450,000 per meeting as an honorarium. Some syndicate meetings are even arranged abroad under the pretext of “study tours.” Through various meetings and allowances, BOT members allegedly extract crores of taka annually.
Irregularities and corruption are also reported in procurement processes. Investigations by the UGC have uncovered evidence of large-scale financial mismanagement. These findings were presented last year in a report submitted by the UGC to the Parliamentary Standing Committee on the Ministry of Education.
Under the Private University Act 2010, universities are strictly non-profit institutions. BOT members or university authorities are not permitted to receive financial benefits from university funds. Section 45(2) requires annual financial audits and submission of reports to the UGC and the Ministry by 31 December of the following financial year. Violations may result in investigations, cancellation of the university’s charter, imprisonment of up to five years, a fine of Tk10 lakh, or both, as stated in Section 49.
The law also mandates the formation of a Finance Committee under Sections 14, 25, and 26. However, many universities reportedly do not hold Finance Committee meetings. Most have not appointed treasurers; where treasurers exist, they are often individuals favored by the owners.
According to UGC data, at least 30 universities have never submitted an audit report since their establishment. Only seven universities submit audit reports regularly, while more than 60 do so irregularly. Allegations persist that some BOT members lead lavish lifestyles funded by students’ tuition fees. Although UGC investigations have uncovered evidence of irregularities, effective action is rarely taken.
UGC records show that North South University did not submit any audit report to the UGC for seven years between 2010 and 2017. After conducting an audit in 2017–18, it again failed to do so in 2018–19, totaling eight years without submitting audit reports. Additionally, some universities received approval for establishment but have not yet been granted permission to commence academic activities; in such cases, audit submission is not yet applicable.
In its annual report, the University Grants Commission noted a lack of interest among private universities in submitting financial statements and observed that most institutions are not following the Private University Financial Reporting Policy.
Officials from the UGC and the Ministry allege that some universities avoid submitting financial reports to conceal lavish expenditures, foreign travel, and high salaries paid to BOT members from students’ tuition fees. They say financial discrepancies have persisted for years, with certain trustees exploiting legal loopholes to misappropriate funds.
Beyond audit irregularities, private universities frequently violate other provisions of the law. Driven by profit motives, many operate without their own land or permanent campuses. Out of 116 private universities in the country, more than half have moved to permanent campuses, yet only 20 have received permanent charters to establish and operate fully. This information was recently published by the University Grants Commission, the regulatory body overseeing public and private higher education.
According to regulations, private universities initially receive temporary approval. Permanent charters are granted only after fulfilling specified conditions. Questions arise as to why, despite more than half having permanent campuses, only 20 have obtained permanent operational certificates.
The UGC explains that having a permanent campus alone is insufficient; universities must meet additional conditions. After a university applies, a UGC inspection team conducts on-site verification and submits a report to the Ministry of Education, which then decides whether to grant a permanent charter.
Section 12(1) of the Private University Act 2010 requires all universities to obtain permanent charters. The initial temporary approval is valid for seven years and may be extended for up to five additional years in phases. Within this period, universities must establish permanent campuses on legally specified land and begin academic activities there. However, many institutions have exceeded 12 years without meeting these requirements, and no further extension is legally permissible.
Currently, out of 116 private universities, 107 are operational, and 87 lack permanent charters. More than half have exceeded the 12-year limit, effectively making them “law violators” in the eyes of the UGC.
To obtain a charter, universities must fulfill seven conditions, including owning at least one acre of unencumbered land in Dhaka and Chattogram metropolitan areas and two acres elsewhere; constructing permanent buildings according to approved designs; and ensuring the land is not sold, mortgaged, or transferred.
Additionally, at least 6% of seats must be reserved each academic year for full-time students — 3% for children of freedom fighters and 3% for meritorious, underprivileged students from remote areas — with full tuition waivers. Universities must submit the list to the UGC. They must also ensure campus safety, allocate a portion of their annual budget to research, and comply with all applicable conditions before applying for permanent charters. However, many universities fail to meet these requirements.
UGC sources state that most private universities have exceeded their temporary approval periods but still operate in rented facilities. Some have even failed to establish permanent campuses after more than two decades.
Most private universities have also failed to provide adequate scholarships, research facilities, and other student benefits mandated by law. Some rented-campus institutions have reportedly become hotspots for drug abuse, with little oversight. Experts suggest making dope tests mandatory during admissions. They argue that insufficient government monitoring and the excessive profit motives of certain trustees have disrupted the academic environment.
Bringing private universities under stricter legal enforcement and curbing excessive profit-seeking practices are essential. To ensure a drug-free environment, mandatory dope tests during admission could also be considered.
Courtesy: Daily Sun
Bd-pratidin English/ Jisan
