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Goods worth Tk 16k imported at Tk 2.63 crore
State-run Power Grid Company of Bangladesh Ltd (PGCBL) imported 68 kilograms of tower bolts, nuts and washers from India for a whopping $2,39,695 or Tk 2.63 crore, which is 1,619 times the contract value.
Goods worth Tk 16k imported at Tk 2.63 crore
State-run power supplier now cites 'human error' but customs authorities reject the explanation
State-run Power Grid Company of Bangladesh Ltd (PGCBL) imported 68 kilograms of tower bolts, nuts and washers from India for a whopping $2,39,695 or Tk 2.63 crore, which is 1,619 times the contract value.
The actual price of the consignment should have been $148 (Tk 16,280) at $2.18 per kg, according to the purchase agreement PGCBL submitted to the customs authorities.
The consignment reached Mongla port in April last year, but customs officials halted its release after spotting the abnormally high price.
Chinese firm TBEA Co Ltd, contractor of Extension and Empowerment of Eastern Grid Network project under PGCBL, imported the items from Skipper Limited of India for installation of electric lines and building towers in Chattogram, Cumilla and Feni regions.
Earlier, the state-owned power supplier imported 178.8 tonnes of the same goods at a cost of $3,89,252 ($2.18 per kg), customs documents and purchase agreement show.
"This time the price is high even though the import volume is less. It is because more goods were sent by mistake in the previous shipments," the company wrote to the Mongla Customs House commissioner on June 5 last year, seeking to explain the abnormal value.
The company also said the average import price was within the limit of the purchase agreement.
Mongla Customs House Commissioner AKM Mahbubur Rahman told The Daily Star that the consignment was held as PGCBL failed to give a satisfactory reply regarding the inflated price and submit relevant documents such as LCs and invoices of two previous consignments.
Having failed to have the items released in various ways, the power supplier is now seeking to send back (re-export) the goods on the pretext of a human error in the paperwork, customs officials say.
Mahbubur said they sought NBR's opinion in this regard and are awaiting the regulator's response.
PGCBL signed an agreement with the Chinese company on June 23, 2022, to supply 178.87 tonnes of tower bolts, nuts and washers. Subsequently, the Indian supplier and the Chinese importer fixed the price at $2.176 per kg, documents show.
Skipper Limited, the Indian supplier, did not respond to our email.
Phone number and email ID of the Chinese firm was not available. This correspondent visited the Dhaka office of the Chinese firm yesterday, but was not allowed in. One staffer at the front desk said they had no comment.
DAMAGE CONTROL?
According to Mongla customs sources, PGCBL applied for re-exporting the goods on March 10 this year after failing to have the shipment released.
The application, signed by Project Director and Chief Engineer of PGCBL Md Shahadat Hossain, said, "No payment was made to the contractor TBEA Co Ltd for this shipment."
The application also maintains that the goods were imported "by mistake".
However, a customs official said the company has long been trying to get customs clearance in various ways. The project director even appointed a C&F agent to clear the goods.
"After all the attempts failed, the company now claims that the goods were imported by mistake, which is ridiculous," the official said, asking not to be named as he is not authorised to speak to the press.
Customs documents support his view.
Documents show PGCBL appointed a C&F agent named SI Chowdhury & Co to clear the goods and even permitted the Chinese company to use its own Business Identification Number for the import.
Contradicting the company's claim that it was a mistake, the Mongla Customs commissioner wrote to the NBR for its opinion on April 16 this year.
"The statement of the importer that the consignment was carelessly sent to a wrong destination is untrue," the letter reads.
"An explanation was sought from PGCBL when officials concerned noticed the abnormal prices. But its explanation was not satisfactory because it only submitted a sales contract and the proforma invoice. Moreover, although the sales contract stipulates that 80 percent of the import cost should be paid to the exporter through LC, the importer did not file any copy of the LC," it adds.
Shahadat, the project director, told The Daily Star that they have an agreement with Chinese company TBEA to purchase the goods. It was up to the company how and at what prices it will import the goods from the Indian company.
"We permitted the Chinese company to use our BIN to import the items as we are the customer of the goods," he said.
He would not comment on the inflated price, and asked The Daily Star to contact PGCBL Executive Engineer Fakhrul Islam.
Fakhrul said the high price was a result of "carelessness" on the part of the Indian company.
"We noticed it later and took the initiative to send the consignment back," he told this newspaper.
Md Mahbubur Rahman, first secretary of NBR, told this correspondent on April 23 that he received the letter from the Mongla Customs commissioner.
For any re-export, they first need to verify if the payment for the consignment has been made through banking or non-banking channels. "We also need to verify the import permission that the importer obtained from the commerce ministry. Until we know all these, we cannot determine if the items will be allowed to re-export."
Dr Moinul Islam, a former professor at Chattogram University, said corruption like these are meant for money laundering.
"It's easier to launder money through project contractors than through LCs with banks. There is little accountability, and hardly anyone is held responsible even after getting caught," the economist said.
"Project officials dare to go for purchase of even some tower bolts and nuts at inflated prices since the ruling class itself is involved in corruption," he said.
State-run power supplier now cites 'human error' but customs authorities reject the explanation
State-run Power Grid Company of Bangladesh Ltd (PGCBL) imported 68 kilograms of tower bolts, nuts and washers from India for a whopping $2,39,695 or Tk 2.63 crore, which is 1,619 times the contract value.
The actual price of the consignment should have been $148 (Tk 16,280) at $2.18 per kg, according to the purchase agreement PGCBL submitted to the customs authorities.
The consignment reached Mongla port in April last year, but customs officials halted its release after spotting the abnormally high price.
Chinese firm TBEA Co Ltd, contractor of Extension and Empowerment of Eastern Grid Network project under PGCBL, imported the items from Skipper Limited of India for installation of electric lines and building towers in Chattogram, Cumilla and Feni regions.
Earlier, the state-owned power supplier imported 178.8 tonnes of the same goods at a cost of $3,89,252 ($2.18 per kg), customs documents and purchase agreement show.
"This time the price is high even though the import volume is less. It is because more goods were sent by mistake in the previous shipments," the company wrote to the Mongla Customs House commissioner on June 5 last year, seeking to explain the abnormal value.
The company also said the average import price was within the limit of the purchase agreement.
Mongla Customs House Commissioner AKM Mahbubur Rahman told The Daily Star that the consignment was held as PGCBL failed to give a satisfactory reply regarding the inflated price and submit relevant documents such as LCs and invoices of two previous consignments.
Having failed to have the items released in various ways, the power supplier is now seeking to send back (re-export) the goods on the pretext of a human error in the paperwork, customs officials say.
Mahbubur said they sought NBR's opinion in this regard and are awaiting the regulator's response.
PGCBL signed an agreement with the Chinese company on June 23, 2022, to supply 178.87 tonnes of tower bolts, nuts and washers. Subsequently, the Indian supplier and the Chinese importer fixed the price at $2.176 per kg, documents show.
Skipper Limited, the Indian supplier, did not respond to our email.
Phone number and email ID of the Chinese firm was not available. This correspondent visited the Dhaka office of the Chinese firm yesterday, but was not allowed in. One staffer at the front desk said they had no comment.
DAMAGE CONTROL?
According to Mongla customs sources, PGCBL applied for re-exporting the goods on March 10 this year after failing to have the shipment released.
The application, signed by Project Director and Chief Engineer of PGCBL Md Shahadat Hossain, said, "No payment was made to the contractor TBEA Co Ltd for this shipment."
The application also maintains that the goods were imported "by mistake".
However, a customs official said the company has long been trying to get customs clearance in various ways. The project director even appointed a C&F agent to clear the goods.
"After all the attempts failed, the company now claims that the goods were imported by mistake, which is ridiculous," the official said, asking not to be named as he is not authorised to speak to the press.
Customs documents support his view.
Documents show PGCBL appointed a C&F agent named SI Chowdhury & Co to clear the goods and even permitted the Chinese company to use its own Business Identification Number for the import.
Contradicting the company's claim that it was a mistake, the Mongla Customs commissioner wrote to the NBR for its opinion on April 16 this year.
"The statement of the importer that the consignment was carelessly sent to a wrong destination is untrue," the letter reads.
"An explanation was sought from PGCBL when officials concerned noticed the abnormal prices. But its explanation was not satisfactory because it only submitted a sales contract and the proforma invoice. Moreover, although the sales contract stipulates that 80 percent of the import cost should be paid to the exporter through LC, the importer did not file any copy of the LC," it adds.
Shahadat, the project director, told The Daily Star that they have an agreement with Chinese company TBEA to purchase the goods. It was up to the company how and at what prices it will import the goods from the Indian company.
"We permitted the Chinese company to use our BIN to import the items as we are the customer of the goods," he said.
He would not comment on the inflated price, and asked The Daily Star to contact PGCBL Executive Engineer Fakhrul Islam.
Fakhrul said the high price was a result of "carelessness" on the part of the Indian company.
"We noticed it later and took the initiative to send the consignment back," he told this newspaper.
Md Mahbubur Rahman, first secretary of NBR, told this correspondent on April 23 that he received the letter from the Mongla Customs commissioner.
For any re-export, they first need to verify if the payment for the consignment has been made through banking or non-banking channels. "We also need to verify the import permission that the importer obtained from the commerce ministry. Until we know all these, we cannot determine if the items will be allowed to re-export."
Dr Moinul Islam, a former professor at Chattogram University, said corruption like these are meant for money laundering.
"It's easier to launder money through project contractors than through LCs with banks. There is little accountability, and hardly anyone is held responsible even after getting caught," the economist said.
"Project officials dare to go for purchase of even some tower bolts and nuts at inflated prices since the ruling class itself is involved in corruption," he said.
