[🇧🇩] Corruption Watch

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ACC investigating allegation of substandard EVM purchase by EC

The Anti-Corruption Commission (ACC) has started examining the quality of electronic voting machines, or EVMs, purchased by the Election Commission seven years ago. Speaking to the journalists at the Nirbachan Bhaban in Dhaka’s Agargaon on Sunday, ACC Assistant Director Nur Alom Siddique sai

thefinancialexpress.com.bd

ACC investigating allegation of substandard EVM purchase by EC
Published :
Jan 27, 2025 00:16
Updated :
Jan 27, 2025 00:16

The Anti-Corruption Commission (ACC) has started examining the quality of electronic voting machines, or EVMs, purchased by the Election Commission seven years ago.

Speaking to the journalists at the Nirbachan Bhaban in Dhaka’s Agargaon on Sunday, ACC Assistant Director Nur Alom Siddique said: "An ‘enforcement’ drive was carried out following a complaint about the purchase of substandard EVMs, bdnews24.com reports.

"As part of this, we conducted a test on three machines stored in the EC office. One of them had a mechanical glitch, the other two were fine."

He said the then-commission had bought around 150,000 EVMs in 2018. Of them, 100,500 machines are alleged to be unusable.

“The EC has stored them at three places. Of these, 618 are in the EC office; about 86,000 are in the Bangladesh Machine Tools Factory and about 62,000 are in the 10 regional offices."

The anti-graft watchdog’s enforcement team also spoke to the EC's senior secretary and several officials to collect necessary information for the investigation.

Nur Alam said: "We have collected some records regarding the purchase of low-grade machines and requested for more data. We will submit a report after scrutinising the evidence."

However, the ACC official did not say who had made the complaint over the faulty EVM purchase.

The raid was carried out following the agency's decision to investigate various allegations in connection with the 11th parliamentary election in 2018.

The corruption watchdog’s Director General (Prevention) Md Akhtar Hossain told reporters on Wednesday that the ACC had decided to investigate the allegations of “abuse of power, criminal misconduct, fraud, overnight ballot stuffing, and financial transactions” during the 11th general election held during the tenure of Sheikh Hasina.​

 

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TK 812CR EMBEZZLEMENT FROM AIRPORT PROJECTS: Tarique Siddiq, ex-secy Mohibul, 17 others sued

The Anti-Corruption Commission has filed four cases against 19 people, including former military adviser Tariq Ahmed Siddique, former civil aviation and tourism ministry senior secretary Mohibul Haque, and...

www.newagebd.net

TK 812CR EMBEZZLEMENT FROM AIRPORT PROJECTS: Tarique Siddiq, ex-secy Mohibul, 17 others sued
Staff Correspondent 27 January, 2025, 23:54

The Anti-Corruption Commission has filed four cases against 19 people, including former military adviser Tariq Ahmed Siddique, former civil aviation and tourism ministry senior secretary Mohibul Haque, and former chairman of the Civil Aviation Authority of Bangladesh M Mafidur Rahman, on charges of embezzling Tk 812 crore from three airport development projects.

The four cases were filed with the ACC’s integrated district office in Dhaka, said its director general Md Aktar Hossain at a press briefing at the commission headquarters in Dhaka.

Allegations are that the accused embezzled Tk 812 crore from the three development projects undertaken for Hazrat Shahjalal International Airport, Cox’s Bazar International Airport and Osmani International Airport in Sylhet.

The first case was filed against 10 people in connection with the embezzlement of Tk 250 crore from the third terminal expansion project at Hazrat Shahjalal International Airport.

According to the case details, the project was initially estimated at Tk 13,000 crore, but the amount was eventually increased to Tk 21,000 crore.

Allegations have been raised that procurement regulations were violated and contracts were unlawfully awarded to favoured contractors, particularly local agent Aerones International Ltd that led to the misappropriation of Tk 250 crore from the project.

The accused, now ousted prime minister Sheikh Hasina’s former military adviser Tariq Ahmed Siddique, former senior secretary Mohibul Haque, former joint secretary of the Ministry of Civil Aviation and Tourism Janendranath Sarkar, four former officials of civil aviation authority—chairman M Mafidur Rahman, former chief engineer Md Abdul Malek, then superintendent engineer Md Habibur Rahman, and former chief engineer Sudhendu Bikash Goswami, owner of Aerones International Lutfullah Majed, Md Mahbub Anam, and project director of Hazrat Shahjalal International Airport Expansion (Third Terminal) Project AKM Maksudul Islam.

The second case was filed over the embezzlement of Tk 200 crore from the CAAB-funded project to install radar systems at Hazrat Shahjalal International Airport.

The accused are alleged to have engaged in unlawful activities by awarding contracts to their preferred contractors and diverting funds through Aerones International.

The accused in the case are Tariq Ahmed Siddique, former senior secretary Mohibul Haque, former joint secretary Janendranath Sarkar, former CAAB chairman M Mafidur Rahman, former chief engineer Md Abdul Malek, superintendent engineer Md Habibur Rahman, former director of CNS Maintenance Department at CAAB Afroza Nasrin Sultana, former deputy director (planning) AKM Manzur Ahmed, Aerones International owner Lutfullah Majed, and Md Mahbub Anam.

The third case was filed over allegations of embezzling Tk 150 crore from the construction of terminals and runways project implemented in Cox’s Bazar airport.

Tariq Siddique and others allegedly colluded with the Chinese company China Civil Engineering Construction Corporation to bypass standard procurement procedures to illegally divert funds, leading to the embezzlement of Tk 150 crore, said the case statement.

The accused are Tariq Ahmed Siddique, Mohibul Haque, Janendranath Sarkar, M Mafidur Rahman, Md Abdul Malek, Md Habibur Rahman, Lutfullah Majed, Md Mahbub Anam and Md Shafiqul Islam, and executive engineer and project director of the Cox’s Bazar airport development (phase I–IV revised) project Md Yunus Bhuiyan.

The fourth case was filed in connection with the construction of a new terminal at Osmani International Airport in Sylhet on charges of misappropriating Tk 212 crore by disbursing advance payments for work that was never completed.

Despite no work was done, funds were diverted from the project. Aerones International Ltd. is once again implicated, with the company’s directors now having gone into hiding after taking the advance payment from the project, said the case statement.

The accused in the case are Tariq Ahmed Siddique, M Mafidur Rahman, Md Mohibul Haque, Janendranath Sarkar, Md Abdul Malek, Md Habibur Rahman, Mahbubul Anam, Lutfullah Majed, Moidur Rahman, Md Moudud, former deputy secretary Shah Zulfikar Haider and then joint secretary Md Anisur Rahman who is currently additional secretary.​

 

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Accounts, assets of wilful defaulters must be seized: CPD

The Centre for Policy Dialogue (CPD) has called for closing the accounts of wilful defaulters and holding three former governors accountable for their roles in the beleaguered banking sector.

www.thedailystar.net

Accounts, assets of wilful defaulters must be seized: CPD

The Centre for Policy Dialogue (CPD) has called for closing the accounts of wilful defaulters and holding three former governors accountable for their roles in the beleaguered banking sector.

The main problem in the banking sector is non-performing loans (NPLs), which are deteriorating the asset quality of lenders and affecting liquidity, said Fahmida Khatun, executive director of the CPD, yesterday.

"The assets of wilful defaulters and their immediate family members should be liquidated, and their businesses should be temporarily nationalised," she said while presenting a paper titled "Navigating Expectations in Turbulent Times" during a briefing at the think tank's office on Tuesday.

The CPD organised the briefing to present its assessment of the state of Bangladesh's economy for the fiscal year 2024-25.

The banking sector, long plagued by political interference and weak regulatory oversight, is now at a critical juncture as the interim government attempts to implement reforms.

The CPD recommends blocking transactions of wilful defaulters by sharing their information with global financial networks such as Visa, Mastercard, American Express, and the Society for Worldwide Interbank Financial Telecommunications (SWIFT).

"This would prevent them from conducting transactions abroad, ensuring accountability and deterring financial misconduct," according to the report.

The report also stated that three former governors of Bangladesh Bank, who undermined the banking sector's stability during Sheikh Hasina's 15-year regime, should be held accountable for their failures.

A bank resolution-type Asset Management Company (AMC) can help reduce NPLs. The merger of weak banks with strong banks is another option for improving the health of the banking sector, she said.

Merging weak banks with stronger ones can enhance the efficiency of weaker institutions. However, careful planning, transparency, thorough audits of weak banks, and proper consultations are required to avoid penalising stronger banks, she added.

She also noted that if weak banks are merged with stronger ones, not all employees will be retained -- some job cuts will be necessary. "This is a social cost that must be accepted."

The social cost would be much higher if the government allowed the closure of some strong banks, so mergers and acquisitions should be considered.

NPLs in Bangladesh's banking sector surged to Tk 284,977 crore as of September 2024, accounting for nearly 17 percent of total outstanding loans in the country.

This figure is 2.7 times higher than the combined budget allocations for education and health in the fiscal year 2024, underscoring the severity of the crisis.

"The opportunity cost is huge," Fahmida said.

State-owned commercial banks are the worst affected, with an NPL ratio of 40.35 percent.

The liquidity situation is equally dire.

Excess liquidity, which is crucial for banks to absorb unexpected financial shocks, has declined sharply.

The root cause of the banking sector's problems lies in weak governance and rampant political interference, she said, adding that board members of state banks and several private banks have historically been appointed based on political connections rather than competence, leading to poor decision-making and widespread corruption.

The independence of Bangladesh Bank, the country's central bank, has also been undermined.

Given the strong vested interest groups, an all-out effort must be made and sustained, backed by political commitment at the highest level, to continue banking reforms.

Additionally, the CPD recommends establishing specialised courts and tribunals to expedite the resolution of loan default cases.

At the event, Mustafizur Rahman, a distinguished fellow of the CPD, and Khondaker Golam Moazzem, Research Director of the CPD, were also present.​

 

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Taskforce report: 8 mega projects cost $7.5b more for graft, delay

The costs of eight mega projects soared by a staggering 68 percent, or $7.52 billion from the initial estimation, mainly due to poor and faulty feasibility studies, corruption, and delays in launch, according to the report of a government-formed task force.

www.thedailystar.net

Taskforce report: 8 mega projects cost $7.5b more for graft, delay

The costs of eight mega projects soared by a staggering 68 percent, or $7.52 billion from the initial estimation, mainly due to poor and faulty feasibility studies, corruption, and delays in launch, according to the report of a government-formed task force.

The projects are the Padma Bridge, the Padma Bridge rail link, the Jamuna railway bridge, the Dhaka-Mawa expressway, the Bangabandhu Tunnel, the Dhaka Metro Rail Line-6, the Terminal-3 of Hazrat Shahjalal International Airport and the BRT Line-3.

The initially estimated costs of these projects were $11.2 billion in total.

The costs eventually rose to $18.64 billion, according to the report from the task force led by KAS Murshid, former director general of the Bangladesh Institute of Development Studies.

The task force was formed on September 10 last year to develop strategies to boost the economy and mobilise resources for equitable and sustainable development.

The 12-member committee submitted its report to the interim government last week.

Besides poor and faulty feasibility studies, the reasons for the higher costs identified by the task force included delays in land acquisition, prolonged and corrupt land valuation process, misuse of acquired land and conflict with other projects.

Projects are often formulated through a top-down approach, with political and external influences playing a major role.

"The project idea is conceived and dictated by the Minister, influential politicians, ministries, secretaries and donors. The project is presented to the Prime Minister for approval and to obtain her concurrence," the report said.

It is then handed over to the relevant allied ministry for undertaking target-oriented feasibility studies and preparing the development project proposal with instructions for quick implementation as it is a project committed by the prime minister.

So, the projects are mostly not aligned with the department's master plan implementation sequence and priorities while the relevant authorities have minimal input in the process.

"Feasibility studies are often undertaken merely as a formality to comply. There is a tendency to inflate project benefits and underestimate costs, especially with so-called 'crazy mega projects' committed by the Prime Minister," the report said.

Land acquisition is often initiated only during the project implementation phase, causing significant delays. The delays raise costs.

The valuation of land, identification of affected individuals and assessment of losses is a lengthy process frequently marred by corruption.

The land is often diverted to non-project activities such as constructing luxury bungalows, seven-star hotels, large-scale cantonments or facilities like ports and shipyards, which may not align with the project's objectives or intended purpose.

Conflicts with ongoing or proposed projects during project implementation lead to coordination challenges, resulting in additional time and increased costs.

For instance, the MRT-6 conflicts with Dhaka Elevated Expressway and the expressway also conflicts with RAJUK's Kuril Flyover.

Feasibility study, securing funding or negotiating loans, obtaining project approval, tender process and other steps often take 1-3 years, delaying the project considerably.

Infrastructural project funding mechanisms frequently come with stringent and unfavourable conditions, while the sluggish disbursement of the funds leads to delays in project execution.

Foreign government-funded projects are heavily criticised for high construction costs, primarily due to the reliance on direct procurement methods or non-competitive bidding practices.

According to the report, India's lines of credit are presented to support Bangladesh's development across various sectors. However, these loans come with stringent conditions that raise concerns about sovereignty and long-term economic sustainability.

A key stipulation is that 75 percent of project content, including goods and services, must be sourced from India. This stipulation limits Bangladesh's flexibility in procurement and often results in inflated costs and compromised quality.

Despite the completion of the mega projects, it appears that these successes have come at a hefty cost in terms of both time and resources, leading to significant resource leakage, the report said.

Transport infrastructure development projects are frequently criticised for excessively high unit costs along with recurring time and cost overruns.

Quoting the World Bank's report, the committee said road construction in Bangladesh is among the most expensive, with costs ranging from $2.5 million to $11.9 million for constructing per kilometre of four-lane or larger roads.

The high construction costs along with other factors such as high levels of corruption, delayed project completion and a lack of competition in the bidding process lead to less-than-desirable utilisation of public resources.

The main cause of the deteriorating transport system and the costly, disjointed infrastructure development is that Bangladesh's transport infrastructure is developed through separate entities.

The ministries of road transport and bridges; local government, rural development and co-operatives; railway; shipping; and civil aviation and tourism are all involved in developing transport infrastructure.

"This division results in uncoordinated development, leading to conflicts, inefficiencies, higher costs and longer travel times."

Subsequently, the task force suggested that all four modes of transport should be under a single ministry, which could be the transport ministry.

Transport-related projects were taken without integration among line ministries and multimodal transport master plans, so there was an overemphasis on road development and less focus on rail and inland water transport modes.

The task force also said the Planning Commission faces several inherent shortcomings: lack of expertise and strategic planning, and absence of a national project dashboard.

On the other hand, around 1,200 projects were submitted to the commission in 2024, making it difficult to verify feasibility studies, ensure alignment with national strategies and establish clear priorities.

The task force -- citing China, Vietnam and Japan as examples -- said the Planning Commission should have the authority to appraise, approve, coordinate and oversee all public projects.

The report also had a short assessment of four mega projects.

Despite its high cost, the Dhaka-Mawa Expressway has issues such as long queues, traffic congestion at entry points and a lack of ring roads around Dhaka city.

Instead of developing a multimodal transport system, the expressway has posed a significant threat to sustainable water transport modes.

Limited freight movement has hindered the Padma Bridge rail link project's full potential, delaying anticipated trade benefits, travel time savings and economic impacts.

Dohazari-Cox's Bazar Rail Line's operational performance has been significantly below expectations. Only two pairs of trains operate daily instead of the planned 22-passenger and six freight train pairs.

Additionally, passenger traffic and revenue projections remain unmet, undermining the project's long-term financial sustainability and limiting its intended benefits.

The costly Bangabandhu Sheikh Mujibur Rahman Tunnel has seen its traffic fall significantly short of target, resulting in daily operating losses of more than Tk 26.50 lakh.

The tunnel's underutilisation is linked to the lack of planned industrial development in southern regions and poor integration with the existing road network.

As a result, none of the expected traffic flow, economic growth and financial returns on investment has materialised, leaving the tunnel's full potential unrealised, it added.​

 

[Saif]

Early action must against wilful loan defaulters

THE central bank still appears to be shielding wilful loan defaulters as it seems hesitant in naming the defaulters. Central bank officials, citing legal barriers, continue to conceal names of the...

www.newagebd.net

Early action must against wilful loan defaulters
01 February, 2025, 00:00

THE central bank still appears to be shielding wilful loan defaulters as it seems hesitant in naming the defaulters. Central bank officials, citing legal barriers, continue to conceal names of the habitual loan defaulters. The bank’s executive director says that Article 46 of the Bangladesh Bank Order 1972 considers credit information confidential and they can only provide the parliament with such information. The Bangladesh Bank in March 2024, however, issued a circular stating that it would name wilful loan defaulters to public agencies to enforce restrictions on their foreign travel, business licensing and company registration. The finance adviser has also talked about identifying wilful defaulters and bringing them to justice. Civic bodies, including the Centre for Policy Dialogue and CFA Society, have also urged the government to make the list of loan defaulters public to ensure transparency and limit their access to state services. It is, therefore, time that the government reviewed legislation that hinders the process of taking action against habitual defaulters as many consider this a first step towards the recovery of the money laundered.

Widespread irregularities, coupled with unaccountable governance, crippled the banking sector and the economy during the Awami League regime. The S Alam Group and the Beximco Group exploited the banking sector, taking out Tk 2.25 lakh crore and Tk 50,000 crore, respectively, in loans during the toppled Awami League regime. Bangladesh Bank data show that the amount of non-performing loans shot up by more than Tk 1 lakh crore to Tk 2,84,977 crore in September 2024 from Tk 1,82,295 crore as of March that year. About 17 per cent of Tk 16.82 lakh crore in bank loans were classified as non-performing which is the highest in South Asia. This was possible because of the Awami League government’s policy in which borrowers of term loans were allowed a six-month grace period after the initial three-month overdue period. The central bank in November 2024 issued a master circular, amending the classification and provisioning of all loans. Keeping to the circular, all types of loans will be classified as non-performing after three months of being overdue, effective from April 2025. It also says that wilful defaulters would not be allowed to hold directorship in financial institutions and the banks concerned should file criminal charges against them. This is a crucial preventive step, but equally important is the recovery of defaulted loans.

The central bank should, therefore, be stringent about loan recovery and take decisive steps against habitual loan defaulters. It should review the rules and regulations regarding default loans and habitual defaulters so that legal barriers do not become an obstacle to addressing money laundering and other financial crimes. Strict action against wilful loan defaulters can serve as a deterrent, discouraging others from defaulting intentionally in future.​

 

[Saif]

Mega corruption in megaprojects

The system that allowed this must be fixed

www.thedailystar.net

Mega corruption in megaprojects
The system that allowed this must be fixed

Despite corruption being prevalent under the previous regime, the extent of it in regards to eight mega projects is shocking. According to a report by a government-formed task force, the costs of these projects—Padma Bridge, Padma Bridge Rail Link, Jamuna Railway Bridge, Dhaka-Mawa Expressway, Bangabandhu Tunnel, Dhaka Metro Rail Line-6, Terminal 3 of Hazrat Shahjalal International Airport, and BRT Line-3—rose by a staggering 68 percent, or $7.52 billion, from the initial estimates. Initially, the total estimated cost of these projects was $11.2 billion, but it eventually surged to $18.64 billion, primarily due to poor and faulty feasibility studies, corruption, and delays in project initiation.

The task force has also identified several other factors contributing to cost overruns, including delays in land acquisition, a prolonged and corrupt land valuation process, misuse of acquired land, and conflicts with other projects. Consequently, while these mega projects have been completed, their success has come at a hefty price—both in terms of time and resources—leading to substantial resource wastage. The report found that such megaprojects are often formulated through a top-down approach, heavily influenced by political and external factors. Project ideas are typically conceived by ministers, influential politicians, ministries, secretaries, and donors before being presented to the prime minister for approval. Once approved, the project is handed over to the relevant ministry for feasibility studies and proposal preparation, with instructions for swift implementation. However, these projects often do not align with the relevant department's master plan or priorities. Moreover, feasibility studies are frequently treated as a mere formality, with a tendency to exaggerate project benefits and underestimate costs. Land acquisition, which typically begins during the project implementation phase, is also plagued by corruption, inefficiencies, and delays in valuation and compensation assessment.

It has been found that foreign government-funded projects often incur high construction costs due to direct procurement methods and non-competitive bidding practices. For instance, India's lines of credit, intended to support Bangladesh's development, come with stringent conditions—one being that 75 percent of project content must be sourced from India. This restriction limits Bangladesh's procurement flexibility, often resulting in inflated costs and compromised quality.

In addition to these megaprojects, the Awami League government undertook numerous other projects during its tenure, many of which underwent frequent revisions, leading to delays and cost escalations. Ultimately, it is the people of Bangladesh who bear the burden of such massive corruption and inefficiency.

Moving forward, ensuring transparency and accountability in all development projects is crucial. The task force committee has made two key recommendations. First, the Planning Commission should have the authority to appraise, approve, coordinate, and oversee all public projects. Second, all four modes of transport should be brought under a single ministry, potentially the transport ministry. The government should seriously consider these proposals and implement systemic reforms to ensure that public projects genuinely serve the public interest.​