Corruption of Tk 290b-510b in roads and bridges during AL's 14-year rule: TIB

Some 23 to 40 per cent of the funds allocated for the projects under the roads and highways department (RHD) have been looted during the 14-year rule of Awami League, amounting to Tk 290 billion to Tk 510 billion.

Anti-corruption organisation Transparency International Bangladesh (TIB) in a study report disclosed this.

The organisation said this graft took place in collusion with influential people including ministers, members of parliament, politicians, bureaucrats and contractors.

The report titled "Challenges of governance in the implementation of road and highway development projects," was presented at a press conference at TIB's office in Dhaka's Dhanmondi today, Wednesday.

TIB conducted interviews with 73 individuals, including contractors, RHD officials, and engineers, and analysed the costs of 48 development projects, gathering information from various sources to calculate the percentage of funds lost to bribery, corruption, and irregularities in each project.

The projects analysed were completed between the 2017-18 and 2021-22 fiscal years, with their implementation starting from 2010-11 to 2018-19.

TIB’s executive director Iftekharuzzaman said that there is a tri-party collusion among politicians, bureaucrats, and contractors in public interest projects. This corruption has institutionalized itself from the grassroots to the highest levels.

He noted that between 23 to 40 per cent of funds are embezzled through bribery in the roads and highways sector. If the tri-party "syndicate" is not broken, no anti-corruption efforts will succeed.

The study was conducted by TIB’s senior research fellow Mohammad Zulkarnain and research associate Mohammad Mustafa Kamal.

They reported that from the fiscal year 2009-10 to 2023-24, the total government allocation for road and bridge projects was Tk 1694.50 billion.

From 2013-14 to 2023-24, 72 per cent of the total expenditure was awarded to just 15 contractors.

Renting licenses from established contractors, purchasing orders from other contractors, appointing subcontractors outside regulations, colluding with competing contractors, and local political extortion lead to corruption of 2 to 6 per cent of the total order value.

Bribery for securing work orders and payment from contractors amounts to 11 to 14 per cent of allocations.

The rate of corruption through tri-party collusion among politicians, contractors, and high-level officials in construction projects is between 10 to 20 per cent.

TIB said that the corrupt officials involved include contractors, the then minister of the relevant department, several members of parliament, and high-ranking officials. As a result, contractors used substandard materials and reduce the quantity of necessary materials. Project directors and engineers have facilitated these irregularities.

TIB provided examples of corruption, such as a project where Tk 7.4 million was allocated for tree planting, yet not a single tree was planted.

TIB said that project implementation officials and contractors often receive direct patronage from the ruling political party, resulting in a lack of accountability for substandard work or slow project execution. While some contractors have faced bans, there are no instances of action against the corrupt officials involved.

The report also notes that certain contractors are shielded from repercussions due to their political influence and high-level connections. From January to August of this year, 35 contracting firms were banned for fraud, but 26 of them received stay orders from the High Court against the bans.

In some cases, very low-quality project proposals and feasibility reports have been created, with evidence of proposals being drafted within 24 hours.

Some officials of the RHD reportedly bribed planning commission employees between Tk 200,000 and tk 1,000,000 to expedite project proposals and collect secret evaluation information.

TIB indicated that to create scopes for corruption, costs are inflated by 25 to 30 per cent over the total estimated budget.

Iftekharuzzaman expressed frustration that TIB has often not received the necessary information when requesting details about various road and highway projects. He emphasized the need for transparency and accountability.

He added that the research report only considers domestically funded projects, but noted that foreign-funded projects have also experienced corruption, involving collusion between domestic and foreign bureaucracies.

The event was moderated by TIB’s director of outreach and communication, Touhidul Islam, and attended by the organisation’s advisory director, Sumaiya Khair.