About USD 60 billion or Tk 7.20 trillion has been spent through the annual development programme (ADP) over the past 15 years, but USD 14 billion (23 per cent) or approximately Tk 1.61 trillion to USD 24 billion (40 per cent) or approximately Tk 2.80 trillion of it was wasted and looted in the name of development projects during this period, according to the committee to prepare white paper on the state of Bangladesh economy.
Influential party leaders and beneficiaries of the past Awami League governments plundered these funds through political extortion, bribery and additional costs.
A report of the committee to prepare a white paper unveiled the scale of money wastage in projects. The report also evaluated corruption, irregularities and money wastage in ADP in addition to looking into various economic sectors.
The head of the Committee, Debapriya Bhattacharya told Prothom Alo huge money from government investments has been wasted through development projects. Many political projects have been undertaken without conducting economic viability. Again, the deadlines for these projects have been extended. Contracts were offered to chosen people without competition. People holding offices undertook many ‘prestige’ projects without any feasibility and project implementation was ‘dilly-dallied’ in many ways, he added.
A student-people mass uprising overthrew the 15-year rule of the Awami League governments and Sheikh Hasina fled to India on 5 August, which was followed by the formation of the interim government led by Professor Dr Muhammad Yunus. The government then formed a committee for the preparation of a comprehensive “White Paper” on the state of Bangladesh's economy with Debapriya Bhattacharya, Distinguished Fellow at Centre for Policy Dialogue (CPD) and Convenor of the Citizen's Platform for SDGs, Bangladesh, in the chair. The Committee will hand over this report to the chief adviser today, Sunday.
The government prepares development and non-development budgets annually. Funds from the development budget are spent through project implementation and more than 1,000 old and new projects are implemented annually, while the non-development budget covers the salary of government officials-employees, payments of domestic and foreign debts and various unavoidable expenditures.
Wasting funds
Funds were wasted and looted from development projects in many ways. Sometimes, projects were taken up at the will of influential ministers, lawmakers and bureaucrats. Such projects increased people’s sympathy and political opportunities. Contracts for these projects were also awarded to people liked by influential people.
An influential bureaucrat of the past Awami League government and former shipping secretary Ashok Madhab Roy took up the Balla land port development project in his district Habiganj in 2016. Various infrastructure including buildings, yards and weighing machines were constructed at a cost of Tk 489 million. But there is no port on the other side of the border in India. So, the Balla port remains out of use. Seven more land port development projects were also implemented at the recommendations of the Awami League’s government ministers and lawmakers, but trade did not rise and some ports did not open either despite spending thousands of crores of taka.
Several big projects were implemented during the past Awami League governments. The Padma Bridge Rail Link (PBRLP) project cost over Tk 390 billion, but only 10 trains operate on this route daily. The Cox’s Bazar-Dohazari railway was built at a cost of Tk 150 billion, but six trains run this route per day. Now questions arose on the feasibility study of these projects. According to sources at the planning ministry, several contractor firms close to the Awami League government secured most of the development projects in the railway sector. Sometimes, funds were withdrawn while carrying out the work.
The report of the Committee also raised questions on the expenditure, loan agreement and feasibility study of the Rooppur Nuclear Power Plant (RNPP).
Project costs rose by revising it repeatedly, thus, it wastes both time and money. The cost of constructing the Cox’s Bazar-Dohazari railway was estimated at Tk 18.52 billion at first in 2010, but it was revised twice and the cost rose to Tk 113.35 billion.
Billions of taka were also wasted by constructing the buildings of the various ministries. Many buildings were constructed but not used. A seven-star guesthouse was built at a cost of Tk 4.50 billion under the Karnaphuli tunnel project. Another guesthouse for tourists was built in Cox’s Bazar, but it was not opened.
ADP rises by 10 fold
The Awami League governments increased the size of the annual development programme (ADP) by 10 fold over the past 15 years. When Awami League came to power in 2009, then finance minister Abul Maal Abdul Muhith undertook the ADP with Tk 280 billion, and the size of ADP increased to Tk 2.79 trillion in the current fiscal.