Over the past 15 years under the former Awami League government, 23 to 40 per cent of the allocated funds for development projects under the Roads and Highways Department (RHD) were embezzled, amounting to between Tk 29,000 crore and Tk 51,000 crore.
Transparency International Bangladesh (TIB) revealed these findings in a research report presented at a press conference at its Dhanmondi office on Wednesday.
The report pointed to a tripartite collusion involving ministers, members of parliament (MPs), influential politicians, bureaucrats and contractors as key contributors to the corruption.
TIB's research was based on interviews with 73 individuals, including contractors, RHD officials, and engineers, as well as an analysis of expenditures from 48 development projects. The study also drew on information gathered from various sources. TIB calculated the percentage of total project allocations lost to bribery, corruption and irregularities using this data.
The research covers completed projects from the fiscal year (FY) 2017-18 to FY2021-22, with implementation start dates ranging from 2010-11 to 2018-19.
Speaking at the programme, Iftekharuzzaman, Executive Director of TIB, said that projects aimed at public interest were severely undermined by a tripartite collusion between politicians, bureaucrats, and contractors. “This corruption has become institutionalised, permeating all levels, from the grassroots to the highest ranks of power,” he explained.
Iftekharuzzaman further stated that 23 to 40 per cent of the funds within the Road Transport and Highways Division are siphoned off through bribery and corrupt transactions. “Unless this entrenched ‘syndicate’ is dismantled, efforts to combat corruption will remain futile,” he warned.
According to the findings, between the fiscal years 2009-10 and 2023-24, the government allocated Tk 1,69,450 crore for roads and bridges. However, between FY2013-14 and FY2023-24, 72 per cent of the total expenditures were awarded to just 15 contractors, raising concerns over fairness and transparency in the bidding process.
The corruption
Established contractors engage in a range of illicit practices, including renting licences, purchasing contracts from other contractors, appointing subcontractors in violation of regulations, colluding with competitors and local political extortion. These activities resulted in the loss of 2 to 6 per cent of the total contract value to corruption.
Securing construction contracts and receiving payments often requires bribes amounting to 11 to 14 per cent of the allocated funds. Corruption rates in construction projects, stemming from the collusion between politicians, contractors and senior officials, range from 10 to 20 per cent.
TIB stated that the proceeds of corruption have been distributed among contractors, the former minister of the relevant ministry, members of parliament, politicians and high-ranking officials.
As a consequence, contractors have used substandard and inadequate materials in construction projects. Project directors and engineers involved in these schemes have played key roles in facilitating such irregularities and corrupt practices.
Political patronage
TIB reported that project implementation officials and contractors are often shielded from accountability for substandard work or delays in execution, due to direct patronage from the ruling political party. While some contractors have faced sanctions, there are no known instances of action being taken against corrupt officials involved.
The report also said that, due to political influence and collusion between certain contractors and high-ranking officials, corruption continues unchecked. Between January and August this year, 35 contracting firms were sanctioned for fraud, but 26 of them obtained stay orders from the High Court, effectively halting any penalties.
In some cases, TIB’s research uncovered instances of extremely substandard project proposals and fabricated feasibility reports being created in haste, with some drafted within just 24 hours.
Additionally, officials from the RHD were found to have bribed employees of the Bangladesh Planning Commission with sums ranging from Tk 2 lakh to Tk 10 lakh to expedite proposal approvals and discreetly access evaluation information.
TIB also revealed that during project procurement, costs are often inflated to facilitate irregularities and corruption, sometimes by as much as 25 to 30 per cent of the total estimated budget.
Iftekharuzzaman noted that requests for detailed information on various projects from the Roads and Highways Department have largely gone unanswered.
“The reality is that while some individuals within the organisation have changed, institutional practices remain the same. Therefore, we do not anticipate overnight improvements,” he said.
“The research report only covers domestically funded ongoing projects, though there has also been evidence of corruption in foreign-funded projects, involving collusion between domestic and foreign bureaucracies,” he added.
