Nearly Tk 1,059 crore is extorted annually from privately-owned buses and minibuses in the country, according to a report released by Transparency International Bangladesh (TIB).
Bangladesh Road Transport Authority (BRTA) collects Tk 900.59 crore in bribe for registration and certification which is 85 per cent of total extortion money, the report said.
The anti-graft watchdog released the report titled 'Integrity in Private Bus Transport Business' at a press conference organised at its Dhanmondi office on Tuesday.
The amount of extortion money was calculated on 80,521 buses which had been registered with the BRTA till June, 2023. A total of 8,067 city buses have not been included in this calculation done by TIB.
Individuals or groups with political identity, traffic and highway police, BRTA officials and employees, bus owners, labour organisations, and representatives of municipalities or city corporations get a chunk of this money, the report said.
TIB Executive Director Dr Iftekharuzzaman said, “This account of extortion money is very conservative. In reality, extortion money is many times higher. There are some kinds of ‘democracy’ in the distribution of extortion and collected money is being distributed at various levels.”
“The sector is held hostage by the bus owners and workers associations and syndicates that are backed by the ruling political party and in some cases the government seems powerless before them.”
“The private bus transport business is entirely plagued by irregularities and corruption. Its root cause is the collusion between bus owners’ and workers’ associations, empowered by political patronage,” he added.
The study revealed that politicians are involved in operation of about 92 per cent of the country's largest bus companies while 80 per cent of them are involved in the ruling party’s politics.
Although 60.5 per cent of bus passengers are victims of various irregularities, including overcharging, bad behaviour of transport workers/labourers, and sexual harassment, 92.9 per cent of them did not complain.
Besides, 88.9 per cent city service buses pay bribes to traffic and highway police, and each bus pays Tk 5,656 monthly. The amount is higher than inter-district or regional buses because city buses pay for every trip.
The public transportation system in Bangladesh is heavily dependent on privately-owned bus transportation businesses, with 98.4 per cent of all buses operating on the roads under private ownership operated through either companies or associations.
According to the Registrar of Joint Stock Companies and Firms (RJSC), as of 2023, there were 1,155 bus companies and 65 owner associations registered with the RJSC.
According to the Bangladesh Road Transport Authority (BRTA), approximately 60.2 per cent of all passengers traveling via different modes of transport use buses. There were a total of 80,521 registered private buses and minibuses up to June 2023.
Among them, 82.0 per cent of companies do not issue written appointment letters to their workers and 69.3 per cent of companies do not have fixed wage or salary structure.
As per the study, 40.9 per cent of transport workers said that they lack proper documents and certification in their company’s buses. For that reason, they faced cases by paying bribes to the monitoring agencies less than the penalty avoiding lawsuits.
Conductors of any bus plying the roads do not have formal training and licence. The study said 77.5 per cent of drivers earn below the monthly minimum wage as per the 'Minimum Wage Board' gazette published in 2020.
According to the Companies Act, 1994, it is mandatory for the company to submit annual audit report to the RJSC (sections 210-217). But 82.7 per cent of bus companies fail to submit updated audit reports whereas 58 per cent have no financial management policies.
Besides, 76.7 per cent of bus companies do not have depots, 58.3 per cent do not have garages, 45.4 per cent do not have bus counters and 83.9 per cent do not have accommodation or restroom facilities.
Inter-district (long-distance and regional) buses do not have reserved seats for women, children, people with disabilities, and the elderly. Furthermore, the majority of company buses do not have ramps for physically challenged people to embark and disembark safely. However, 35.2 per cent of women passengers faced sexual harassment during their journey.
TIB placed 15 recommendations to uphold integrity in the private bus transport business such as enforcement of formal recruitment practices by companies, issuance of written appointment letters specifying employment terms, and regular audits for transparency.
Additionally, the implementation of essential policies, such as finance, administration, and human resource management, emphasise ethical conduct, infrastructure development, e-ticketing service, strict monitoring of bus conditions, and measures to ensure passenger safety and awareness, including designated seats and prevention of sexual harassment.
Furthermore, legal action against irregularities and corruption, integration of digital technology by BRTA, and amendments to the Road Transport Act for compulsory vehicle insurance and a clear code of conduct are highlighted as key steps for the sector's improvement.
