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Over Tk50,000 crore misappropriated in 14 years from road development projects: TIB

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Transparency International Bangladesh (TIB) has revealed that corruption in road development projects under the Roads and Highways Department has amounted to Tk 29,230 crore to Tk 50,835 crore over the past 14 years

Staff Correspondent

Publisted at 2:12 PM, Wed Oct 9th, 2024

Between Tk29,230 crore and Tk50,835 crore has been siphoned off in corruption related to construction work under development projects of the Roads and Highways Department over the past 14 years, said Transparency International Bangladesh (TIB).

"Construction-related corruption sees politicians, contractors, and high-ranking officials receiving 10-20% in bribes," TIB said during the presentation of a research report titled "Challenges of Good Governance in Implementing Road and Highway Development Projects" at TIB’s office in Dhanmondi on Wednesday (9 October).

The report was prepared by TIB’s Associate Researcher Md. Mostafa Kamal and Senior Researcher Md Julkarnaine. The study focused on projects worth up to Tk1,000 crore, implemented with domestic financing.

Additionally, contractors must pay between 11-14% of the total project value in bribes to secure work orders and payments, TIB said.

Furthermore, 2-6% of the project cost is paid as bribes for tender licenses, work order sales, settlements, and political extortion at the local level.

The report also highlighted instances where some officials of the Roads and Highways Department (RHD) paid bribes of Tk2-10 lakh to certain employees of the Planning Commission to expedite the approval of project proposals and secretly gather information related to project proposal evaluations.

TIB further disclosed that 11-14% of the total project value is siphoned off through bribery during the process of receiving work orders and contractor payments.

Out of this, 5-6% is used to secure the work orders, while the remaining 6-8% is paid to inspectors and officials for on-site project inspections and payment clearance.

These bribes are then distributed, with 0.15-3% shared among project directors, members of the procurement and tender committees, and other related officials from the RHD and the Ministry of Road Transport and Bridges.

Between fiscal years 2009-10 and 2023-24, bribes amounting to between Tk13,980 crore and Tk17,792 crore were exchanged for securing contracts and payments related to development projects under RHD and the ministry, TIB stated.

It also noted that a nexus between politicians, bureaucrats, and contractors has allowed these actors to control policy decisions, the public procurement process, and project implementation in the road and highway sector.

This tripartite collusion has resulted in widespread conflicts of interest, political manipulation, and violations of laws, leading to significant governance failures in the planning and implementation of RHD development projects.

Through this collusion, corruption in road and highway development projects has become institutionalised, enabling a few unscrupulous politicians, officials, and contractors to illegally amass large sums of money.

TIB added that many projects are being intentionally drafted and implemented for the purpose of corruption.

The presentation also revealed that such corruption has led to the implementation of these projects at exorbitant costs, while the roads and bridges built remain substandard and unsustainable. This undermines the objectives of the projects and results in the misuse and wastage of significant national resources.

TIB collected data for the research from both direct and indirect sources between June 2023 and September 2024, using various qualitative research methodologies to ensure the reliability and accuracy of the analysed information.

It focused on road construction, road development, bridge construction (under 1,500 metres), bridge development, and other infrastructure-related projects.

Data was collected from 21 district-level offices under 13 circles of 10 zones within the Roads and Highways Department.

Present at the report's unveiling were TIB Executive Director Dr Iftekharuzzaman, Adviser Professor Sumaiya Khair, Director of Policy Research Mohammad Badiuzzaman, and Director of Communications Mohammad Tauhidul Islam.

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