the Hanif Flyover, touted as the nation’s longest at 11.7 kilometres, has been at the centre of systemic corruption and financial irregularities since its inception in 2010.
Orion Group’s subsidiary, Orion Infrastructure, leveraged the project to siphon off several thousand crores, leaving state-owned banks and public finances in disarray, according to multiple investigative reports from Bangladesh Bank and Dhaka South City Corporation.
Chairman of the conglomerate, Obaidul Karim, secured approximately Tk2,500 crores in loans and investments from six banks, including four state-owned banks—Sonali, Janata, Agrani, and Rupali—alongside Investment Corporation of Bangladesh (ICB) and Social Islami Bank.
Of this, state-owned banks contributed Tk2,150 crores.
Despite committing to start repayments from 2013, Orion defaulted, leading to these loans being classified as bad debts.
Investigations revealed that Agrani Bank alone had Tk704.73 crores at stake by December 2014, accounting for 32.84% of its paid-up capital—exceeding the 15% exposure limit for single borrowers.
Other banks reported similar alarming figures, with Tk500 crores each from Agrani and Sonali, Tk550 crores from Rupali, and Tk600 crores from Janata Bank invested in the project.
Adding to the scandal, Orion has allegedly underreported toll revenues.
While earning Tk350 crores annually, only Tk176 crores have been recorded on paper, depriving the state of Tk100–150 crores in revenue each year.
Toll collections from motorcycles, auto-rickshaws, and private vehicles often go unreported, a fact corroborated by Dhaka South City Corporation officials.
Orion’s failure to meet its financial obligations prompted two loan reschedules—first in January 2015 and again in January 2016.
Yet, as per Bangladesh Bank, the company has neither paid interest nor dividends since.
The repayment terms were further softened, reducing dividend rates on priority shares to 10-12%, while repayment timelines were extended up to December 2024.
Banks have been criticised for their lack of oversight on project expenditures and revenues.
The absence of accountability has enabled Orion to delay repayments while continuing to profit from the flyover’s operations.
Efforts to recover investments have largely failed, leaving the public sector bearing the brunt of losses.
The Hanif Flyover project, initially celebrated as a landmark Public-Private Partnership (PPP), now stands as a grim testament to unchecked corporate malfeasance.
While Orion continues to profit, the state remains burdened with staggering losses—a stark reminder of the price of regulatory negligence.
