Tk4.29cr from Ctg port funds spent on shipping ministry's interior decoration
Additionally, transparency concerns have arisen as two separate contracts were awarded to an organisation named United Corporation, which was reportedly the sole bidder in the e-GP system
Despite the Ministry of Shipping having its own budget, Tk4.29 crore was spent on its interior decoration using funds from the Chittagong Port Authority (CPA), in violation of legal provisions.
Additionally, transparency concerns have arisen as two separate contracts were awarded to an organisation named United Corporation, which was reportedly the sole bidder in the e-GP (Electronic Government Procurement) system.
A recent report from the Bangladesh Transport Audit Directorate, seen by The Business Standard, revealed the irregular expenditures by the Chittagong Port Authority.
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The report details that during the 2022-2023 fiscal year, the Chittagong Port Authority's engineering department experienced financial losses due to these expenditures.
After reviewing the engineering department's documents, tenders and bill vouchers, audit officers found that construction was conducted on the Ministry of Shipping's 8th and 14th floors, including corridors, a welcome desk, display areas, a meeting room with sound system, and a smart board.
Two contracts, titled 'Cameras With Bluetooth Connectivity and Other Works' and 'Supply and Installation of Video and Sound System and Interior Decoration of the Ministry of Shipping Conference Room', were awarded to United Corporation.
The Notices of Award (NOA) for these contracts were issued on 10 October 2022 and a contract was signed on 31 October 2022, with a contract valued at Tk2,30,77,463.
In another instance, a contract valued at Tk1,99,20,295 was awarded to United Corporation, with the NOA issued on 15 January 2022 and contract signed on 20 January 2022. The company was paid a total of Tk4,29,97,758 for both contracts.
The report further highlights that any ministry expenditure should be financed from the ministry's own budget. Instead, the Chittagong Port Authority, despite being an autonomous organisation with its own budgetary requirements, incurred a financial loss of Tk4,29,97,758 by covering the costs.
Under Section 36 of the Chittagong Port Authority Act, 2022, port funds are limited to expenses for the development, expansion, modernisation, and management of the port, employee salaries, social benefits, and environmental development. However, there is no legal provision allowing port funds to be used for ministry development purposes.
Additionally, the report noted that in the fiscal year 2020-2021, Tk5,28,84,885 was similarly spent on remodelling and interior decoration of the Ministry of Shipping rooms, again from Chittagong Port Authority funds, raising repeated legal and ethical questions.
When contacted, Saif Uddin Ahmad, deputy chief engineer (civil) of CPA, told The Business Standard that the projects were taken according to the requirement of the ministry with the approval of respective authorities.
"Answers for the audit objections were given by the CPA and they were sent to the ministry for resolution," he added.
Saif, however, declined to make any comment on the allegation of awarding two projects to the same company that was also the only bidder in the e-GP.
