Decision to buy 261 new vehicles for DCs, UNOs suspended

The government has backtracked on its decision to buy 261 vehicles for 61 deputy commissioners (DCs) of different districts and 200 upazila nirbahi officers (UNOs).

The Committee on Economic Affairs in a meeting on 11 October in principle approved a proposal of the Ministry of Public Administration in this regard.

"Finally, these vehicles are not being bought. It has been suspended. The new decision was made to save foreign exchange and implement the government's austerity measures," Bangladesh Bank Governor Abdur Rouf Talukder said today during a meeting of the Economic Reporters Forum (ERF) at the central bank headquarters.

Finance Secretary Md Khairuzzaman Mozumder also attended the meeting.

During elections, DCs usually serve as returning officers and UNOs as assistant returning officers. They are responsible for all aspects of elections in their respective constituencies.

The Ministry of Public Administration proposed buying SUVs for these officials. The price of each SUV of the Mitsubishi Pajero Sport QX model was fixed at around Tk1.5 crore. It was decided to buy the vehicles for Tk381.58 crore through direct purchase without tender.

After the decision was made public, financial sector analysts criticised it. They said the decision was taken at a time when the government is facing a financial crisis and there is a foreign exchange crisis in the country. Many people have described the decision to buy vehicles at such a time as "political" and "luxurious".

The decisions to buy vehicles by other institutions that were approved with special consideration have also been suspended. On 25 October, the Local Government Division approved the purchase of 31 heavy vehicles, including mini trucks and water bowsers, by Gazipur City Corporation. Later, the Local Government Division itself cancelled the approval after the Finance Division raised objections.

Proposals from other institutions seeking approval to buy vehicles with special consideration will not be approved as well. On 11 September, the University Grants Commission (UGC) sent a letter to the Finance Division seeking Tk20 crore for the purchase of new vehicles. The organisation proposed to buy new vehicles for the vice-chancellors of 14 universities. 

In addition, the Bangladesh Council of Scientific and Industrial Research, Khulna City Corporation, National Media Institute, Ministry of Science and Technology, and various other institutions have proposed to buy one or more vehicles. However, it has been learned that the Finance Division will no longer approve any proposal.

On 2 July, a directive was issued to stop the purchase of all types of vehicles (motor vehicles, water vehicles, aircraft) under the operational and development budgets for the 2023-24 fiscal year in order to save government expenditure. The directive also stated that the expenditure of funds allocated under the operational budget for motor vehicles, water vehicles, and aircraft would be stopped.

Although the circular stated that "there is an opportunity to spend with the approval of the Finance Division in case of replacement of motor vehicles that are more than 10 years old." 

The proposal from the Ministry of Public Administration was approved using that opportunity. Now the government has retreated considering the financial situation.