Tk50,000cr corruption in roads and highways sector in 15 years: TIB

Infographic: TBS

A staggering amount up to Tk50,835 crore – up to 40% – of the allocation for the Roads and Highways Department in the past 15 years was misappropriated.

Transparency International Bangladesh (TIB), an anti-corruption watchdog, came up with the information while presenting a research report in the capital today.

According to TIB, the study monitored projects related to road construction, road development, bridge construction, bridge development (under 1,500 meters), and other infrastructure development for a total allocation of Tk1,69,449 crore.

The research analysed the expenditure of 48 development projects. Excluding costs related to land acquisition, utility infrastructure relocation, salaries, allowances, vehicles, stationery, etc, the estimated average cost for construction or development-related work in these projects is 75%, reveals the study. The estimated cost for construction or development-related work alone amounts to Tk12,787.45 crore, it finds.

The research report states that irregularities and corruption were prevalent in project implementation. It finds that contractors, relevant ministers, several members of parliament, politicians, and high-ranking officials shared the money obtained through corruption.

The report further mentions that corruption related to practices such as renting licences from established contractors, purchasing work orders from contractors, obtaining sub-contracts unlawfully, colluding with competing contractors, or facing local political extortion accounted for 2-6% of the total value of work orders. 

In cases of acquiring work orders and receiving contractor bills, the amount of bribery ranged from 11-14%, it shows. Corruption in construction projects, facilitated by a tripartite collusion among politicians, contractors, and high-level officials, accounted for 10-20% of the total value, the report mentions. 

In cases of renting tender licences, selling work orders, collusion, and local political extortion, the corruption rate was 2-6%, the research shows.

To create opportunities for irregularities and corruption, additional project costs were often estimated during the planning phase of the projects, states the report. In some cases, the estimated budget was inflated by 25% to 30%, it mentions.

In some cases, very low-quality project proposals and "customised" feasibility study reports were prepared, the report states. It also finds that there were instances where project proposals were created within just 24 hours.

The research indicates that project implementation officials and contractors were not held accountable for delivering substandard work or slow project implementation due to their direct affiliation with the ruling political party.

Use of substandard materials

The report states that as part of corruption, contractors used substandard materials in construction work or provide fewer materials than required. Reducing the density of stones, using substandard bitumen or providing less of it, and not applying tack coat bitumen were prevalent, it mentions. 

Even when budgets were allocated, activities such as tree planting, road safety signs, protective work, earthwork, and surfacing were not carried out or were left incomplete, the report states. 

The relevant project directors or engineers facilitated these irregularities and corrupt practices, it finds.

Many projects were not implemented within the timeframe and subsequently, the costs for these projects were increased by up to 93% compared to the initial estimated budget, according to the report.

The study finds that in the selection of projects, priorities were not focused on area-based needs, the economic impact of the projects, their effectiveness, and communication facilities. Due to the influence of parliament members, politicians, and senior officials, certain quarters received higher allocations, it mentions.

The conditions in the tenders were set in such a way that certain contractors would win the contracts, finds the study. There were instances of fraud as well, it states, adding that the estimated bids were often manipulated to favour preferred contractors.

After presenting the report, TIB Executive Director Iftekharuzzaman said there is a syndicate among politicians, bureaucrats and contractors involved in projects that ought to have taken the public interest into consideration.

From the lowest level to the highest level, such corruption has become institutionalised; 40-43% of the money goes missing in the bribery linked to the Roads and Highways Department, he added.

"Now if we cannot break the tripartite syndicate, no anti-corruption programme will succeed," he added.

Iftekharuzzaman added, "When we asked for information about various projects of the Roads and Highways Department, we were denied a lot of information. Our expectation is that that information is disclosed publicly, but the reality is that though some people have been removed from the organisations the institutional practices have not changed. So, we don't expect overnight changes."

In response to a question, the TIB executive director said, "Our research report is only about the projects under implementation with domestic financing. However, there has been corruption in foreign-funded projects as well."