Misuse of public funds-IV: Sops found in CI sheet, dry food, blanket buys

Twelve jeeps and cars were purchased for monitoring work of a disaster-related project, but those went for private use by high-ups not involved with the task, an official audit finds among other wrongs in disaster relief.

The project office had not only handed over the cars to the non-privileged persons but also paid fuel bills worth Tk 3.04 million in a single fiscal year, FY 2017-18, for their cosy ride, insiders say.

Bangladesh's supreme audit agency -- Office of the Comptroller and Auditor General (CAG) -- has found such anomalies under the Directorate of Disaster Management (DDM) in its public-fund spending.

The audit report has already been submitted to the President, the sources say.

According to the audit report, the jeeps are used by the high-ups from the Relief and Disaster Management Ministry to a parliamentary body although those were purchased for monitoring a bridge- and culvert- construction project.

Also detected are anomalies in procuring corrugated iron (CI) sheet, dry foods and blankets from the contactors.

The directorate had purchased the goods at higher prices than usual ones through nexus with or among the contractors and bypassing the government laws and rules, resulting in misuse of public funds, says the report.

The auditing agency said the misdeeds had not only affected public services to the disaster-prone people but also frittered away Tk 10.09 million of the public exchequer.

The DDM purchased luxury jeeps, cars, microbuses and double-cabin pickup under the bridge- and culvert- construction project and handed over 12 of the vehicles to the ministry instead of utilising those in the project-monitoring work.

Meanwhile, the directorate selected high-price-quoting contractor for supplying CI sheets and dry foods, resulting in "misappropriation" of Tk 45.60 million worth of public funds.

Similarly, the investigation has also found that the directorate procured blankets from two companies which quoted higher price than others.

The DDM also reportedly picked two contractors which quoted comparatively higher prices for low- quality corrugated iron (CI) sheets and procured the product.

A family-based company was selected for supplying dry foods, reportedly in defiance of the procurement law.

Companies formed by different family members, including parents, sons and daughters, were picked for supply of dry foods, blankets and CI sheets.

It was also found that the DDM had given work order for supplying 15-percent higher CI sheets and dry foods than the estimated quantity for procurement in the tender from the selected contractors.

The Directorate had even not charged the advance income tax from the bills of the contractors for which the government was deprived of Tk10.18 million in revenue.

According to the audit report, the DDM had selected a higher-price-quoting company for supplying 955 metric tonnes of CI sheet instead of lower-price-quoting one.

The CAG audit report says the quality of Apollo Ispat Ltd, a local CI- sheet maker, was better than that of the selected manufacturer.

Director-General of DDM Md Atiqul Huq told the FE that they were answering to zillions of audit objections every month.

"I cannot comment without verifying my files and documents. If you come to office, then I can give you comment on the allegations and audit objections."

When asked for comment on the specific allegations over some procurements, Mr Haque said when those procurements were conducted, he did not join as the DG here.

Former Planning Secretary Pradip Ranjan Chakrobarty told the FE that it is "massive incapability of the tender- selection committee and the project- implementing authorities for their failure in detecting collusions".

Alongside the CAG office, he suggests that the IMED and Planning Commission, too, should strictly monitor the procurement and allocated fund utilization.

Transparency International Bangladesh (TIB) Executive Director Dr Iftekharuzzaman feels if the government does not punish the responsible persons, graft and corruption will be expanding.

"Corruption will once stand as institutions in Bangladesh," he says.

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