Wednesday, 16 October, 2024
A new study by Transparency International Bangladesh (TIB) reveals that between Taka 29,230 crore and Taka 50,835 crore has been siphoned off from the Roads and Highways Division (RHD) projects over the past 15 years.
The study highlights a troubling tripartite collusion among politicians, contractors, and high-level officials, which has resulted in 23 to 40 per cent of the total value of road and bridge construction works—from the fiscal year 2009-10 to 2023-24—being attributed to corruption.
The research report, titled "Good Governance Challenges in the Implementation of Roads and Highways Development Projects," was unveiled at a press conference at TIB’s office in the capital. Based on its findings, TIB proposed 16 recommendations aimed at addressing the challenges of good governance in projects executed under the Roads and Highways Department.
The study indicates that the development policy framework, government procurement system, and project implementation processes in the road and highway sector have been manipulated through the coordinated efforts of politicians, bureaucrats, and contractors. This manipulation has led to violations of laws, irregularities, and corruption fueled by conflicts of interest and political misconduct throughout various stages of project formulation and execution.
Significant deficiencies in good governance were identified, with corruption becoming institutionalized in road and highway development projects due to this collusion. The study estimates that 23 to 40 per cent of the total value of construction work related to roads and bridges is lost to corruption involving bribes, tender manipulation, work order sales, political extortion, and other illicit activities.
Specifically, the research shows that bribery accounts for 11 to 14 per cent of the costs associated with obtaining construction work orders and contractors' bills. Additionally, corruption due to the collusion of politicians, contractors, and high-ranking officials ranges from 10 to 20 per cent in construction work, with local-level political extortion observed at rates of 2 to 6 per cent.
The study also notes that a group of 15 dominant contracting firms has monopolized the procurement system of the Roads and Highways Department over the past decade. From fiscal years 2013-14 to 2023-24, these firms secured road and bridge construction contracts worth approximately Taka 57,000 crore through the e-GP (Electronic Government Procurement) process, representing about 72 per cent of the total value of construction work orders awarded through this system during that period.
At the press conference, TIB Executive Director Dr. Iftekharuzzaman stated that development projects have become a means for certain groups to amass wealth, facilitated by the collusion of dishonest contractors, bureaucrats, and politicians.
"Our research indicates that corruption in the road and highway development projects ranges from 23 to 40 per cent, resulting in project costs that are 2 to 9 times higher than those in South Asia and neighbouring countries. It is crucial to dismantle this tripartite nexus and ensure accountability for those involved. We must establish an environment where legal violations are effectively addressed, particularly through the proper implementation of procurement policies," he asserted.
Dr. Iftekharuzzaman emphasized that despite extensive discussions about corruption, the issue will remain unresolved unless the systematic practice of awarding contracts to selected contractors through political and bureaucratic coordination is addressed. He underscored the need to bring all individuals involved in irregularities and corruption within this sector to justice and ensure they face exemplary punishment.
Highlighting the importance of formulating a 'Conflict of Interest Law,' TIB’s chief warned, "If we do not dismantle the tripartite tyranny of politics, bureaucracy, and business, we risk reverting to an authoritarian system that protects corruption. However, a shift in political and bureaucratic culture, along with the reform of long-standing institutional norms, has the potential to break the cycle of corruption and anomalies."
In response to its findings, TIB's 16-point recommendations include:
The press conference was attended by TIB Adviser for Executive Management Prof. Dr Sumaiya Khair, TIB Director Muhammad Badiuzzaman, Senior Research Fellow Md. Julkarnayeen, and Research Associate Md. Mostafa Kamal, and was moderated by TIB Director Mohammad Tauhidul Islam.
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A new study by Transparency International Bangladesh (TIB) reveals that between Taka 29,230 crore and Taka 50,835 crore has been siphoned off from the Roads and Highways Division (RHD) projects over the past 15 years.
The study highlights a troubling tripartite collusion among politicians, contractors, and high-level officials, which has resulted in 23 to 40 per cent of the total value of road and bridge construction works—from the fiscal year 2009-10 to 2023-24—being attributed to corruption.
The research report, titled "Good Governance Challenges in the Implementation of Roads and Highways Development Projects," was unveiled at a press conference at TIB’s office in the capital. Based on its findings, TIB proposed 16 recommendations aimed at addressing the challenges of good governance in projects executed under the Roads and Highways Department.
The study indicates that the development policy framework, government procurement system, and project implementation processes in the road and highway sector have been manipulated through the coordinated efforts of politicians, bureaucrats, and contractors. This manipulation has led to violations of laws, irregularities, and corruption fueled by conflicts of interest and political misconduct throughout various stages of project formulation and execution.
Significant deficiencies in good governance were identified, with corruption becoming institutionalized in road and highway development projects due to this collusion. The study estimates that 23 to 40 per cent of the total value of construction work related to roads and bridges is lost to corruption involving bribes, tender manipulation, work order sales, political extortion, and other illicit activities.
Specifically, the research shows that bribery accounts for 11 to 14 per cent of the costs associated with obtaining construction work orders and contractors' bills. Additionally, corruption due to the collusion of politicians, contractors, and high-ranking officials ranges from 10 to 20 per cent in construction work, with local-level political extortion observed at rates of 2 to 6 per cent.
The study also notes that a group of 15 dominant contracting firms has monopolized the procurement system of the Roads and Highways Department over the past decade. From fiscal years 2013-14 to 2023-24, these firms secured road and bridge construction contracts worth approximately Taka 57,000 crore through the e-GP (Electronic Government Procurement) process, representing about 72 per cent of the total value of construction work orders awarded through this system during that period.
At the press conference, TIB Executive Director Dr. Iftekharuzzaman stated that development projects have become a means for certain groups to amass wealth, facilitated by the collusion of dishonest contractors, bureaucrats, and politicians.
"Our research indicates that corruption in the road and highway development projects ranges from 23 to 40 per cent, resulting in project costs that are 2 to 9 times higher than those in South Asia and neighbouring countries. It is crucial to dismantle this tripartite nexus and ensure accountability for those involved. We must establish an environment where legal violations are effectively addressed, particularly through the proper implementation of procurement policies," he asserted.
Dr. Iftekharuzzaman emphasized that despite extensive discussions about corruption, the issue will remain unresolved unless the systematic practice of awarding contracts to selected contractors through political and bureaucratic coordination is addressed. He underscored the need to bring all individuals involved in irregularities and corruption within this sector to justice and ensure they face exemplary punishment.
Highlighting the importance of formulating a 'Conflict of Interest Law,' TIB’s chief warned, "If we do not dismantle the tripartite tyranny of politics, bureaucracy, and business, we risk reverting to an authoritarian system that protects corruption. However, a shift in political and bureaucratic culture, along with the reform of long-standing institutional norms, has the potential to break the cycle of corruption and anomalies."
In response to its findings, TIB's 16-point recommendations include:
The press conference was attended by TIB Adviser for Executive Management Prof. Dr Sumaiya Khair, TIB Director Muhammad Badiuzzaman, Senior Research Fellow Md. Julkarnayeen, and Research Associate Md. Mostafa Kamal, and was moderated by TIB Director Mohammad Tauhidul Islam.
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