Corruption in RHD projects devours up to Tk 50,835cr in 15 years: TIB

About Taka 29,230 to Taka 50,835 crore was
plundered from the projects of Roads and Highways Division (RHD) in the last
15 years, says a new study of Transparency International Bangladesh (TIB).

Through the tripartite collusion of politicians, contractors, and high-level
officials, 23 to 40 percent of the total value of road and bridge-related
construction works between the fiscal years 2009-10 and 2023-24 was
attributed to corruption, the study shows.

The research report titled “Good Governance Challenges in the Implementation
of Roads and Highways’ Development Projects.” study was revealed at a press
conference at TIB office in the capital.

In light of the research findings, the TIB proposed 16 recommendations to
address the challenges of good governance in development projects implemented
under the Roads and Highways Department.

The study reveals that the development policy framework, government
procurement system, and project implementation processes in the road and
highway sector have been manipulated through the coordinated exertions of
politicians, bureaucrats, and contractors.

This has led to violations of laws, irregularities, and corruption driven by
conflicts of interest and political misconduct at various stages of project
formulation and execution under the Roads and Highways Department.

Serious deficiencies in all aspects of good governance were identified.
Corruption has become institutionalised in the implementation of road and
highway development projects due to this tripartite collusion. Between 23 and
40 percent of the total value of construction works related to roads and
bridges is lost to corruption involving bribes, tender manipulation, work
order sales, political extortion, and other forms of illicit dealings, the
study says.

The research indicates that bribery accounts for 11 to 14 percent in
obtaining construction work orders and contractors’ bills. Additionally,
corruption through the tripartite collusion of politicians, contractors, and
high-level officials ranges from 10 to 20 percent in construction work,
including tender license rentals, sale of work orders, compromises, and
local-level political extortion, which has been observed at rates of 2 to 6
percent.

The study also shows that through collusion among contractors, the top 15
contracting firms have dominated procurement system of the Roads and Highways
Department over the past decade. From fiscal 2013-14 to fiscal 2023-24, these
firms secured road and bridge construction work orders worth approximately
Taka 57,000 crore through the e-GP (Electronic Government Procurement)
process alone. This represents about 72 percent of the total value of
construction work orders awarded through the e-GP system during this period.

Speaking at the press conference, TIB Executive Director Dr. Iftekharuzzaman
said development projects have turned into a way for certain groups to amass
cash as a result of the cooperation of dishonest contractors, bureaucrats,
and politicians.

“Our research indicates that corruption in road and highway development
projects ranges from 23 to 40 percent, with project costs being 2 to 9 times
higher than those in South Asia and neighboring countries. It is essential to
dismantle this tripartite nexus and ensure accountability for those involved.
It is essential to establish an environment in which legal violations are
effectively managed, particularly through the proper execution of procurement
policies,” he said.

Dr. Iftekharuzzaman said no matter how extensively corruption is debated, it
will remain unaddressed unless “we tackle the systematic practice of awarding
contracts to selected contractors through political and bureaucratic
coordination, taking advantage of privileges and legal gaps”.

He stressed the need for bringing all those involved in irregularities and
corruption in this sector to justice and ensuring exemplary punishment for
them.

Emphasising on the formulation and importance of the ‘conflict of interest’
law, the TIB chief said, “If the tripartite tyranny of politics, bureaucracy,
and business is not dismantled, we risk reverting to an authoritarian system
that shields corruption. However, a shift in political and bureaucratic
culture, coupled with the reform of long-standing institutional norms, has
the potential to break the cycle of anomalies and corruption.”

In light of the research findings, TIB’s 16-point recommendations include
formulating a ‘Conflict of Interest Law’ to prevent personal gain, nepotism,
and irregularities in all government activities; ensuring that this law is
reflected in the rules and regulations governing the implementation of road
and highway development projects; enforcing relevant laws, regulations, and
guidelines at every stage of project implementation; streamlining the
decision-making process for road and highway development; identifying and
holding accountable politicians, officials, and contractors involved in
irregularities and corruption at various stages of project execution;
formulating development project proposals based on priority to ensure
effective evaluation and proper management while incorporating the opinions
of relevant stakeholders; reforming the guidelines for project formulation,
processing, approval, and amendments in accordance with applicable laws and
regulations; completing all project-related procurement activities through
the e-GP process; and mandating feasibility studies conducted by qualified,
experienced professionals in the formulation of all development projects.

TIB Adviser- Executive Management Prof. Dr. Sumaiya Khair, TIB Director
Muhammand Badiuzzaman, Senior Research Fellow Md. Julkarnayeen and Research
Associate Md. Mostafa Kamal attended the press conference moderated by TIB
Director Mohammad Tauhidul Islam. (BSS)