CPGCBL ‘trying’ to award work order before final HC verdict

The Coal Power Generation Company Bangladesh (CPGCBL) is allegedly trying to award a work order to an international consortium for supplying coal to the Matarbari Thermal Power Plant claiming a ‘fuel shortage’ in flagrant violations of the rules before the final verdict of the High Court.

A group of corrupt CPGCBL officials has intensified their efforts to award a three-year work order to the Aditya Birla Consortium despite its high-cost proposal for importing coal, according to project sources.

Following a writ petition, the High Court on 7 July this year suspended the further proceedings of the tender by issuing an interim order. A quarter of corrupt CPGCBL officials have been following the decision of the previous Awami League government to make ‘personal gains’ although it was ousted on 5 August.
The syndicate of Awami League energy oligarchs has decided to support the Aditya Birla Group without any competitive process, a project official claimed.

The syndicate members include former Energy Adviser to deposed prime minister Tawfiq-e-Elahi Chowdhury, former Senior Secretary Lokman Hossain Miah, former State Minister for Power, Energy and Mineral Resources Nasrul Hamid, Senior Secretary Habibur Rahman, former Power Development Board Chairman Mahbubur Rahman and CPGCBL Managing Director Abul Kalam Azad. The syndicate plans to sip a commission of US$5 for procuring each tonne of coal.

Alleging corruption in the tendering process, a local consortium sought a review by the Bangladesh Public Procurement Authority (BPPA) as per the existing rules for the tender. When the Aditya Birla Consortium filed an appeal against the HC order, the then-chamber judge, Justice Enayetur Rahim, stayed the HC order on 25 July and ordered the writ petition to be disposed of within 30 days.

The writ petition was disposed of on September 5 with some observations. However, the final verdict is yet to  be released. Advocate Mamun Chowdhury and Barrister Suhan Khan heard on behalf of the local consortium. Former Additional Attorney General Sheikh Mohammad Morshed appeared for the Aditya Birla Consortium and Additional Attorney General Aneek R Haque for CPGCBL.

The CPGCBL invited international tenders on November 15 last year for the supply of 9.6 million tonnes of coal to the Matarbari Power Plant for three years. Energy expert Prof M Shamsul Alam thinks irregularities engulfed the energy sector over the last 15 years. “We find that the board changed at the CPGCBL for irregularities at Matarbari. However, the public won’t get the benefit from the ‘change’ without completing the trial of corrupt officials of the project,” said Dr Alam, energy adviser to the Consumers Association of Bangladesh (CAB). He further mentioned that mega projects have been taken with people’s money for looting which should be brought to accountability. “Or else, this will lead to more corruption in the future.” The energy expert suggested bringing everyone under the law, including the project officials who took advantage of the tender process.

Regarding corruption in the Matarbari project, Transparency International Bangladesh (TIB) Executive Director Iftekharuzzaman said the government office cannot do such a thing in a court case under normal circumstances.

“The process should be completed through a legal process. Again, considering the urgency, the government can take any decision. But it must have a logical basis. The reasoning behind the short-cut method or the work order being given to a particular company should be clearly disclosed in the public interest,” he said. The TIB boss further mentioned that since it is pending with the court, the whole process is questionable. “As it is pending before the court, the whole process is questionable and therefore pending. If a decision is considered essential in the public interest despite being pending, then it should be subject to detailed explanations. Or else the decision of the government will be questioned and the government will embarrass itself,” he said.
A group of corrupt CPGCL officials has decided to award the work to Aditya Birla Group through a corrupt, scheming and non-competitive tender, causing a huge loss to the state by overspending about Tk10.67 billion, according to a project official.

“The amount of loss to the state may increase to about Tk50 billion in the future. The corrupt officials tried to award the work order to the Aditya Birla Consortium for ‘personal benefits’. The contractor would supply 9.6 million tonnes of coal over a period of three years in violation of public procurement rules,” said an official, requesting anonymity.

During the Awami League regime, there had been a case of corruption and irregularities worth about $154 million in this power plant. Project officials alleged that a nexus of the top brass at CPGCBL has planned to embezzle Tk 50 billion in the name of importing coal for the power plant in three years.