New roads being cut open to construct drains, dustbins purchased at nearly twice the market price, contracts awarded to a debarred contractor, and consultants drawing salaries without carrying out their assigned duties—these are among the allegations of irregularities and mismanagement surrounding a development project of the Local Government Engineering Department (LGED).
The allegations have surfaced in the Urban Governance and Infrastructure Improvement (UGIIP) project, which is being implemented with a loan from the Asian Development Bank (ADB).
According to separate reports prepared by the Implementation Monitoring and Evaluation Division (IMED) under the Planning Ministry and the Local Government Division, the project has faced problems ranging from poor planning and construction quality to irregularities in procurement and contractor selection.
The project aims to improve civic services and strengthen institutional capacity in municipalities and urban areas across the country.
New road to be cut for drain construction
One of the clearest examples of poor coordination has been found in the Chaugachha area of Gangni Municipality in Meherpur.
Road and drain construction were taken up under separate packages. However, after construction of the new road, authorities found that there was insufficient space to build the planned drain.
As a result, a decision was taken to cut open the newly constructed road to install the drain.
The approval process for the work reportedly took several months. The situation has not only raised questions about the wastage of public funds but has also caused considerable public suffering.
Dustbins purchased at unusually high prices
The project's procurement process has also come under scrutiny.
An audit objection alleged that low-quality dustbins were purchased at unusually high prices and that payments were made without proper testing of the products. The alleged financial loss to the government from this procurement was estimated at Tk 18.77 crore.
Project records show that two types of dustbins were purchased.
A total of 252,000 20-litre dustbins were procured at Tk 680 each, costing Tk 17.136 crore.
Another 25,200 120-litre dustbins were purchased at Tk 6,800 each, also costing Tk 17.136 crore.
A review of prevailing market prices found that the project paid nearly twice the market price for the dustbins, according to the findings cited in the reports.
Debarred contractor awarded work
Serious allegations have also been raised over contractor selection.
According to the findings, a contract was awarded to a contractor who was debarred from undertaking government work at the time, instead of the lowest bidder.
The alleged financial loss to the government in this case was Tk 50.33 lakh.
In another case, a contractor who failed to complete work within the stipulated time was allegedly given special consideration, with the performance security not being forfeited as required. This reportedly caused a further loss of Tk 1.28 crore.
The reports also found that a consulting firm used government premises under the terms of its contract without paying rent. This resulted in an alleged loss of Tk 4.75 lakh.
In addition, income tax amounting to Tk 38.99 lakh was allegedly not deducted from payments made to the consulting firm.
The total financial loss identified in five audit objections was approximately Tk 21 crore.
Questions over construction quality
The IMED also identified several shortcomings in the quality of construction work at different project sites.
According to its findings, the required gradients and curves of roads were not properly maintained in more than 40 percent of the cases examined. This could pose risks to road safety and affect the durability of the infrastructure.
Design changes have also been made at several locations because of land encroachment and space-related complications. The changes have raised questions about the project's initial planning and design process.
Safety risks at project sites
The inspection reports also identified several safety concerns.
At some locations, deep excavations beside footpaths were found without adequate safety barriers or protective posts. In other places, the absence of railings created risks for pedestrians.
In Gomostapur of Chapainawabganj, covers over drain openings were reportedly found to be unsafe, creating potential accident risks for women, children and elderly people.
In Alamdanga of Chuadanga, some completed sections had reportedly deteriorated but had not been repaired.
At several locations, uncovered manholes and open drains were found, creating risks of accidents as well as concerns over foul odours, mosquito infestation and waterlogging.
In Kaliganj, construction waste was reportedly dumped at locations connected to drains, potentially reducing their effectiveness.
The reports also found that bricks had been used in some works despite the government's decision to discourage their use in construction activities.
Inconsistencies in project planning
Questions have also been raised about inconsistencies between the project's original plans and the quantities of work ultimately approved.
The Development Project Proposal (DPP) initially set a target of constructing 1,500 kilometres of roads and 900 kilometres of drains.
However, the approved project provided for 1,037.81 kilometres of roads and 437.8 kilometres of drains.
There are also discrepancies in the quantities of roads and drains mentioned in the project's logical framework.
These inconsistencies have raised questions about how the project targets were determined, how the feasibility assessment was conducted and how the final scope of work was approved.
Weaknesses have also been identified in the project's financial and economic analysis.
One of the project's stated objectives was to ensure that infrastructure development took into account the needs of both women and men and that women constituted at least 50 percent of participants in activities in poverty-stricken areas. However, this target was reportedly not achieved in around 30 percent of the cases.
Attempts to suppress reporting alleged
There were also attempts to discourage reporting on the irregularities identified in the reports.
Project Deputy Director Imtiaz Zahirul Haque allegedly offered the reporter an illicit financial benefit and said that Project Director Toufail Ahmed had instructed him to make the offer. The reporter rejected the proposal. An audio recording of the conversation has reportedly been preserved.
Project director's response
Asked about the allegations, Project Director Toufail Ahmed said responses had been submitted to the audit objections.
“None of the objections has been settled yet. The verification process is ongoing,” he said.
He added that the allegations concerning the implementation of the project were being taken seriously and would be examined.
The Tk 6,345 crore UGIIP project, intended to improve urban infrastructure and municipal services, therefore faces questions over planning, procurement, contractor selection, construction quality, financial management and project supervision.