Dhaka,  Thursday 22 Oct 2026,
05:20:06 AM

Tk 34.2 Billion Procurement Scandal: Questions over Transparency and Accountability

Staff Reporter ।। Daily Generation Times
21-10-2026 08:58:00 PM
Tk 34.2 Billion Procurement Scandal: Questions over Transparency and Accountability

Serious allegations of irregularities, nepotism, inflated prices, and the supply of substandard products have emerged over two government procurement contracts worth Tk 34.27 billion under the Ministry of Social Welfare. According to the allegations, the contracts were awarded through direct procurement, bypassing competitive tendering, with Dockyard and Engineering Works Limited (DEW), an institution operated by the Bangladesh Navy, serving as the principal contracting entity. However, documents reportedly indicate that a substantial share of the financial benefits may have gone to a private company whose owners are related to Health Minister Sardar Md. Sakhawat Hossain Bokul.

According to documents and sources familiar with the matter, the two contracts comprise a Tk 32.071 billion procurement of tablets by the Department of Social Services and a Tk 2.199 billion contract for the supply of wheelchairs to the Bangladesh National Disability Development Foundation. The allegations have prompted calls for an independent investigation to establish accountability and ensure the proper use of public funds.

Three-Party Agreement Raises Questions over Profit-Sharing
Last August, the Department of Social Services signed a contract with DEW for the supply of 66,815 Android tablets at a unit price of Tk 48,000. According to the report, the day after the government contract was signed, on August 24, 2026, DEW, Dhaka-based Salstra Limited, and Burak Break Limited entered into a tripartite joint business agreement.

Under the reported terms of the agreement, DEW would receive 4 per cent of the total contract value—approximately Tk 128.3 million—without investing capital, bearing operating expenses, or assuming business losses. Salstra Limited was allocated approximately Tk 1.7925 billion for importing and supplying the tablets. After taxes and other specified expenses, the remaining profits were reportedly to be deposited into two bank accounts belonging to Burak Break Limited.

Based on the report's calculations, Burak Break could receive approximately Tk 644.9 million after estimated taxes.

Burak Break was incorporated on November 3, 2021. Its two directors, Sardar Rafin S. A. Hossain and Anika Raida Lia, are reportedly the nephew and niece of Health Minister Bokul. Their father, Sardar Tofazzal Hossain Liaquat, is identified as the minister's younger brother. Questions have also been raised about the company's prior experience and track record in supplying information technology products. The allegations and the roles of the individuals concerned require independent verification.

Allegations of Prices Far Above Market Rates
According to the report, each Xtra XT1 tablet was priced at Tk 48,000 under the government contract, while the joint agreement reportedly listed Salstra's supply price at Tk 26,828 per unit. Several comparable tablets, including models available with keyboards, were reportedly selling at lower prices in the market, raising concerns about potential overpricing.

However, a definitive assessment of any financial loss would require a detailed comparison of the products' specifications, warranties, software, additional services, taxes, and delivery costs.

Similar concerns have been raised over the wheelchair procurement. The report states that 26,000 wheelchairs were purchased at Tk 8,175 each, although ordinary folding wheelchairs reportedly cost between Tk 6,500 and Tk 7,500 in local retail markets, with bulk imports potentially available at lower prices.

In addition, 2,000 manually operated sewing machines were reportedly purchased at Tk 14,500 each. Questions have also been raised about discrepancies between the stated stitching speed and the actual specifications of the relevant machine model.

Wheelchairs Reportedly Fail Quality Inspection
Concerns have also emerged over the quality and safety of the supplied wheelchairs. According to the report, international inspection company SGS randomly inspected 125 wheelchairs from a consignment of 1,548 units on September 21 and 22. Serious defects were reportedly identified in 30 of the 125 inspected units.

The reported defects included exposed metal wires and sharp edges around the seats and backrests, as well as concerns about the safety of the wheels and brakes. Such defects could pose significant injury risks, particularly to persons with disabilities who rely on wheelchairs for mobility.

The report further alleges that inspectors were prevented from examining the wheels properly and were not provided with the necessary product specifications. SGS reportedly classified the consignment as “Not-Conform,” indicating that it did not meet the applicable requirements.

If substantiated, these findings would raise serious questions about the acceptance of the shipment, the release of payments, and the replacement or remediation of defective products. The relevant authorities should clarify what steps have been taken in response to the reported inspection findings.

Questions over Government Directives and Procurement Rules
According to the report, on March 24, 2026, the Armed Forces Division circulated a directive to more than 40 ministries and government agencies stating that prior approval from the Prime Minister's Office was required before institutions operated by the armed forces could be engaged in direct procurement.

However, the report claims that no documentary evidence of such prior approval was found for either of the two contracts in question.

The reference to Rule 54 of the Public Procurement Rules 2008 in the agreement dated August 24 has also raised concerns. Questions have been raised about the speed of the procurement process, with the evaluation committee reportedly completing the assessment and finalising the contract within a very short period.

The reasons for not accepting a proposal submitted by the state-owned Telephone Shilpa Sangstha (TSS) should also be made public to establish whether the procurement process was conducted fairly and transparently.

Political Connections and Calls for Accountability
The report refers to photographs allegedly showing meetings involving Social Welfare Secretary Dr. Mohammad Abu Yusuf, Social Welfare Minister Dr. A. Z. M. Zahid Hossain, and Sardar Tofazzal Hossain Liaquat.

However, attendance at a meeting alone does not establish involvement in procurement irregularities. Any assessment of responsibility should consider the relevant documents, the nature of the meetings, and the explanations provided by the individuals concerned. Their responses to the allegations should be fairly represented.

Ensuring transparency in procurement under the World Bank-funded Strengthening Social Protection for Improved Resilience, Inclusion and Targeting (SPIRIT) project is particularly important. The procurement agreements, bank guarantees, quality inspection reports, pricing calculations, and identities of the ultimate financial beneficiaries should be independently examined.

If the allegations are substantiated, those responsible should face appropriate legal action. Conversely, if any allegations prove unfounded, that should also be clearly established and reported.

An impartial and comprehensive investigation is essential to protect public funds, uphold procurement standards, ensure accountability, and safeguard the interests of the vulnerable people who depend on these social welfare programmes.