A Concrete Problem: The Crisis of Corruption in Infrastructure Development Sector of Bangladesh

Nafis Chowdhury

 

Corruption is an endemic that has been persistent in Bangladesh for the 53 years of its independence. The impact of corruption is so widespread that it has been normalized by many, viewing it as a routine activity or culture rather than a problem to the state. Where the international community is urging to integrate drastic measures to combat the stigma of seeing corruption as a “culture”, Bangladesh is far from addressing such issues in a practical manner. The curse of corruption has impacted every sector of Bangladesh, including the ones of infrastructure development. According to a recent report by Transparency International Bangladesh(TIB), in the last 15 years- an estimate of 50835 cr BDT was misappropriated in 48 development projects, which is 40% of the whole budget estimated for the same. These statistics raise the inevitable question- what causes such a crisis? In this article, the author explores the possible causes that lead to such a monumental crisis.

 

According to the Corruption Perception Index 2023 of the Transparency International, Bangladesh ranked 149th in 180 countries around the world- with a rating of 24 out of 100. The complexities within the existing laws and regulations, coupled with the lack of implementation creates a major drawback against combating this issue. In the case of infrastructure development, Bangladesh has adequate laws. Which in most cases, should guide an adequate result to such development projects. In particular, the Public Procurement Act(PPA) 2006 provides provisions to conduct these development projects in a transparent manner. S.4 of the Act empowers PPA to override any existing law in the country. S.7(3)(a) obliges the proposal evaluation committee to sign a declaration of impartiality before evaluating the tender offers or proposals for these projects. S.9 of the PPA ensures that the government makes these procurement related documents and information accessible to the general public. Section 29-30 of the act empowers the public with the right to complain to the administrative authorities responsible for procurement upon any suffering or loss caused to a person due to the failure of complying with this act. This is a clear indication that the laws of Bangladesh, at least the substantive ones- are well aligned with the idea of transparency and accountability in public procurement sectors.

 

However, the existing laws and policies are not adequately implemented- particularly in the infrastructure development projects. Some of the policies in place do not completely align with the acts provided within the legislation. The previous government had implemented the “Guidelines for the Formulation, Processing, Approval and Amendment of Development Projects of Public Sector 2022”, which do not require any feasibility assessment for projects under the budget of 25 cr BDT. The lack of feasibility assessment creates a significant exposure of misappropriation of funds dedicated to such development projects. Other than that, in cases which the policies do align with the existing laws, the lack of implementation undermines the potential benefits of it. In the aforementioned policy, it is clearly stated that investing in underdeveloped areas is a priority for the government but barely any progress has been made in order to implement it. Rather, the areas in which the important personnel of the government reside have seen an unprecedented amount of projects in comparison to the rest. Similar irregularities are seen with other policies. “Rules to Regulate the Construction of Infrastructure in Inland Waterways and Foreshore, 2010” has failed to oblige the authorities to assess the quality of materials that are used within such projects, resulting in a requirement of significant funds for repairing. The use of substandard materials is a clear violation of the regulation, but there is no accountability against such actions.

 

These regulations further fail to coherently align all the stakeholders in a development project. The apex organizations, dedicated to create policies for the project, do not collaborate with the other stakeholders and vice versa. Which creates a significant risk of misappropriation of funds and materials, fostering an environment suitable for systematic corruption. Furthermore, sufficient audits are not conducted within these projects on a regular basis. In fact- incidents of corruption regularly take place within such audits. In addition to that, the lack of supervision by the responsible authorities play a major role in such misconduct. According to a recent report by Transparency International Bangladesh(TIB), The Roads and Highway Development(RHD) and Implementation Monitoring and Evaluation Division(IMED) do not evaluate these projects in a regular manner. Due to the lack of supervision and collaboration between the stakeholders, cases of nepotism, favoritism, and political influence have become a normal practice within infrastructure development projects. Starting from the tender offers, where impartiality is a must- the private contractors, politicians and the other parties involved have formed syndicates to create a monopoly for granting such works to specific individuals only. Cases of bribery regularly take place while granting these work orders.

 

The lack of implementation of the policies, insufficient coherence with the domestic legislation, influence of politicians and high-end officials and syndicate culture are the major contributing factors to such systematic corruption in this particular sector. To overcome such issues, the policies must be reformed in a manner which increases transparency and accountability for all stakeholders involved. Preventing irregularities, personal interests and nepotism must be put under microscope via regular supervision by RHD and IMED. Moreover, Audits must be conducted in an efficient manner. For that matter, manpower and technical support for the stakeholders should be increased. In addition, all this information related to infrastructure development must be made accessible to the public. And last but not the least, previous works by private contractors must be made available to the public and thoroughly reviewed before accepting a proposal or a tender offer. The standard of transparency and accountability must be significantly strengthened to ensure effective management and oversight of the allocated funds for such projects. 


About author:

Nafis Chowdhury is currently working as a Junior Associate at Tahmidur Remura Wahid| TRW Law Firm. He completed his LL.B honor’s from BRAC University. His areas of interest are Constitutional Law, Anti-Corruption Law and Human Rights.

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