Reza Mahmud :
The government’s push for transparency in public procurement through the Electronic Government Procurement (e-GP) system has been marred by allegations of corruption, with concerns growing over the concentration of contracts among a select group of contractors.
According to experts, stringent action is needed to address these irregularities and prevent further damage to the nation’s economy.
Introduced nearly a decade ago, the e-GP system was designed to improve accountability, ensure fairness, and curb corruption in government contracting.
However, a recent report by Transparency International Bangladesh (TIB) has raised alarm over how the system has been exploited for financial gain by individuals with political connections.
TIB’s findings show that over the last 15 years, 61 percent of the nearly 6 trillion taka spent through e-GP went to just 5 percent of contractors.
Among these, “FON International” dominated procurement activities, particularly in the Fire Service and Civil Defence Directorate, leveraging political and bureaucratic ties to maintain a stronghold on government contracts.
The TIB report highlights that between 2012 and 2024, 666,474 procurement activities across 66 ministries and departments were completed via e-GP, amounting to a total of 5.97 trillion taka.
Shockingly, the top 5 percent of contractors received over 61 percent of this work, while the bottom 10 percent collectively secured less than 1 percent of contracts. Notably, “FON International” was awarded 78 percent of Fire Service tenders, valued at around 1.04 billion taka, despite questions over the company’s dubious practices.
The report outlines various corrupt activities tied to “FON International,” including fraudulent bidding, the submission of quotations without executing work, and the manipulation of tender approvals. These activities reportedly included embezzlement of funds, money laundering, and influencing authorities to secure contracts for loyalists.
Allegations also suggest that the larger the project, the higher the commission, a practice that reportedly flourished during the tenure of the Awami League government.
Despite the government’s aim to foster transparency, the TIB’s Executive Director, Dr. Iftekharuzzaman, has stated that e-GP appears to have become a tool for perpetuating the same old corrupt practices in a digital format.
Meanwhile, a source within the Ministry of Home Affairs revealed that the Anti-Corruption Commission (ACC) has submitted a report on the matter and an investigative committee has been formed.
However, concerns remain regarding the future of this investigation and the potential lack of accountability.
Attempts to contact Mahmud Hasan, the CEO of “FON International,” for comment were unsuccessful.
Experts are urging the government to take immediate and decisive action to address these issues and restore integrity to the e-GP system to prevent further abuse of public funds.
