Milk Vita’s new plant idle for 8 yrs amid corruption claims

Selim Reza, Sirajganj :

Allegations have intensified that Milk Vita’s new milk processing plant remains non-operational even after eight years due to the use of substandard equipment imported from India.In the 2015-2016 financial year, Milk Vita initiated a project to establish a new plant at Baghabarighat in Shahzadpur upazila, Sirajganj district.

The project, valued at approximately Tk 105 crore, aimed to expand production and storage capacity, reduce imports, and support dairy farmers in avoiding financial losses.

Scheduled for completion in 2017, the plant was expected to increase powdered milk production by 25 tonnes per day, compared to the country’s daily import of 59 tonnes.

Although infrastructure installation was completed by 2018, complications arose in procuring its components.

Despite initial plans to source equipment from Germany, substandard machinery was allegedly purchased from India under the directives of former Milk Vita Chairman Sheikh Nadir Hossain Lipu.

During an initial trial in 2023, the faulty equipment caught fire, rendering the plant inoperative.

Since then, the facility has remained unused, and much of the machinery has rusted.

Even after multiple extensions, Milk Vita has been unable to commence operations at the plant, which now lies in a state of neglect.

It is alleged that Sheikh Nadir Hossain Lipu, a member of the Sheikh family, held the Chairmanship of Milk Vita for the longest period in its history.

Reports suggest that Milk Vita has suffered financial losses of approximately Tk 1,500 crore over the past decade due to widespread corruption and irregularities during his tenure.

According to sources, the extent of losses caused by the former chairman’s direct and indirect mismanagement is currently being assessed, and investigations into various irregularities are ongoing.

Insiders claim that all plant components are substandard, making them unsafe for use. Employees fear potential boiler explosions or other malfunctions, preventing them from operating the plant.

It is alleged that former Chairman Lipu wasted vast sums by purchasing low-quality machinery from India at lower prices, compromising the plant’s functionality.

Shahzadpur dairy farmers produce approximately 5.5 lakh litres of raw milk daily. Of this, Bangladesh Milk Producers’ Cooperative Union Ltd (Milk Vita) purchases between 2.5 lakh and 3.5 lakh litres. Small-scale farmers struggle to sell the remaining milk and are often forced to offload it in local markets at significantly reduced prices, particularly during peak production periods from November to March.

Bangladesh imports 21,700 tonnes of milk powder annually. Milk Vita’s only powdered milk processing plant has the capacity to produce 12.5 tonnes per day.

The new plant was envisioned to process an additional two lakh litres of raw milk daily, benefiting farmers and reducing dependence on imports.

Pritam Kumar Saha, Chairman of the Machine Purchasing Committee, acknowledged that most of the machines remain unused and exposed to the elements.

He added that the committee is unaware of the extent of damage caused by prolonged inactivity.

Saidur Rahman Bachchu, President of the Sirajganj Chamber of Commerce, described the plant as being in a condition fit for sale as scrap.

He accused former officials of embezzling crores of taka through fraudulent procurement practices and laundering money abroad, urging immediate action against those responsible.

Shariful Islam Talukder, Acting Project Director of Milk Vita, noted that payments to some foreign engineers remain unsettled. Discussions are ongoing to determine how to restart the plant.

Commander Zahirul Alim, President of the Interim Management Committee of the Milk Association, expressed optimism that the issues could be resolved through discussions, assuring that action would be taken following a thorough investigation into corruption allegations.

Local stakeholders have called for the Anti-Corruption Commission (ACC) to intervene to safeguard the interests of dairy farmers and ensure accountability.