Allegations of irregularities and corruption in various state-owned agencies, corporations, and departments are nothing new. Over the past decade and a half, major corruption and looting have taken place in different projects and purchases of these institutions. Audits by the Office of the Comptroller and Auditor General (CAG) have revealed financial irregularities in these organizations at various times. Alongside that, money has been looted from state-owned banks in the name of loans. After the interim government took charge, several investigations and audits were initiated over the past year against irregularities and corruption in private banks, the financial sector oligarchs, and the private sector. But no such initiative has been seen yet to audit irregularities and corruption in government institutions, agencies, corporations, and departments.
There are currently 232 autonomous, self-governed, and statutory government institutions in the country. Because of irregularities, corruption, and inefficiency, most of these institutions are not providing much return to the government. Instead, funds from the state treasury are being spent to keep them operational. According to economic reviews, as of June 30, 2024, the debt of these institutions stood at BDT 2.18 trillion. In FY 2023–24, the government provided BDT 507.83 billion in subsidies to these institutions.
Among the state-owned organizations that have faced the most allegations of irregularities and corruption over the past 15 years are Bangladesh Petroleum Corporation (BPC), Bangladesh Oil, Gas and Mineral Corporation (Petrobangla), Bangladesh Petroleum Exploration and Production Company (BAPEX), Titas Gas Transmission and Distribution, Bangladesh Power Development Board (BPDB), Biman Bangladesh Airlines, Bangladesh Chemical Industries Corporation (BCIC), and Bangladesh Shipping Corporation (BSC).
After taking office, the interim government formed an economic white paper committee on August 28, 2024. The committee is headed by economist and Distinguished Fellow of the Centre for Policy Dialogue (CPD) Dr. Debapriya Bhattacharya. According to the committee’s report, during the 15 years of the Awami League’s rule, there was widespread corruption surrounding public investment. Nearly BDT 7 trillion was spent on goods and services purchased for government activities. Out of this, around BDT 1.61 trillion to BDT 2.80 trillion went as bribes. These bribes were taken by political leaders, bureaucrats, and their associates. During this time, $234 billion was laundered out of the country. In Bangladeshi currency, the laundered amount was close to BDT 27 trillion.
Over the past 15 years, one of the main areas of irregularities and looting has been the power and energy sector. The interim government has yet to take any steps to investigate or conduct special audits into allegations of corruption against state-run institutions in this sector, such as Bangladesh Petroleum Corporation (BPC), Petrobangla, Bapex, Titas Gas, and the Bangladesh Power Development Board (BPDB).
The white paper committee’s report highlighted at least $6 billion in irregularities and corruption in the country’s power and energy sector. According to the report, the private sector took this money in the form of commissions from power plant construction, capacity charges paid for idle plants, and excessive profits. Although the ministry has already formed several committees to reduce excess spending and financial losses in the sector, people concerned said no visible initiative has yet been taken to investigate past irregularities and corruption.
Between 2009 and 2024, more than 100 projects were approved under the Quick Enhancement of Electricity and Energy Supply (Special Provisions) Act 2010. These projects saw widespread commission trading to award contracts to preferred companies. At the same time, the issues of cost escalation and unnecessary projects causing financial losses for the government came to light several times.
The country’s sole power purchasing authority is the Bangladesh Power Development Board (BPDB). Over the past decade and a half, BPDB signed power purchase agreements with various local and foreign companies under the special law to increase generation capacity. However, these contracts have often been marred by allegations of irregularities and corruption, resulting in losses for the state-owned entity. Major accusations include the power purchase deal with Adani, the Rampal power plant, and several other private power plant projects. Following the fall of the Awami League government, calls were made for independent investigations into these allegations.
The most expensive project in the country is the Rooppur Nuclear Power Plant. Allegations of corruption in its spending have surfaced at different times. After the interim government took office, there was an opportunity to audit the actual costs of the project, which currently stands at BDT 1.14 trillion. Demands were also raised for a proper investigation into various purchases made under the project. But the interim government has not taken any such steps.
According to BPDB sources, from FY 2010–11 to FY 2024–25, subsidies in the power sector alone amounted to BDT 2.36 trillion. Of this, more than BDT 1.5 trillion went to capacity charges. Although the special law on power and energy has been repealed, there have been strong demands to make public the contracts signed under the law. Energy experts and civic groups say the government has not done so.
Debates around LNG imports in the energy sector began after 2018. The biggest allegation has been commission trading. While the issue of investigating who profited from such commission trading has been discussed repeatedly, no initiative has yet been taken. It is alleged that a powerful syndicate neglected local gas exploration in favor of large-scale LNG imports. Because of this, Petrobangla has suffered from financial crises year after year.
Bangladesh Petroleum Corporation (BPC), the state-owned entity responsible for purchasing, importing, and marketing fuel oil, has raised fuel prices multiple times when global prices surged. Claiming losses, BPC passed the burden on to consumers. Yet, over the past seven to eight years, the company has made huge profits, without adjusting prices downward when international rates dropped. Instead, it deposited the money in different banks, earning interest for years. At different times, calls have been made for international firms to audit BPC’s profits from fuel price hikes. But no such initiative has been taken. According to figures from the Economic Review, between FY 2014–15 and FY 2023–24 (up to April), BPC made profits of around BDT 555 billion.
Titas Gas Transmission and Distribution Company Limited (TGTDCL) is the country’s largest distributor of gas to households and industries. In January this year, the company’s system loss in gas distribution stood at 10.53 percent. While officially explained as technical faults, massive amounts of gas are being wasted and stolen under this category. Altogether, system losses are causing financial damage of at least $1 billion annually. There are allegations that some dishonest officials in the company are providing illegal gas connections under the cover of system loss. Despite regular drives to stop such theft, the problem has not decreased. The Energy Division has set a target to reduce system losses at Titas and other companies by June 2026. However, officials say the target is not being implemented in practice. Over the years, there have been repeated calls for large-scale investigations into corruption and irregularities at Titas. But no steps have yet been taken.
The country’s state-owned gas exploration company, BAPEX, has failed to carry out large-scale exploration in the past two decades. Toward the end of the AL government’s tenure, questions emerged over whether BAPEX was deliberately sidelined or simply lacked the capacity to operate effectively. Major allegations also surrounded the use of foreign firms for costly drilling projects. Critics pointed to slow project implementation, the purchase of rigs at inflated prices, and drilling without proper surveys, which resulted in financial penalties for the government.
Two officials, who requested anonymity, told Bonik Barta that politics and blame-shifting had always clouded BAPEX’s performance. They noted that BAPEX had done what it could within its capacity, but admitted that the company was at times deliberately rendered ineffective.
The interim government has said that when it assumed office, one of its biggest challenges in the power and energy sector was dealing with outstanding arrears. Those have now been settled, easing the financial burden on state-owned enterprises. It also revoked the controversial special law that had long drawn criticism. In addition, electricity tariffs were reduced, some contracts were scrapped, and investigative committees were formed to examine several power plants. These committees have reviewed expenses and contracts and submitted recommendations, which are still under consideration. The interim government also plans a broader investigation into irregularities and corruption in the power and energy sector during the previous administration.
On the issue, Muhammad Fouzul Kabir Khan, Adviser to the Ministry of Power, Energy and Mineral Resources, told Bonik Barta, “There are plans to conduct audits to investigate irregularities and corruption in the power and energy sector. But hiring a local firm requires further scrutiny. A committee was formed at the ministry to review various contracts and procurements. They recommended appointing international consultant. We are searching for a suitable international firm, but no one has been appointed yet.”
In the past, corruption and embezzlement turned into a major problem in the country’s transport infrastructure sector. In eight projects under the Road Transport and Bridges Ministry, the Railways Ministry, and the Civil Aviation and Tourism Ministry, errors in planning and feasibility studies, delays in implementation, and corruption increased the cost by 68 percent, or $7.52 billion, above the estimated budget. These projects are the Padma Bridge project, Padma Bridge rail link project, Jamuna rail bridge project, Dhaka-Mawa expressway project, Karnaphuli tunnel, Dhaka MRT Line-6, the third terminal construction project at Hazrat Shahjalal International Airport, and the Bus Rapid Transit (BRT) Line-3 project. The initial estimated cost of these projects was $11.2 billion, which later rose to $18.64 billion.
Beyond these eight projects, the three ministries along with the Ministry of Shipping implemented several large-scale projects during the Awami League’s tenure. From some of the world’s most expensive highways and expressways to railways, procurement of engines and coaches, and purchases of vessels and ships, a significant share of the expenses went into corruption and misappropriation.
In Bangladesh Shipping Corporation (BSC), corruption allegations have also surfaced several times over the procurement of ships. In this case too, the Ministry of Shipping is relying on the Anti-Corruption Commission’s investigation.
According to a study by Transparency International Bangladesh (TIB), over the past 14 years (from FY 2009–10 to 2023–24), corruption in construction works of development projects under the Roads and Highways Department (RHD) amounted to a minimum of BDT 292.30 billion and a maximum of BDT 508.35 billion. The organization also reported that the overall rate of corruption in construction works of development projects ranged between 23 percent and 40 percent.
Despite this corruption and embezzlement, no project-based audits or audits by the concerned ministries or departments have been undertaken. Regarding this, Adviser Muhammad Fouzul Kabir Khan told Bonik Barta, “ACC will investigate these matters. There is no initiative for investigation or audit from the ministry or from the division, directorate, or department so far.”
In the past, allegations of irregularities and corruption have also surfaced over Biman Bangladesh Airlines’ aircraft purchases. In 2014, under a five-year agreement, the airline leased two Boeing 777 aircraft from EgyptAir. Within a year, the engine of one aircraft broke down, and another engine was rented from EgyptAir. That engine also failed later, prompting Biman to send it to a U.S.-based company for repairs. Over five years, the airline paid BDT 11.61 billion to EgyptAir and the repair company. Later, Biman purchased those two leased aircraft, which have spent more time grounded than in operation. During the Awami League’s tenure, the airline also purchased six Dreamliner aircraft. While the ACC investigated irregularities over the lease agreements, no audit has been carried out yet on the purchase of the new aircraft.
Similar allegations of corruption were raised against several Bangladesh Railway projects during the AL era. At least BDT 300 billion worth of projects—including the Chinki Astana–Ashuganj damaged rail track repair project, the Dohazari–Cox’s Bazar rail line project, the Kashiani–Gopalganj rail line project, and the Akhaura–Laksam rail line project—were implemented through Max Infrastructure, the contracting company that secured the work orders. The ACC is reviewing possible corruption in these projects. However, no formal audits have been undertaken by the ministry or Bangladesh Railway regarding these allegations.
Professor Mustafizur Rahman, a member of the white paper drafting committee and Distinguished Fellow at the Centre for Policy Dialogue (CPD), told Bonik Barta, “We do not see any visible action being taken against irregularities and corruption in sectors outside banking and the capital market. We don’t even know whether the government has taken any such measures. In a few cases, some individuals have been removed from their posts, but beyond that, there has been little initiative. In the infrastructure sector, we have seen additional costs and corruption in several projects, and those issues have come to light in different ways. Public procurement and project implementation became major sources of corruption and money laundering. These were carried out through different ministries and agencies of the government. Unless accountability is ensured, these practices will continue to be repeated. Alongside ensuring accountability, it is also important to make sure that no one can get away with irregularities and corruption.”
He further said, “Even in the CAG’s audits, we have seen evidence of massive financial irregularities, but there was no visible follow-up. Each ministry should address these issues under its own management. This is not the ACC’s task alone. If it is clarified how the money was spent, who was responsible, and the findings are presented transparently to the public, people’s confidence in the reform process would increase significantly.”
After Dr. Ahsan H Mansur took charge as the Governor of Bangladesh Bank, the boards of more than a dozen private banks were dissolved. International audit firms were appointed to investigate the irregularities, corruption, and looting that had taken place in those banks. So far, forensic audits and asset quality reviews have been completed for at least six banks. Based on those audit reports, the central bank has also taken steps to merge five Shariah-based private banks.
While initiatives such as audits and mergers are moving forward in the private banking sector, the state-owned banks have remained outside this discussion. Yet, looting in state-owned Sonali, Janata, Agrani, Rupali, and BASIC banks began soon after Sheikh Hasina’s government came to power in 2009. The Bismillah Group scandal at Janata Bank sparked a nationwide uproar in 2011. A year later, the Hallmark scandal at Sonali Bank came to light. The BASIC Bank scam followed shortly after. Through one major loan scandal after another, more than a trillion was siphoned off from state-owned banks. At present, Janata Bank alone has a capital shortfall of nearly BDT 530 billion. If the capital shortfalls of the other state-owned banks are added, the total reaches over BDT 1 trillion.
According to industry insiders, the interim government has not taken even a fraction of the measures for state-owned banks that it has applied to private banks. Reform in these institutions has so far been limited to changing Chairmen and Managing Directors.
When asked about the issue, Mohammad Muslim Chowdhury, Chairman of Sonali Bank PLC, told Bonik Barta, “A special audit could have been conducted to determine the actual losses of these banks. There were some initial discussions on this, but no progress has been made.”
He added, “At the initial stage, Bangladesh Bank is conducting forensic audits on Shariah-based banks. Once their asset quality reviews are completed, the merger process will begin. Depending on the success of this phase, state-owned banks may also undergo audits in the second phase.”
There are serious allegations of irregularities against the Bangladesh Chemical Industries Corporation (BCIC) over government-funded fertilizer imports. The Comptroller and Auditor General’s (CAG) audit also flagged corruption in fertilizer purchases. Back in FY 2017–18, the government spent BDT 48.86 billion on fertilizer subsidies. A large share of this amount was allocated to BCIC for imports. But later, it was discovered that only through transport contractors, BCIC was involved in massive irregularities worth nearly BDT 18.35 billion in fertilizer imports that year.
Between the 2017–18 and 2022–23 fiscal years, the government allocated more than BDT 570 billion as fertilizer subsidies. Yet, much of this subsidy did not reach farmers. Middlemen siphoned off a large portion along the way.
Former cabinet secretary Musharraf Hossain Bhuiyan believes there is scope within the existing government framework to audit and take action on such irregularities. Ministries or divisions can initiate this process on their own. Speaking to Bonik Barta, he said, “In their report, the White Paper Committee broadly outlined their views and recommendations on what happened in economic activities and development spending during the previous government. Based on that, relevant ministries can take action under the leadership of the responsible Adviser. Every ministry has the authority to carry out internal audits, and funds are allocated in the budget for this. At the same time, the CAG also has a constitutional responsibility to look into these matters. The CAG can do this either on their own or at the request of the concerned ministry or division. If irregularities were committed knowingly for personal gain, that constitutes a criminal offense, which falls under the jurisdiction of the Anti-Corruption Commission. On the other hand, if such irregularities were caused by negligence, incompetence, or carelessness, leading to government losses, then audits can still be conducted and punitive action can be taken against those responsible.”