3 LGED road and bridge projects: Tk343cr gone, no real work

Highlights:

• Bridges recorded complete on paper, but none actually built
• Contractors linked to ex-MP's family received massive payments
• IMED found Tk343.68cr withdrawn without work across projects
• 93 bridge packages paid despite zero physical progress
• Officials falsified records, bypassed procurement rules, enabling embezzlement
• IMED urged investigations, fund recovery, and legal action

On paper, there is a 30-metre-long concrete bridge on the Nadmulla Madrasa Hat-Chinguria-Colony Bazar road in Nadmulla Union, Bhandaria upazila of Pirojpur. 

But in reality, no such bridge exists at the designated site.

Under the project "Reconstruction and Rehabilitation of Iron Bridges in the Southern Region", taken during the Awami League rule, a contract worth Tk3.71 crore was signed with a contractor to build this bridge. Although no progress has been made, the contractor was paid Tk3.52 crore, showing 95% completion.

The work was awarded to EFTE ETCL Private Limited, owned by former Bhandaria upazila chairman Mirajul Islam, who is the brother of Mohiuddin Maharaj, former Awami League MP for Pirojpur-2. Although the bridge was scheduled for completion by 31 December 2022, the contractor failed to deliver.

Another 30-metre bridge on the same road is also missing. That bridge, too, was supposed to be completed in 2022. The work was awarded to Eshan Enterprise, owned by Maharaj's other brother, Salauddin.

These irregularities were revealed in an inspection in February by the Implementation Monitoring and Evaluation Division (IMED), which also found no trace of a 15-metre bridge at Binapani Bazar-Chouhuriya Bazar on the Charkhali-Mathbaria road, nor a 25-metre bridge on the Maliahat-Notun Nolbunia road. 

A visit by The Business Standard to the areas also found no evidence of these bridges. Yet, project documents indicate 90%-100% physical progress, and payments were made to the contractors. IMED report shows Tk121 crore was withdrawn with no work done across several packages in the project.

Sources from the local LGED office said that under the direct influence of former MP Maharaj, his family dominated nearly all government projects in the district, often siphoning off funds without work

IMED inspected work under three LGED projects taken up during the Awami League rule, including the iron bridges, and reported that Tk343.68 crore was withdrawn from 137 packages without any work being done. Each package was supposed to include a bridge, road, or other infrastructure.

Besides the Iron Bridge project, the others were the "Barishal Division Important Upazila and Union Road Widening and Strengthening Project" and the "Rural Infrastructure Development Project in Pirojpur." Most schemes under these projects in Bhandaria were awarded to firms owned by Maharaj's brothers.

IMED recommended further investigation to determine the exact amount paid without implementation and to recover the funds from those involved. 

It also directed each project director to conduct field inspections of every scheme and prepare a comparative statement of actual work versus payments made. 

IMED noted that project directors would be held responsible for providing false information.

The division further recommended that the Local Government Division form a high-level team to calculate the amount embezzled, identify those responsible, recover lost funds, and take legal action.

On 13 May, IMED sent a letter to LGED to take action against those involved in fund embezzlement under the road widening project. Letters were also sent on 27 March regarding irregularities in the rural infrastructure project and on 7 April over corruption in the iron bridge project.

Asked whether any action had been taken, LGED Chief Engineer Md Anowar Hossain told The Business Standard that he was unaware of the matter but would follow up on the letters. 

"If necessary, an investigation would be launched and action taken against those involved," he said.

Meanwhile, a senior LGED official, speaking on condition of anonymity, said no records of irregularities were found at LGED headquarters or upazila offices. "However, the district LGED office and district accounts office were involved," he added. 

"Project directors allocated local funds through the district accounts office, which created opportunities for misuse. Complaints have already been lodged with the Anti-Corruption Commission," he said.

The official noted that project directors could not escape responsibility. "They should have inspected work progress before approving payments, which did not happen." 

He further said contractors may not have intended to embezzle the full amount. "Had the 2024 uprising and change of government not occurred, the contractors might have eventually completed the work."

Infograph: TBS

Bills paid for zero progress in 93 bridge works

The IMED inspection report revealed that in the iron bridges project, about 93 packages showed zero physical progress, yet contractors were paid 80-95% of their bills after officials recorded 90-100% progress on paper. 

LGED had signed contracts worth Tk220.17 crore for these packages, of which Tk205.63 crore has already been disbursed. The report called this a major financial irregularity, implicating all officials and staff involved in project implementation, and recommended thorough investigation and punishment.

The report also found that 119 packages were tendered offline without approval from HOPE (Head of Procuring Entity), in violation of Bangladesh's Public Procurement Rules (PPR). Moreover, evaluation reports of these offline tenders were not submitted to HOPE or the project director for approval.

In Pirojpur alone, Tk923.49 crore was allocated under this project between FY20 and FY24, an unusually high sum for a single district. IMED said the LGED chief must be held accountable and recommended a detailed review and corrective action. 

Project Director Sharif Jamal Alok could not be reached despite repeated phone calls and visits to his office.

The IMED report found that in Pirojpur's Rural Infrastructure Development Project, six packages showed zero physical progress, yet contractors were paid 80-95% of bills, totaling Tk16.85 crore. In 37 packages, financial progress far exceeded physical work, indicating serious irregularities

Tk212cr paid without work in Barishal project

In the Barishal Division road widening project, 38 packages showed zero physical progress, yet officials reported 90-100% completion on paper and released 80-95% of the bills, resulting in Tk212 crore paid without any actual work. 

The IMED report concluded that serious financial irregularities occurred, implicating all LGED officials and staff involved, and recommended thorough investigation and exemplary punishment.

The project allocated Tk580.76 crore to Pirojpur during FY23 and FY24, with Tk499.54 crore in FY24 alone. 

IMED noted such allocation is highly irregular and accountability rests with the LGED chief. 

The project currently has no director after Adnan Akhtarul Azam retired, and repeated attempts to reach him by phone were unsuccessful.

Tk17 crore paid without any work in Pirojpur

The IMED report found that in Pirojpur's Rural Infrastructure Development Project, six packages showed zero physical progress, yet contractors were paid 80-95% of bills, totaling Tk16.85 crore. In 37 packages, financial progress far exceeded physical work, indicating serious irregularities.

IMED noted 45 packages lacked clear HOPE approval and recommended administrative and legal action against those responsible. The report also highlighted that the chief engineer should monitor maximum district-level expenditure per fiscal year, which should not exceed Tk100 crore per scheme. 

Yet, Tk420.63 crore was spent in Pirojpur over three years under this single project, for which the then-chief engineers were held accountable. 

Project Director Ibrahim Khalil could not be reached despite repeated calls.

TBS on the ground

During a visit to Nadmulla Union in Pirojpur, local resident Kamal Howlader told TBS, "There is already a bridge here, built under a 2016 project. Another bridge was supposed to be constructed. About 18 months ago, engineers came, took measurements, and even began some roadwork. But since then, nothing has happened."

Other residents said that not only this bridge but also several other roads and bridges in the area were tendered on paper but never materialised. As a result, locals continue to face worsening hardship.

Sources from the local LGED office said that under the direct influence of former MP Maharaj, his family dominated nearly all government projects in the district, often siphoning off funds without work.

Maharaj's firm is Messrs Telikhali Enterprise. His elder brother Mirajul Islam owns EFTE ETCL, brother Shamsuddin owns Telikhali Construction, and youngest brother Salauddin owns Ishan Enterprise.

Officials at the Pirojpur LGED said Maharaj's brothers withdrew money in collusion with former executive engineer Abdus Sattar and accounts officer Mozammel Haque Khan. 

Mozammel, who was jailed in a corruption case, died in July this year in custody. Sattar went into hiding after facing a case filed by the ACC. The contractors, including the former MP, are also absconding, and his brothers could not be reached for comment.

Pirojpur LGED's current Executive Engineer Mohammad Azizur Rahman declined to comment. 

Several officials, requesting anonymity, said they had long worked under fear of Maharaj and his brothers. Even after the fall of the Awami League, that fear has not disappeared. Many remain anxious about being implicated in corruption cases.