'Cartel Scam' at Jamalpur PBS just days after regime fall: Tenders worth BDT 3.99 million approved across 6 projects at BDT 665,000 each!

Abdur Rahim:

In the wake of the historic student-led July Mass Uprising that brought down the Awami League government on August 5, six separate contracts for electric line rehabilitation—each for the exact same amount—were hastily signed at Jamalpur Palli Bidyut Samity (PBS) amid administrative uncertainty, just a day before the interim government took oath on August 8.

Official government documents reveal that on August 7, 2024, the then General Manager (GM) of Jamalpur PBS and current Senior GM of Shariatpur PBS, Khondokar Shamim Alam, signed six separate contracts at the Jamalpur PBS headquarters for the rehabilitation of 10-kilometer overhead power distribution lines on the exact same day.

Identical rates across 6 projects: According to official tender documents (IDs: 995575, 995660, 995650, 971946, 995669, and 995655), work orders were awarded to six contracting firms from six different districts under Jamalpur PBS. The contracts were awarded to Md. Zahid Ahsan Piyal of Naogaon, M/S. Azmain Engineers of Jamalpur, M/S. Azaz & Brothers Construction of Tangail, M/S Bushra Engineering of Mymensingh, M/S Faysal Enterprise of Natore, and M/S Energy Builders of Kushtia.

Official documents show that the final contract value for all six contractors from six different districts was identical down to the last decimal: BDT 665,000.000 (6.65 lakh Taka). In total, work worth BDT 3,990,000 (nearly BDT 4 million) was distributed across the six tenders.

According to procurement experts, it is mathematically impossible for proposed bids from six contractors in six different districts to match down to the exact paisa in an open tender. This indicates that contractors were informed of a fixed rate in advance to distribute work through a syndicate—a practice known as "Cartel Bidding."

'Package Splitting' to bypass Board approval: Under the Public Procurement Act (PPA-2006), large project budgets require formal approval from the central board of the Bangladesh Rural Electrification Board (REB). Allegations have surfaced that a major 60-kilometer power line rehabilitation project was artificially divided into six smaller 10-kilometer packages (Package Nos: W-23-24.23.08.1 to 13.1) to circumvent higher authority approval. By bringing each package budget below BDT 7 lakh, the GM was able to execute the contracts under his individual administrative authority without requiring Board approval.

Performance Security submission: Under government regulations, winning bidders must submit a performance security or pay order through a bank before contract execution. Significant opacity surrounds how contractors submitted bank guarantees and how PBS officials verified them online between August 5 and 7, a period when nationwide banking transactions were completely suspended or stalled.

Statement of former GM Khondokar Shamim Alam: When asked about signing six contracts at the identical rate of BDT 665,000 on August 7, 2024, following the government's fall, former Jamalpur PBS GM and current Senior General Manager of Shariatpur PBS, Khondokar Shamim Alam, said:

Statement of DGM (Technical) Mahmudul Hasan: Regarding the technical processing, former DGM (Technical) of Jamalpur PBS and current DGM of Chattogram PBS-3, Mahmudul Hasan, said:

Procurement experts note that, amid the power vacuum following the July Uprising, these contracts may have been hastily executed or backdated to lock in government funds out of concern that the incoming interim government might suspend or cancel pending projects.