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Tuesday, February 26, 2008

[mukto-mona] BARAPUKURIA GRAFT: ACC sues Khaleda, other alliance high-ups

 
 
BARAPUKURIA GRAFT
ACC sues Khaleda, other alliance high-ups
Tue, Feb 26th, 2008 6:51 pm BdST
Dhaka, Feb 26 (bdnews24.com) – The Anticorruption Commission Tuesday sued former prime minister Khaleda Zia and 15 others for their alleged links to Barapukuria coalmine graft that cost the state coffers hefty funds. Full Story

The accused include past BNP-backed coalition government high-ups M Saifur Rahman, Abdul Mannan Bhuiyan, Matiur Rahman Nizami, Ali Ahsan Mohammad Mujahid, MK Anwar, Dr Khandaker Mosharraf Hossain, AKM Mosharraf Hossain, Barrister Aminul Haque and Altaf Hossain Chowdhury.

According to details in the case filed with Shahbagh Police Station, the accused had roles in the controversial Barapukuria coalmine project in Dinajpur, which cost the government more than Tk 158 crore. ACC assistant director Shamsul Alam filed the case.

According to the case details, three companies took part in the bidding, but none of them qualified for agreement.

Later, Petrobangla decided to seek fresh international bids, but the government rushed a deal with CMC (Consortium of China National Machinery Import and Export Corporation), ignoring a Petrobangla proposal for fresh bidding.

A deal was signed with the Chinese company on June 4, 2005 for Tk 493.79 crore.

Hosaf Group worked as a local agent for the coalmine project's Chinese developer CMC.

Hosaf chairman Moazzem Hossain, who is believed to have close links to BNP high-ups, is one of the accused in the case, the latest in a series of high-profile cases filed by the graft watchdog.

Barapukuria Coal Mining Company owned by Petrobangla operates the coal mine constructed in Barapukuria in the district of Dinajpur.

CMC established its foothold in Bangladesh through a 1994 deal with Petrobangla to develop the coalmine.

Later, CMC signed a management, production and maintenance services contract with Petrobangla in 2005 thanks to Hosaf's "strong leverage" over the BNP.

The Executive Committee of National Economic Council approved the Barapukuria project in 1992.

HOW IT HAPPENED

Three firms submitted bids for the coalmine project.

After evaluation of the offers, the government on April 24, 2004 signed a Tk 335.o8 crore agreement with Shandong Ludi Geo-Mineral, the lowest among the three bidders.

But Shandong did not implement the agreement after long dithering and making an excuse of price hikes.

The offer of the second lowest bidder Shuju Coal Mining Group was cancelled as it did not renew the "bid bond".

The highest bidder CMC was asked whether it would agree on the conditions put in the agreement with Shandong Ludi.

CMC rejected the offer.

Petrobangla later sent a proposal to the energy ministry for international tenders, but the then energy secretary Nazrul Islam, also accused in the case, differed.

The case quoted Nazrul Islam as saying that six months would relapse and management and maintenance costs would be higher than in the agreement if new bids were invited.

The then Petrobangla chairman MR Osmany, director Moinul Ahsan and BCMCL managing director (extra-charge) Sirajul Islam made recommendations for approving the deal with CMC without going for further bidding, according to the case details.

The three Chinese firms that submitted bids worked in collusion with each other—backed by Moazzem Hossain, who represented both Shandong Ludi and CMC.

The case pointed out that there is no provision in the public procurement rules for signing an agreement with the highest bidder.
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