Graft alleged in fire equipment purchase
JS probe body suggests fresh bidding to avoid Tk 25cr loss
A parliamentary sub-committee has recently revealed anomalies and corruption of the fire department in awarding international tenders for buying fire-fighting equipment.
The sub-committee on home ministry in its report on November 28 alleged that the director general (DG) of Fire Service and Civil Defence and the members of tender evaluation team unlawfully awarded tenders to two companies causing a huge loss.
The fire service authorities floated international tenders on November 10, 2009, January 28 and April 8 of 2010 for purchasing nine fire engines and rescue vehicles and 1,578 sets of fire-fighter suits at a cost of around Tk 25 crore.
The sub-committee found that the fire department authorities bought low quality fireman suits manufactured in Singapore while it was clearly mentioned in the tender requirements that the suits should be brought from either Japan, the USA, the UK, Australia, Canada, New Zealand or EU countries.The probe body presented documents and papers in support of its findings to the parliamentary committee on home ministry.
The parliamentary watchdog on April 25 this year formed the sub-committee to investigate the allegations of irregularities and corruption in the fire department in the tender awarding process.
In its recommendation, the six-member sub-committee, headed by Whip of the parliament Mirza Azam, suggested cancelling all tenders and floating them afresh and taking departmental actions against the fire service chief and members of the tender evaluation team.
The Daily Star has obtained a copy of the probe report.The probe report said the sub-committee could not dig out the real picture of corruption, as the fire department DG did not furnish many documents and information needed for the investigation.
It blasted Brig Gen Abu Naim Md Shahidullah, DG of the fire department, for not sending required documents, papers of the entire tender process and copies of the agreements signed with the winning bidders.The annex lists of some documents had been tactfully removed which implies the DG's intention to confuse the probe body, said the report.
Contacted, Brig Gen Abu Naim told The Daily Star that instead of complaining to the Fire Service, a section of unsuccessful bidders went to the parliamentary probe body, which proves that those bidders had shortcomings.
The fire service boss also refuted the allegations of non-cooperation with the probe body and his intention to fool the home ministry. He said, "Prudent officials run the home ministry and it is absurd that I should try to confuse the ministry in the investigation."
According to the probe report, the fire service authorities signed three agreements with non-responsive M/s Saarc Trading Company, local agent of Thailand-based M/s Kraft Company Ltd, after floating a tender on April 8, 2010 to buy nine medium and small fire engines and rescue vehicles at a cost of Tk 15.27 crore.
"M/s Saarc Trading Company did not take permission from the Bangladesh Bank (BB) to do business in favour of its principal supplier M/s Kraft Company," the report said, adding, "It submitted a letter of permission one month after it placed its bid. The fire department accepted that."
The report found that the catalogue the Saarc Trading submitted deviate from the tender specification of pocket-pump supply while the fire department disqualified five other bidders on the same grounds.It also said the fire service authorities signed five other agreements with M/s Saarc Trading Company to buy 36 portable pumps at a cost of Tk 2.09 crore breaching the public procurement rules.
Apart from that, the fire department signed two agreements with another non-responsive bidder M/s Hussain Trading Company Ltd, local agent of Singapore-based M/s Viking Life Saving Equipments Ltd, to buy 1,578 sets of fireman suits at a cost of Tk 7.6 crore.
The Hussain Trading did not have the BB permission for doing business on behalf of a Singaporean company either.According to the agreement with Hussain Trading, the origin and the shipment of the firefighter suits should be from Denmark.
"But while opening Letter of Credit with the principal supplier, a provision was incorporated that the supplier would be able to ship the consignment from any port in Singapore. This gave the company the opportunity to send the proposed items manufactured in Singapore rather than in Denmark," said the report.
The sub-committee on home ministry in its report on November 28 alleged that the director general (DG) of Fire Service and Civil Defence and the members of tender evaluation team unlawfully awarded tenders to two companies causing a huge loss.
The fire service authorities floated international tenders on November 10, 2009, January 28 and April 8 of 2010 for purchasing nine fire engines and rescue vehicles and 1,578 sets of fire-fighter suits at a cost of around Tk 25 crore.
The sub-committee found that the fire department authorities bought low quality fireman suits manufactured in Singapore while it was clearly mentioned in the tender requirements that the suits should be brought from either Japan, the USA, the UK, Australia, Canada, New Zealand or EU countries.The probe body presented documents and papers in support of its findings to the parliamentary committee on home ministry.
The parliamentary watchdog on April 25 this year formed the sub-committee to investigate the allegations of irregularities and corruption in the fire department in the tender awarding process.
In its recommendation, the six-member sub-committee, headed by Whip of the parliament Mirza Azam, suggested cancelling all tenders and floating them afresh and taking departmental actions against the fire service chief and members of the tender evaluation team.
The Daily Star has obtained a copy of the probe report.The probe report said the sub-committee could not dig out the real picture of corruption, as the fire department DG did not furnish many documents and information needed for the investigation.
It blasted Brig Gen Abu Naim Md Shahidullah, DG of the fire department, for not sending required documents, papers of the entire tender process and copies of the agreements signed with the winning bidders.The annex lists of some documents had been tactfully removed which implies the DG's intention to confuse the probe body, said the report.
Contacted, Brig Gen Abu Naim told The Daily Star that instead of complaining to the Fire Service, a section of unsuccessful bidders went to the parliamentary probe body, which proves that those bidders had shortcomings.
The fire service boss also refuted the allegations of non-cooperation with the probe body and his intention to fool the home ministry. He said, "Prudent officials run the home ministry and it is absurd that I should try to confuse the ministry in the investigation."
According to the probe report, the fire service authorities signed three agreements with non-responsive M/s Saarc Trading Company, local agent of Thailand-based M/s Kraft Company Ltd, after floating a tender on April 8, 2010 to buy nine medium and small fire engines and rescue vehicles at a cost of Tk 15.27 crore.
"M/s Saarc Trading Company did not take permission from the Bangladesh Bank (BB) to do business in favour of its principal supplier M/s Kraft Company," the report said, adding, "It submitted a letter of permission one month after it placed its bid. The fire department accepted that."
The report found that the catalogue the Saarc Trading submitted deviate from the tender specification of pocket-pump supply while the fire department disqualified five other bidders on the same grounds.It also said the fire service authorities signed five other agreements with M/s Saarc Trading Company to buy 36 portable pumps at a cost of Tk 2.09 crore breaching the public procurement rules.
Apart from that, the fire department signed two agreements with another non-responsive bidder M/s Hussain Trading Company Ltd, local agent of Singapore-based M/s Viking Life Saving Equipments Ltd, to buy 1,578 sets of fireman suits at a cost of Tk 7.6 crore.
The Hussain Trading did not have the BB permission for doing business on behalf of a Singaporean company either.According to the agreement with Hussain Trading, the origin and the shipment of the firefighter suits should be from Denmark.
"But while opening Letter of Credit with the principal supplier, a provision was incorporated that the supplier would be able to ship the consignment from any port in Singapore. This gave the company the opportunity to send the proposed items manufactured in Singapore rather than in Denmark," said the report.
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