The Comptroller and Auditor General (CAG) of Bangladesh has found financial anomalies worth Tk 191.59 million in the construction works of five Dhaka hospitals under Public Works Department (PWD).
The irregularities include overpayment to contractors, improper payments and non-compliance with tender procedures.
The hospitals are the National Institute of Cardiovascular Disease (NICVD), Shaheed Suhrawardy Medical College Hospital, Neuro-Science Hospital, National Institute of Ophthalmology and the National Cancer Institute in Dhaka.
The PWD awarded contracts to seven bidders for the construction of buildings and the supply of other materials during the FY18-FY20 period.
According to the audit report, five PWD zonal offices in Dhaka were involved in the “massive misappropriation” of public funds.
The report revealed that the state-run public works department paid Tk 21.72 million in extra bills to seven contractors for hospital building construction.
Interestingly, in another case, the PWD zonal offices cancelled agreements with bidders due to their failures in project works but did not forfeit the performance security (PS) deposited with the project implementing agency.
The CAG audit team identified some Tk 120.59 million in public fund wastages resulting from the irregularities.
The CAG audit report also showed that the state-run public works department improperly paid Tk 44.58 million to three contractors despite their failures to comply with the agreements.
The government missed out on collecting Tk 1.51 million in value-added tax (VAT) and revenues by not claiming the owed funds from the contractors, according to the audit.
CAG officials said the report has already been submitted to the President's office for further action.
The five PWD zones in Dhaka are -- the Executive Engineer's office at the Sher-e-Bangla Nagar Public Works Division-1; Mohakhali Public Works Division; Public Works E/M Division-7, Sher-e-Bangla Nagar; Public Works E/M Division-8, Mirpur; and Public Works E/M Wooden Industry Division, Sher-e-Bangla Nagar.
According to the audit, the Executive Engineering office of the Sher-e-Bangla Nagar Public Works Division-1 paid additional bills to two contractors -- GKBPL-PAEL JV and M/s Kabir Traders - for supplying water-reducing chemical admixture, fixing and supplying tiles, brick-wall hole-machine, cement sand plaster, supplying & making door & window frames, and earth & sand filling works at the National Institute of Cardiovascular Diseases in Dhaka.
The Public Works Department paid additional bills to M/S Iqbal Trading Corporation for work beyond their development scope at the National Institute of Ophthalmology in Agargaon, Dhaka.
They also paid Rafiq Construction Co (Pvt.) Ltd and HSA-RCCL JV for development work at Neuro-Science Hospital, Agargaon; and M/s Novelty for development work at Mohakhali Cancer Hospital in Dhaka.
The CAG audit team found that PWD executive engineer offices had processed five bills to the contractors through a "hand receipt" before completing the installation of 10 elevators at the hospital building.
When contacted, no relevant individuals were available for comment on this audit report.
Dr Mirza Azizul Islam, a former bureaucrat and also a former Finance and Planning advisor to the caretaker government, told The Financial Express that compromising on quality, sub-standard work and experiencing time and cost overruns in development projects have become common phenomena in recent times.
"As per the constitution, the CAG is correctly engaged in financial and other audits. However, the reports are not being properly considered by the authorities concerned in the government."
"To address these anomalies and corruption, a strong political will is essential, and exemplary punishment of the culprits is imperative," Dr Islam added.
The CAG office usually conducts audits of government accounts and other public expenditures to ensure accountability and transparency of the public fund.
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