Future metro-rail ride for the city commuters might not be as smooth as in other parts of the world allegedly for violative and domineering control of the non-technical company boss over highly technical operations of the modern mass transport.
This is MAN Siddique, insiders say, for whose overreaching activity the state-run company has long been functioning in non- professional way, to the detriment of greater good in this crammed and tailback-tormented capital city, Dhaka
Observers and insiders attached with the metro-rail -network-development activities have said from selecting board members to holding board meetings, Dhaka Mass Transit Company Limited (DMTCL) often violates the Company Act 1994 and Metro Rail Act 2015.
It also revised the articles of association (AoA) within five years of getting registered with the Registrar of Joint Stock Companies and Firms in 2018 to hold control of the rail-centric highly technical and modern urban transport-based company by a bureaucrat instead of a qualified engineer, they said.
"it is now a one-man show with many irregularities," says one of them as none can take decision or step without consent of the company's Managing Director (MD).
The company, DMTCL, has a mandate to launch six Mass Rapid Transit (MRT) Lines by 2030 through establishing 128.74-kilometre network in the city. Of the lines, MRT 6, MRT 1 and MRT 5 (North) and MRT (South) are on different stages of implementation.
Officials have alleged that though the extent of work of the company has been increased, it did not maintain transparency and accountability to all concerned. Its organogram, salary structure as per a state-owned company and service rules, even safety concerns of the under-operation first MRT, were not approved and shared with authorities concerned.
The cent-percent government -owned DMTCL was formed under the Dhaka Transport Coordination Authority (DTCA) Act 2012. Its over 98-percent share is owned by Road Transport and Highways Division (RTHD) under the Ministry of Road Transport and Bridges (MoRTB).
Other shareholders are Prime Minister's Office and Ministries of Finance, Energy, Rail and Local Government and DTCA. One representatives from BUET, Supreme Court, Chartered Accountants are also directors of the DMTCL board.
According to the memorandum and articles of association, the company is formed with paid-up capital worth Tk 5.0 billion and authorized-share capital of Tk 100 billion. It has so far received Tk 1.5 billion from the Finance Ministry.
The formation of the autonomous company was the recommendation from Japan International Cooperation Agency (JICA) which has so far been funding three MRTs.
Consultant sources said the company's guideline was given to the DTCA with attractive salary and sound service rules so that MRTs are operated and maintained by efficient people keeping all standards of mass-transit systems. But, for lack of adequate skilled manpower, the company had to launch the MRT 6 for limited hours last year and its full-fledged operation from early morning to late night could not be started yet. Besides, time gaps in train operation, door opening and closing could not be improved.
However, due to the discrimination in salary and lack of service rules and an approved organogram, the DMTCL has already faced first work stoppage for two weeks by its major technical staff hired for O and M section within five years of recruitment.
Their adamant work stoppage on six-point demands had forced the DMTCL to call emergency board meeting on August 18 but was unable to resume the MRT-6 operation despite announcement by the new interim government formed after the student- launched movement to topple the Hasina government.
The DMTCL, which has to manage highly skilled manpower through training at home and abroad, has already lost 100 out of 700 technical hands as they chose jobs with better salaries and better opportunities for not finding such in the metro-rail company.
An FE investigation found that the MD has been in the post for last seven years without any tenure set. Soon after retirement as RTHD Secretary in 2017, MAN Siddique managed the high-salaried MD position in an office order he managed signing by former Minister Obaidul Quader.
Later, the RTHD issued a circular on his appointment to the post on October 26, 2017 without specifying the period of tenure. Soon after joining, the MD revised the AoA, changing section 33 (II), to legalise his appointment by replacing the MD's qualification as a retired secretary having experience in road-transport sectors.
The original AoA referred the MD post to be filled by an engineer of civil or mechanical background with over 25 years' experience in planning to execution. An international experience was also desirable.
The MD appointment in other government-owned companies, like in energy sector and newly formed company of similar bus-based mass-transit service -- Dhaka BRT Company -- has been given through advertisement to get qualified technical persons in respective sectors.
Sources said the DMTCL's MD being the former secretary used his just-retirement power as secretary to change at his desirable way. "The MD even does not feel any obligation to answer any query and attend a meeting called by RTHD or DTCA," says one of them.
The FE also talked to different previous DMTCL Board members and reviewed documents and found the company board having been first reconstituted in a meeting on December 20, 2017, just after his taking the seat sitting of MD on October 26, 2017.
At the 22nd Board meeting, the MD proposed removal of the name of BUET professor Shamsul Hoque as director and approved Director of Accident Research Institute (ARI) to be the BUET representative.
According to the Company Act, a director can be removed from a board when the director is absent for three consecutive board meetings without notice or resigns. In both cases, a show -cause notice must be served to the director taking approval from board or general meeting.
Dr Shamsul Hoque was absent neither from any board meetings nor resigned. Even no show-cause notice or any letter on his cancellation of directorship was served to the engineering and technology professor in Civil Engineering Department.
Rather it was revealed that the DMTCL sought a name from the BUET Vice-chancellor to be director representing BUET recently, when Prof Dr Shamsul Hoque was made ARI Director.
"As the DMTCL did not follow any procedure to drop my name as director, I did not accept the proposal when I am the ARI Director," said the BUET sir when this correspondent asked the reason why his name is not found on the current DTMCL Board as the ARI Director.
Consultant in company matter Mohammad Ali Imam also said whatever written in the AoA, the Company Act 1995 must be followed in removing or changing any director, be it private or public company.
However, the FE correspondent found the DMTCL having selected another BUET professor of Civil Engineer, Dr Mizanur Rahman, who was forced to resign as director of Student Welfare after the much-talked-about Abrar murder. He was also the BUET representative in the emergency board meeting held recently to approve the demand of the striking DMTCL employees.
Talking to different officials, consultants and engineers of the agencies concerned, it is also revealed that though the DMTCL was formed 11 years ago, its general meetings, including annual general meetings, and audit reports have not been done as per the company act till recently.
The DMTCL published the first audit report on June 30, 2023 but showed no income despite MRT 6 operation having partially started with income generation in January of the same year.
But an audit complaint of Tk 13.1 million has been charged in the 2022-23 report for not shifting the DMTCL office to Diabari depot location where an office space is ready for the company secretariat. The DMTCL is still in the rented building in Eskaton Road.
Talking to DTCA officials concerned, it is also found that the MD hardly attended any meeting called by the DTCA and responded to any related matter to MRTs. The DTCA regularly sends letter for submitting the quarterly safety report on the under-operation MRT 6 to the DMTCL as per the Metro Rail Act, but received not a single report from the company since the launch.
He also did not attend any the DTCA Board formed with high-profile representatives of all concerned, including RTB minister, mayors of all city corporations under Dhaka division, Dhaka Metropolitan Police engaged in the greater -Dhaka traffic system to take integrated policy decisions for the city's traffic system.
As the company operates the special MRT Pass for metro riding, though the government introduced one card for all transport Rapid Pass, the DMTCL did not allow selling Rapid Pass at any station counter. A Dutch-Bangla Bank official told the FE, preferring not to be named, that as a clearing -house bank, the company did not allow the bank to sell Rapid Pass outside of the stations even paying Tk 800,000 as rent of space.
Asked about allegations against him, MD MAN Siddique said his appointment was given by the government. "How can I say why was tenure not mentioned in the appointment? The Ministry has done it."
Though he claimed MD's qualification a retired secretary was in the original AoA, a former board member said the MD cannot be a secretary position as board chairman is the secretary and DTCA head is additional secretary- level position. "A former secretary cannot be above the secretary or above the DTCA executive director," he said, also preferring not to be quoted by name.
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