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Bus operators pay Tk 10b in extortion per year

Reveals TIB survey, notes police and others are involved


FE REPORT | March 06, 2024 00:00:00


Private bus operators in the country are estimated to pay at least Tk 10 billion annually in extortion, according to Transparency International Bangladesh (TIB).

In a survey, the anti-graft watchdog reveals that individuals or groups affiliated with the ruling party, traffic police, highway police, Bangladesh Road Transport Authority (BRTA) officials, transport associations, labour unions and municipal or city corporation representatives are all beneficiaries of this extortion.

TIB's report, titled 'Integrity in the Business of Private Bus Owners', also sheds light on a total disorder and a lack of transparency in the bus transport sector - which is dominated by private operators with over 98 per cent investment.

TIB's research team, led by Executive Director Iftekharuzzaman, disclosed the survey findings at a press conference in Dhaka on Tuesday.

The report alleges that the sector is heavily influenced by ruling party-linked political leaders, who have facilitated the environment of extortion and illegal transactions.

The researchers, Nuruzzaman Farhad, Farhana Rahman and Mohammad Nur e Alam, found that no external audits were conducted or submitted to the Registrar of Joint Stock Companies (RJSC) in 82.7 per cent of cases involving the 1,155 bus companies and 65 owner associations registered with the RJSC as of 2023.

TIB found around 90 per cent of the illegal transactions occur within the BRTA during processes related to driving licences, fitness certificates and route permits.

The research paper is based on a month-long survey conducted from September to October 2023. The survey included interviews with 701 bus workers, 168 bus owners and 696 bus passengers across 51 bus terminals.

Besides, verbal interviews were conducted with 37 individuals from various entities, including bus owners, transport associations, owner associations, traffic police, highway police, BRTA, RJSC, city corporations and chambers of commerce and industry.

The research aimed to gain a comprehensive understanding of the bus transport sector, which is used by an estimated 60 per cent of passengers in Bangladesh.

On the research findings, TIB Executive Director Iftekharuzzaman said the entire sector is marred by "anarchy", which "affects" both workers and passengers.

TIB found that the system is also marred by a lack of enforcement of the Road Transport Act, introduced in 2018, and an uneven playing field dominated by a few big companies. This lack of competition, coupled with weak enforcement, creates an environment conducive to exploitation.

The survey revealed concerning practices, including wage deprivation, uncertain work conditions and passenger safety issues.

The survey found that around 69.3 per cent of transport workers do not receive fixed wages or salaries. Besides, 82 per cent have no written appointment letters, and working hours range from 11 to 18 hours per day, with concerns about child labour.

The lack of proper enforcement and oversight contributes to road safety concerns and issues like sexual harassment.

The research also identified financial irregularities, with hidden costs not being disclosed. Besides, it revealed that 13.1 per cent of companies own 81.4 per cent of buses and in 92 per cent of cases, the board of directors have direct engagement with the ruling party.

The survey found that over 67 per cent of bus workers and labourers work more than eight hours a day, in contravention of sections 13 and 14 of the Road Transport Act 2018.

In over 59 per cent of cases, drivers are forced to work long hours without a designated substitute. This often leads to 38.1 per cent of helpers or conductors taking the wheel while the driver attempts to get essential rest.

Despite the government setting a minimum wage for all transport workers, including drivers, the survey revealed huge discrepancies.

Around 77.5 per cent of drivers receive less than the mandated minimum wage, with their average salary being Tk 17,650 compared to the official range of Tk 21,745-23,226 per month.

Over 55 per cent of conductors and supervisors earn below the minimum wage, receiving an average of Tk 13,871 against the official range of Tk 13,965-14,892 per month. The survey also found that only 39.4 per cent of bus workers and labourers received compensation from owners following accidents between March and August.

However, even this compensation was insufficient, covering only an average of 18.7 per cent of their medical expenses.

The researchers identified the complexity of managing accident-related documents as a major reason for this inadequate support.

TIB called for stronger political will from the government to address these issues and create a safe, passenger-friendly and well-regulated bus transport system. They also advocated improved enforcement, fair competition and better working conditions for all involved.

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