Govt moves to recover funds siphoned from 'quick rental' power projects

Energy minister tells JS

FE REPORT | Published: April 19, 2026 23:31:08

The government has initiated efforts to repatriate funds allegedly siphoned abroad during the previous Awami League regime through controversial "quick rental" power projects.
Power, energy and mineral resources minister Iqbal Hassan Mahmood said this in parliament on Sunday, underscoring a broader push to restore transparency in the country's energy sector.
He said the finance ministry and Bangladesh Bank are working in coordination to trace and recover illicit financial outflows linked to the projects.
His remarks came during a question-and-answer session chaired by Deputy Speaker Kaiser Kamal.
The "quick rental" scheme, introduced under the Speedy Supply of Power and Energy (Special Provisions) Act, 2010, allowed authorities to approve power plants without competitive bidding. Tariffs were often determined through a negotiation committee, a process, the minister said, led to unjustified pricing and excessive capacity payments.
Politically connected business groups, including individuals linked to the former ruling party, were among beneficiaries, he said, alleging that billions of taka had been embezzled and transferred abroad.
The government repealed the law and replaced it with new legislation passed earlier this month, effectively ending discretionary approvals. Authorities are now preparing legal action against those implicated, while financial probes are focusing on asset recovery.
Responding to another question, the minister dismissed claims of a nationwide fuel shortage, attributing disruptions at petrol pumps to hoarding and black market activities by "unscrupulous traders".
He said fuel supply volumes in March 2026 matched those of the same period last year.
Despite this, consumers across the country have reported rationing at filling stations, with some outlets limiting sales and marking vehicles to prevent repeat purchases.
Lawmakers raised concerns over the possible role of organised syndicates in manipulating supply.
The minister said no government directive had been issued to cap fuel sales or mark vehicles, blaming panic buying and illegal stockpiling for the present situation.
He added that enforcement has been stepped up, with mobile courts conducting over 9,000 drives nationwide, filing more than 3,500 cases and recovering significant volumes of fuel.
To improve market discipline, authorities have begun piloting a digital fuel card system in parts of Dhaka to monitor retail distribution and curb irregularities. The system will be expanded nationwide if proven effective, said the minister.
Officials are also tightening oversight of the liquefied petroleum gas (LPG) market, where prices are state-regulated but supply remains heavily import-dependent. With about 99 per cent of LPG sourced from abroad, the government is closely monitoring imports amid Middle East tensions to prevent further volatility in domestic energy markets, he added.
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