IMED flags irregularities, mismanagement in Padma Oil HQ project

The Implementation Monitoring and Evaluation Division (IMED) under the Planning Ministry has found serious irregularities, fund misuse, and mismanagement in the project to construct the head office of Padma Oil Company Limited in Chattogram, which has remained incomplete for over a decade.
Officials continued to hold project-related meetings and release funds over the past three and a half years, even after the project's official tenure expired in December 2021 -- a clear violation of financial discipline, according to a recent IMED inspection report.
The IMED has sent the report, along with recommendations, to the project implementing authority, Bangladesh Petroleum Corporation (BPC), the Energy and Mineral Resources Division (EMRD), and other concerned government agencies.
The report also called for a complete implementation strategy for the project and requested explanations for the irregularities by 15 November, IMED officials said.
The report shows that since the project's inception, a total of 14 meetings -- seven Project Steering Committee (PSC) meetings led by the EMRD secretary, and seven Project Implementation Committee (PIC) meetings chaired by the BPC chairman -- have been held. Of these, only three meetings of each committee occurred during the official project tenure, while the remaining four were held after the project had officially ended.
"Releasing and disbursing money from any project after its official tenure is a serious breach of fiscal discipline," said a senior official of the Programming Division at the Planning Commission. He added that such meetings were likely arranged so participants could receive honoraria.
BPC officials said the project was originally approved in July 2013 with an estimated cost of Tk 676.65 million, fully funded by the implementing agency, and scheduled for completion by June 2017.
Due to slow progress, the project was later revised, raising the cost to Tk 1.01 billion -- a 49.28 per cent increase -- and extending the tenure to December 2020. The project's tenure was subsequently extended by another year without any further increase in cost.
The IMED report revealed that, as of the inspection, the project had achieved only 28.5 per cent physical progress and 24.36 per cent financial progress in the last decade. Construction work has remained suspended since September 2020 due to repeated design changes, contractor inefficiency, and ensuing legal disputes.
The inspection found that only partial basement and substructure work had been completed. The project site was flooded with several feet of stagnant rainwater in the basement, posing serious structural risks to the partially built structure.
The report also highlighted procedural anomalies in consultancy appointments, noting that two separate firms were hired for the same design and supervision work. IMED questioned whether these dual appointments were justified and in line with government rules.
Officials said that a contract worth Tk 928 million to build a 23-storey building was awarded to Project Builders Ltd in 2016. The project aims to relocate Padma Oil's head office to Agrabad, Chattogram, improve communication with stakeholders, boost revenue through leasing, and ensure the effective use of the company's strategically located land.

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