Two CPA projects under scanner for alleged irregularities

Two projects of Chittagong Port Authority (CPA) are now under scanner of several government agencies as allegations of massive irregularities keep mounting, sources said.
Investigators found involvement of CPA officials in wrongdoings in the 'Capital Dredging and Bank Protection with Jetty Facilities in the Karnaphuli River' project alongside the procurement of vessels for the Pangaon Inland Container Terminal (ICT) in Keraniganj near Dhaka, they added.
After one year of the stipulated tenure of the Tk 2.295 billion project, only 53 per cent of dredging work of the river has so far been completed. Besides, 70 per cent work of the construction of jetty facilities and embankment was found to have been completed.
The Malaysian Maritime and Dredging Corporation (MMDC) started the work on May 12, 2011, under which it was scheduled to remove 3.6 million cubic feet sludge and waste from the Karnaphuli riverbed, construct 400 metres of jetty in the Sadarghat area and build 2.61 kilometres of embankment on the river banks.
Local company Marine Pacific Service (MPS) was carrying out the work on behalf of the Malaysian Company. According to the work order, the project was scheduled to be completed by December 31, 2012. The CPA extended the tenure thrice and fixed September 2013 as last day to complete the work.   
Meantime, in August, 2013, managing director of Marine Pacific Service Abu Jafar left the country leaving the project incomplete. Since then, the work remained at halt.
Earlier, a four-member investigation committee, headed by joint secretary of the Ministry of Shipping (MoS) Nasir Arif Mahmud, found that only 53 per cent work of the project were completed until July, 2013.
The committee found that the river bank line, marked by Bangladesh Survey (BS), was not followed during dredging, which has narrowed down the river. It blamed the contractor of the project, MMDC, for completion of only half of the dredging work --- even after extension of the deadline.
The probe committee has recommended for not paying any bills further until 80 per cent of the dredging work was completed.
After that, a four-member parliamentary sub-committee headed by Shamsul Huq Chowdhury, MP, was formed to investigate the irregularities of the project. The committee found that the contractor in most cases extracted sands from the riverbed only to sell those and make money, instead of removing sludge.
The committee found that only 40 per cent work of river bank protection was completed, though the contractor had claimed to completion of 63 per cent work. The CPA paid some Tk 1.659 billion to the contractor against the work. The committee found completion of work of Tk 1.20 billion and observed that the local agent had left the country pocketing additional Tk 460 million.
The parliamentary sub-committee found involvement of project director Khademul Bashar with the irregularities. Mr Bashar could not give 'satisfactory' answer to the committee.
The committee suggested formation of an expert body to further scrutinise the irregularities of the project and take punitive action against the project director through removing him from the post he is holding.
Port sources said the MoS early this month, based on an intelligence agency report, asked the CPA to take action against the project director for the delay and irregularities in the project's implementation. Besides, it asked the port management to cancel the contract with MMDC and inform the Malaysian government about the development.
The CPA was also asked to file money suit against the Malaysian company to realise compensation and confiscate dredgers and other equipment from the project site.
However, even three weeks after the directive, the CPA is yet to take any action. Project director Mr Bashar was found to be working at office. He claimed that the dredging work was going on.
"I was not involved in any irregularities. We have warned the contractor several times and fined him for the damage caused by delay in accordance with the agreement," he said.    
CPA secretary Syed Farhad Uddin Ahmed told the FE on Sunday that some 50 per cent dredging had been completed so far, while nearly 90 per cent of the embankment construction had been done.
He claimed that no overpayment was made against the work that had been carried out. "We are considering action against the contractor as per the contract."
CPA chairman Nizamuddin Ahmed could not be reached for comments despite several attempts made by this correspondent.
Officials said both the CPA and MoS had failed to monitor and supervise the project properly, which resulted in the delay and irregularities in the project's implementation. They said since the completion of the project was taking a longer time, the riverbed has again begun to get filled with sands, sludge and waste. Now the government will have to spend extra funds to remove those from the riverbed, a senior CPA official said.   
Joint chief of MoS Shamsul Karim Bhuiyan told the FE Wednesday that CPA was responsible for the basic monitoring of the project, while the ministry was to conduct the overall monitoring.
"There was no deficiency in project monitoring, but the problem was there with the contractor," he said adding the project would see another extension for completion.
Hasan Mia, work manager of the Malaysian contractor, said the work could not be completed because of various complicacies including selecting waste dumping points, flooding, and lack of supply of diesel during the shutdowns and blockades.
"We have sought time-extension until April this year and are hopeful to complete the work by then," he said.
In the meantime, sources said the parliamentary sub-committee and an additional secretary of the MoS were also separately investigating alleged irregularities in procurement of three container vessels for Pangaon ICT (inland container terminal).
Prime Minister Sheikh Hasina formally inaugurated the country's first ever ICT on November 7, 2013. Nearly one month after the inauguration of the ICT, a vessel called MV Pangaon Success arrived at the ICT port following hectic persuasion from the Prime Minister's Office and the MoS. However, until January 23, no Chittagong Port-bound vessel left the ICT due to a dearth of outbound cargoes.
The CPA bought three old container vessels - Pangaon Express, Pangaon Success and Pangaon Vision from China at a cost of Tk 490 million having carrying capacity of 120 TEUs (twenty-foot equivalent units) each. One of the three vessels has not reached Chittagong port until now. CPA secretary Farhad Uddin could not confirm the date when it would arrive.   
According to the procurement specifications, the vessels should be up to the standard of International Association of Classification Societies (IACS). But the vessels the CPA bought were as per the standards of China Classification Society.
Until now, the vessels could not be registered with the Department of Shipping (DoS). "I could not register the vessels since those do not have IACS certificates," former director general of DoS Jobair Ahmad told the FE.
Sources said only the hull of the vessels was of IACS standard and the rest was not up to the mark. Recently the CPA, with the help of the supplier, has modified some parts of the vessels, but could not make them up to the IACS standard until now.
Officials said the amount of Tk 490 million could have bought easily three IACS-standard vessels. A senior DoS official said there had been some irregularities in the procurement, which both the parliamentary committee and the MoS additional secretary Md Alauddin were investigating.
He said a private sector shipyard was building vessels with 160-TEU capacity at a cost of Tk 200 million each. They meet the IACS standards. But the CPA has bought 10-year-old vessels with China Classification Society standard at Tk 166 million each which is much higher compared to international market price.
The official said these vessels would have to undergo frequent repair work since these were 10 years old. As the vessels are not of IACS standard, foreign buyers of Bangladeshi goods were not allowing producers to carry containers by these vessels, leaving the Pangaon ICT almost inoperative.
CPA secretary Mr Farhad acknowledged that the vessels could not be registered until now, but would be registered soon with necessary modifications.
He claimed that no misappropriation of public funds had occurred during the process of the vessels' procurement.