BNP demands full transparency on power and energy sector contracts under Sheikh Hasina‍‍`s government

The Bangladesh Nationalist Party (BNP) has called for all power and energy sector contracts signed during Prime Minister Sheikh Hasina‍‍`s time in office to be made public.

At a press conference on Thursday, January 2, Iqbal Hasan Mahmud Tuku, a senior leader of the BNP, urged the government to release these documents for public scrutiny. 

The event was held at the BNP chairperson’s office in Gulshan.

The press conference aimed to highlight the alleged corruption, mismanagement, and financial misconduct in the power and energy sector under the ruling Awami League government over the past 15 years.

Tuku, who previously served as the State Minister for Power and Energy in the Four-Party Alliance government, discussed the flaws in the sector under the current government.

Tuku remarked, “The Awami League government tried to create a ‘magic show’ in the power sector, but in the process, they’ve emptied the pockets of the people. Every one of us pays electricity bills, and we all suffer because of it. In fact, they’ve turned the sector into a business, realizing that they could make quick money without anyone holding them accountable. After all, electricity is invisible, like air.”

He added, “Let’s talk about the capacity charge. Who decided on the capacity of these machines? Who evaluated their efficiency? No one checks or monitors them. Over the past 15 years, they’ve collected nearly one trillion taka under the name of capacity charges.”

Tuku then urged the interim government to release every contract related to the power sector. 

"They haven‍‍`t followed public procurement rules. By bypassing laws and closing tenders, they signed these contracts. The public has the right to know the details," he said. 

"We must see these contracts. How were they signed? They should be made public. The first task of the interim government should be to reveal these contracts."

A Look at the Financial Mismanagement

Tuku also shared financial figures to highlight the extent of corruption in the sector. "In the past 15 years, the total expenditure in the power sector amounted to 2,830 crore US dollars, which translates to about 3,33,940 crore taka at the current exchange rate. 

Almost one trillion taka has been looted in the name of capacity charges," he said.

He went on to provide specific numbers from previous fiscal years: "In 2008-09, 1,507 crore taka was spent on capacity charges; in 2011-12, 5,000 crore taka; in 2018-19, 8,900 crore taka; and in 2022-23, 17,155 crore taka. 

his shows that private power plants were not operational, yet payments were made. This is how the people of Bangladesh have been looted."

Tuku also accused the companies receiving these charges of using faulty machinery. 

“Many of the companies collecting capacity charges had defective machines. They brought in these bad machines and profited from it,” he stated.

Tuku raised the question of who benefited from this financial misconduct. 

"Let me mention the top five companies that received the largest capacity charges. Summit received 10,630 crore taka, Agrico International got 7,932 crore taka, Ultra Power Holdings took 7,523 crore taka, United Group received 6,575 crore taka, and RPCL took 5,117 crore taka,” he said.

Long-Term Consequences and Mismanagement

Tuku also pointed out that quick rental power plants, which were meant to solve electricity shortages in emergencies, have been operating far longer than intended. 

“These plants, which were supposed to run for two years, have been running for 15 years. Seventy-five percent of the investments in these quick rentals have been made without any return. Do you understand the situation?” Tuku said.

Tuku also criticized the government’s deal to import electricity from India, noting that 11,015 crore taka was paid as capacity charges over nine years.

“We will review all of this,” Tuku said. “But review doesn’t mean canceling. We will look into where the weaknesses are.”

Risks Ahead for the Power Sector

Tuku warned that the improvements made in the power sector under the Awami League government are not sustainable and could fail at any time.

“When you look at the corruption in the power sector, it’s clear they’ve hollowed it out. There’s nothing left,” he said.

He gave an example, saying, “For every meter, they spent an extra 4,500 taka. They bought the meters for 6,200 taka when the actual cost was much lower. So they’ve stolen an additional 1,720 taka per meter. Similarly, they inflated the price of NIC cards from 2,000 taka to 5,215 taka. There’s corruption everywhere in this sector. It seems there’s no end to it.”

Tuku also warned of serious financial trouble ahead. “While the bills are being paid now, I believe we’ll face a crisis by 2027. 

If we don’t take action now, we’ll end up with a foreign exchange shortage, printing more money, and rising inflation.”

Allegations of Corruption in the Rooppur Nuclear Project

Tuku raised concerns about the Rooppur nuclear project, alleging that "500 billion dollars have been taken by Sheikh Hasina and her family from this project." 

He added, “Further investigations are taking place in London, involving Tulip Siddiq (British MP and daughter of Sheikh Rehana), and there are more corruption issues tied to this.”

The Prepaid Meter Scam

Tuku also accused the government of running a “syndicate” involving prepaid meters. He claimed, "They plan to distribute meters to 7.12 million customers, and there has been massive corruption—around 3.6 billion taka. 

The initial budget for meter supply and installation was 4,500 crore taka, but it’s now inflated to 12,000 crore taka."

He added, “The smart prepaid meter network is benefiting only a select group, including relatives of the prime minister. They will make millions from this project.”

Finally, Tuku accused a group of companies, including one linked to former power minister Nasrul Hamid Bipu, of embezzling huge amounts in the name of LNG projects.

Tuku concluded by calling for urgent reforms in the power sector, emphasizing the need for greater transparency, accountability, and public participation in decision-making. 

"We need stricter laws to prevent corruption, regular audits, and a commitment to holding those responsible for the sector’s mismanagement accountable," he said.