What a plunder of T3 project at Dhaka airport!

A raft of allegations of financial irregularities have surfaced in the Third Terminal (T3) project at the Hazrat Shahjalal International Airport in Dhaka. A staggeing Tk 32 billion was spent without necessary approvals. Even saplings worth Tk 500 were purchased for as much as Tk 100,000 each.

An expenditure of Tk 440 million was shown for cutting the ribbon at the partial inauguration. An existing waterbody was presented as a newly excavated pond, and Tk 100 million was claimed for the work. An additional Tk 2.17 billion was paid on the pretext of speeding up construction. Hundreds of crores of taka were paid in the name of variations or changes to project items.

However, efforts are now underway to legitimise these expenditures through post-facto approval, according to a report published in vernacular daily Jugantor today (Saturday).

These irregularities were revealed through a review of the special audit report by the Comptroller and Auditor General (CAG) and project-related documents. Experts believe that granting post-facto approval despite evidence of irregularities would weaken accountability in development projects. They also warn that it would set a dangerous precedent.

Those concerned say the spending pattern in the Third Terminal project is reminiscent of the widely discussed 'pillow scandal' at the Rooppur Nuclear Power Plant project in 2019. In that project, the price of each pillow was fixed at between Tk 5,000 and Tk 89,000.

Transparency International Bangladesh (TIB) Executive Director Dr Iftekharuzzaman said, "If the identified irregularities are legitimised through post-facto approval, it will amount to another act of corruption. There is no scope to legalise these irregularities now. Otherwise, it would mean that irregularities were committed and are now being settled through a settlement committee."

Aviation expert Kazi Wahidul Alam said that instead of granting post-facto approval, an independent investigation should determine responsibility for the irregularities, recover the excess payments and take legal action against those involved. Otherwise, such large-scale misuse of public funds in government projects would continue.

State Minister for Civil Aviation and Tourism M Rashiduzzaman Millat said the allegations of irregularities and corruption in the Third Terminal project would be investigated and those responsible brought to justice. 

He said it would be examined who made the fake variations, how much money was misappropriated or irregularly spent, and who was involved. An amicable settlement committee has been formed to resolve the matter. However, corruption cannot be settled through an amicable settlement. Legal action will be taken against anyone found involved.

According to sources, various trees, including casuarina, krishnachura and frangipani, were planted for the beautification of the Third Terminal. Project documents show the price of each tree as between Tk 5,000 and Tk 100,000. However, similar trees are available at nurseries around the airport for Tk 200 to Tk 500 each. Around Tk 200 million was shown as the cost of purchasing these trees, with an additional Tk 48 million allocated for their maintenance.

Nursery owner Robiul Islam said that the trees cost no more than Tk 200 to Tk 500 each. "These are certainly not Tk 100,000 trees," he said.

It is learnt that during the Awami League government's tenure, the initial cost of the Third Terminal project was estimated at around Tk 135 billion. Following several revisions, the cost rose to nearly Tk 220 billion. According to the audit report, thousands of crores of taka were paid through inflated bills, unauthorised variations and questionable expenditures at different stages of project implementation. The move to legitimise these expenditures has now sparked fresh controversy.

According to the audit report, Tk 100 million was paid to the contractor for constructing a pond at the Third Terminal. However, analysis of old Google Earth satellite images shows that a waterbody already existed at the site. It was merely renovated and converted into a pond. Under the contract, excavated soil was supposed to be dumped about 6.5 kilometres away from the project site. However, the investigation found that most of the soil was dumped within two kilometres. Despite this, the contractor was paid for long-distance transportation, costing Tk 830 million.

The report also states that before the project was completed, money was paid outside the contract to arrange a limited inauguration (soft opening) to fulfil Sheikh Hasina's wishes. An expenditure of Tk 440 million was shown solely for ribbon cutting and related arrangements during the partial inauguration of the Third Terminal. However, no such expenditure was mentioned in the original contract.

In addition, around Tk 120 million was spent on supplying diesel pumps, more than Tk 480 million on UPS systems, and Tk 410 million on fuel. The report also mentions irregularities such as payments for buildings that were not designed, payment of consultants' overtime bills from contingency and price escalation funds beyond their entitlement, and failure to deposit proceeds from the sale of removable soil into the government treasury. Bills were also paid for advance work outside the contract (move forward cost), while Tk 2.17 billion was paid to the contractor in the name of accelerating construction work.

The special audit report states that although project authorities were allowed to spend a maximum of 1 percent on additional work without approval, around 23 percent was spent in this project. Nearly Tk 32 billion was paid without proper approval by changing 630 project items through variations.

The Third Terminal project, approved in 2017, began construction in December 2019. The Aviation Dhaka Consortium (ADC), comprising Japan's Mitsubishi and Fujita and South Korea's Samsung, was the contractor. The total estimated cost of the project was around Tk 213.98 billion, a large part of which was financed by JICA.

Following the allegations of irregularities, the Civil Aviation Authority formed a Dispute Board and an Amicable Settlement Committee last year. However, allegations have been made that some of those accused of the irregularities were included in these committees. As a result, there is little hope of an impartial investigation.

Former Civil Aviation Authority of Bangladesh (CAAB) Chairman Air Vice Marshal (Retd) Mohammad Mofidur Rahman told the media that the Japanese consulting firm was responsible for the project's design, cost estimation, variations and pricing. These expenditures and variations were supposed to be made based on the firm's recommendations and JICA's approval. Therefore, every issue raised in the audit should be verified against the project documents and contract.

He said that if any irregularities had occurred, an impartial investigation should be conducted to ensure accountability. However, the investigation should not unnecessarily obstruct project implementation or operation. He said prolonged delays had already increased the state's financial losses, while the country was also being deprived of the expected revenue.

Meanwhile, a senior Civil Aviation Authority official, speaking to 'Jugantor' on condition of anonymity, said that a proper investigation would expose many influential figures operating behind the scenes. For this reason, some people argue that unnecessary scrutiny would delay completion of the remaining terminal work. He believes there is no connection between the investigation and the remaining construction.

The work will continue at its own pace, but an impartial investigation must bring those responsible for this grand plunder to justice. Unfortunately, he added, in this country the real masterminds often escape punishment in the end.