Bureaucrats dominate power, energy boards despite expertise gap

Bangladesh's state-owned power and energy companies are increasingly being dominated by bureaucrats, many of whom have little or no professional experience in the sector, raising concerns over governance, efficiency, and decision-making in some of the country's most strategic industries.

According to official documents, the power and energy sector currently comprises 37 companies with a combined 306 board positions. Of these, 167 chairman and director posts are occupied by serving and former bureaucrats. In many cases, the same officials hold multiple positions across different boards.

The growing bureaucratic dominance has sparked criticism from industry insiders and experts, who question how officials from unrelated administrative backgrounds can effectively oversee technically complex power and energy businesses.

Records show that Cultural Affairs Secretary Kaniz Moula serves as chairman of Standard Asiatic Oil Company Limited, in which Bangladesh Petroleum Corporation (BPC) holds a 50% stake. She is also a director of Gas Transmission Company Limited (GTCL).

Agriculture Secretary Rafiqul Islam Mohamed, who holds a PhD in Economics from Princeton University, currently serves as chairman of Northern Electricity Supply PLC alongside his responsibilities in the Ministry of Agriculture. 

Observers have questioned how he manages the affairs of a major power distribution company while simultaneously leading one of the country's largest ministries.

Several other senior bureaucrats also hold multiple positions.

Cabinet Secretary Nasimul Ghani serves as chairman of Eastern Refinery PLC, the country's sole oil refinery, while Senior Secretary of the Ministry of Public Administration Md Ehsanul Hoque chairs B-R Powergen Ltd.

Energy and Mineral Resources Division Secretary Mohammad Saiful Islam currently chairs four companies – Titas Gas Transmission and Distribution PLC, North-West Power Generation Company Limited (NWPGCL), Bangladesh-China Power Company Ltd (BCPCL), and Bangladesh-China Renewable Energy Company Limited (BCRECL).

Bangladesh Power Development Board (BPDB) Chairman Md Rezaul Karim sits on the boards of eight companies, including Power Grid Company of Bangladesh (PGCB), Ashuganj Power Station Company, NWPGCL, BCPCL, Coal Power Generation Company Bangladesh Limited (CPGCBL), Bangladesh-India Friendship Power Company Limited (BIFPCL), Titas Gas, and Bakhrabad Gas Distribution Company.

Former power secretary Farzana Momtaz, despite being attached to the Ministry of Public Administration, continues to chair the boards of PGCB, Meghna Petroleum Limited, LP Gas Limited, and Barapukuria Coal Mining Company Limited.

Petrobangla Chairman Md Abdul Mannan also serves on the boards of several companies, including BAPEX, Pashchimanchal Gas Company Limited, GTCL, Bakhrabad Gas Distribution Company, and Karnaphuli Gas Distribution Company Limited.

Financially attractive

There are 15 companies under the Power Division, including four joint ventures with Indian and Chinese state-owned enterprises. These companies have a total of 136 board members, of whom 58 are administration cadre officials.

Similarly, 70 of the 108 board members across Petrobangla’s 14 companies are bureaucrats, while 39 of the 62 board members in BPC's eight companies are either serving or retired bureaucrats.

Industry insiders said such boards are often slow in making decisions because they are dominated by career administrators rather than sector professionals.

Wishing anonymity, company officials said proposals frequently face delays as board members lacking technical expertise often postpone decisions.

The concentration of bureaucrats on boards is also viewed as financially attractive. Board members receive honoraria ranging from Tk6,000 to Tk12,000 per meeting, while some boards reportedly pay as much as $500 per meeting. Additional benefits include foreign travel, vehicle facilities, and other privileges.

Many power and energy companies are headquartered outside Dhaka, yet board meetings are usually held in the capital because most influential board members are based there, forcing company officials from outside Dhaka to travel frequently.

Officials also complained that apart from managing directors, company executives are largely excluded from board memberships, leaving key operational personnel outside the decision-making process.

Global practice differs

A review of the governance structures of major state-owned companies in India, China, and the United States shows a markedly different picture.

At India's NTPC Ltd (formerly National Thermal Power Corporation), only two of the 12 board members are government nominees, while the rest comprise company executives and independent directors.

China’s Norinco Group and the US-based American Electric Power (AEP) also maintain boards dominated by professionals, business leaders, and independent experts rather than serving government officials.

Energy expert Prof M Shamsul Alam criticised the prevailing practice in Bangladesh, saying bureaucrats are being assigned to roles for which they lack the necessary expertise.

“A deputy commissioner cannot perform the duties of a police officer-in-charge. Bureaucrats are not meant to run businesses, yet government officials have effectively been turned into businesspersons,” he said.

Prof Shamsul recommended dissolving the existing boards and restructuring them under a modern corporate governance framework to enhance efficiency, accountability, and professional oversight in the country's power and energy sector.