The country lost up to Tk50,835 crore due to corruption in development projects implemented by the Roads and Highways Department (RHD) in the last 15 years, according to Transparency International Bangladesh (TIB).

The anti-graft agency came up with the information while disseminating the findings of a research titled ‘Good Governance Challenges in the Implementation of Roads and Highways' Development Projects’ at a press conference in the capital on Wednesday.

It estimated that the development projects saw 23%-40% corruption, amounting to Tk29,230-50,835 crore, between fiscal years 2009-10 and 2023-24 as a result of a tripartite nexus between politicians, contractors and high-level officials.

The study reveals that the development policy framework, government procurement system and project implementation processes in the road and highway sector have been manipulated through the coordinated exertions of politicians, bureaucrats and contractors. This has led to the violations of laws, irregularities, and corruption driven by conflicts of interest and political misconduct at various stages of project formulation and execution under the RHD.

Serious deficiencies in all aspects of good governance were identified. Corruption has become institutionalised in the implementation of road and highway development projects due to this tripartite collusion.

Between 23% and 40% of the total value of construction works related to roads and bridges is lost to corruption involving bribes, tender manipulation, work order sales, political extortion and other forms of illicit dealings, according to the survey.

The research indicates that bribery accounts for 11%-14% in obtaining construction work orders and contractors' bills. Additionally, corruption through the tripartite collusion of politicians, contractors and high-level officials ranges from 10%-20% in construction work, including tender licence rentals, sale of work orders, compromises and local-level political extortion, which has been observed at rates of 2%-6%.

The study also revealed that through collusion among contractors, the top 15 firms have dominated the procurement system of the RHD over the past decade. From FY14 to FY24, these firms secured road and bridge construction work orders worth approximately Tk57,000 crore through the e-GP process alone. This represents about 72% of the total value of construction work orders awarded through the e-GP system during this period.

According to TIB Executive Director Dr Iftekharuzzaman, development projects have turned into a way for certain groups to amass cash as a result of the cooperation of dishonest contractors, bureaucrats and politicians. "Our research indicates that corruption in road and highway development projects ranges from 23% to 40%, with project costs being 2-9 times higher than those in South Asia and neighbouring countries.”

In light of the research findings, the organisation proposed 16 recommendations to address the challenges of good governance in development projects implemented under the RHD.

The suggestions include formulating a “Conflict of Interest Law” to prevent personal gain, nepotism and irregularities in all government activities; ensuring that this law is reflected in the rules and regulations governing the implementation of RHD development projects; enforcing relevant laws, regulations and guidelines at every stage of project implementation; streamlining the decision-making process for road and highway development; identifying and holding accountable politicians, officials and contractors involved in irregularities and corruption at various stages of project execution; formulating development project proposals based on priority to ensure effective evaluation and proper management while incorporating the opinions of relevant stakeholders; reforming the guidelines for project formulation, processing, approval and amendments in accordance with applicable laws and regulations; completing all project-related procurement activities through the e-GP process; and mandating feasibility studies conducted by qualified, experienced professionals in the formulation of all development projects.