The Anti-Corruption Commission (ACC) has secured all documents related to capacity charges bills amounting to thousand of crore of taka paid by 158 power plants of the country during the three terms of the Awami League government.
The ACC summoned these documents as part of its investigation into former state minister for power and energy Nasrul Hamid Bipu's bribery, nepotism in getting projects passed, grabbing government land, and embezzling money by presenting fake projects.
On May 6, the ACC investigation team leader also Deputy Director Muhammad Joynal Abedin requested these documents from the Chairman of the Bangladesh Power Development Board (BPDB). The BPDB said that these documents have already been submitted to the ACC.
A high official of BPDB told The Daily Observer, "We have received the letter from the ACC. The documents requested in the letter by the ACC have been provided to them." "We are fully cooperating with the ACC. We also want the matter of irregularities and embezzlement in the electricity sector to be investigated and those responsible brought to justice."
According to the ACC letter, power plant contracts from 2009 to 2014 by Power Purchase Agreement (PPA) and Implementation Agreement (IA) of BPDB, information regarding bills processed to date and outstanding bills in favour of the power plants as per the terms of the agreement, have been asked for, sources said.
According to ACC paper, 158 power plants including three Indian power plants with a combined capacity of 23,584 MW are in operation in Bangladesh. It is known from the related allegations that during the 15 years of the Awami League government, there has been a lot of looting in the name of electricity capacity charges.
In 2010, the Awami League government enacted the Indemnity Act, also known as the Quick Enhancement of Electricity and Energy Supply (Special Provisions) Act, which allowed the bypassing of standard tender procedures. Under this law, numerous high-priced power plants were approved, with promises of operating at 80 to 85 per cent capacity. However, these plants have reportedly been functioning at a mere 25 to 30 per cent capacity, meaning they remain idle for most of the year.
The total expenditure on the power sector during the three terms of the government was US$28.3 billion. In terms of currency, this amounts to about Tk 4.5 trillion.
Despite this, the government has continued to pay these plants' capacity charges, leading to a staggering sum of approximately Tk 1.06 trillion being funnelled into the pockets of beneficiaries aligned with the Awami League.
The roots of this issue can be traced back to the period before the Awami League came to power in 2009. The caretaker government had approved eight quick rental power plants through tenders. However, in 2009, the Awami League approved 32 additional quick rental power plants without tenders. To facilitate this, an emergency special law was passed in 2010, initially for two years. This law has since been extended multiple times and is now set to remain in effect until 2026. Under this law, 72 rental and IPP plants were approved, with many contracts awarded to businesspeople close to the government. Notable companies benefiting from these contracts include Summit, Orion, Desh Energy, Doreen Power, United, and Energypac.
Summit Group, a family business of Faruk Khan, an Awami League MP, was among the biggest beneficiaries, receiving Tk 1,957 crores in rent for seven power plants. United Group followed with five power plants, receiving Tk 1,682 crores. Other significant beneficiaries included Confidence Group, BanglaCAT, Singapore-based Sembcorp, US-based APR Energy, and Doreen Group. The connections between these companies and the Awami League are striking. For example, Doreen Power is owned by Tahzib Alam Siddique, the son of former Chhatra League president Nur Alam Siddique, who won parliamentary elections as an Awami League nominee. Desh Energy was owned by the late Dhaka North City Corporation mayor Anisul Huq.
The Anti-Corruption Commission has summoned documents of 158 power plants commissioned from 2009 to 2024. The commission's letter has sought documents of all contracts, including the power plant's contract with BPDB power purchase agreement, and implementation agreement.
In addition, all other documents, including all bills and outstanding bills payable to the power plants as per the terms of the agreement, have been requested. The ACC's letter also includes documents on the import of 1,000 megawatts of electricity from Baharampur in India, 160 megawatts from Tripura, and 1,496 megawatts from Adani Power in Jharkhand.
