A major controversy has erupted over the appointment of Faruk Hossain, Managing Director (MD) of Dhaka Mass Transit Company Limited (DMTC), drawing attention from the country's top court and relevant government authorities.
According to government sources and officials associated with the project, the appointment appears to violate several provisions of the Public Service Act, 2018, with serious implications for ongoing projects and administrative operations.
Under Section 40 of the Public Service Act, any government official who acquires foreign citizenship automatically loses the right to hold a government post. The current MD is reported to hold Australian citizenship, as confirmed by officials familiar with his travel documents, which would render his appointment legally invalid. Furthermore, provisions related to the reappointment of retired officials under Sections 48 and 49 were reportedly not followed.
Although the MD claims he is not an Australian citizen and argues that he holds an Indian Aadhaar card, officials note that Aadhaar cards are issued only to Indian citizens, raising further questions about his citizenship status.
DMTC is a fully government-owned company, meaning all appointments must follow government recruitment rules. However, the MD's appointment reportedly bypassed standard approval processes and competitive selection procedures. The MD stated that his appointment was endorsed by 67 senior officials-an approach considered highly unusual and lacking transparency.
Sources further allege that misleading information may have been provided during the application process. Under the Public Service Act, providing false information is grounds for termination and disciplinary action.
Before joining DMTC, the MD worked primarily in foreign institutions including Sydney Metro, Hong Kong, Saudi Arabia, and India. From February 2023 to January 2025, he served as a consultant for the World Bank-funded Eastern Dedicated Freight Corridor Project (EDFC-3) under SYSTRA Consulting. Concerns have emerged that he may return to SYSTRA, which could constitute a conflict of interest under PPR-2008, Regulation 55.
Since taking office, several major DMTC projects have faced delays. Three key projects-including a tunnel construction initiative-have reportedly made no field progress since February. The MD has also been accused of appointing or transferring staff based on personal preference, disrupting institutional workflow. He has defended these actions as cost-containment measures taken in the national interest.
Reports of unprofessional behavior towards senior officials and JICA representatives have raised additional diplomatic concerns. Staff members describe an environment of uncertainty and fear, with three General Manager-level posts (Admin, Finance, and PWD) declared vacant without formal evaluation.
Routine administrative activities have also slowed. Files sent to the MD reportedly take up to two weeks to be cleared and are sometimes returned with backdated approvals, causing procedural delays. In JICA-funded projects, disruptions in contractor appointment processes could jeopardize loan conditions and project continuity.
Experts argue that cost-saving initiatives must not compromise governance, project timelines, or international development commitments. They further state that an experienced officer familiar with Bangladesh's bureaucratic and regulatory frameworks could manage the organization more effectively.
Legally, the MD's appointment is at risk of being declared void due to alleged foreign citizenship, non-compliance with Sections 40, 48, and 49 of the Public Service Act, and potential conflicts of interest under PPR rules.
If irregularities are proven, the MD may face removal, and the government would need to take corrective measures to restore project continuity and administrative stability.
Employees report rising anxiety and dissatisfaction, warning that prolonged disruptions could hinder the progress of critical metro rail infrastructure. Experts emphasize that a thorough inquiry and corrective legal action are necessary to protect public interest and maintain confidence in government-run infrastructure projects.
