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Gas Pipeline Scam

Showcause on 14 Petrobangla, Titas officials

Sharier Khan
Petrobangla and its affiliate Titas Gas Transmission and Distribution Company Ltd. yesterday asked 14 of their high officials to explain why departmental actions would not be taken against them for irregularities
in a gas pipeline project.
The action came in the wake of allegations that the officials in connivance with a group of contractors siphoned out Tk 30 crore from the over-estimated Tk 60, crore Bangabandhu Bridge Approach Road Gas Pipeline Project.
A top Petrobangla official said the action was taken basing on the findings of a year-old investigation headed by a joint secretary of the energy ministry on the installation of a 109 km pipeline from Joydevpur to Mirpur Bridge and another 101 km one from Kaliakoir to Garai industrial area.
The ministry kept the report secret, as a 'classified' document. Sources said Petrobangla last month requested the ministry to forward the report to it, but the ministry refused sayingit was a 'state secret'.
Petrobangla served the show cause notice on the basis of some documents relevant to the investigation.
Investigators of that report told The Daily Star that they found gross irregularities at all levels of the project the original cost of which was estimated at Tk 30 crore but deliberately doubled by misleading the higher authorities.
It pointed fingers at a dozen of Titas officials including all general managers and two high Petrobangla officials.
Those who received show cause letter are a former Titas managing director, a deputy general manager of Petrobangla, several general managers and other officials of Titas.
Officials responsible for procure-
ment, estimates and planning have also been asked to explain their actions.
"The next course of action will be based on their replies," said a Petrobangla official.
A three-member Petrobangla committee is also probing the allegations, sources said, adding the body will come up with its report in a couple of weeks.
"They have found evidence of the officials eating up the project fund and the contractors delivering substandard job," a source close to the ongoinginvestigation said.
Investigators were annoyed seeing pipes laid close to a main road had gas of 150 pressure per inch (PSI), considered riskyin such a situation.
Nurul Alam, inspector of the explosive department of the energy ministry, said Titas got permission from his department submitting proper documents and designs.
"We are not aware if they have modified the design later," he added.
Investigators also found that the pipelines were being laid almost on the soil surface manually, although they were supposed to be installed several feet below the ground mechanically.
The Daily Star last month quoted experts as telling that the pipelines carried potential safety threats because of the faults.
Although the contract was officially given to two companies, nine companies were sharing the tasks and profits of the project the implementation of which began in October.
There are allegations that parts of the profit are also going to a certain 'bhaban' to ensure political backing for corrupt officials.
In late 2002 when the project's tenders were being awarded to two companies, the then energy secretary smelt rat in the deal and ordered an investigation.
Although the investigation found massive irregularities and recommended scrap of the deal, State Minister for Energy Mosharraf Hossain did not allow re-tendering or any action against the accused officials.
The parliamentary standing committee on the ministry also raised allegations of irregularities in the project and demanded punishment to the guilty.
The committee is now making its owninvestigation.