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Deal with Lahmayer scrapped

Staff Correspondent
The Rural Power Company Ltd (RPCL) yesterday cancelled the annual 6 million-dollar operation and maintenance (O&M) contract with Lahmayer International Palli Power Services Ltd (LIPPS) for the 140megawatt (MW) Mymensingh power plants.
The RPCL after taking the decision at its 113th board meeting yesterday served the LIPPS with a legal notice cancelling the contract on the grounds of sabotaging the power plant and a host of other irregularities, a top RPCL source said.
The two Mymensingh units, which the LIPPS shut down illegally on August 4, are now fully operating under direct supervision of the RPCL staff led by its Managing Director Zahirul Islam.
The Siemens has also resumed in full swing the construction of the third unit 70MW plant that remained stalled for quite some time due to unscrupulous role of the LIPPS, its chief AZ Rezaul Haq alias Captain Reza, and sub-contractor Sky Engineers, the sources said. It has terminated its contract with the Sky Engineers, an enterprise of Captain Reza who also owns the LIPPS.
"The chief of Siemens is coming to Bangladesh very soon in view of the situation created by Reza and his cohorts," said the RPCL source. "Right now 70 staffs are working at the new project. We have spent 60 percent of the project's budget."
On August 4, the LIPPS refused the RPCL high officials, its parent organisation the Rural Electrification Board (REB), police and magistrates' entry to the plant site. The officials were visiting the place to investigate corruption charges against the LIPPS and Sky Engineers.
The government last week issued arrest warrants against LIPPS chief Captain Reza and more than seven of his accomplices. Meanwhile, Reza and his gang had fled to Singapore one day after the sabotage took place, sources said.
If proved guilty of subversion and damaging the power plant among other allegations, the culprits may be awarded at the most capital punishment.
Captain Reza and his companies have been keeping the RPCL hostage for a long time and draining out millions of dollars as the annual 6 million-dollar LIPPS O&M contract is actually worth $1 million, according to the Power Development Board (PDB).
Using the LIPPS as consultant of the RPCL, Captain Reza also acted as a middleman for Alsthom and Siemens which built both the existing two units of the Mymensingh plants. Each of these projects cost double the price of the power projects of similar size implemented by the PDB.
Sources close to the Siemens said the German company now regrets having any association with Captain Reza. Lahmayer, the German consultant that was the parent organisation of LIPPS, now has no relationship with LIPPS as Captain Reza bought all its shares.
Last year, the RPCL lost 45 million euro German grant due to corruption of the LIPPS which was exposed by The Daily Star.
CORRECTION
The Daily Star news item headlined "Cops raid office to nab Lahmayer chief" published August 11 mistakenly named Zahirul Islam as the chief of Sky Engineers. The name of the chief of Sky Engineers is actually Mostafa Kamal, who is now wanted by the police.