Staff Correspondent:

FSS-Sadi JV, a joint venture of First SS Enterprise and Sadi International, had secured a Tk24 crore contract from the Dhaka South City Corporation (DSCC) by allegedly submitting a counterfeit performance guarantee from Modhumoti Bank PLC.

The contract was for constructing the six-storey Lt Commandant Moazzem Hossain Community Centre building with a single basement in the Kataban area of the capital under eight community centre construction and renovation project.

The performance guarantee certificate worth Tk2.40 crore was supposed to be submitted by a bank in favour of the company through the electrical procurement system but the official concerned accepted it manually with the approval of former Mayor Sheikh Fazle Noor Taposh.

When the DSCC asked the bank for encashment of the guarantee money in favour of them, the fraud came to light but the concerned officials hid the information and did not take any legal steps against the company, except cancelling the work order with a fine.

However, documents of the Modhumoti Bank, which this correspondent has seen, said that the reference which was used in the fake performance guarantee was actually of a company named PF Corporation and it was submitted in favour of an executive engineer of Gazipur City Corporation. The guarantee amount is Tk4.64 lakh only.

Modhumoti Bank Managing Director Md Shafiul Azam on 27 March said, “There is no account named after the company FSS-Sadi JV in our bank. We also did not upload the certificate in the e-GP (Electronic Government Procurement) system. When the DSCC sent us a letter for encashment, we informed them about the facts.”

However, owner of First SS Enterprise Private Ltd Abu Sadeq claimed that owner of Sadi International Khandakar Omar Faruq forged the document and forced DSCC engineer Towhid Siraj, who died recently, to accept it. But Faruq denied the allegation.

CONTRACT FRAUGHT WITH ANOMALIES

Investigation unearthed the crime by collecting the documents from DSCC and the Modhumoti Bank.

According to a DSCC work order, The FSS-Sadi JV was awarded a contract worth Tk24.05 crore for constructing a six storey building with single basement on 5 February 2023 to complete it by 30 December 2023.

During a visit to the site on 24 March, it was seen that the construction site at Kataban beside the National Academy for Planning and Development turned into a pond as rain water filled the site after excavation.

DSCC officials said the contractor’s men have not been seen since the site was excavated and now it has turned into a big pond.

DSCC engineer late Towhid Siraj cancelled the work order of the company in December 2023 and sent a letter to the Motijheel branch of Modhumoti Bank to encash the performance security – MMB 29/2023 dated on 31 January 2023.

Getting no response, Engineer Towhid Siraj sent another letter to Modhumoti Bank to get an update regarding the matter.

However, officials of Modhumoti Bank said that they replied to the DSCC letter and shared the facts with them.

Wishing anonymity, a DSCC engineer who had knowledge regarding the matter said that proprietor of Sadi Enterprise Khandakar Omar Faruq submitted the performance guarantee certificate to DSCC Engineer late Towhid Siraj.

He said, “If there is a technical problem in the e-GP system, the DSCC can accept a performance guarantee on paper with the mayor’s approval. Faruq had a connection with the then-mayor Taposh. However, it is the engineer’s responsibility to verify the guarantee letter with the bank.”

He also said Faruq also applied for bank loans against the contracts. When the bank authorities contacted DSCC for their recommendation, they denied.

WHAT DO PEOPLE CONCERNED SAY?

First SS Enterprise managing director Md Abdu Sadeq said that his partner and proprietor of Sadi International committed the fraud and forced the DSCC engineer to accept it.

He also said, “I formed a joint venture with Sadi International for the tender with him as he lacked the required experience for bagging the work.”

However, when asked, the proprietor of Sadi International Ltd Khandakar Omar Faruq on 27 March that he was not involved in the forgery and also did not apply for a bank loan.

The present director of the project and DSCC Superintendent Engineer Sufi Ullah Siddique Bhuiyan said that he was not aware of the fraud as he recently took over the project.

He said, “We have already cancelled his work order and imposed a 10% fine on the value of total unfinished work. We are considering debarring them in government procurement.”

When contacted, DSCC Chief Engineer Aminul Islam said, “I was not informed about the matter.  As I come to know about the fraud, I will file a fraud case against them if they are found guilty.”

Former Mayor Sheikh Taposh could not be contacted as he fled the country following the mass uprising against the government led by his party Awami League and its fall on 5 August last year.