TDS Desk:

During the tenure of the Awami League government, a significant portion of the procurement of electricity poles – locally known as khamba – under various projects of the Bangladesh Rural Electrification Board (BREB) was allegedly controlled by four companies.

These firms were widely believed to be close to then State Minister for Power, Energy and Mineral Resources, Nasrul Hamid (Bipu). The four companies are – Gemcon Group, Contec Construction Limited, TSCO Power Limited, and Glory Pole.

Industry insiders say that outside these four companies, other suppliers were often afraid to participate in rural electrification tenders. Even when they did, they received very little work.

The existence of this syndicate in pole procurement was flagged by the Central Procurement Technical Unit (CPTU) of the Planning Ministry, the agency responsible for monitoring irregularities in government procurement.

However, no action was taken against them, reportedly due to protection from influential quarters in the then government.

According to REB data, between 2021 and 2024, about 1.8 million electricity poles were procured under various projects at a total cost of Tk 53.01 billion. The four dominant companies secured around 56 per cent of the contracts, while the remaining 44 per cent went to 18 other companies, including the Bangladesh Machine Tools Factory.

An investigation by Prothom Alo revealed that Gemcon Group – owned by former Awami League MP from Jashore-3, Kazi Nabil Ahmed – received contracts worth Tk 9.01 billion, or 17 per cent of the total procurement value, supplying around 300,000 poles.

Kazi Nabil was elected in the widely criticised national elections of 2014, 2018, and 2024.

He has reportedly gone into hiding since the fall of the Awami League government and could not be reached for comment.

Contec Construction Limited secured the second-largest share, worth Tk 8.48 billion – about 16 per cent of the total. The company supplied 151,000 poles over four years. Its owner, Mokhlesur Rahman, is also the chairman of South Bangla Agriculture and Commerce (SBAC) Bank.

In a statement to Prothom Alo on 23 April, Rahman described the business as a family-run enterprise and claimed the contracts were won through open competitive bidding. He denied allegations of political influence.

TSCO Power Limited came third, securing contracts worth Tk 6.89 billion (13 per cent of the total) and supplying 128,000 poles.

The company’s Managing Director was Abu Zafar Mohammad Shafiuddin Shamim, a former Awami League MP from Cumilla-4.

Recently, the post of MD has been handed over to Barrister Mohammad Iftekhar Jonaed, son of former Public Works Minister R.A.M. Obaidul Muktadir Chowdhury.

Glory Pole received the fourth-largest share of the contracts, worth Tk 5.3 billion (10 per cent), and supplied 140,000 poles.

Industry observers allege that the four companies received more work than they could handle, resulting in supply delays.

These delays allowed them to manipulate pricing and delivery conditions, ultimately causing losses of the taxpayers money due to incomplete and overdue project implementation.

When asked about these allegations, TSCO Power Limited’s Deputy Managing Director Nafiza Islam told Prothom Alo on 20 April that all contracts were awarded through open tenders and that TSCO qualified as the lowest bidder.

Denying any political influence, she said, “When someone fails to win a contract, they start spreading rumors. That’s what is happening here too.”

Despite several investigative reports by Prothom Alo highlighting inconsistencies and irregularities in pole procurement by REB, no corrective action has been taken.

The CPTU had earlier flagged the existence of a syndicate during the tenure of the Awami League government.

In one of its past observations, the agency noted that a group linked to REB Distribution Projects in Dhaka, Chattogram, and Sylhet had submitted tenders in collusion with officials and secured contracts through non-transparent practices.

When contacted, REB Chief Engineer (Project) Abdur Rahim Mallik said on 20 April that steps were being taken to prevent any one group from monopolising future contracts.

HE DECLINED TO PROVIDE FURTHER COMMENTS.

SYNDICATE IN PREPAID METER AND TRANSFORMER PROCUREMENT

Just like the electricity pole supply, the trade in prepaid meters under the Rural Electrification Board (REB) was also reportedly monopolised by a select group of companies, believed to be close associates of former State Minister for Power, Energy and Mineral Resources Nasrul Hamid.

These companies include Hexing, Inhemeter, Shenzhen Star, Wasion, and Holy Meter.

According to sources familiar with the matter, four out of these five firms were linked to business interests of Nasrul Hamid’s close associates. As a result, no other company could effectively participate in the tenders for supplying prepaid meters.

Similarly, a procurement syndicate also dominated the purchase of transformers by the REB. From 2015 to 2024, two companies – TS Transformer Limited and Vicar Electricals Limited – exerted significant control over transformer contracts.

Vicar Electricals is owned by Nazmul Haque, the brother of former Power Minister Enamul Haque, and Sohel Ahmed, the younger brother of Abu Zafar Mohammad Shafiuddin Shamim, Managing Director of SQ Group and former MP from Cumilla-4.

Both TS Transformer and Vicar Electricals operate under the umbrella of SQ Group.

Over the last decade, REB procured transformers worth Tk 20 billion. Of this, TS Transformer and Vicar Electricals together secured 61 per cent of the contracts. TS Transformer received contracts valued at Tk 7.01 billion, while Vicar Electricals secured work worth Tk 5.12 billion.

PREVIOUS WORK UNDER REVIEW

Currently, the Rural Electrification Board (REB) serves around 36 million customers. In the current fiscal year 2024–25, three major projects are underway with a combined budget of Tk 115.37 billion. These include the modernization of the power distribution system in Khulna division (Tk 37.6 billion), Dhaka and Mymensingh divisions (Tk 74.49 billion), and Barisal division (Tk 11.2 billion).

Electricity poles are also being procured as part of these projects.

According to industry insiders, there are at least 22 factories manufacturing poles across the country, including in Narayanganj, Gazipur, Cumilla, and Sylhet. The price of each pole has risen sharply—from Tk 16,000 in 2020 to approximately Tk 29,000 now.

Fauzul Kabir Khan, Adviser to the Ministry of Power, Energy and Mineral Resources, told Prothom Alo on 23 April that a review is underway to assess who previously secured REB’s pole supply contracts. Authorities are examining whether there were irregularities or flaws in the earlier tendering process.

He added that, going forward, tenders for REB’s pole supply projects will be structured to ensure that only qualified companies can participate. This is intended to prevent any single contractor or group from monopolising the supply.

Sources: Prothom Alo