Chittagong City Corporation and Jamuna Oil locked in 42-year dispute over unpaid bitumen debt
Photo Collected
A four-decade-long financial dispute between the Chattogram City Corporation (CCC) and Jamuna Oil PLC has resurfaced, as the state-owned oil company continues to demand payment for bitumen supplied during the 1984 presidential visit of then-President Hussain Muhammad Ershad. The outstanding bill of 5.77 million taka remains unpaid, sparking a protracted administrative stalemate that has persisted for 42 years.
The conflict originated when, at the behest of the central government, Jamuna Oil supplied over 1,000 metric tons of bitumen to the then-Chattogram Municipal Corporation to urgently repair city roads ahead of Ershad’s visit. While records from the oil company indicate the material was sold, officials at the City Corporation maintain the bitumen was provided as a state-mandated grant, thereby exempting them from payment.
The disagreement has defied multiple interventions by the Ministry of Power, Energy and Mineral Resources, the Ministry of Local Government, and the Bangladesh Petroleum Corporation (BPC). Despite the formation of joint committees and explicit directives from government ministries to resolve the arrears, the two entities remain at an impasse. Jamuna Oil, which has sent repeated reminders including a fresh notice on July 21, reports that the unpaid debt continues to trigger recurring audit objections, negatively impacting the company’s financial standing.
The City Corporation, which has undergone significant administrative restructuring since the supplies were delivered in 1984, remains firm in its refusal to pay. Acting Chief Accounts Officer Mohammad Humayun Kabir Chowdhury stated that municipal records classify the bitumen as a grant issued under presidential instruction, asserting that there is no legal basis for the corporation to settle the bill.
In contrast, Jamuna Oil officials contend that their records show a standard supply order issued by the BPC, rather than a donation. General Manager of Marketing Mohammad Hassan Imam stated that the corporation has failed to produce any documented evidence of a grant, despite repeated requests.
Observers suggest the dispute is a remnant of the informal governance practices of the era. Delwar Majumdar, president of the Transparency International Bangladesh (TIB) Chattogram chapter, noted that the confusion stems from oral directives issued during the Ershad regime that lacked proper formal documentation. He argued that since Jamuna Oil is a profitable entity and the City Corporation performs essential public services, the issue could be resolved through a government-sanctioned waiver of the debt, yet the lack of bureaucratic initiative has allowed the stalemate to continue for decades.
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