Audit Reveals 4.5 Billion Taka Financial Irregularities in Dhaka Airport Terminal Project
A government audit has uncovered extensive financial irregularities within the construction project of the third terminal at Hazrat Shahjalal International Airport, citing a total loss of over 4.46 billion taka to the state exchequer. The audit report, prepared by the Office of the Comptroller and Auditor General (CAG), details 27 distinct categories of financial mismanagement, including unauthorized bill payments, contractual violations, and the failure to collect liquidated damages from the primary contractor, the Aviation Dhaka Consortium (ADC).
The project, valued at 21.3 billion taka, was launched in December 2019 during the tenure of the previous Awami League government. While 5 billion taka was sourced from domestic funds, the Japan International Cooperation Agency (JICA) provided the remaining financing. The CAG report highlights that the project was marred by a lack of rigorous oversight, with the audit noting that the concentration of the development partner, the consultants, and the contractor from the same country compromised the "checks and balances" essential for financial accountability.
Among the most significant findings is the irregular expenditure of nearly 2 billion taka, which was paid to the contractor through variations approved by consultants without the required administrative clearance. Furthermore, the report identifies 1.55 billion taka in potential losses resulting from the project authority's failure to enforce compensation clauses after the contractor missed critical project deadlines. Other notable irregularities include the payment of 44 million taka for a "soft opening" ceremony that was never provided for in the original project proposal, and the procurement of trees at nearly 120 times the prevailing market rate, with individual saplings billed at approximately 60,000 taka.
The audit also flagged excessive billing for soil transportation, where costs were claimed for a 6.5-kilometer haulage despite the work being conducted over a significantly shorter distance. Additionally, the report details instances of "value engineering" claims that resulted in no actual cost savings, payments for COVID-19 prevention measures during periods when the virus was no longer a major factor, and the unauthorized sub-contracting of work at inflated rates.
Civil Aviation and Tourism Minister Afroza Khanm stated that the government is reviewing the findings with "zero tolerance" for corruption. She affirmed that the ministry is currently analyzing the audit report and intends to hold all responsible parties—whether officials, consultants, or contractors—accountable under the law.
Iftikharuzzaman, Executive Director of Transparency International Bangladesh (TIB), described the findings as consistent with a pattern of "mega-corruption" associated with large-scale national infrastructure projects. He called for a thorough investigation into the roles played by all stakeholders, including the Japanese contracting entities, to determine the extent of their complicity in the financial malpractice. The CAG has recommended that the government recover the lost funds, initiate legal proceedings against those involved, and implement stricter transparency protocols for future infrastructure developments.
