Cancellation of JICA loan to BTCL is shameful

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JAPAN International Cooperation Agency (JICA) has taken back US$ 25 million soft loan to Bangladesh Telecommunications Company Ltd (BTCL) blaming corruption and indecision to utilize the fund. The loan was allocated in 2005 to establish nationwide telecom backbone network for uninterrupted external connectivity. According to a report in a national daily the government probe committee on the failed loan found five top officials guilty of attempted corruption, inefficiency and failure to establish the network in 10 years. It presented the report to the Parliamentary Standing Committee on the Telecommunication Ministry on Wednesday last identifying the five officials for failing to launch the project and put the money to use.
But it appears that the probe report has shielded major players in political quarters who were wrestling to win the contract. The loan thus remained unutilized but the probe committee has failed to recommend punitive measure suggesting probing into the matter was just an eye-wash. So the standing committee has set up a three-member committee again to identify individual responsibilities and dig out other peripheral causes of the failure. Particularly the Standing Committee showed anger because the cancellation has dented the country’s image linked to inefficiency, corruption and such other misgivings.
The fact is that the concerned BTCL officials under the cover of the Project Director had invited international tenders on several occasions with the aim to get the business to their favourite companies. But since some others became the lowest bidder on such occasions, they cancelled the bid every time to invite new bids. At one point when the BTCL tried to sidetrack a lowest bidder, the firm went to the court which took several years to end the case. Meanwhile fresh tenders were also invited and the attempts backfired only killing valuable time. JICA became frustrated as it saw the loan money was hanging unused and decided to cancel the loan. It may be mentioned that JICA officials took the matter several times to the notice of the Finance Ministry asking for quick steps to use the loan. In the last letter to the ERD Secretary in June this year the concerned JICA official notified the government about the Japan government decision to take back the loan while advising the secretary that Bangladesh government should take a lesson from such cancellation.
 Needless to say, corruption, misuse of public funds and inefficiency are high in government offices but the prolonged maneuvering with the JICA fund for over 10 years shows it was unprecedented. The Japan government has taken back the fund which is highly damaging for the country’s image. They have given us loan for development but our officials were working to misuse it. BTCL must have shame and it is advisable that all such persons having their hands in the scandal must be fairly identified and punished.
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