Sunday, July 27, 2025

Allegations of Corruption Halt BTCL's 5G Project Procurement

Dhaka, July 27, 2025 – Allegations of corruption have surfaced regarding a Bangladesh Telecommunication Company Limited (BTCL) project aimed at preparing the country for 5G connectivity. The project, known as the "Development of BTCL’s Optical Fiber Transmission Network for 5G Readiness," was stalled by former advisor to the Posts and Telecommunications Ministry, Md. Nahid Islam, following the interim government's formation after the July mass uprising that ousted the Awami League government. Nahid halted the procurement process and initiated an investigation into alleged irregularities.

However, before the Anti-Corruption Commission (ACC) could complete its probe, Foyez Ahmad Toiyob, Special Assistant to the Chief Adviser on Posts, Telecommunications, and ICT, has reportedly been pushing to resume equipment procurement. Allegations have also emerged that Foyez attempted to influence the ACC to expedite the process.

The ACC began its investigation on January 9, forming a five-member committee led by Director S.M.M. Akhtar Hamid Bhuiyan. Despite the ongoing probe, Foyez Ahmad met with the ACC chairman and sent letters urging the continuation of the procurement process, raising concerns about undue influence and strategic maneuvering to bypass scrutiny.
The 5G Readiness Project, approved in February 2022 with a budget of BDT 1,059 crore, including BDT 463 crore for equipment, has been mired in controversy. BTCL awarded a BDT 326 crore contract to Chinese company Huawei Technologies, despite allegations that none of the bidding companies met tender requirements. A BUET survey further revealed that the equipment proposed was five times the required capacity, leading to accusations of wasteful expenditure. Former Minister Mustafa Jabbar and former Secretary Abu Hena Morshed Zaman were implicated in leaking confidential evaluation details and exerting influence.
In response, former BTCL Managing Director Asaduzzaman canceled the tender due to confidentiality breaches and disqualified two Chinese firms. However, Mustafa Jabbar accepted the cancellation during an Annual Development Program (ADP) review meeting, leading to a conflict with the then-Telecommunications Secretary. Pressure was exerted on Asaduzzaman, culminating in his removal and a departmental case against him. A new managing director was appointed, who awarded the contract to Huawei.
Documents reveal that former Joint Secretary Toiyobur Rahman requested updates on the tender process via email, and instructions were issued to escalate the matter to BTCL’s board, pressuring Asaduzzaman. In February 2024, Abu Hena Morshed Zaman and Toiyobur co-authored a book dedicated to Bangabandhu Sheikh Mujibur Rahman and then-Prime Minister Sheikh Hasina. Abu Hena was later transferred to the Local Government Division and forced into retirement, while Toiyobur currently serves as Joint Secretary in the ICT Division, Director of the EDGE project, and Director General of the National Cyber Security Agency. Foyez Ahmad’s Efforts Following the fall of the Sheikh Hasina government on August 5, 2024, Nahid Islam assumed the role of advisor to the Posts, Telecommunications, and ICT Ministry but resigned on February 25, 2025, to join a new political party. On March 5, Foyez Ahmad was appointed Special Assistant to the Chief Adviser and began efforts to import equipment purchased during the Awami League’s tenure. Contractually, equipment imports require factory inspections in China by four BTCL engineers, but Foyez pushed to expedite the process. Within 20 days of assuming his role, Foyez instructed Huawei to arrange factory inspections. BTCL sought legal advice from a private consultancy firm on March 27, 2025, despite having an in-house legal team. Sources claim the consultancy was not informed of prior corruption allegations, leading to an initial opinion favoring procurement. Upon learning of the irregularities, the firm revised its opinion on April 8, citing sections of the Public Procurement Act (PPA) 2006 and Public Procurement Rules (PPR) 2008, warning BTCL against proceeding. Faruk Hossain, former Director General of the Central Procurement Technical Unit (CPTU), told Prothom Alo that these regulations provide for legal action, and government officials typically avoid advancing procurement in such cases. Despite this, Foyez met with the ACC chairman on April 13 and sent a letter requesting a favorable opinion. The ACC responded on June 18, stating that preliminary findings indicated violations of procurement laws, rendering further expenditure legally questionable. On June 22, Foyez sent another letter to the ACC, emphasizing the need to proceed with the project and seeking the chairman’s cooperation. Attempts to obtain Foyez’s comments were unsuccessful, with the ICT Division’s PRO, Muhammad Jasim Uddin, stating that Foyez’s July 7 press conference remarks—that BTCL’s capacity expansion is essential for market survival and that he sought the ACC’s cooperation without issuing directives—represent his stance. Huawei’s Actions On April 16, BTCL requested permission from the Posts and Telecommunications Division to send a five-member team, including three division officials and two BTCL engineers, for factory inspections, violating tender norms. The Chief Adviser’s office halted the issuance of a government order (GO) for the trip. Meanwhile, Foyez and his private secretary visited China from May 6 to 9, funded by the Chinese Enterprises Association Members in Bangladesh, ostensibly to gain ICT infrastructure experience. On May 18, Huawei informed BTCL that factory inspections were not approved by the government’s highest authority and offered to conduct self-inspections. On May 19, Huawei proposed adjusting costs due to the canceled inspections and requested permission to ship equipment. Documents suggest a BTCL-Telecommunications Division letter dated May 15, referenced by Huawei, was shared with the company, raising questions about confidentiality breaches. Huawei confirmed receiving the letter officially from the project office. BTCL sought the Telecommunications Division’s opinion on Huawei’s shipping request. On May 25, the division, citing Foyez’s instructions, stated that equipment suitability and 12-year serviceability would be verified by experts. It also referenced Huawei’s proposal to ship under GCC Clause 38.4, which allows shipment without factory inspections if deemed impossible. However, BTCL did not issue a shipping permit; instead, the project director forwarded the division’s letter to Huawei on May 26. Huawei shipped the equipment, informing BTCL on June 16 that it was expected to arrive at Chattogram port by June 22. It remains unconfirmed whether the equipment has reached the port. Bank sources report no import documents have been submitted, and the ACC has collected related documents, leaving banks hesitant to release funds.

Transparency International Bangladesh (TIB) Executive Director Iftekharuzzaman told Prothom Alo that advancing procurement under ACC investigation facilitates corruption. He questioned whether a cost-benefit analysis was conducted, noting that rejecting the equipment could lead to legal complications, while accepting it risks financial waste and corruption. He suggested an independent expert review, stating that proceeding without one raises suspicions of ulterior motives.

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