The life cycle of internet bandwidth supply equipment typically spans 5-6 years, after which advancements in technology necessitate chipset changes. Recognizing this, officials have opted to modernize the technical infrastructure. The expert team at Bangladesh University of Engineering and Technology (BUET) has recommended that by the year 2030, equipment with a maximum capacity of 26 terabytes would adequately accommodate the current bandwidth demands of both public and private operators. However, the Bangladesh Telecommunications Company Limited (BTCL) has deviated from this recommendation under the 5G project, opting to procure equipment with a capacity of 126 terabytes. This decision has raised concerns, as it not only exceeds the necessary capacity but also significantly inflates costs. Despite the initial budget of $15 million, the project now involves the purchase of machinery costing approximately $30 million, with a total allocation of $42 million USD. Criticisms have emerged regarding the likelihood of excess parts being unused, leading to substantial financial losses. Allegations have been made regarding misconduct, particularly in collusion with Chinese companies, who are suspected of supplying unnecessary components at inflated prices, potentially resulting in a loss of at least $15 million. Complicating matters further, the ongoing dollar crisis has hindered the Chinese contracting company’s ability to open the necessary Letter of Credit (LC), delaying the project and raising suspicions of mismanagement. Urgent intervention by Prime Minister Sheikh Hasina is deemed necessary to avert the potential loss of a significant sum of money under the pretext of the 5G project.
Following the tender process, former Telecommunication Minister Mustafa Jabbar and Secretary Abu Hena Morshed Zaman reportedly exerted pressure on the former Managing Director of Bangladesh Telecommunication Company Limited (BTCL), Asaduzzaman Chowdhury, to allocate contracts to different contractors. Chowdhury resisted these pressures, opting to cancel the tender and recommending action against the involved contractors. This decision angered influential individuals, who subsequently demanded Chowdhury’s transfer. On November 20 of the previous year, the High Court suspended his dismissal for six months. Both the Anti-Corruption Commission of Bangladesh (ACC) and internal investigations uncovered evidence indicating corruption within the 5G infrastructure project, referred to as the “Cheating of the State.”
It has been reported that tenders worth Tk 463 crore (approximately $42 million USD) were solicited for a project package titled ‘Optical Fiber Transmission Network Development of BTCL Utilizing 5G’ by the Bangladesh Telecommunication Company Limited (BTCL). Three companies, namely ZTE Corporation, Huawei Technologies Limited, and Nokia Solutions, participated in this tender. The Anti-Corruption Commission (ACC) received complaints alleging violations of Section 8 of the Public Procurement Act 2006 and various rules outlined in the Public Procurement Regulations 2008, particularly in the evaluation and awarding of tenders to the Chinese company Huawei Technologies Limited. Responding to these complaints, the commission established a two-member investigation team to look into the matter.
According to documents obtained by the Anti-Corruption Commission (ACC), none of the three institutions bidding for the project could meet the tender conditions, as noted in the Technical Appraisal Report. Despite this, all three were deemed qualified by the seven-member technical committee. Asaduzzaman Chowdhury, then managing director of BTCL and the authority responsible for approving technical appraisals, refused to endorse the report. Subsequently, he was transferred and later suspended from the Ministry of Telecommunications. However, upon his appeal to the court, he was instructed to remain in his position. In a letter issued by the Ministry of Posts and Telecommunications on November 26 of the previous year, it was stated that the High Court had suspended the temporary dismissal order against the Managing Director of the Posts and Telecommunications Department, halting the process of issuing a charge sheet and complaint statement through departmental orders. In light of this development, the temporary dismissal order of Asaduzzaman Chowdhury was rescinded. Despite these events, the contractor company Huawei Technologies Limited proceeded with the project following a ‘formal’ judgment from the review panel of the Central Procurement Technical Unit (CPTU).
During the investigation, Asaduzzaman Chowdhury, the former managing director of BTCL, stated, “Once the review panel issues a decision, there is no opportunity for further comments. I have presented my arguments as required. However, according to the service rules, once the decision is made by the Central Procurement Technical Unit (CPTU), I am unable to take any further action or provide additional input.” He added, “Nevertheless, if the Anti-Corruption Commission (ACC) delves deeper into this matter and conducts a thorough investigation, it will uncover significant information.”
According to documents sourced by the Anti-Corruption Commission (ACC), significant and startling revelations have come to light. Minutes from the 213th Annual Meeting of BTCL indicate that the technical guidelines prepared envisage providing active redundant capacity up to 2030, surpassing the total anticipated demand. It was disclosed during the meeting that while the traffic demand is projected to reach 26 terabytes by 2030, a capacity of 126.2 terabytes is being pursued, only half of which will be utilized. The board members were fully cognizant of the relevance and sufficiency of the directive to meet future needs, extending even up to 2040. The directive is to be upheld, with all relevant stakeholders, including Hope, expected to take appropriate action accordingly.
Industry analysts assert that constructing infrastructure with a capacity of 26 terabytes to ensure uninterrupted internet service by 2030 would result in more than half of the capacity remaining unused. Given this understanding, the decision to build infrastructure with a capacity of 126 terabytes to cater to demand until 2040 is deemed absurd and driven by a desire to amass significant funds. Should this come to the attention of the Prime Minister, steps could be taken to prevent the misappropriation of funds. However, it is still feasible to save over 1.5 billion rupees by halting the procurement of unnecessary equipment.
Allegations have surfaced suggesting that former Telecommunication Minister Mustafa Jabbar and Secretary Abu Hena Morshed Zaman exerted influence to favor their preferred companies during the tender process. Jabbar purportedly favored ZTE Corporation, while Mr. Zaman leaned towards Huawei Technologies Limited. Documentary evidence uncovered supports these claims. ZTE Corporation, a tender participant, lodged a complaint with Jabbar on April 24 of the previous year regarding technical evaluation issues. The complaint was then forwarded to the Managing Director of BTCL, emphasizing the importance of sustainable technical investments until 2030. Additionally, an email from Zaman’s office directed the project director to update the BTCL Board Chairman on procurement matters as per Zaman’s instructions. Despite these communications, the contract was allegedly awarded to Zaman’s preferred company, Huawei Technologies Limited.
An ACC official stated that BTCL is an autonomous organization, and undue interference by the former minister and secretary during the tender process constitutes an abuse of power. Such instructions pressured the BTCL managing director to favor their preferred contractor, potentially leading to legal action by the ACC.
Former Telecommunication Minister Mustafa Jabbar remarked that the procurement process involved opting for outdated technology instead of acquiring the necessary technology. He recalled a disagreement between the secretary and the BTCL managing director regarding this matter, which escalated to the Central Procurement Technical Unit (CPTU). Allegedly, the managing director opposed accepting the tender and the secretary proceeded to purchase the rejected item. Jabbar clarified that he had no preference for any contracting company but rather prioritized technology. Upon receiving a complaint from a company regarding the procurement of the wrong product, he reviewed the situation and recommended acquiring the latest technology.
Former Telecommunication Secretary Abu Hena Morshed Zaman’s mobile phone was called multiple times, but communication was unsuccessful. Subsequently, it was discovered through the ministry that he is presently residing in Barcelona, Spain. Consequently, obtaining his statement was not feasible.
The total internet bandwidth demand across the 64 districts of the country stands at 84,687 Gbps. Of this, BTCL accounts for only 25,321 Gbps, constituting 30% of the total demand. The remaining 70% is utilized by various private operators, with a demand of 59,221 Gbps. Notably, companies like Summit and Cyber at Home are significant purchasers of bandwidth, providing internet services via broadband lines nationwide. Additionally, mobile phone operators play a substantial role, procuring bandwidth wholesale and retailing it to individuals and organizations. Currently, BTCL utilizes only 7 terabytes of infrastructure capacity to meet bandwidth demands. Despite this, influential figures have opted for a strategy to procure 126 terabytes, combining 26 with an additional 100. Anti-Corruption Commission (ACC) investigation suggests that this decision could result in a loss of at least $15 million of government funds.
To inquire about allegations of working under influence, Tanveer Ahmed, Huawei’s Head of Media for Bangladesh and South Asia, responded via Mithun’s mobile phone, stating, “If you email me specific questions, I will provide our statement during office hours.” Upon receiving our email requesting specifics, he replied, “Thank you for your question. You mentioned our influence on CPTU decisions. Do you have any copy of such investigation by the Anti-Corruption Commission? We will not make any statement in this matter without first verifying the information from the Anti-Corruption Commission investigation.”
