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Probe Committee Report

by

Bangladesh Awami League Parliamentary Party

on

Wheat Procurement Scam of BNP-Jammat Government

1. Introduction:

Though an agro-based country, Bangladesh had all along been a food deficit country. The country had to import 20-40 lakh metric ton raw food grain to meet the demand of its huge population. After forming government in 1996, under the visionary and pragmatic leadership of Desh Ratna Sheikh Hasina, Bangladesh Awami league accorded highest priority to the agriculture sector. Effective and constructive policies were implemented in sectors such as agro-material, fertilizer, seed and agro-based debt.

The production of food grain consequently increased at a high level and the country became food-sufficient for the first time in the history. This was a matter of real achievement and pride for the country. To continue the process, the Awami League government started to procure food grain each year to stabilize the price and to encourage the farmers of the country through ensuring of a fair price for their products.

Famine and other natural calamities have in the past posed challenges and this is the rational for the Government to collect food grain to store and create a buffer stock during possible disaster period.

In keeping with this policy of Sheikh Hasina’s Government, this year also the Government declared  Inland Wheat Procurement policy on March 12, 2002 and accordingly planned to procure wheat under this scheme. The procurement target was fixed at 300,000 MT of wheat within the June 30 of this year.

Later, an additional 100,000 MT wheat was ordered for procurement within July 31.

However, media reports started to appear on the massive corruption with regard to procurement of 100,000 MT of wheat during the off-season i.e. end July and even early August and at a time when effectively all production had ceased. It may be mentioned here that wheat production in the country ceases by May which is why normally the deadline for procurement of wheat from the farmers is set at June 30 by which all the wheat is purchased.

The barrage of reports in virtually all national dailies detailed irregularities, corruption and misappropriation of money in procuring wheat. People from different parts of the country started to discuss about the quality of wheat stored in different silos of the country. The matter also drew the attention of higher government officials.

Two Probe committees were formed at different levels consisting of Secretaries, Joint-Secretaries and Directors of the highest level to investigate the corruption and irregularity. Some small sections of these reports have already been published in different national newspapers as “leaks” but the reports have not been made public.

In light of the above, Leader of the Opposition in the Parliament, Sheikh Hasina MP formed three Probe committees on August 28, 2002 on behalf of Awami League Parliamentary Party to dig out and bring to light the truth on this sensational Wheatgate Scam.

The responsibility of the committees of the MPs was to publish the facts about the scam and thus promote transparency and accountability of our Parliamentary Democracy.

Committee (A) - Pabna and Bogra

1. Mr. Shamsur Rahman Sarif, MP         - Pabna-4                     - Convener

2. Dr. Md. Abdur Razzak, MP                 - Tangail-1                    - Member

3. Mr. Md. Motahar Hossain, MP            - Lalmonirhat-1              - Member

Committee (B) - Mymensingh and Jamalpur

1. Mr. Mirza Azam, MP                          - Jamalpur-3                  - Convener

2. Mr. Md. Rezaul Karim Hira,MP            - Jamalpur-5                  - Member

3. Mr. Abdul Matin Sarkar, MP                - Mymensingh-7            - Member

Committee (C) – Satkhira and Barisal

1. Col(RTD) Md. Faruk Khan, MP             - Gopalganj-1               - Convener

2. Mr. Panchanan Biswas, MP                 - Khulna-1                    - Member

3. Alhaz Md. Mahbubur Rahman, MP       - Patuakhali-4               - Member

2. Work Methodology:

The members of the Committee met in a meeting on August 29 2002 and decided to follow a well-planned, objective methodology,  as follows:

1.         Collect data on wheat procurement process, quality of wheat and production of wheat.

2.         Collect news published in different national dailies regarding wheat scam and analyze them.

3.         Collect relevant information from the Hon. Minister and Secretary of the Food Ministry and other higher officials of the Food Department.

4.         Meet and discuss with the personnel of different government and non-government organizations concerned and collect necessary information.

5.         Collect data from the officials of the concerned District and Upazila.

6.         To look into and scrutinize the food depot of the relevant Districts and Upazilas.

7.         Talk to the officials and workers, godown laborers, transport laborers and other labor leaders who were involved in the wheat procurement process.

8.         Consult to the wheat producer farmers.

9.         Collect data from the banks by whom the wheat have been imported from India and money were exchanged among various parties. 

10.       To analyze data according to the above work method and in the light of that, recommend punishment for those who are guilty for the irregularities, corruption, and misappropriation of money in wheat procurement.

3. Findings of the Probe Committee:

1.         The government procured additional 100,000 MT of wheat in the month of July, but this is the time when framers in our country do not even store any wheat for sale, let alone produce them since the production ceases in May.

2.         The target to procure 300,000 MT of wheat was set in March 2002 but this target was not achieved within June 30. It is mentionable that this year only 1.6 million MT of wheat was produced,  200,000 MT less then that of the previous year.

3.         The main objective of the wheat procurement is to subsidize the real farmers. But, unfortunately in most of the cases, wheat was procured from the dealers instead of the farmers. 80% of the additional 14000 ton of wheat procured at the Muladuli CSD was collected from only 8-10 dealers. The name of some of the dealers and the amount of wheat supplied by them are given below:

4.         The process of wheat procurement did not follow the policy of “Wheat Procurement Policy, 2002”. Specially, the local MP who is also the advisor of the food procurement committee and the DC who is the president of the committee were not at all informed of this procurement process. Even, they were quite at a blank about the newspaper reports, which narrated the corruption about this wheat scam.

5.         It is interesting to note that the five districts below accounted for purchase of almost 90% of the additional “procurement” of 100,000 MT and the levels set for procurement during the off-season are actually higher than the quantity that was actually procured during the production season. The picture is depicted below:

6.         The additional wheat was not procured from Dinajpur, Panchagar, Thakurgaon, Joypurhat and Rangpur, which are the major wheat producing area of the country. On the contrary, the incident of procurement of wheat from only six districts proves that some influential persons directly supported by the higher officials of the BNP-Jammat alliance government have misappropriated the money of the national exchequer,.

7.         10,000 additional wheat was allotted to Jamalpur District later. But DC of the Jamalpur district Abul Hashem and Sadar UNO said they knew absolutely nothing about the matter. Rather the DC requested us to take step against the alleged persons. No officials were found at the district food controller office. It was informed from the other officers and workers that the kith and kin of former local deputy minister and the brother of the present state-minister brought the additional wheat using their power and terrifying the people. These people stockpiled the low-quality Indian wheat in the Singhajani godown. They have embezzled at least 3 crore taka by allotting these additional 10,000 wheat of Jamalpur. No one doubts that the wheat came from India. Both of the ministers are known to have established links with “Hawa Bhaban” 

8.         Manager of Mymensingh CSD handed over a letter to the higher officials requesting them not to buy Indian wheat. He also returned 1000 MT of wheat, as they were not  locally produced and were of poor quality. But he was charged with a ‘show-case’ notice for that. No official was found in the venue to cooperate with the probe committee members. Some sources said that straight government order was imposed on the officer for not cooperating with the committee members. Wheat was procured from 25 MT to 450 MT and bill was paid in WQSC accordingly, although no farmer supplied any wheat. It created a long line of 150 to 200 trucks when the wheat came in the godown and the general people of the locality observed it. The wheat was steadfastly taken to the godown.

9.         In the Satkhira district, 4000 Mton of wheat was allotted although only 400 ton was procured against the first target of 1000 MT. Here, a Shafiq Mahmud, who lives in Tarek Zia’s house and claims himself to be the APS of the PM, along with the local alliance leaders and General Secretary of BNP Abdur Rauf altogether supplied 800 MT of low quality Indian wheat to the Satkhira LCD by bribing the workers there. In the total period, DC (Food) Satkhira was absent from the scene.

10.       The last date to procure the additional 100,000 MT of wheat was July, 31, 2002 but in reality the process continued till August 3 /4 which is clearly against the law. Deputy Commissioner (DC) of Bogra Mr. Safizuddin Ahmed constituted 7 probe committees  with the officials of the district level based on the reports of different newspapers on the wheat scam. The committees found that wheat was procured till August 3 in the district. Consulting with the 7 convenors of the committees, this probe committee came to know that no local farmers supplied wheat to the district godown.

11.       DC of Bogra informed that the probe committee constituted by him, found 1500 sacks (bearing seal of Punjab) of wheat in one of the buildings of the godown. Each sack contains 50 kg of wheat. Similar was the speech of the labor-leaders of that godown. The investigation unveils that those sack were brought to supply in the godown. It is very important to mention that, only Indian wheat sack contains 50 kg while Bangladeshi wheat-sack contains 85 kg. The wheat was supplied as per written directive and order of local BNP MP, Helaluzzaman Talukder Lalu. Transport labors and godown labors informed this probe committee that trucks brought most of the wheat from Chuadanga, Iswardi, Ullahpara and Hili area. The Iswardi Railway Authority informed that, in the month of July, abrupt supply of wheat came from India. Therefore, this is obvious that 100% allocated wheat came from India. The involvement of local MP Helaluzzaman Talukder Lalu is clearly substantiated by the information gathered from all sources.

No District Minister was appointed in-charge of Bogra. Mr. Helaluzzaman Talukder Lalu was elected MP for the third consecutive time in the seat vacated by Hon. Prime Minister Khaleda Zia. Moreover, it is a well known fact that Mr. Tarek Zia used to live in Champa Bhaban, the local palatial residence of Helaluzzaman. Tareq Zia’s name was also in the Printer’s Line of Helaluzzaman’s local daily newspaper, “UTTORKONE” as the Advisor till the scandal became public. All these facts indicate the close nexus between the two and confirm the widely held belief that Mr. Helaluzzaman Lalu is strongly backed by Hon. Prime Minister and her son Tarek Zia who is all in all in Bogra district and his orders and directions are the same as that of an in-charge District Minister. 

12.       The UNO of Iswardi district and Upazila Food Controller informed this probe committee that they were ordered on July 28 to procure 5000 ton of wheat from the Rajshahi Regional Food Controller Office. They somehow managed to procure 1300 ton within 3 days. Naturally the question arises, how can someone procure 1300 ton of wheat from the farmers in just 4 days?

13.       The field level officials of food department in the Districts and Upazilas were ordered to procure wheat from the farmers in the month of July. But they were quite perplexed as this was not the season for procuring wheat from the farmers. Meanwhile, the four-party alliance-government leaders and dishonest dealers created enormous pressure on the government officials. The Manager-in-charge of Muladali CSD informed this probe committee that he was physically assaulted. The local BNP-backed terrorists broke his glasses and forced him to receive the low-quality wheat on the gunpoint. The next day, the local BNP cadres also physically assaulted Manager Baset. Clashes took place in Iswardi, Pabna and Dashuria, between the labors and the ruling party cadres as the labors obstructed the supply of low quality wheat. BNP local leaders even forcibly collected 40 thousand taka from the labors with the pretext of damaging their motorcycle. Besides, the evil-competition amongst the wheat suppliers once turned into a violent altercation. The mass people of Pabna and Iswardi have witnessed a naked competition among the ruling party activists centering on this evil wheat procuring process.

14.       Some higher officials of the food department are also a party to this illegal act and scam. Food Controller of Mymensingh Kamrul Hasan and Additional Director General of Food Department Entazul Haque were involved in making the white-paper of the previous government when the four-party alliance came in power. From that point of view, both these officials had a long esteemed relation with Hawa Bhaban and Prime Minister’s Secretariat and both of them are regarded as ‘influentials’ in the present tenure. These officials also enjoyed the blessing and support of the Food Minister so much so that Mr. Entazul Haque in a letter to the Secretary of Food demanded promotion on the grounds he and Kamrul Islam were loyal to the Alliance Government. All sources of Mymensingh district confirmed that Mr. Kamrul Hasan did everything according to the instruction  of Delwar Hossain Dulu and Khurram Khan Chowdhury, the two MP of Mymensingh district. He also helped them in the process of illegal wheat procurement.  

15.       The probe Committee came to the final decision that low-quality Indian wheat was supplied in all the godowns. Although the committee members were not allowed access to the godowns, the labors and the workers of the godown confessed about receiving low-quality Indian wheat. The probe committee noticed bad odour from some of the godowns of Muladali. The picture of insect-fed wheat have been published in many national dailies and people have continued to suffer from diarrohea by eating this low quality wheat.

Opinions of Probe Committee

The total procurement process was evaluated and analyzed by the Probe Committee and after thorough field level investigation, the Probe Committee strongly believes that :

1. The entire “procurement” of 100,000 MT was a scam and highest levels of Government are involved in this scam to misappropriate huge amount of money in the name of additional wheat procurement. The allocation of the additional wheat, procurement and allocation of money thereof was approved by the Hon. Prime Minister Begum Khaleda Zia herself and this leads us to the unanimous and unequivocal conclusion that the Hon. Prime Minister is directly involved in the corruption and irregularities of additional wheat procurement. 
2. Government officials were confused to receive the rotten wheat. But in this case, Minister-in-charge for Pabna Maolana Matiur Rahman Nizami, Minister-in-charge for Bogra district(currently vacant), Minister-in-charge for Mymensingh district AKM Mossharaf Hossain, Minister-in-charge for Jamalpur district Anwarul Kabir Talukder, Minister-in-charge for Satkhira district Barkatullah Vulu and Minister-in-charge for Tangail district Lutfur Rahman Azad along with all the ruling party MP’s used their political influence and abused their position and authority to ensure procurement of imported, unfit for human consumption low-quality wheat. They used their chosen wheat-dealers, terrified the local people and involved some of the government officials in this process of corruption. This was a naked example of misuse of power and total disregard for Government rules and procedures. This Wheat-Scam typifies the all pervasive corruption in Bangladesh today, patronized, encouraged and practiced by the highest level of Government.

Suggestion of the Probe Committee:

1. Stern and exemplary punishment must be taken against the persons involved in the matter, starting from the highest level of Government, the Minister-in-charge of different districts, four party alliance leaders and the higher government officials.
2. Necessary steps should be taken under the stated and documented policy so that all food grain including wheat are procured as per rules in the future.
3. The government must ensure the transparency and the accountability in all the activities including procuring food grain.
4. An all-party Probe Committee should be formed for further investigation and for more collection of information regarding this Wheat-Scam which is clearly against the public interest and symbolic of the omnipotent corruption in Bangladesh today

Date : September 10, 2002