THE committee to investigate economic corruption under the deposed Awami League government in its report submitted to the interim government on December 1 termed the energy sector as a ‘conduit of corruption’. The findings of the committee confirm the observation of economists, energy experts, and anti-corruption watchdogs, who have all along urged the government to reform the energy sector and talked about how arbitrary tariff fixing, overhauling project costs, heavy import reliance, and the guaranteed payment against idle power were bleeding the economy. With an investment of $30 billion in power generation since 2010, at least $3 billion changed hands as kickbacks, and about 10 per cent of the project cost was spent as commission. Irrespective of investment, the tariff negotiation was done by benchmarking previously tendered tariffs or other negotiated deals, allowing favourable rates, terms and conditions to political and business cronies. Meanwhile, people suffered from inflation, and industries lost competitiveness, and 65 per cent of the country’s primary energy still needs to be imported at an annual cost of $10 billion, and by 2030 this will rise to $20 billion.
The power and energy sector in Bangladesh has become a hub for corruption, largely due to a lack of accountability stemming from the Quick Enhancement of Electricity and Energy Supply Act, 2010, which allowed immunity to both government officials and political leaders. A gazette notification was issued on November 30, which repealed the act and stated that actions taken under the 2010 law would be considered legally done while activities undergoing by the power of the law would continue and be completed as if it had not been repealed. The AL party members, lobbyists, private businesses, and independent power producers became major stakeholders in this sector, and the indemnity law facilitated the bypassing of due processes. For example, the White Paper termed the Rooppur Nuclear Power Plant as a misadventure and overpriced, as the unit cost of power produced by the plant stands at $5,500/kWe, which is much higher than a similar power plant in India. With the same kind of investment, 6,000 to 8,000 MW of renewable, gas, or coal power plants could be installed. The cancellation of the act is a major step towards reforming a sector that was designed for corruption, but the government needs to revisit the decision to consider all action taken under the act as ‘legally done,’ because it allows activities under some unfair and environmentally hazardous deal to continue.
The government should, under the circumstances, consider revisiting the business and trade agreements secured through political favouritism, nepotism and other unfair means, evading due process under the recently repealed energy sector indemnity law, and bring all errant government officials and others involved in the illicit transfer of public money to private pockets.