There are allegations that a clique led by Director (Production and Engineering) and Joint Secretary Md. Saidur Rahman of Bangladesh Sugar and Food Industries Corporation is pushing this procurement process forward quickly. Allegations of collusion involving the concerned contractor firm and individuals have also arisen in this incident. A written complaint has been submitted to the office of the Industries Secretary demanding an investigation into the matter.
Concerned sources say that after overcoming various adversities, the work of Keru's sugar unit BMR project was completed. At the final stage of the 2025-26 crushing season, sugar production also began at increased capacity. However, contractor Bangladesh Machine Tools Factory (BMTF) could not supply the necessary spare parts as per the contract. For this reason, Tk 2 crore 54 lakh was deducted from the contractor firm's bill as the value of spare parts. In this situation, questions have arisen over the rationality of seeking an allocation of Tk 3 crore first and later Tk 6 crore for those parts. Sources claim that although there was no allocation in this sector for the 2026-27 fiscal year, an initiative was taken to buy new spare parts.
In this regard, on August 18 last, Keru authorities sent a proposal of Tk 3 crore to the headquarters. There are allegations that by creating pressure on the concerned officials, a revised proposal of Tk 6 crore was again sent on August 31. Keru and Company's General Manager (Factory) Suman Kumar Saha was served a show-cause notice on allegations of delay in sending the proposal.
Meanwhile, the work of the BMR project ended on June 30 this year. As per the contract, the project machinery has a two-year warranty; as a result, if any defect appears in the machinery during this period, the contractor firm is responsible for repairing it or taking necessary measures. In such a situation, questions have arisen among concerned people about why an initiative is being taken to buy spare parts at a huge expenditure without the recommendation of the technical team. Concerned persons fear that some machine parts may be needed to keep crushing operations uninterrupted; however, if purchases are made without verifying the warranty terms, current stock and actual demand, there is a risk of wasting government money. A senior engineer, requesting anonymity, said no proper explanation was sought from the headquarters regarding why the Tk 3 crore proposal was raised to Tk 6 crore. Some machine parts on the list may not be needed even in the next five to seven years.
Chief Engineer Mahmudul Haque of Bangladesh Sugar and Food Industries Corporation acknowledged that a list of machine parts as per Keru's demand was supposed to be received. However, he said the list has not yet been verified. There are allegations that without properly verifying the proposal sent by Keru authorities, approval for purchase under the DPM method was obtained by bypassing the corporation board and citing the logic of the G2G method. Concerned persons claim that the proposed machine parts are not manufactured by BMTF or the original plant supplier; sub-contractor Newtech International was supposed to collect these machine parts from the local market and supply them. It has been alleged that in this process, the purchase initiative was taken through collusion between Newtech International and the company's director Md. Saidur Rahman.
Allegations have arisen against Md. Saidur Rahman, Director of the Production and Engineering Division of the corporation, of demanding up to 3 percent commission from contractors for technical approval. Several contractors claim that if they do not agree to pay the demanded money, their files are held up on various pretexts. Regarding the allegations, Md. Saidur Rahman said the decision to purchase under the DPM method was made on the advice of the board and higher levels. However, another director of the corporation claimed that no discussion took place in the board on this matter. When asked about the allegation of embezzlement through collusion with Newtech International, Saidur Rahman said he knows nothing about it. At the same time, he said he also does not know how the Tk 3 crore proposal was raised to Tk 6 crore.
Meanwhile, Keru's Managing Director Rabbik Hasan said everything regarding the purchase of spare parts was done according to the instructions of the headquarters, that is, the engineering branch. He also said the parts have not yet been bought. This was a proposal from 12 years ago; at that time the valuation was Tk 3 crore. Now, as the dollar price and the prices of machine parts have increased, a new valuation was done and it was made Tk 6 crore. The proposal has been sent to the headquarters; it will be scrutinized, approved at the board meeting, and then purchased. Ismail Hossain Molla, who is in charge of Keru's mechanical division, said that initially an allocation of Tk 3 crore was sought based on an estimated price; later, representatives of the head office, the factory and the contractor firm sat together and verified the prices of the machine parts, and after adding all expenses, a proposal of Tk 6 crore was made. However, when asked why the price was determined based on discussions among representatives of the three parties instead of verifying the price and necessity of the machine parts through the technical committee, he did not want to give any answer.
According to concerned persons, in order to ensure transparency in the entire procurement process, it is necessary to review the reason for raising the amount from Tk 3 crore to Tk 6 crore, the actual demand for machine parts, the market price, the warranty terms of the project, the accountability of the contractor firm, the process of obtaining approval under the DPM method, and all related documents. Besides, if the allegations are verified through an impartial investigation, it will be possible to prevent the potential waste of government money and identify those involved in the actual irregularities. Fida Hasan Badsha, former project director of the Keru BMR project, said there must be transparency and accountability in the purchase of parts for sugar mills; care must be taken so that there is no waste or embezzlement of money. Then the institution will survive, and the sugar industry will survive.
