Proposal to Cancel EDC, Potential Savings of 7,000 Crore BDT
An investigative committee has uncovered significant waste and irregularities in 21 projects implemented under the ICT Division over the last 15 years. Among these, the EDC (Establishing Digital Connectivity) project has been recommended for closure due to excessive costs and inefficiencies. The report has also suggested cost-cutting measures for ongoing projects, with the potential to save approximately Tk 7,000 crore—equivalent to 37% of the estimated total cost of Tk 18,600 crore for these projects.
The findings were presented on Sunday in a report submitted to Md. Nahid Islam, Advisor to the Ministry of Posts, Telecommunications, and ICT, as well as the Ministry of Information and Broadcasting. The report highlighted irregularities, financial losses, flawed agreements, non-transparent beneficiary selection, unethical practices, and duplication of efforts. It also included five recommendations to address the identified issues.
Investigative Findings
A 13-member committee, chaired by Additional Secretary Mahbubur Rahman, evaluated 21 projects undertaken between 2009 and FY 2023-24 by the ICT Division and its affiliated organizations. Formed on August 8 under the directive of ICT Advisor Md. Nahid Islam, the committee worked under the supervision of ICT Secretary Shish Haider Chowdhury and Policy Advisor Faiz Ahmed Tayeb.
The investigation revealed that significant sums, amounting to thousands of crores of taka, were spent on facilities and initiatives that were underutilized or redundant. For instance, the EDC project had proposed spending over Tk 300 crore to provide broadband connections to rural users. However, the report recommended scrapping this component as it lacked alignment with local government platforms.
Recommendations
The committee proposed removing unnecessary and inconsistent activities from project scopes. It recommended ensuring the sustainability of project outcomes before completion and clarifying the jurisdiction of entities like the Bangladesh Computer Council, the Bangladesh Hi-Tech Park Authority, and the ICT Directorate. Resolving audit objections before project closures and excluding activities unsupported by foreign assistance were also advised.
Irregularities in Projects
The report identified several projects with significant discrepancies, including the Mobile Game and App Development Project, Aspire to Innovate (a2i), and IT Training and Incubation Center initiatives. Duplication of efforts was prevalent, such as multiple organizations establishing digital labs and IT training centers for similar purposes. Excessive land acquisition and infrastructure costs were also noted, along with a lack of planning for operational staff in many training centers.
Mahbubur Rahman, head of the investigative committee, stated, “We have initially proposed cutting unnecessary, costly, and discriminatory elements. Much more could have been saved if not for the funds already spent.”
He added that prior connectivity projects had incurred Tk 2,500 crore in expenses for laying fiber optic cables, which were handed over to private companies under public-private partnerships. These companies retained 90% of the revenue, leaving the government with only 10%. A more economical approach could have been pursued by utilizing commercial internet service providers.
Excessive Spending
The ICT Division has been criticized for wasteful expenditures under several initiatives. Former ICT State Minister Zunaid Ahmed Palak’s plans for constructing six cinema halls in districts like Rangpur and Gopalganj cost Tk 90 crore. Additionally, a proposed Tk 500 crore plan to transform 10 villages into IoT-based “digital villages” and a Tk 370 crore budget for creating 10 films on the lives of former Prime Minister Sheikh Hasina and her family members were deemed excessive and discriminatory.
Projects like EDGE (Digital Government and Economic Growth) also exhibited mismanagement, with some trainees not receiving promised allowances. The report recommended scaling down training activities and eliminating redundant elements such as university technology labs.
Advisor’s Remarks
Md. Nahid Islam, ICT Advisor, emphasized, “Standing on the foundation of such reckless corruption, as an advisor to the new government post-uprising, I have taken steps to investigate and curb waste and mega corruption in this sector. I thank the investigation team. However, I have instructed that these recommendations be integrated into the upcoming 100-day action plan to ensure they do not remain confined to files.”
He further stated, “I aim to establish the ICT sector and digital transformation as a foundation for inclusive development, driven by the potential of a future digital economy, rather than corruption.”
Savings Potential
By removing unnecessary components from the projects, the government could save Tk 6,981.15 crore. This includes cutting redundant training centers, digital labs, and excessive infrastructure in IT parks. For example, building 47 training centers in three phases without proper operational plans resulted in significant wastage. Instead, a phased approach with fewer centers in key locations could have been more effective.
ICT Secretary Shish Haider acknowledged the irregularities, stating, “There has been duplication and even triplication. A task completed once was repeated multiple times. A job that could have been done for Tk 5 was executed for Tk 20 in the same project. In some cases, the work was not done at all. We are focusing on protecting the nation’s resources by removing unnecessary elements and ensuring maximum benefit for the country and its people.”
