Bangladesh plans to purchase 200 new vehicles for DCs, UNOs

Each vehicle is priced at over Tk1.69 crore, leading to a staggering total expenditure of approximately Tk339 crore.

Officials from the ministry argue that these vehicles are vital for ensuring administrative efficiency, enabling mobile court operations, and maintaining law and order within districts and upazilas. On October 7, the ministry formally requested a budget allocation from the finance secretary, a correspondence reviewed by The Business Standard.

Arif Muhammad, deputy secretary of the Ministry of Public Administration, highlighted in the letter that vehicle prices have escalated, with each SUV under 2700cc now costing Tk1.693 crore.

A finance division official, who chose to remain anonymous, confirmed that the proposal is under consideration but has not yet received final approval.

Fahmida Khatun, executive director of the Centre for Policy Dialogue (CPD), voiced concerns regarding the timing of this significant procurement, emphasizing that it could convey a detrimental message to the public amidst the ongoing economic struggles faced by many, including banks grappling with financial instability.

"DCs and UNOs currently have access to powerful vehicles. The replacement could be postponed until the next elected government takes office. Even if there's a justification for the purchase, Tk339 crore is a considerable sum, especially under current circumstances," she remarked.

Attempts to reach Md Abul Hasanath Humayun Kabir, the transport commissioner of the Department of Government Transport, for comment were unsuccessful. He initially answered but later failed to respond.

Previous Controversies Over Vehicle Purchases

This is not the first instance where government vehicle acquisitions have sparked public scrutiny.

Following the last national election, a proposal for 261 vehicles for DCs and UNOs was quietly approved by the Cabinet Committee on Government Purchase, led by then-finance minister Abul Hassan Mahmood Ali. However, public backlash prompted the Prime Minister's Office to suspend the procurement.

On October 11 of the previous year, the Prime Minister's Office sought an assessment of government vehicles purchased under development projects, including SUV pricing criteria and the condition of existing vehicles.

Despite concerns, the vehicles were eventually approved for purchase by former Prime Minister Sheikh Hasina, with each unit then priced at Tk1.462 crore. The current cost of Tk1.693 crore signifies an increase of Tk23.15 lakh per vehicle, resulting in an additional financial burden of Tk46.30 crore for the proposed 200 vehicles.

The procurement will be managed by state-owned Pragati Industries Limited.

Austerity Measures in Place

Earlier this year, the Ministry of Finance enacted austerity guidelines effective July 4, freezing all vehicle purchases under the operational budget for FY 2024-25, allowing exceptions solely for vehicles older than ten years with Finance Division approval. Purchases under the development budget have also been halted.

Nevertheless, Tk377 crore has been allocated for vehicle acquisitions in the current fiscal year's budget. In September, the Department of Government Transport submitted a request to the Ministry of Public Administration for additional funds to procure 200 new vehicles for DCs and UNOs.

In the request, transport commissioner Md Abul Hasanath Humayun Kabir noted that 461 vehicles assigned to DCs and UNOs have exceeded their 14-year service life, with 64 DCs and 197 UNOs currently awaiting vehicle allocations.

To ensure continued administrative mobility and the effective operation of mobile courts and law enforcement, the replacement of the remaining 200 vehicles is deemed necessary, the letter stated.

In July of the previous year, the Ministry of Finance established vehicle pricing, setting the cost of each jeep under 2700cc (including registration, VAT, and taxes) at Tk1.46 crore.

Last fiscal year, Tk60 crore was allocated for motor vehicle purchases for the Department of Government Transport, but the Ministry of Public Administration's request for an additional Tk612.34 crore to acquire 461 vehicles was only partially approved, limiting their acquisition to 261 vehicles.