Tk 82 Crore Purchases Made by UGC, 9 Universities Bypassing Open Tender

The University Grants Commission (UGC) and nine public universities under its control have procured vast quantities of goods and equipment using quotation, cash, and Direct Purchase Method (DPM) without following open tender procedures. From the fiscal years 2021-22 to 2023-24, these 10 institutions irregularly spent Tk 81 crore 95 lakh 47 thousand 985 on such unauthorized purchases.

The Education Audit Directorate recently conducted an audit at UGC and highlighted these irregularities in its report, recommending action against those involved.

According to the audit report, UGC spent Tk 34 crore 48 lakh 68 thousand; Netrokona University Tk 24 lakh 10 thousand 370; Gazi University of Agriculture Tk 1 crore 43 lakh 22 thousand 867; Chandpur University of Science and Technology Tk 8 lakh 35 thousand 911; Dhaka Engineering and Technology University Tk 23 lakh 90 thousand 290; Maritime University Tk 38 crore 46 lakh 12 thousand 544; Jagannath University Tk 1 crore 24 lakh 66 thousand 740; Bangladesh Open University Tk 12 lakh 58 thousand 725; Bangladesh Agricultural University Tk 4 crore 2 lakh 65 thousand 491; and Jahangirnagar University Tk 1 crore 61 lakh 17 thousand 47 on goods and equipment. All these purchases were made without inviting open tenders, in violation of rules.

Insiders say that UGC and the public universities avoid open tenders in procurement of goods or equipment to favor preferred suppliers. As a result, contractors inflate costs several times over the actual price and withdraw the money. This leads to financial losses for the government, wasting taxpayers' money.

On condition of anonymity, a top UGC official told The Daily Campus, "It's not just about irregularities in open tenders; there are countless instances of misconduct at UGC and public universities, happening repeatedly. But since no action is taken in these cases, the same crimes continue. The government at the highest level should take strict measures to stop this."

The audit report states that UGC and the universities divided allocated funds into small portions to bypass tender and quotation rules, opting for direct cash purchases. According to Rule 69(4)(a) of the Public Procurement Rules (PPR) 2008, large contracts cannot be split into smaller parts. Similarly, under GFR Rule 153, purchase orders cannot be divided to avoid higher authority approval.

As per the Financial Powers Delegation Order 2015, without tender advertisement, the maximum single transaction is Tk 5 lakh and annual maximum Tk 30 lakh. For direct purchases, single maximum is Tk 25 thousand and annual Tk 10 lakh. However, the audit found that these limits were violated in the Tk 82 crore procurement activities.

The audit reviewed purchase documents, bill registers, and ledger vouchers from various universities, revealing that UGC and the institutions split funds into small parts for quotation or cash purchases. This clearly proves violation of government rules and financial irregularities.

When explanations were sought from UGC and the universities on these irregularities, UGC, Jagannath University, Netrokona University, Maritime University, Bangladesh Agricultural University, and Dhaka Engineering and Technology University provided no response. The directorate stated this violates Audit Code Rule 59 and Subsidiary Rule 437 under Treasury Rules.

Jahangirnagar University responded that purchases were made through limited tender method within specified price limits from listed suppliers or contractors. Gazi University of Agriculture said cash purchases were made in extreme emergencies, keeping expenses within Tk 25 thousand per case. Chandpur University of Science and Technology stated that purchases were completed using DPM instead of OIM in urgent needs.

Bangladesh Open University claimed that necessary goods and services were procured quickly using DPM as per PPR-2008, with no rule violation.

The Education Audit Directorate deemed these responses unacceptable, stating that the universities did not properly follow the Financial Powers Delegation Order provisions.

The audit report recommends administrative action against individuals and officials involved in these irregularities.

Following the exposure of these irregularities at the oversight body UGC and the universities, public demands have risen for the relevant authorities to come under scrutiny from the general public, educationists, and government officials. Such financial misconduct and rule violations could lead to losses in government funds, impacting future education system development.

Experts believe that bypassing government procurement rules in these activities reduces transparency and accountability. Additionally, strong monitoring and transparent quality control measures are essential to prevent future irregularities in universities.

When contacted for comments, UGC Secretary Dr. Fakhrul Islam declined to comment but advised speaking to Audit Branch Director (current charge) Nahid Sultana.

On the matter, Nahid Sultana said, "The commission is taking necessary measures on the issues raised. We have sought explanations or opinions from the accused. These will be discussed next week. Subsequently, a report will be submitted to the Education Audit Directorate."