Tk 217cr paid for radio plant with no work done

A contracting firm has received over Tk 217 crore in advance payments - sent to a foreign account through banks - even though work has not begun, and the remaining funds will follow in six LC-backed installments.

Under the “Agreement on Reciprocal Trade” between Bangladesh and the United States, the government has sent the first installment to the US for establishing an over Tk 1,117 crore factory that will produce various types of radio devices (internal communication control equipment) for security forces.

Despite plans to implement the project at such a massive cost, the proposal does not even mention the price of each radio device to be produced there.

The project is being implemented under a Non-Disclosure Agreement (NDA) with the US finalized during the last days of the interim government. The contract was awarded to the US-based technology L3Harris, with its local representative being Angikar International.

The project, housed on a 3,824-square-foot restricted site in Dhaka, allocates just 810 square feet for core technology transfer - where L3Harris series radio devices from the US will be produced.

For the advance-paid work, a single “special” table carries a price tag of nearly Tk 6 crore, with eight such tables totaling Tk 48 crore. A network rack system is also priced at Tk 6 crore. Despite the massive outlay, the factory will operate with a workforce of just seven people.

Eight employees, however, will receive overseas training under the six-year project.

The expenditure for that training is estimated at Tk 3.5 crore. Several types of radio devices will be manufactured in the proposed factory, which will be purchased and used by security forces. These details were uncovered through an investigation by Agamir Somoy and an examination of project proposal documents.

Identifying the biggest weakness in the project proposal, experts said when a factory is established under a Technology Transfer (ToT) agreement, the design of the technology products, source code, structural designs, and intellectual property are always handed over. In this case, nothing will be received, which is astonishing.

In every country where L3Harris has established such factories under ToT, they have never fully transferred the technology. According to the expert team, out of the 12 core components of this project’s contract, seven are high-risk and the rest are medium-risk.

Not a single one is profitable for the country. There are fears of embezzlement under the guise of implementing this project and money laundering hidden behind LCs.

Transparency International Bangladesh (TIB) Executive Director Iftekharuzzaman told Agamir Somoy, “There is no precedent for paying a contractor in advance for a government project. I do not believe such a thing exists in any other country either.”

He added, “Even if the contract specifies an advance payment of Tk 217 crore, it is questionable. Usually, if a contractor, vendor, or supplier cannot perform the work according to the contract, there is a condition to deduct earnest money from them.

“Here, the opposite has happened. There is no such instance in domestic or international experience. This matter must be investigated. Because this is public money. The possibility of irregularities here seems prominent.”

Controversy has already arisen regarding the tender process, financial inconsistencies, and issues related to Ministry of Finance approval for this project taken at such a massive cost.

According to document, the project worth over Tk 1,117 crore was finalized to purchase VHF and HF radio devices from L3Harris. There are allegations that conventional rules were not followed in calling for the project’s international tender.

In the case of international competitive bidding, the timeframe is usually set at 48 days. However, this tender process was completed between 4-31 March 2025 (28 days). This period also included the Eid holidays.

After reviewing the documents, analysts have raised questions about the tender process, project financing, technology transfer viability, and the selection of local stakeholders. The tender for assembling 4,000 radio devices in six categories was called on 19 February 2025.

Tender documents were sold from 11:25 am on 4 March to 31 March. The tender was opened at 11:30 am on the final day.

Their view is that while the project is presented as a ToT initiative, there are doubts about how much technology will actually be transferred to Bangladesh. They claimed that under the project, it is not the core technology or source code, but rather parts imported from abroad that will be assembled domestically.

Following this, according to the agreement, Tk 217,28,76,297 was given as an advance to the contracting firm before work started. On 23 June, the money was sent from the LC branch of Bangladesh Bank to L3Harris’s New York City Bank account.

The remaining money is supposed to be paid in six more installments by 2032.

Investigations have revealed that Salahuddin Murad is the chairman of Angikar International. However, the company is primarily managed by CEO Monzur Hossain Jimmu and his wife, Asma-ul Husna Annie (Director).

When contacted via mobile phone recently, Monzur did not want to speak. However, Salahuddin told Agamir Somoy, “The contract for this has been done. The work is progressing.”

In response to a question about whether the first installment had been paid, he said, “I was away, so I cannot say.”

When asked if he was aware of the risks of financial loss to the country in this project, he said, “That is incorrect. Chinese goods are not being provided here. Goods are being purchased from Harris, the number one company in the world.”

When asked how the price of a single table could be Tk 6 crore when the price of the devices to be manufactured is not even mentioned in the proposal, he said, “They (L3Harris) certainly have an answer. I have not read the entire project proposal. Therefore, it is not possible for me to say everything.

“However, I have told those who will receive the goods clearly: you will pay a fair price and they (Harris) will provide the goods. You will receive them 100 percent.”

On 21 May, observations regarding project financing and approval complications were highlighted in a review document. The document said, “Approval has been granted for the purchase of the item (L3Harris series radio devices) at a total cost of Tk 11,17,25,77,265 for the 2025-26 and 2026-27 fiscal years.

“But in the administrative approval/financial consent letter, only Tk 843.73 crore remains in the budget sector. Approval from the Ministry of Finance is required for payment through multiple fiscal years in the purchase proposal.”

The 100-page project proposal from L3Harris, submitted to the department, came to Agamir Somoy about a month ago and took the initiative to verify and analyze it.

A team of experts analyzed the proposal for a week and provided a written opinion. It said more than Tk 217 crore was to be paid within one month of signing the contract without any work being done. Giving such a huge amount of money in advance before starting work is risky.

If the project is implemented according to the agreement, dependence on the US company L3Harris will increase. At the same time, it could lead to economic loss and put national security at risk.

The expert opinion mentions that the warranty for the production plant is only one year, whereas the project duration is six years. During the time, there are no instructions in the plan for the maintenance, repair, and other support for various factory equipments.

For such a project, a warranty of at least three years and a support package of five years are essential. Although it is claimed that implementing this project would result in 10 percent savings in purchasing radio devices and a 20 percent return on investment (ROI), there is no explanation for this.

Moreover, the proposal does not say what the price of a complete radio device will be. There is no way to verify or confirm the market price of the parts that will be used to make the devices. There is not even any calculation of the cost of building the factory or future income and expenditures.

The expert team’s opinion is that apart from L3Harris, many reputable companies from France, Germany, Finland, and Australia perform this type of work at a much lower rate than the price quoted by L3Harris.