Bangladesh Railway Rejects Allegations of Irregularities in DEUTZ Spare Parts Procurement, Cancels Purchase Process

Bangladesh Railway has dismissed media reports alleging that spare parts worth around Tk 10 million were being procured for more than Tk 80 million, describing the claims as “baseless and misleading.” The clarification was issued by the Office of the Chief Controller of Stores (CCS) in response to recent newspaper reports alleging irregularities, inflated pricing and favoritism in the procurement of spare parts for DEUTZ diesel engines.

According to the Railway, the published reports inaccurately claimed that spare parts valued at approximately Tk 10 million were being purchased for over Tk 80 million. The CCS office stated that the estimated cost prepared for 14 categories of DEUTZ diesel engine spare parts was Tk 676 million. However, through a competitive tender process, the procurement was approved at Tk 572 million from the lowest bidder, resulting in government savings of more than Tk 100 million.

Responding to allegations regarding the tender process, Bangladesh Railway said that three companies participated in four e-GP tenders. Following technical evaluation, all three firms were declared technically responsive. During the financial evaluation, AZMAIN TRADE INTERNATIONAL emerged as the lowest bidder, after which the tender was approved in its favor and the Notification of Award (NOA) was issued.

The Railway also rejected claims that NEXT GENERATION GRAPHICS LTD (NGGL) had been awarded the contract, stating that the allegation was incorrect.

Addressing other allegations, the CCS office said claims that a company which did not participate in the tender had influenced or controlled the procurement process were not supported by facts. It further stated that allegations of personal corruption against the officials concerned had already been addressed through departmental procedures.

According to the clarification, the entire procurement process was conducted in compliance with the Public Procurement Rules (PPR) 2008, the e-GP Guidelines and all applicable financial regulations, leaving no scope for irregularities, procedural violations or favoritism.

The Railway further disclosed that on July 9, the Chief Electrical Engineer (East) informed the authorities in writing that the concerned spare parts were no longer required. Following approval from the Director General of Bangladesh Railway, all procurement activities related to the purchase were subsequently cancelled.

Bangladesh Railway also alleged that certain media outlets have recently been publishing false, fabricated and misleading reports with vested interests, causing professional and social embarrassment to officials and unnecessarily disrupting important procurement activities.

Commenting on the issue, Director General of Bangladesh Railway Afzal Hossain said there was no opportunity for any irregularity in the procurement process and confirmed that all activities related to the purchase of the spare parts had already been cancelled.