An internal audit has unearthed alarming evidence of large-scale financial irregularities in Bangladesh Railway’s East zone, where bills worth over Tk 3.69 crore were cleared without proof of work. Documents suggest the malpractice took place during the tenure of then-Chief Engineer (East) Mohammad Subaktageen, raising serious questions over systemic corruption and oversight failures in the rail sector.

According to the audit report by the Directorate of Transport Audit, substantial payments were approved for track maintenance, sleeper replacement, switch expansion joint (SEJ) installation and track renewal — despite an absence of field-level activity or supply records.

Paper Projects—Real Money:

Officials examining contractual records found glaring discrepancies: in one Tk 2.25-crore project, 28 sets of SEJ were supposed to be installed. Not a single one was found on site. In another case, Tk 2.76 crore was booked against work that auditors confirmed did not take place.

No entries were found in Store Return registers, Receipt logs or annexure documents. Yet, bills were fully processed.

The audit notes the practice amounted to “institutionalised corruption”, with state funds siphoned off through “paper-based execution”.

Familiar Firms—Repeated Favours:

Project files show the same private contractors repeatedly secured contracts under Subaktageen’s watch — including M/S Trade Link Solution, M/S Sadek Hossain, and NAB-AI Joint Venture.

Railway insiders told The Daily Star that genuine competition was undermined. “If there was fair bidding, the same firms would not be awarded similar works repeatedly,” said a senior official requesting anonymity.

Duplicate Bills, Ghost Work:

The audit detected duplicate billing for similar tasks under separate project names. In several cases, payments were authorised even when site inspections revealed no visible work.

In one contract (No. 54.01.1500.109.07.011.18), auditors found no evidence of work by NAB-AI JV — yet Tk 2.95 crore had already been paid. Another Tk 38.92 lakh was cleared for track renewal by M/S Trade Link Solution, though there was no proof of material supply.

Additionally, 713 RFT of track “renewal” and 273 RFT of “new line construction” were paid out — totalling Tk 35.16 lakh — without supporting supply records. The report notes 3,542 RFT of rail material remains unaccounted for.

Safety at Stake:

Beyond financial loss, audit officials warn the irregularities jeopardise public safety.

“Showing track work only on paper does not just waste public money — it endangers passenger lives” the audit observed.

Audit Recommendation; Recover Funds:

Citing Railway Engineering Code provisions, the report stresses that the chief engineer is responsible for ensuring both efficiency and financial integrity. It recommends recovery of all disputed funds from those responsible if original supply and issue documents are not produced.

Loss Could Exceed Hundreds of Crores:

While confirmed anomalies total at least Tk 3.69 crore in a few audited files, auditors believe the actual losses could be much higher when other projects are examined.

“Considering the pattern, total losses may exceed hundreds of crores” said one audit team member.

What Happens Next?

As of now, it remains unclear whether Bangladesh Railway has initiated departmental action against those involved. Sources say files have been forwarded for higher-level review.

However, without stringent follow-through, anti-graft experts fear this could become just another report gathering dust. “Corruption in essential services like railways isn’t just financial misconduc. it undermines national infrastructure and public trust” a senior audit official noted.