At least Tk47.5 lakh is being illegally exchanged every day for carrying out the import-export process at Chittagong Custom House, says a TIB research report.
According to the findings, around 60-70 people, who are employed by the customs officers and known as “Badi Alam” or “Faltu,” act as brokers to transact the money that illegally changes hands throughout the import-export process. These middlemen also know and use the passwords of the customs officials’ computers, posing a great threat to the security of the automated system.
The Transparency International Bangladesh (TIB) report titled “Chittagong Port and Custom House Import-Export Automation Process: Challenges for Good Governance and Finding out Ways,” also stated that around Tk17.2 lakh was illegally exchanged daily only for unloading imported goods.
The research was conducted to identify problems and irregularities at the Chittagong Customs House on automation perspectives, current status of automation and finding out ways to meet challenges.
The research by the graft watchdog found that despite the introduction of automated systems, custom officers were still using manual signatures and seals in a bid to avail illegal money from businessmen and organisations, while the related wings were still not online.
“A positive image has been created with enormous opportunity to ensure good governance after the introduction of automated systems at the Customs House; but a part of the customs are creating problems in implementing the process to make financial gains through illegal means,” said Iftekharuzzaman, executive director of the TIB.
Publishing the report in a press conference at a city hotel, he also said the port city’s Customs House’s international grade would be upgraded if good governance could be ensured there.
To avoid bribery, there should not be any communication between service providers and receivers, said Iftekharuzzaman.
Although the introduction of automated systems was supposed to reduce graft, the TIB was surprised at the magnitude of corruption at the Customs House, he said, adding that the “remarkable” progress in import-export should be maintained for continued economic development.
The TIB report also suggested the introduction of online systems at all organisations related to customs duty and import-export release, stopping the opening and delivery of products at the port and making of evaluation reports by an independent third party regarding the effectiveness of automation and the officers’ efficiency. It also suggested formulating behavioural guidelines and technological training for officers and bringing the corrupt people to book.
M Hazfizzuddin Khan, former chairman of the TIB Board of Trustee, said: “Corruption prevention has stopped at Chittagong Port. Half automated and half manual systems will only enhance corruption.”
However, responding to the TIB findings, Chittagong Customs House Commissioner Masud Sadik told the Dhaka Tribune that the allegations were made indiscriminately, but admitted that there were some irregularities.
If there was any specific allegation, the authority concerned would investigate it and take actions against the involved person, Sadik said. Commenting on the middlemen known as “Faltu,” Sadik explained: “The process of appointing new officers is ongoing and after their appointment they [middlemen] will be ousted.”
“The customs officials record the import data immediately but do not enter export data, only to collect money from the exporters,” Exporters Association of Bangladesh President Abdus Salam Murshedy told the Dhaka Tribune.
Seeking anonymity, a manufacturer and exporter of RMG products told the Dhaka Tribune: “Through brokers, the officers demand Tk2,000 for every utilization declaration (UD) and we have to pay; otherwise shipments are delayed, goods go missing.”
Exporters also have to send products through airfreight because of the excessive hassle at the Customs House, he added.