A flurry of appointments to the top posts of state-owned power and energy companies has stirred disquiet in the country’s critically important and lucrative energy sector.
Twelve former Bangladesh Chhatra League leaders, a Mahila Awami League leader, two Real Estate and Housing Association of Bangladesh (Rehab) leaders and three businessmen with alleged political connections to the decision-makers in the ministry, have recently been appointed to the boards of the various high-level companies under the Power and Energy Ministry.
The Chhatra League is the student wing and the Mahila Awami League is an associate body of the ruling Awami League.
It is unprecedented for political appointments of this nature to be made to the top posts of public companies in this sector, according to multiple sources who wished to maintain anonymity.
Typically experts are appointed to these posts. None of the new directors can claim expertise in the power or energy sectors.
A managing director of one of the companies in question, asking not to be named, told the Dhaka Tribune that an “unhealthy” environment had been created at the state-owned companies because of the newcomers.
He said managing directors at the firms were facing pressure to recruit people preferred by the new director-appointees and to provide tenders to pre-selected parties.
The new directors’ lack of knowledge of the sectors they had been called to preside over has meant that trivial matters often displaced more important issues at board meetings, he said.
“They are just interested in new recruitment and staying updated about new tenders,” he said.
The presence of the political appointees has left other directors and expert directors feeling uncomfortable at meetings.
“This could affect company operations,” he added.
Among firms under the state-run Oil, Gas and Mineral Resources Corporation (Petrobangla) – Rashedul Mahmood Russel is now director of Karnaphuli Gas Distribution Company Ltd, Khan Moinul Islam Mustaq is director of Titas Gas Transmission & Distribution Company Limited, Maksudul Alam Dablu is director of Sylhet Gas Fields Limited, Hasanuzzaman Majumdar Liton is director of Pashchimanchal Gas Company Limited, Md Kawsar Ahmed is director of Sundarban Gas Company Limited, Sk Faruk Hassan Hitlu is director of Bakhrabad Gas Distribution Company Limited, MAS Imon is director of Rupantarita Prakritik Gas Company Limited and Md Saiful Islam is director of Jalalabad Gas Transmission and Distribution System Ltd.
Among firms under the Bangladesh Petroleum Corporation – Istak Ahmmed Shimul is now director of Meghna Petroleum Limited, Md Arifuzzaman Miah Tutul is director of Padma Oil Company Limited and Saifuddin Nasir is director of Jamuna Oil Company Limited.
All are former leaders of the Chhatra League.
Rehab Vice-President Liakot Ali Bhuyan was appointed director of Titas Gas Transmission and Distribution Company Limited.
Among the Power Division companies, Md Rabiul Hasnat, a Rehab executive committee member, is the new director of Dhaka Electric Supply Company Limited and Banasree Biswas Smritikona, executive member of the central committee of Bangladesh Mahila Awami League, is director of Dhaka Power Distribution Company Limited.
Among the Power Development Board companies, ex-Chhatra League leader S M Monjurul Haque Monju and Mammur Rashid, deputy managing director of the Index Group of companies, are both new directors of West Zone Power Distribution Company Ltd.
Monowara Hakim Ali, director of the Federation of Bangladesh Chambers of Commerce and Industry, has been appointed director at both the Electricity Generation Company of Bangladesh and the Coal Power Generation Company Bangladesh Limited.
Kamal Ahmed, managing partner of Benfish, is the new director of Ashuganj Power Station Company Ltd.
Contacted, the new director of Sylhet Gas Field, Mahmudul Haque Dablu, told the Dhaka Tribune he had been awarded the job as a Chhatra League member although he had no experience in the sector.
“I have been made a state minister. The government evidently thinks I am fit for the job,” he said.
Banasree Biswas Smritikona, director of Dhaka Power Distribution Company Limited, who has no professional experience in the field, told the Dhaka Tribune: “I have links with politics and may be politically appointed. What is the problem?”
The new director of Titas Gas Transmission and Distribution Company, Liakot Ali Bhuyan, said: “There is no bar to appointing us. It may be that we do not have any experience. Our duty is to see if the company is working properly. We are doing this.”
Asking not to be named, an official of the Power, Energy and Mineral Resources Ministry told the Dhaka Tribune that the state minister for power had convinced the government to back the appointment of party leaders and allied businessmen. The state minister is a former president of Rehab.
He claimed the state minister had even appointed some people who were his personal assistants. He added that many of the newly appointed directors had regularly visited the state minister’s office to lobby him.
The ministry official said political appointments would increase irregularities and corruption at the state-held companies.
State Minister for Power Nasrul Hamid, who oversees the ministry’s operations, was not available for comment, declining to receive phone calls or reply to an email from the Dhaka Tribune.
A high official at the Prime Minister’s Office who said he was disappointed with the appointments said he had managed to block some of the appointments, especially to companies under the Power Division.
According to company law, the Power Division and Energy and Mineral Resources Division may at any time appoint or discharge anyone to or from directors’ posts. Company authorities must confirm the decision at the annual general meeting.
According to the law, directors receive Tk5,000 for every board meeting they attend. Meetings are typically held at least once a month but may be more frequent.
