Even a ship full of fertiliser vanishes

Despite fertile land loss, weather stresses and depleting irrigation water, Bangladesh's agriculture keeps contributing a fifth of the GDP each year. Along with other factors, government's policy support in the form of fertiliser subsidy plays a big part here. But misappropriation of the key agro input by a syndicate involved in shipment and transport, and mismanagement by the authorities, in this case Bangladesh Chemical Industries Corporation, have tainted this otherwise commendable effort. If such large-scale corruption is outrageous, the culture of impunity within the corridors of the BCIC and elsewhere is worrisome. This systematic graft has cost the state about Tk 100 crore each year since 2009. In this four-part report, Hasan Jahid Tusher exposes the corruption in the fertiliser sector. 

Mongla Port is no Bermuda Triangle, also known as the Devil's Triangle in the Atlantic Ocean, where several ships and also aircraft are said to have mysteriously vanished.

But when it comes to ships full of fertiliser, they can disappear under equally mysterious circumstances from this port in southern Bangladesh, about 14,000km east of Bermuda Triangle.  

In FY 2011-12, a ship named Maheswari anchored there with 16,500 tonnes of urea. M Trading Company Pvt Ltd, a Chittagong-based importer and carrier, had imported the fertiliser from a Middle East country after getting the contract from Bangladesh Chemical Industries Corporation.

The company informed the BCIC about the vessel's arrival and collected the bill. But then the ship vanished without unloading a single bag of fertilisers, according to documents and BCIC sources. 

Between 2009 and 2014, some 33,000 tonnes of imported urea worth about Tk 115 crore disappeared from ships. Several importers and at least 30 ships were involved in the scam.

BCIC documents show some traders, including M Trading Shipping Company and Nobab and Company, have long been gobbling up fertilisers from mother vessels. 

In March last year, Nobab trafficked 21,500 tonnes of fertiliser from MV Ikan Jebuh that arrived at Chittagong Port. Earlier in 2013-14, the company took 6,600 tonnes from Green Field-1 and over 3,900 tonnes from Barbarof G without BCIC's allocation or approval.

The owner of M Trading left the country in 2015 without handing over about 15,000 tonnes of urea worth around Tk 52 crore, sources have said.       

Earlier in 2014, the company secured a work order from the BCIC for supplying 7,800 tonnes of fertilisers in 50kg sacks to warehouses. But it delivered the product in bulk, a clear breach of the contract.

It is also for this company that the BCIC had to count an additional Tk 5 crore in unloading and labour charges. In February 2015, the company imported 33,000 tonnes of urea but did not unload it form the mother vessel, MV S Atlantic, violating the contract. When the BCIC came to know this in April, it had to hire labourers for carrying those to lighter vessels.

Bangladesh imports fertilisers mainly from Saudi Arabia, United Arab Emirates and Qatar through Chittagong Port.

Often ships carrying fertilisers are anchored in deep sea that makes it easy for traders and carriers to steal fertilisers form there.

It takes about 45 minutes in speed boats if a BCIC official wants to inspect the fertiliser. 

“Surveyors and officers cannot go there because it's very risky. So the syndicate easily steals fertiliser and smuggle from there,” said an official, asking not to be named.

An investigation by The Daily Star has found that a powerful syndicate of traders and some BCIC officials has made off with urea worth hundreds of crores of taka over the last eight years in various ways, including showing them “in transit” for months and even years.

As of December 31 last year, at least 2.58 lakh tonnes of urea valued over Tk 900 crore was in transit and did not reach the buffer warehouses of the state-run BCIC that looks after the production, import and distribution of fertiliser through traders across the country.

LITTLE ACTION

Under the rules, a company must pay demurrages if it fails to ensure quality and right quantity or deliver the fertilisers within 21 days after receiving them from mother vessels.

But traders and carriers hardly face the music because some top BCIC officials of purchase, marketing and management departments are partners in their crimes, according to documents and sources.

Often, warehouse in-charges issue the MRR (material receipt report) in exchange for money without actually receiving the fertilisers.

Sometimes, BCIC officials recommend actions against the culprits with little results.

In April last year, for example, the BCIC general manager (administration) wrote to the chief of the purchase department to take legal action against Sagar Ship Management Pte Limited for not delivering fertiliser from three ships in time and to the designated warehouses. But nothing was done in this connection, though the company was later barred from participating in tenders for failing to unload fertiliser from another vessel. 

Earlier in February, the BCIC suggested taking actions against four of its officials for allowing MS Surma Banijjik Sangstha, a carrier, to transport 10,000 tonnes of fertiliser without approval.  

This was a violation of government rules, misuse of power as well as misconduct and corruption, the letter said.

But no action has yet been taken against the four -- Kamal Uddin Ahmed, former chief of marketing, Nur Nabi, former additional chief manager, Syed Khurshid Hasem, former manager of commercial, and Rezaul Karim, incumbent deputy manager of marketing of the BCIC.

Another probe committee headed by BCIC general manager (finance) found several top officials of its purchase department, Chittagong branch office and marketing department guilty of negligence. The investigation concerned the disappearance of 3,384 tonnes of fertilisers. However, the committee recommended no action against them.

In April last year, the BCIC chairman wrote to the Chittagong branch office to file a criminal case against Nobab and Company for stealing 21,500 tonnes of fertilisers from a mother vessel.

“The company without any allocation or approval took the fertiliser and for this reason a criminal case can be filed against this local transporter,” reads the letter.

In the end, however, the company escaped punishment by returning the fertilisers.

Talking to The Daily Star, its owner Nobab Khan denied that he stole any fertilisers. 

Contacted, BCIC Chairman Mohammad Iqbal said they were considering implementing “point-to-point” loading and unloading to avoid misappropriation.

Every year, some 25 lakh tonnes of fertilisers move from one place to another and it's very difficult to keep track of those, he said.

While he admits that a syndicate is controlling and exploiting the fertiliser distribution system, he dismissed any notion that he received any undue financial benefits.

But he has no satisfactory answers as to how the syndicate is able to operate with impunity year after year, including the last two and a half years he has been at the helm of the BCIC.