Tk 5mn fraud daily at Chittagong port: TIB

Illegal transactions totalling nearly Tk 5 million take place daily at Chittagong port and Customs House, the Transparency International Bangladesh has said.

Staff Correspondentbdnews24.com
Published : 14 July 2014, 01:59 PM
Updated : 14 July 2014, 02:59 PM

The illegal deals are mostly struck to evade customs duties and clear goods, a TIB report has said.

The report on automation of export-import process in Chittagong port and Customs House was formally launched on Monday at the BRAC Inn Centre.

TIB Programme Manager Manzur-e-Khuda and Juliette Rosetti presented the report – ‘Automation on Export-Import Process in Chittagong Port and Customs House: Governance Challenges and How to Deal with It’.

The report is based on this year’s January-to-May data.

TIB Trustee Board member M Hafizuddin Khan and Deputy Director Sumaya Khaer among others were present at the event.

TIB Executive Director Iftekharuzzaman said valid documents commanded no value in a process controlled by middlemen, locally known as ‘Phaltu’ or the Badi Alam Group.

Besides busting the racket, the TIB recommended nine ways to make automation effective.

The key recommendations to modernise the export-import process, include:

• online handling of export-import processes

• automation in the management of bulk goods

• staff training

• ethical code of conduct

• annual publication of wealth of officials.

The report says Tk 100 to Tk 3,000 in various segments of custom duties, Tk 100 to Tk 4,000 in inspection, Tk 4.75 million in export-import processes, and Tk 1.72 mn in goods clearance are being collected illegally every day.

Report has found that, despite some positive effects, automation is yet to achieve the expected institutional efficiency.

One of automation’s aims is to have paperless offices but signatures, at various stages, are still mandatory.
The report identifies malpractices such as illegal recruitment of 60 to 70 people to works as aides to customs officials, and keeping on hold online bank payment of duty for commercial goods.
TIB’s Iftekharuzzaman said that illegal transactions were made possible by a nexus of some customs officials, port officials and businessmen.
The TIB said, “A few
Phaltus
and Badi Alam men control the port and customs house, hampering official functions. In 2007-2008, their activities came to a halt. Now their illegal affairs can be stopped if government is willing.”