A Chinese contractor engaged in the Rajshahi WASA Surface Water Treatment Plant Project has been accused of collecting Tk several crore from businesses and individuals through alleged subcontracting arrangements and failing to repay the money.

The affected businessmen alleged that Hunan Construction Engineering Group Co Ltd, which is involved in implementing the project, collected the money through its Project Director Zhu Xingguo by offering subcontracting opportunities and promising profits in return for supplying sand for the project.

Sarower Kobir Jony, proprietor of SK Trade International, said he received several work orders from the Chinese company to supply 1 crore cubic feet of sand for the project.

He subsequently entered into separate subcontracting agreements with several companies and individuals to arrange the supply.

According to one such company, it paid Tk 62.40 lakh to Jony through banking channels for the Chinese company for supplying sand, along with around Tk 20 lakh in cash at different times.

Under the agreement, the company was supposed to receive Tk 6 lakh in profit every month. Payments were made regularly for the first four months but were later stopped, the company alleged.

It said it is currently owed Tk 1.18 crore 40 lakh, including the principal and unpaid profit, and claimed that many others are also owed crores of taka by the Chinese company.

Questions over Chinese firm's role

Jony said several other businessmen had also entered into separate agreements through him to supply sand and that around Tk 5 crore was currently owed to five or six people by the Chinese company.

Asked about the outstanding payments, he said he was unable to repay the money owed to the parties concerned because he himself had not received payment from Zhu Xingguo.

Jony alleged that Zhu Xingguo had repeatedly given dates for repayment but failed to pay the money.

He also said Kazi Nahid Islam, QHSE Document Controller of Hunan Construction Engineering Group, received around Tk 5 crore collected from five or six people on behalf of the company.

Jony said he received separate work orders from the Chinese company through Nahid and subsequently entered into subcontracting or other agreements with the businessmen and collected the money accordingly.

Contacted, Nahid admitted taking money from the businesses and individuals.

However, Zhu Xingguo could not be reached despite repeated attempts for comments.

Contacted about the matter, Rajshahi WASA Chief Engineer Parvez Mahmud said, citing the Chinese company, that SK Trade International is not a listed contractor of WASA.

Meetings were also held with the local administration and WASA authorities in the presence of Zhu Xingguo over the outstanding payments, according to the complainants. They claimed that Zhu acknowledged receiving the money and repeatedly gave dates for returning it.

Documents provided by the complainants include work orders and agreements bearing the letterhead of Hunan Construction Engineering Group.

Bank transactions and signed receipts

According to information provided by the complainants, payments were made through bank accounts and in cash to Nahid Islam in connection with the agreements with SK Trade International.

They also claimed that, after receiving the money, Nahid issued acknowledgement receipts signed on the letterhead of the Chinese company.

The complainants have called for an investigation into the role of those involved in the project, the legality of the money received, the authenticity of the work orders and the related bank transactions.

Several affected businessmen have also alleged that the Chinese company collected crores of taka from different individuals through subcontracting arrangements in collusion with Parvez Mahmud and other Rajshahi WASA officials.

Parvez Mahmud could not be reached for further comment despite several attempts by phone. He was also sent a message but did not respond.

Allegations of taking money from other businessmen

Several other businessmen have also alleged that they were asked to pay money in exchange for opportunities to obtain subcontracts or invest in the same project.

The complainants alleged that agreements were made with various individuals and organisations for work related to the Rajshahi WASA project without formally informing WASA.

They said money was collected through such agreements with promises of profits in exchange for supplying sand, but the principal amounts and promised profits were subsequently not returned.

Demand for investigation

Seeking a proper investigation into the matter, an affected businessman, who wished not be named, submitted a written complaint to the Ministry of Local Government, Rural Development (LGRD) and Co-operatives.

The complaint sought verification of the work orders, agreements, bank transactions and acknowledgement receipts related to Hunan Construction Engineering Group. It also requested suspension of the release of government funds for the project until the allegations are investigated.

The complainants said if Project Director Zhu Xingguo is summoned by the ministry and a proper investigation is conducted, the authenticity of the work orders and agreements, the legality of the money received and the roles of those involved in the project can be established.

When contacted, Rajshahi WASA Managing Director Mohammad Harun Or Roshid said, “I will look into the matter and ask the Chinese company’s project director to arrange payment to those who are owed money.”

Asked about a possible ministry investigation, he said, “They can submit a complaint. If necessary, the Local Government Ministry will conduct an investigation.”

When informed about the allegations, State Minister for LGRD and Co-operatives Mir Shahe Alam said he will ask the Rajshahi WASA project director to take steps to resolve the issue.