Originally posted in The Business Standard on 23 October 2024
Govt plans to buy 200 new vehicles for DCs, UNOs
Each vehicle will cost over Tk1.69cr, totalling around Tk339cr
The Ministry of Public Administration plans to purchase 200 Mitsubishi Pajero QX SUVs for deputy commissioners (DCs) and upazila nirbahi officers (UNOs), despite the government’s focus on austerity amid the current economic crisis.
Each vehicle will cost over Tk1.69 crore, bringing the total cost to around Tk339 crore.
The ministry has justified the purchase, stating that the vehicles are essential for maintaining administrative mobility, conducting mobile courts, and ensuring law and order across districts and upazilas.
On 7 October, the Ministry of Public Administration sent a letter to the finance secretary, requesting a budget allocation for the purchase of 200 new vehicles for DCs and UNOs, a copy of which has been seen by The Business Standard.
The letter, signed by Arif Muhammad, deputy secretary of the Ministry of Public Administration, noted that vehicle prices have risen, with each SUV under 2700cc now costing Tk1.693 crore
A finance division official, speaking anonymously, said that the proposal is under review but no final decision has been made yet.
Fahmida Khatun, executive director of the Centre for Policy Dialogue (CPD), expressed concern over the timing of such a significant purchase, given the ongoing economic struggles.
She said the move could send a negative message to the public, particularly when many banks are facing challenges and some managers have fled due to financial pressures.
“DCs and UNOs already have powerful vehicles. The replacement of these vehicles could be deferred until the next elected government. Even if the purchase is necessary, Tk339 crore is not a small sum, especially under current circumstances”, she added.
Attempts to get comments from Md Abul Hasanath Humayun Kabir, the transport commissioner of the Department of Government Transport, were unsuccessful yesterday. He initially picked up the call and requested to be contacted an hour later, but did not respond afterward.
Previous controversies over vehicle purchases
This is not the first time such purchases have drawn public attention.
After the last national election, a proposal to buy 261 vehicles for DCs and UNOs was quietly approved by the Cabinet Committee on Government Purchase, chaired by then-finance minister Abul Hassan Mahmood Ali.
However, following public criticism, the Prime Minister’s Office suspended the purchase.
On 11 October last year, the Prime Minister’s Office sought a report on the status of government vehicles bought under development projects, the criteria for SUV pricing, and the condition of the vehicles in the field administration.
Despite the concerns, the vehicles were eventually approved for purchase by the then-prime minister Sheikh Hasina.
At that time, each vehicle was priced at Tk1.462 crore. The current price of Tk1.693 crore represents an increase of Tk23.15 lakh per car, with an additional cost of Tk46.30 crore for the 200 vehicles.
The state-owned Pragati Industries Limited will handle the procurement.
Austerity measures in place
Earlier this year, the Ministry of Finance issued new austerity guidelines, effective from 4 July, freezing all vehicle purchases under the operational budget for FY 2024-25.
Exceptions will only be made for vehicles older than ten years, with approval from the Finance Division.
Vehicle purchases under the development budget have also been suspended.
Despite these measures, Tk377 crore has been allocated for motor vehicle purchases in the current fiscal year’s budget.
In September, the Department of Government Transport sent a letter to the Ministry of Public Administration for additional funds to procure 200 new vehicles for DCs and UNOs.
The letter, signed by the transport commissioner, Md Abul Hasanath Humayun Kabir, said that last fiscal year, there were 461 vehicles in the offices of DCs and UNOs that had exceeded their 14-year service life.
Among these, the allocation of vehicles for 64 DCs and 197 UNOs is currently in progress.
To ensure administrative mobility, including the smooth operation of mobile courts and law enforcement, it is necessary to replace the remaining 200 vehicles, the letter said.
In July last year, the Ministry of Finance set the prices for various types of vehicles, determining the cost of each jeep under 2700cc (including registration, VAT, and taxes) at Tk1.46 crore.
In the last fiscal year’s budget, Tk60 crore was allocated for the purchase of motor vehicles for the Department of Government Transport.
At that time, the Ministry of Public Administration asked for an extra Tk612.34 crore to buy 461 new vehicles. However, the Ministry of Finance only agreed to give Tk381 crore, which meant they could only buy 261 vehicles instead.