Former BPC Officials Joining Private Business Circle Raises Questions Over Fuel Procurement

Several former officials who held key responsibilities in Bangladesh’s state-run fuel procurement system have joined business entities linked to Dr. Ejazur Rahman after retirement, according to information gathered during an investigation.

Some of the officials previously served in senior positions at Bangladesh Petroleum Corporation (BPC) or its subsidiary oil marketing companies. Others were directly involved in fuel procurement and marketing, while some handled international suppliers, tenders and pricing-related activities.

According to current and former BPC officials and several sources familiar with the energy sector, at least 10 former officials who previously worked at BPC or its subsidiaries have, at different times, worked with or become associated with Ejazur Rahman’s businesses—Seven Mark and Transbangla Commodities Limited.

The development has raised questions over whether professional experience and institutional contacts gained while serving in government fuel procurement, tendering, supplier selection, pricing and related functions could provide any advantage to a particular private business group after retirement.

The investigation also found information regarding the geographical proximity between Ejaz’s businesses and a BPC office.

Seven Mark and Transbangla Commodities Limited are reportedly operating their corporate activities from the same building in the Karwan Bazar area of Dhaka. The building also houses BPC’s Dhaka liaison office, according to information gathered during the investigation.

No specific legal provision was identified in the course of the investigation that expressly prohibits an office representing an international fuel supplier listed with BPC from operating in the same building as a BPC office.

However, people familiar with the energy sector say such proximity can naturally raise questions given the sensitivity of information relating to tenders and fuel pricing.

In international fuel tenders, proposed prices, premiums and other commercial terms submitted by competing companies are highly sensitive. Advance knowledge of a competitor’s offer could potentially allow another bidder to submit a marginally lower price and secure the lowest bid, industry sources said.

Several current and former BPC officials have alleged that business interests associated with Ejaz have used long-standing institutional contacts to gain advantageous positions in various tenders.

These allegations, however, have not been independently established by evidence presented in this report.

A review of BPC’s supplier information also points to business links between companies associated with Ejaz and several international fuel suppliers.

The investigation found that at least six of the 11 international refined-fuel supplier companies listed with BPC have local representation or business connections with two companies associated with Dr. Ejazur Rahman.

Seven Mark is reportedly involved in representing Singapore-based Unipec and Indonesia’s BSP-JAPIN.

Transbangla Commodities Limited, meanwhile, has business or local representation relationships with Petco Trading Labuan Company Limited, PTT International Trading, Vitol Asia and Sinochem International, according to information gathered during the investigation.

Thus, although the international suppliers are separate entities, a significant portion of their local business representation in Bangladesh is reportedly connected to the same two companies within Ejaz’s business circle.

One example of a former BPC-linked official becoming associated with Ejaz’s businesses is Mustafa Qudrat-e-Elahi, former managing director of Jamuna Oil Company Limited.

Several BPC sources said he joined Transbangla Commodities Limited in March this year. The sources also claimed that he plays an important role in fuel-related business activities when Dr. Ejazur Rahman is abroad.

However, no conclusive information was obtained regarding his exact position at Transbangla Commodities, the precise nature of his responsibilities or the formal date of his appointment.

Some people familiar with BPC have alleged that relationships, experience and institutional contacts developed during government service are being used in private-sector business activities after retirement.

They have questioned whether the post-retirement employment of former senior officials of the state fuel sector by companies representing major fuel suppliers could create potential conflicts of interest.

Some BPC officials claim that in several international tenders over the past few years, companies represented locally by entities associated with Ejaz have emerged as the lowest bidders by margins that were only slightly lower than those of competing companies.

According to these officials, the issue could be examined by analysing bid sheets from international tenders conducted over the past several years.

They suggested examining the premium differences between the first- and second-lowest bidders, tender timelines and the repeated participation of the companies involved to determine whether any unusual pattern exists.

Some officials have therefore called for an independent review of BPC’s complete bid sheets and technical and financial evaluation reports from previous years.

Questions have also been raised by some BPC officials about the eligibility and qualifications of several international companies represented locally by Ejaz’s businesses, including Indonesia’s BSP-JAPIN.

According to several officials, questions exist regarding the company’s own refinery facilities, ownership interest in refineries and its production and export capacity in connection with its inclusion as a government-to-government (G2G) supplier.

Citing port-related documents, they further claimed that some fuel consignments received for BPC under BSP-JAPIN’s name originated from Malaysia and Singapore rather than Indonesia.

However, the country from which a particular shipment originated does not, by itself, establish whether a supplier was eligible or whether a contract was valid. Such questions require a comprehensive review of contractual terms, source approvals and relevant documentation.

Energy-sector experts say the issue goes beyond the activities of a single businessman or company. It also concerns transparency in state fuel procurement, competition and institutional independence in decision-making.

If the same local agent represents multiple international suppliers, former officials of state-owned fuel institutions subsequently join that agent’s company after retirement, and companies within the same business circle repeatedly receive government contracts, the matter warrants a document-based review, according to people familiar with the sector.

Such a review would need to examine when former BPC officials retired, when they joined private companies, what responsibilities they held during government service, and what types of government contracts were awarded during the same period to suppliers represented by their new employers.

Energy-sector experts note that fuel is a strategically important commodity for the state. Therefore, alongside securing competitive prices, fuel procurement must also take into account supply security, maximum value for public funds, a competitive environment and institutional independence in decision-making.

The post-retirement movement of officials from state-owned fuel institutions into related private businesses has consequently brought renewed attention to the concept of a “revolving door” between the public and private sectors.

Determining whether these employment links have any direct connection with fuel-import tenders or government contracts, however, requires a comprehensive, document-based, and independent review.