Executive Director of Transparency International Bangladesh Iftekharuzzaman, centre, addresses a press conference at Brac Centre Inn in the capital yesterday, where the anti-graft watchdog unveiled the findings of a recent study on corruption at Chittagong Port. TIB Trustee M Hafizuddin Khan, right, and TIB official Manzoor-e-Khoda are also in the photo. Photo: Star Businessmen are forced to pay h
uge bribes to a section of customs and other officials at Chittagong Port to complete the process of overseas trades and clear goods from the port, a Transparency International Bangladesh study has found. Importers and exporters have to make undue payments at different stages totalling Tk 47.5 lakh a day for duty assessments and other formalities at the Customs House and Tk 17.2 lakh for clearing goods from the port, the study shows. Businesses have to pay the money despite having valid papers. "Importers or businesses are compelled to pay the money to avoid harassment, meaning that they become the victims of coercive corruption," the TIB said yesterday, releasing the study on export-import activities after introduction of automation at the port and the customs. The study, conducted between January and June this year, is based on interviews of more than 100 key informants or stakeholders, focus group discussions, direct observations and content analysis. A clearing and forwarding agent at the port agreed with the findings. He said they had to pay money even after having the necessary documents. "Otherwise, we have to face unnecessary delays," he told The Daily Star, seeking anonymity. The TIB said irregularities are taking place in the absence of full automation at the customs house and the port, which facilitates 87 percent of the country's foreign trade worth roughly $6,500 crore of the $14,000 crore economy. Automation at the Customs House and the port was introduced to facilitate online submission of bills of entry and bills of export, online duty valuations and duty payments to banks. The idea was to avoid paper work to speed up the export-import process and check corruption. The automation, implemented partially, has contributed to improved trade environment in some fields. Five years ago, there were 40 stages to complete formalities concerning duty assessments. It is now an 11-step process, the study shows. Still, manual signatures of officials are required at every stage at the Customs House because of partial implementation of the automation process, the TIB said. "The provision of officials' signatures has been kept in order to force importers pay money illegally," the study said, citing importers. About 60-70 people, unlawfully appointed by customs officials as their personal assistants, broker the illegal transactions. The brokers are locally known as 'Faltu' (tout). TIB Executive Director Iftekharuzzaman said full automation at the port would reduce corruption by cutting scopes of direct contacts between service seekers and service providers. But a vested quarter prevents this from happening to make some quick bucks, he added. "The transaction amount is astonishing and the payment is somewhat compulsory. It affects revenue collection and the general public has to bear the burden of these illegal payments as the importers add this cost to the prices of goods." The global rating of the port has gradually fallen in recent years and it could have been improved by ensuring good governance, according to the TIB. "The so called group of "Faltu" has made the port and the customs authorities a hostage. A section of employees are with them. We consider it necessary to free the port from their grip," said Iftekharuzzaman. A section of businessmen, who evade duty, protect these brokers and officials to serve their own purposes. During the 2007-08 caretaker government tenure, these middlemen were driven out of the port but they returned to their old business after the Awami League government took office in 2009. Most of these people, however, have no specific political affiliation. "It is possible to make the port free of them. But I think there is a lack of will and indifference on the part of the government," Iftekharuzzaman added. Contacted, Masud Sadiq, commissioner of Chittagong Customs, said the TIB figures are "exaggerated". "We usually take action when we get any allegation against anyone. And we will do that in future as well," he said. Asked about the brokers, he said these people had been in the port for long due to manpower shortages. "We are in the process of recruitment. We will free the customs of them."
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