Former MD Flees Abroad After ACC Investigation Begins, Padma Oil Entrapped by Contractor Syndicate

Published : Tuesday, 20 May, 2025 at 1:58 PM Count : 1906

Soon after the Anti-Corruption Commission (ACC) began its investigation, former Managing Director (MD) of Padma Oil Company Ltd (POCL), Engineer Md. Abdus Sobhan, reportedly fled to the United States. According to sources, he resigned via email from there. As controversy surrounding the matter intensifies, new allegations have surfaced—suggesting that the company remains under the grip of a corrupt contractor syndicate.

Once a dominant force in the country's fuel marketing sector, Padma Oil used to control a major share of the national energy market, including being the sole supplier of jet fuel. However, years of corruption, mismanagement, and looting have critically undermined its position.

Sources say the former MD traveled to the U.S. on the pretext of attending to his ailing wife and submitted his resignation via email on May 14. However, many suspect this was a calculated escape to evade ongoing ACC investigations. The probe has revealed that he allegedly collaborated with select officials of the Bangladesh Petroleum Corporation (BPC) to award projects to preferred contractors, involving transactions worth crores of taka.

Mofizur Rahman, the former Manager of Operations at Meghna Petroleum Limited, has now been appointed as the new MD of Padma Oil.

Names of several individuals and entities have emerged as part of the alleged contractor syndicate operating within Padma Oil. These include Innovative Associates, SA International, and ASB Trade International. The owners of these firms—Arif Hossain, Sadek, and Zia—have reportedly controlled most major projects at the company for over a decade.

Ordinary contractors allege that during the previous government's tenure, three to four influential contractor groups monopolized the bidding process, effectively sidelining general contractors. They would allegedly distribute contracts among themselves before the tender was even published, forced officials to take bribes to release bills, and submitted bids under different names for the same project—practices that are both anti-competitive and fraudulent.

Contractor Jahangir stated, "In recent years, newcomers have had no opportunity to work with Padma Oil. A handful of dishonest contractors control everything through a syndicate. Even if multiple bidders are shown, all the work ends up with the same group."

When asked about the allegations, Arif Hossain, one of the accused contractors, said, "The e-GP system is open now; anyone can participate in tenders." He flatly denied any claims of operating a syndicate.

Multiple attempts to reach Padma Oil's General Managers—CM Ziaul Hasan (HR and Administration) and the GM of Projects—were unsuccessful, as they did not respond to phone calls.

General contractors are now urging the ACC to investigate not only the former MD but also the associated contractors. They believe it is essential to uproot corruption from the oil sector. They hope the current government and administration will take firm action to dismantle the syndicate and implement effective measures to clean up the industry.

FP/Raj