Some of the former officials served at the Bangladesh Petroleum Corporation (BPC) or its state owned oil marketing companies. They were involved in fuel procurement, marketing, international suppliers, tenders and pricing.
An investigation found that at least 10 former officials of BPC and its affiliated organisations have worked for or joined Seven Mark and Transbangla Commodities Limited, companies linked to Ejaz, at different times.
The information comes from current and former BPC officials and several sources familiar with the energy sector.
The issue has raised questions over whether experience, institutional contacts and knowledge gained during government service could give a particular business group an advantage after officials move to the private sector.
Offices in the same building
The investigation also found that Seven Mark and Transbangla Commodities operate from the same building in Karwan Bazar where BPC’s Dhaka liaison office is located.
No specific law was identified that directly prohibits a private company from operating in the same building as a BPC office.
However, people familiar with the fuel sector said the proximity could raise concerns because tender information, proposed prices, premiums and other commercial details in international fuel procurement are highly sensitive.
Advance knowledge of a competitor’s bid can potentially provide a commercial advantage, particularly when bids are separated by a small margin.
Several current and former BPC officials have alleged that companies linked to Ejaz have used long standing institutional contacts to gain favourable positions in different tenders.
However, independent evidence supporting these allegations has not been established in the information reviewed for this report.
Links to six international suppliers
BPC’s list of approved international refined fuel suppliers provides another area for scrutiny.
Of the 11 international suppliers listed by BPC, at least six reportedly have local representation or business connections with Seven Mark or Transbangla Commodities.
Seven Mark is reportedly involved in the local representation of Singapore based Unipec and Indonesia’s BSP Zapin.
Transbangla Commodities is reportedly connected to the local representation of Petco Trading Labuan Company Limited, PTT International Trading, Vitol Asia and Sinochem International.
The international suppliers are separate companies. However, their local business connections in Bangladesh are concentrated around two companies linked to the same business circle.
Former Jamuna Oil MD joins Transbangla
One prominent example is Mustafa Qudrat E Elahi, a former managing director of Jamuna Oil Company Limited.
Several BPC sources said he joined Transbangla Commodities in March this year.
The sources also claimed that he plays an important role in fuel related activities when Ejaz is outside the country.
However, independent confirmation was not available regarding his exact position at Transbangla Commodities, his responsibilities or the precise date of his formal appointment.
The involvement of former government officials in private companies is not, by itself, evidence of wrongdoing.
The concern arises from the nature of their previous responsibilities and the commercial activities of the companies they later joined.
Officials familiar with the sector said it is important to examine whether former officials are using relationships and knowledge developed during government service in ways that could create a conflict of interest.
Small margins in tender bids
Some current BPC officials have claimed that companies represented locally by Ejaz linked firms won several tenders in recent years by submitting bids only marginally lower than those of competing suppliers.
They said a detailed review of historical bid sheets would be necessary to determine whether the pattern reflects normal competition or something unusual.
Such a review could compare the premium differences between the first and second lowest bidders, tender timelines and the repeated participation of particular suppliers.
Several officials have called for an independent review of BPC’s full bid sheets and technical and financial evaluation reports from previous years.
Such an examination could help establish whether there was any unusual pattern in supplier selection or pricing.
Questions over BSP Zapin
Questions have also been raised about the eligibility of some international suppliers represented locally by companies linked to Ejaz.
BSP Zapin, an Indonesian company included as a government to government supplier, is one such case.
Some BPC officials have questioned whether the company met all eligibility requirements when it was included in the supplier list.
They have specifically raised questions about its refinery ownership, production capacity and export capability.
Officials also pointed to port records showing that several fuel shipments for BPC under the name of BSP Zapin came from Malaysia and Singapore rather than Indonesia.
However, the country from which a shipment was loaded does not by itself establish whether a supplier was eligible or whether a contract was valid.
The relevant contract conditions, approvals concerning the source of the fuel and supporting documents would need to be examined together.
The revolving door issue
Energy sector experts said the issue goes beyond the activities of a single businessman or company.
It involves broader questions about transparency in state fuel procurement, competition and the independence of government decision making.
They said closer scrutiny may be justified when the same local agent represents several international suppliers, former officials of state fuel companies join that agent’s businesses after retirement, and companies within the same business circle repeatedly receive government contracts.
A review of when the former officials retired, when they joined private companies, what responsibilities they held at BPC and what government contracts their new employers received during the same period could help establish whether there were any significant connections.
The situation also highlights the broader concept of a “revolving door”, where officials move between government positions and private businesses operating in the same sector.
Such employment is not automatically improper. But in a strategic sector such as fuel, safeguards against conflicts of interest are particularly important.
Fuel procurement involves more than securing the lowest price. Supply security, public spending, competition and the independence of procurement decisions are also critical.
Determining whether the employment of former BPC officials had any direct connection with fuel tender outcomes would therefore require an independent, document based review of procurement records, employment histories, supplier agreements and bid evaluations.
