Bangladesh Bank’s (BB) selection of Infotech Global Pte Ltd, a Pakistani origin company, for a sensitive project, linked to the electronic payment system of the central bank, has drawn sharp criticism from one of the advisers of the Prime Minister, and information technology industry insiders. The ongoing procurement process, for "National Payment Switch Applications (NPSA)", under the "Central Bank Strengthening Project", is being carried out with International Development Association credit, worth USD 5 million (around Tk. 37 crore). Critics said that procuring software, hardware, and support services, for the important national institution, from a Pakistani origin company, might pose a threat for online transactions in future.
Commenting on this, Prime Minister's finance adviser, Dr Mashiur Rahman, said security issue must be given top priority. "I don't know much about the procurement process. But, in my view, the tender evaluation process must cover the security aspects judiciously, considering national interest," he said.
Meanwhile, local information technology industry insiders have criticised the move by the central bank, saying that the NPSA of the central bank is a sensitive project, and awarding the work to a company of Pakistani origin, might pose a major threat to national security.
"A national institute, such as Bangladesh Bank, must ensure that all protective measures are taken, regarding internal and external security," said Enamul H Chowdhury (Khasru), managing director, Energypac Engineering Ltd.
The head of the central bank's procurement committee for the project claimed that everything was done, as per standard rules and procedures.
"I don't know about the origin of the company. But the selected company is based in Singapore, and has qualified in all evaluation procedures," he added. Speaking on the latest status of the procurement, he, however, admitted that he has sent the committee's evaluation report to the World Bank (WB), for further review and approval.
Meanwhile, BB sources said that after completing the evaluation on September 11, the head of the six-member procurement committee, and one of the deputy governors of the central bank, sent the report to WB on the next day, ranking Infotech Global Pte Ltd as the lowest bidder. The source said that the selected company, which had showed its Singapore address, is originally a subsidiary of Pakistan-based Infotech Group.
"The real identity of the company was not discovered during the evaluation process, because its location is shown as Singapore," said the source.
"But, in Bangladesh, the incumbent government is strictly rearing anti-Pakistan sentiment, and some bigwigs of the government have requested the head of the procurement committee to block the participation of the Pakistani company," added the source.
The previous tender for the same work was suspended early this year, by the central bank governor, as another Pakistani company had been selected as the lowest bidder. "The reason, taken into consideration, was the anti-Pakistan sentiment in Bangladesh," said the source.
Besides, owing to the selection of a foreign company, the government of Bangladesh would lose around Tk. 1.50 crore in tax revenue from the cost of procurement, as both Singapore and Pakistan have agreements with Bangladesh, regarding avoidance of double taxation, according to the source. A total of 11 companies, one foreign and 10 local, had participated in the bidding process.

News: Daily Sun/ Bangladesh/ 22-Sep-11