Bangladesh News

Faiz Khan, who has been selected as one of the new advisers to the caretaker government, served the home ministry as an IT consultant through a controversial appointment allegedly to push through the overpriced Tk 1500 crore machine readable passport (MRP) project to favour the leaders of the ‘alternative powerhouse’.

Faiz Khan is a US citizen. Dual citizens are barred from becoming advisers or ministers according to the constitution.

He was given an exceptional tax-free salary for his services to the home ministry because of his US citizenship.

His consultancy failed to make the Tk 1500 crore MRP project successful, as it was so flawed that the cabinet rejected it despite tremendous pressure from the ‘alternative powerhouse’.

Reliable home ministry sources told The Daily Star that the young leaders of the alternative powerhouse was seeking huge kickbacks upfront from the German company that would be awarded the project if the cabinet had approved it.

When Faiz Khan was appointed as the senior IT consultant to the home ministry in 2005, the additional secretary in charge of the interview board of the IT consultant recruitment process opposed his selection saying that he did not meet the criterion for the appointment. However, Faiz was appointed and the additional secretary was transferred to another ministry.

Soon after his appointment, a son of an influential minister of that time exerted tremendous pressure on the National Board of Revenue (NBR) to make his Tk 3 lakh monthly salary tax-free on the argument that Faiz is a taxpayer in the US and charging tax from him would be double-taxation. Although it was illogical, Faiz’s salary was made tax free.

After taking charge, Faiz set criterions for potential bidders for the MRP project in such a way that only certain companies would be able to participate in the bid. Out of 34 companies in Europe, North America and Asia which are involved in such projects, only four companies were pre-selected which were Bundes Druckerie International Service (BDIS) of Germany, Canadian Bank Note of Canada, G&D GmbH of Germany, and De La Rue Identity Systems of the United Kingdom.

Sources pointed out that the senior IT consultant then allegedly designed such a tender document that would give special advantage to G&D GmbH only. Meanwhile, the ministry drafted an estimate for the project in September 2005. On December 29, the four pre-qualified companies were given tender documents but then, allegedly upon advice of Faiz, the ministry added various conditions time to time, making it difficult for the bidders to frame their bids. Except for G&D, the other three bidders at one point raised objections, which were ignored.

In mid-July of 2006, the MRP project was tabled at the cabinet’s purchase committee. It was so flawed and ill conceived that the state minister for home could not even give a breakdown of the project cost. The committee rejected it.