The Department of Agricultural Extension (DAE) is making repetitive attempts to secure a two-year extension of a project despite the findings of widespread financial irregularities throughout its implementation.
For the "Farm Mechanisation Through Integrated Management" project, the controversy begins with fixing the price of a kitchen cleaver at Tk 10,000.
The Planning Commission earlier returned the project's revision proposal, refusing post-facto approval for unauthorised expenditures and citing unresolved allegations of subsidy fraud, duplicate machinery claims, and distribution of machinery beyond approved allocations, sources said on Tuesday.
The proposal also failed twice to secure approval at meetings of the Departmental Project Evaluation Committee (DPEC) of the Ministry of Agriculture due to objections raised by representatives of the planning ministry.
According to official documents, the DAE is now seeking political backing ahead of another Project Evaluation Committee (PEC) meeting, marking its fourth attempt to secure an extension of the project until June 2027.
Officials concerned say the project was initiated in July 2020 with an estimated cost of Tk 30.20 billion and was to be completed by June 2025.
The objective was to distribute 51,300 pieces of agricultural equipment to farmers with a 70 per cent subsidy support in underdeveloped areas, including haors, and 50 per cent in others.
The project aims to modernise agriculture through mechanisation by reducing cultivation costs by 20 per cent, saving 50 per cent of farming time, cutting crop losses by 10-15 per cent, and improving productivity and labour efficiency.
Officials from the project office say Tk 24.91 billion, or 82.5 per cent of the total estimated cost, has been spent so far.
However, an audit identified irregularities amounting to Tk 17.13 billion, equivalent to 68.74 per cent of the expenditure incurred.
Amid allegations of widespread corruption, a revised proposal was submitted earlier this year, seeking a one-year extension to wind up the project by cancelling the remaining works, with a revised cost of Tk 25.14 billion.
The Agriculture and Environment Audit Directorate has raised 26 objections involving alleged irregularities of Tk 17.12 billion in the project.
The audit found subsidy payments for 971 combine harvesters that were not distributed and duplicate subsidy claims for the same machinery in 852-854 cases, causing losses of over Tk 10 billion.
It also detected forged signatures used to withdraw Tk 38.2 million in subsidies and unauthorised spending of Tk 3.12 billion on activities not included in the original project documents.
Other irregularities include excess spending on machinery components, inflated prices, substandard equipment procurement, manipulated machinery records, and payment of higher-than-approved subsidies.
The agriculture ministry is pushing to continue the project.
Official records show the agriculture adviser sought intervention from the finance and planning advisers, and following a meeting on June 19, both sides agreed in principle to extend the project, citing mechanisation as a government priority.
Based on the understanding, the DAE submitted a fresh proposal, seeking an extension until June 2027 without increasing the project cost.
Agriculture Minister Mohammed Aminur Rashid says the project would continue, but those involved in corruption would face action.
Md Mahmudul Hossain Khan, member (secretary) at the Agriculture, Water Resources and Rural Institutions Division of the Planning Commission, chaired the PEC meeting.
Project Director Md Monzur ul Alam says the approval of the extension is necessary to find an exit path from the corruption in the project and formulate the second phase to maintain agricultural extension.
Dr Mustafa K Mujeri, former director general at the Bangladesh Institute of Development Studies (BIDS), criticises political involvement in extending the project, saying project decisions should be based on technical evaluation, audit findings, and implementation performance rather than political consensus.
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