Govt's push for e-GP faces setback as TCB seeks to use manual system

The government's decade-long efforts to bring transparency to public spending is facing a setback, as the Trading Corporation of Bangladesh (TCB) has requested an exemption from the newly introduced mandatory electronic government procurement (e-GP) system.

Instead, the state-owned agency has sought permission to revert to the paper-based manual procurement method for purchasing essential commodities, sources said.

In a letter, TCB Chairman Mohammad Foyshol Azad has requested the commerce ministry to take necessary steps for approval from the Bangladesh Public Procurement Authority (BPPA), saying that the fluctuating nature of essential commodity prices and the need for physical sample verification necessitate the return to manual procurement.

In response, the ministry has already taken steps in this regard, said a senior ministry official.

TCB's request comes just weeks after the gazette notification of the Public Procurement Rules-2025, which mandates that all government procurements must be processed electronically under the e-GP system. According to Rule 150(1) of the new regulations, any exceptions to the system must be approved in advance by the BPPA.

In the letter, the TCB Chairman said that TCB is currently conducting regular manual procurement activities. To implement government directives, several essential commodities, including edible oil, lentils, sugar, dates, chickpeas, potatoes, and onions, are purchased locally and internationally in compliance with government procurement rules.

He also noted that the prices of these essential commodities fluctuate frequently. As the items are consumable, bidders participating in TCB's tenders are required to submit product samples.

Besides, the tender evaluation committee visually inspects all submitted samples and recommends purchase decisions based on the evaluation. Without this process, it becomes complicated to recommend purchases of consumable items, the letter added.

The letter further mentioned that continuous price fluctuations often require procurement on an "emergency basis" to stabilise market prices, often under immediate government instructions.

It also claimed that foreign suppliers may be reluctant to register on the e-GP portal, which could limit participation in international tenders. This, in turn, might enable local suppliers to form monopolies and inflate prices.

Despite the TCB's operational challenges, governance experts warn that reverting to manual procurement could undermine the core objectives of the e-GP system -- namely, reducing corruption, enhancing transparency, and curbing the inefficiencies of the traditional paper-based system.

Two procurement analysts, speaking on condition of anonymity, noted that the e-GP system has been instrumental in reducing fraud, irregularities, and bureaucratic red tape in public contracts.

"Allowing a large public entity like TCB, which manages subsidised supplies for 10 million low-income families, to revert to a paper-based system could create major loopholes for irregularities," one analyst said.

The TCB expressed concern that conducting procurement solely through the e-GP system might lead to various operational problems, potentially hindering the activities of supplying subsidised goods to 10 million low-income, smart card-holding families.

Therefore, the organisation has suggested allowing its paper-based procurement process alongside the e-GP system.

A TCB source said that checking product samples is necessary to ensure quality and reduce costs, adding that for this reason, the manual system needs to remain in place.

According to analysts, the e-GP system was designed to streamline and accelerate the procurement lifecycle -- significantly reducing the time between tender invitation and contract signing compared to manual methods.

An expert warned that granting a blanket exemption from e-GP requirements would send a negative signal about the government's commitment to competitive and transparent international bidding.

When contacted, Commerce Secretary Mahbubur Rahman said, "Most of the bidders are reluctant to participate in the web-based system by creating online accounts. That's why we want to continue the manual method alongside e-GP."

"If we use the manual method, we could buy at a lower price, in less time, and save money, especially when market intervention is required. So why wouldn't we take advantage of that?"

From this month, TCB is set to include five new items in its sales drive of essential commodities. The new items are tea, salt, detergent and two types of soaps.

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