DNCC loses over Tk 55 million for cattle market lease irregularities

TAM Report ||

The Dhaka North City Corporation (DNCC) has reportedly incurred a financial loss of over Tk 55 million due to irregularities and discretionary decisions in leasing the Gabtoli cattle market, the city’s largest and most lucrative Eid-ul-Azha cattle trading hub.

According to documents and testimonies reviewed, DNCC rejected the highest bid of Tk 222.5 million initially offered by Messrs Arat Motors, citing the absence of a mandatory tender notification in the Central Procurement Technical Unit (CPTU) portal. Instead, the DNCC opted to collect revenues directly through “khas collection” under the decision of administrator Mohammad Ejaz.

After more than a month of khas collection, which yielded only Tk 9.8 million in revenue, the city corporation floated the tender once again. This time, the highest bidder offered Tk 250 million, but later declined to proceed with the lease. Consequently, the lease was awarded to the second-highest bidder, Erfan Traders, at Tk 157.1 million—almost Tk 65 million less than the highest bid.

Even after adjusting for the earnings from khas collection, the DNCC suffered a net revenue shortfall exceeding Tk 55 million. Additionally, the government’s projected tax income from VAT and income tax dropped significantly—from a potential Tk 55.6 million in the first round to only Tk 39.2 million from the final lease, a loss of over Tk 16 million in tax revenue.

Concerns have also been raised over political affiliations influencing the lease process. Sources claim that Erfan Traders, which ultimately won the lease, is owned by SA Siddique alias Saju, the convenor of Darus Salam Thana BNP.

City corporation insiders allege that the DNCC administrator rejected the first bidder because it was not aligned with his preferences, raising questions about fairness and transparency.

The entire process, marred by procedural violations and alleged favoritism, contradicts government guidelines on lease auctions and public procurement, calling into question the accountability mechanisms within the DNCC.