DHAKA: The Ministry of Law, Justice and Parliamentary Affairs has vetoed appointment of two arbitrators for international arbitration on behalf of the Roads and Highways Department at a cost that amounts to a king’s ransom.

Minister for Law, Justice and Parliamentary Affairs Barrister Shafiq Ahmed was dismayed as to why two arbitrators were appointed at such high fees.

Fee for one of the arbitrators has been fixed at US$ 150,000, while US $ 27,000 of the amount has been paid by the government.

The Law Minister told banglanews24.com.bd that he did not know why those two arbitrators were appointed at a high fee and why US$ 27,000 was disbursed.

“The department concerned of the Ministry has been asked for providing necessary papers after investigation,” he said.

Sources said the matter surfaced during the caretaker government when the files for appointing arbitrators were sent to the Law Ministry, which differed with the proposal made by the Finance Ministry.

An international contractor that was awarded job for maintenance under Road and Highways Department had asked for an additional amount for oil and bitumen, which the government declined to pay, prompting the contractor to file lawsuit with the international arbitration court. The government had appointed two adjudicators for the case.

As the Finance Ministry had sought the Law Ministry’s opinion, the then solicitor office opined for appointment of a senior, qualified lawyer.

The Law Ministry did not name any lawyer in particular. However, two arbitrators – former attorney-general Barrister Fida M Kamal and former attorney-general AF Hasan Arif - were appointed subsequently.

Recently, the Finance Ministry wrote a letter to the Law Ministry regarding disbursement of the fees, which drew attention of the Law Minister.

BDST 1800 HRS, AUGUST 15, 2010.