Controversial Appointment Made At Essential Drugs Company Limited

Allegations have surfaced regarding the appointment of a new Managing Director (MD) at the state-owned pharmaceutical manufacturer, Essential Drugs Company Limited (EDCL), reportedly by bypassing existing laws and institutional regulations. The Ministry of Public Administration issued a notification last Thursday appointing A.K.M. Ashrafuzzaman to the post on a contractual basis for one year. However, relevant sources stated that the notification was subsequently not found on the ministry’s website. When contacted regarding the matter, Health Minister Sordar Md. Sakhawat Hossain declined to comment.

The notification stated that A.K.M. Ashrafuzzaman was appointed as MD under Section 54(3) of the Memorandum and Articles of Association of Essential Drugs Company Limited, within the framework of The Companies Act, 1994. According to the conditions, he will serve on a contractual basis for one year from the date of his joining. During this period, he cannot maintain any professional, business, or employment relationship with any other governmental, semi-governmental, or private institution. The notification also mentioned that other terms and conditions of the appointment would be determined through an agreement.

It is learned that the newly appointed A.K.M. Ashrafuzzaman submitted his joining letter yesterday. However, allegations have been raised that approval from EDCL’s Board of Directors was not sought for this appointment process. Dr. Ashrafi Ahmad, a board member and Director General (DG) of the Directorate General of Family Planning, confirmed that there was no agenda regarding the appointment of the MD in the latest board meeting, nor was the board informed about the matter.

Furthermore, allegations have been made that he does not meet the required qualifications for the post of Managing Director. The criteria mandate a minimum of 20 (twenty) years of experience in human resource management, financial and administrative planning, and management across various industries, organizations, or institutions, including at least 5 (five) years of experience in a key managerial position. Allegations suggest he lacks both.

The Board of Directors of EDCL operates under a seven-member structure with the Health Minister serving as the Chairman. The Minister of State for Health and the Health Secretary also serve as members of the board. According to relevant sources, State Minister for Health Dr. M A Muhit and Health Secretary Md. Kamruzzaman Chowdhury are currently on an official visit to Geneva and are scheduled to return to the country on June 1.

The appointment process has generated significant discussion and debate within the health sector. According to those concerned, the standard procedure for appointing the MD of EDCL requires the proposal to be first approved in a board meeting, after which it is forwarded to the Ministry of Public Administration, which then issues the notification. However, it is alleged that these steps were not followed in this instance.

According to administrative sources, earlier during the tenure of the interim government, Samad Mridha was appointed as the MD of EDCL on December 30, 2024. That notification had specified that the appointment was completed based on the approval of the board meeting and in compliance with the designated provisions of the Company Act.

Meanwhile, allegations of recent administrative instability within the institution have also come to light. A tense situation reportedly unfolded at the EDCL office in Dhaka last Thursday morning. According to allegations, the then-MD Samad Mridha along with several high-ranking officials became confined due to the presence of outsiders and were later escorted out of the office under police protection.

Several officials from the Ministry of Public Administration, speaking on condition of anonymity, stated that the notification was issued only after the relevant proposal arrived from the Prime Minister’s Office. However, they were unaware of the internal processes within the Ministry of Health.

Discussions and debates regarding this incident continue within the health administration and relevant departments. Discussions are ongoing among concerned circles raising questions about the institutional approval and administrative coordination surrounding the appointment process for the top post of a state-owned pharmaceutical enterprise like EDCL.