[🇧🇩] Corruption Watch

[Saif]

Source : https://www.thedailystar.net/news/bangladesh/news/saifuzzaman-chy-owns-over-350-properties-uk-3548121

Saifuzzaman Chy owns over 350 properties in UK​

Reports Bloomberg News

Land Minister Saifuzzaman Chowdhury

Former land minister Saifuzzaman Chowdhury has built up a UK real estate empire of more than 350 properties worth about £200 million, Bloomberg News reported on Sunday.

The figures were based on a Bloomberg analysis of available Companies House corporate accounts in the UK, mortgage charges and HM Land Registry transactions.

Saifuzzaman properties range from luxury apartments in central London to housing in Tower Hamlets -- home to the largest Bangladeshi community in England -- and student accommodation in Liverpool.

The international news agency headquartered in New York City analysed nearly 250 of his UK properties and found that almost 90 percent were classified as new-builds when bought, a valuable component in a UK housing market suffering severe shortages.

These transactions took place during a period when the UK government had committed to making foreign property ownership more transparent amid criticism of the ease with which Russian oligarchs were able to hide their wealth in the UK. This process became more urgent in the wake of Moscow's 2022 invasion of Ukraine.

His property deals could revive questions over whether UK's legislation to scrutinise such purchases involving politicians are effective, according to transparency advocates.
Bloomberg also identified at least five properties in Manhattan in the USA belonging to Saifuzzaman, bought for a total of about $6 million between 2018 and 2020, according to municipal property records.

He was re-elected as an MP, but lost his cabinet post after the January 7 national election, which was boycotted by the opposition after anti-government protests were violently put down. He has since become the chair of the parliamentary committee for land.

On December 29 last year, The Daily Star ran a report on Saifuzzaman's properties in the UK. Based on the newspaper's calculation from company filings publicly available on UK government websites, it found at least 260 properties in the UK, for which he has paid at least GBP 134.76 million or Tk 1,888 crore.

The three-time AL lawmaker also has at least 537 mortgages against properties in the UK, a vast majority of which are in London. However, his tax returns, submitted along with his affidavit to the Election Commission, states that he has no foreign income, The Daily Star reported.

The Bloomberg report said that in a pre-election declaration of his interests in December, Saifuzzaman listed his total assets at about Tk 258.3 million ($2.4 million), and those of his wife, Rukhmila Zaman, at about $993,000. He did not include his UK property holdings in the declaration of assets in Bangladesh. His 2022-23 salary as a minister of state is listed as about £10,000.

Bloomberg talked to Mezbaul Haque, a Bangladesh Bank spokesperson, who without commenting specifically on Saifuzzaman, said, "While residing in Bangladesh, there is no provision for an individual to accumulate wealth abroad…. As a general rule, we do not permit individuals to do so."

Saifuzzaman falls into the category of a "politically exposed person (PEP)," as defined in the UK's 2017 anti-money laundering legislation. It puts the onus on estate agents, lenders, property lawyers and others involved in business transactions in the UK to have procedures in place to identify PEPs.

Although these individuals can engage in business transactions such as buying property, their involvement should attract extra scrutiny.

Bloomberg approached the companies named in its story, including financial services and legal firms involved in the property purchases for the Chowdhury-owned companies. The firms that responded said relevant procedures had been followed. They, however, could not provide an elaborate comment due to concerns over commercial confidentiality.

The Daily Star made several phone calls to Saifuzzaman yesterday but found his mobile phone switched off. A text message was also sent to his number, but no response came.

Bloomberg also did not get any response from the former minister and his wife to requests for comments on his property holdings outside Bangladesh or his asset declaration.

On December 26 last year, Transparency International Bangladesh (TIB), at a press conference, first raised the issue of a minister's business abroad worth over Tk 203 billion.

TIB did not disclose the name of the minister, but the anti-graft body said if any government authorities seek the information, they are ready to provide evidence.​

 

[Saif]

Tax evasion by the rich is setting us back as a nation

Experts’ suggestions on increasing revenue collection must be heeded

www.thedailystar.net

Tax evasion by the rich is setting us back as a nation​

Experts’ suggestions on increasing revenue collection must be heeded

VISUAL: STAR

That the vast majority of rich people are not paying income taxes has once again been highlighted by the Bangladesh Economic Association (BEA) which estimates that a staggering 87 percent of the country's rich and upper middle-class people are evading taxes. Even though one always suspects the number to be high in Bangladesh's context, especially given its poor tax-GDP ratio, the percentage given by the BEA shows how alarming the situation is.

In April 2023, the Centre for Policy Dialogue (CPD) estimated that Bangladesh is losing potential taxes from as low as Tk 41,800 crore to as high as Tk 223,000 crore because of tax evasion every year. If tax avoidance is also taken into account, the amount rises even further. This is not only denying the government a huge revenue and lowering the country's tax-GDP ratio—which is the lowest in South Asia and one of the lowest in the world—but also defeating one of the main purposes of taxation: reducing inequality. As such, experts have proposed that the government set up a commission to increase revenue collection and reform the revenue sector, simplify the tax payment system, and focus on collecting more taxes from the rich.​

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Several think tanks participating in dialogue on the issue gave further suggestions to the government that are worth noting: stopping the opportunity to whiten black money, bringing back laundered money, increasing taxes for unlisted companies, revising tax rates for individual taxpayers, withdrawal of tax on interest on foreign loans, etc. Additionally, according to the BEA, there are 27 sources for increasing the government's revenue collection, which can massively help us amid the ongoing economic crisis. These include imposition of wealth tax, tax on excess profits, tax on luxury goods, tax collection by abolishing duty-free facility on vehicles for privileged persons including members of parliament, securing proceeds from the recovery of black and laundered money, etc.
Read more​

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The government has, for a long time, failed to increase its tax revenue that, added with the ongoing economic crisis, has eroded its fiscal space. However, it is precisely to tackle this crisis that it urgently needs to implement the various reforms suggested by experts. Otherwise, it will continue to struggle to address the crisis and fund programmes that are essential to stimulate the economy and bring relief to the majority of people.
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[Saif]

Awami League looted 'Tk 900bn in 15 years', alleges BNP's Mirza Fakhrul

bdnews24.com

Awami League looted 'Tk 900bn in 15 years', alleges BNP's Mirza Fakhrul

He called for a collective effort to 're-establish democracy and accountability'
Senior Correspondentbdnews24.com
Published : 13 Oct 2023, 05:12 PM
Updated : 13 Oct 2023, 05:12 PM


BNP Secretary General Mirza Fakhrul Islam Alamgir has accused the Awami League of looting Tk 900 billion during their 15 years in power.

He decried rampant 'corruption, mismanagement, and money laundering' within the banking sector, asserting that it has left the national economy in shambles.

"In truth, they plundered all our national resources and funnelled them abroad.

Through various sources and media reports, we have learnt that they embezzled Tk 900 billion from both the banking sector and other domains from 2009 until now," he said at a media briefing on Friday.


Due to the absence of fresh investments, Bangladesh has failed to create new employment prospects, leading to a persistent cycle of poverty for the underprivileged, and ever-widening income inequality, according to Fakhrul.

The BNP leader called for a collective effort to "re-establish democracy and accountability" and replace the current government with a non-partisan caretaker government to ensure free and fair elections.


He further criticised the government for presenting a misleading narrative of development through infrastructure projects, while allegations of corruption and irregularities have plagued the economy.

Fakhrul highlighted a recent loan scam of Tk 300 billion, labelling it the biggest in Bangladesh's history, and expressed concern over the economic slowdown.

The BNP leader underscored the importance of accountability for good governance and the rule of law in Bangladesh, arguing that the current government's lack of accountability jeopardises various aspects of society.

“As the fascist Awami League government isn’t accountable to the people, the country's economy, politics, culture and judicial system aren’t safe in their hands.”​

 

[Saif]

Bangladesh 12th most corrupt country in the world, 2nd in S Asia

Bangladesh ranked as the 12th most corrupt country among 180 countries in the world and 2nd in South Asia as per the Global Corruption Perception Index (CPI) 2022 of the Transparency International (TI). Dropping one position from 2021, Bangladesh scored 25 out of 100 in 2022, said Dr...

www.tbsnews.net

Bangladesh 12th most corrupt country in the world, 2nd in S Asia​

Photo: TBS

Bangladesh ranked as the 12th most corrupt country among 180 countries in the world and 2nd in South Asia as per the Global Corruption Perception Index (CPI) 2022 of the Transparency International (TI).

Dropping one position from 2021, Bangladesh scored 25 out of 100 in 2022, said Dr Iftekharruzzaman, executive director of the Transparency International Bangladesh (TIB), at a press conference in Dhaka on Tuesday.

Iran and Guinea scored the same points as Bangladesh – only one point ahead of Afghanistan – in the index this year.

If Bangladesh's decline in terms of corruption continues, the country could surpass Afghanistan to be the most corrupt in South Asia soon, he added.

As per the CPI report, Bangladesh ranked 147th in 2022 among 180 countries which was the same a year earlier. The country ranked at 146 in 2020.

In the latest report, India and the Maldives both scored 40, Sri Lanka 36, Nepal 34, Pakistan 27 and Afghanistan 24 among South Asian nations.

Denmark, Finland and New Zealand ranked first, second, and third respectively among the least corrupt countries.

The Transparency International prepares the CPI report annually on 180 countries and territories around the world by their perceived levels of public sector corruption. The global average score is 43.

As per the latest report, countries with low scores are still unable to make significant progress in terms of restrictions and attacks on civic space, basic freedoms, security and stability, democracy and human rights.

The TIB executive director said Bangladesh has not done enough to improve in terms of corruption.

He said the country has gone through a stream of money laundering cases in recent times but almost no actions have been taken against those involved in these crimes.

Those who have political connections can get away easily with any corruption, which is very frustrating, he added.

"We were astonished that the people responsible for the corruption were not made accountable. But those who raised their voice against corruption, including government officials, were harassed and actions were taken against them," said Ifthekharuzzaman.

He further said, "The Bangladesh government has to create an environment where people's access to information, freedom of expression would be easier. Laws such as the Digital Security Act, Data Protection Act, and the OTT regulations act should be repealed."​

 

[Saif]

Mega-projects, mega-corruption, mega-greed

For how long will public money be plundered without any accountability?

www.thedailystar.net

Mega-projects, mega-corruption, mega-greed​

For how long will public money be plundered without any accountability?

In a capital where traffic remains the most pressing concern for an overwhelming majority of dwellers, the only thing the government agencies seem interested in is wasting – or rather, consuming – public money on ill-conceived projects. According to a report by this daily, government agencies have undertaken eight different projects in and around the capital, ignoring the Revised Strategic Transport Plan (RSTP) and without consulting each other. For instance, the Bangladesh Bridge Authority (BBA) has already spent Tk 321 crore in conducting a feasibility study and preliminary design for a 258km subway network in the capital and adjacent areas, while another government agency is already implementing a plan for six metro rail lines about 140km long.

More inconceivable still is that five of these projects have been initiated along a single alignment, with different agencies proposing and implementing their own agendas, without any coordination or consideration as to how these projects will work in tandem, or whether they will ease public suffering at all. The agencies did not even bother to consult with the Dhaka Transport Coordination Authority (DTCA), which is responsible for coordinating transport-related projects in Dhaka and five surrounding districts, and is currently reviewing and updating the RSTP. As a result, it is only likely that most of these projects will end up in the bin and, in the process, crores of taxpayers' money will be wasted without anyone having to answer for them.
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The mega-projects, now synonymous with mega-corruption, seem to have whetted the mega-appetite of our government officials, so much so that repeated calls for austerity, from the prime minister no less, are being left unheeded.​

But how can this be the state of development work in the country, particularly at a time when we are repeatedly told that Bangladesh's economy is bleeding profusely and that we all need to practice austerity? How can flyovers be built only to be broken? How can feasibility studies be conducted and designs finalised only for the project to be scrapped a few years later? How can such ludicrous projects be funded with the limited amount of taxpayers' money that should be going into social safety net programmes, health, and education?

It appears that the civil servants invested in these projects only care about them in so far as they are a means for them to earn some major bucks. The mega-projects, now synonymous with mega-corruption, seem to have whetted the mega-appetite of our government officials, so much so that repeated calls for austerity, from the prime minister no less, are being left unheeded. The question now is, will the PM – and the government at large – continue to allow such ruthless and reckless plundering of public resources at such a critical juncture, when the country and its people are suffering so acutely?

We demand accountability from the respective agencies and the government for these wasteful projects. It is downright disrespectful to the people of this country that their hard-earned money is being looted by those whose job it is to ease their suffering and ensure their best interests.
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[Saif]

Are we becoming incorrigibly corrupt?

Latest CPI score paints a sorry picture of Bangladesh’s progress

www.thedailystar.net

Are we becoming incorrigibly corrupt?​

Latest CPI score paints a sorry picture of Bangladesh’s progress

The latest edition of the Corruption Perceptions Index (CPI) by Transparency International (TI) is now out. And just as predictable as this publication is at this time of the year, it pains us to see that Bangladesh's performance in this annual undertaking by the global corruption watchdog has become equally predictable. In the 2021 edition, the country has once again scored 26 out of 100—the same as in 2020, 2019 and 2018. Once again, we have ranked second-worst in South Asia, above only Afghanistan, and third-lowest among 31 countries in the Asia Pacific region. In fact, a 10-year CPI trend analysis shows that Bangladesh has stagnated in the neighbourhood of the same score over the last decade, meaning there's been no real progress during the two latest tenures of this government.

Since the CPI measures "perceived" levels of public-sector corruption, we may soon see a firm rebuttal from the government, disputing this badge of shame. True, there are questions about the methods used for measuring corruption. But one doesn't need TI to reaffirm what we already know to be true: that corruption has permeated every aspect of our lives, ranging from bribery, use of public office for private gain, diversion of public funds, and nepotism in public sector appointments to red tape and ineffective mechanisms for corruption control—to name a few areas of measurement cited by TI. We have seen repeatedly how a section of officials and politically influential people, including public representatives, indulged in various forms of corruption using their connections and poor institutional safeguards, and how they have been let go. In fact, the all-encompassing nature of corruption means that spillover effects of public sector corruption have ruined any chance of progress in the private sector too.

As a consequence, corruption has become a way of life. We can't get rid of it, but since the system has become so crooked, we can't live without it either. A key factor in the non-delivery of the pledges of "zero-tolerance" for corruption, according to the chief of the Bangladeshi chapter of TI, is the intrinsic linkage among politics, money and corruption, causing a disconnect of public decisions and actions from the common people's interests. "Without a paradigm shift in our political culture to put public interest first, replacing the practice of treating political affiliation as a licence for abuse of power, corruption cannot be controlled," he says. We cannot agree more.

To see a change in this scenario, we need drastic reforms, starting with building a political consensus on the need for insulating public institutions from the influence of politics, money and criminality. The Anti-Corruption Commission (ACC) must be empowered to do its job. There should also be legal provisions to manage conflict of interest transparently, depoliticising institutions of accountability, and establishing professional integrity and impartiality of all vital institutions, including public service, administration and law enforcement agencies. We can't continue to repeat the mistakes of the past or allow the corrupt elements to eat away at the hard-earned achievements of our nation.
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[Saif]

Big budget, bigger corruption

Lack of accountability and the culture of impunity destroyed governance from within.

www.thedailystar.net

Big budget, bigger corruption​

Lack of accountability and the culture of impunity destroyed governance from within

In democracy, there are two types of accountability of the government: first, to the people who elect them, and second, to itself so that it can survive the wrath of public judgement.

This it does by knowing and monitoring whether it is fulfilling its election pledges and whether its own policies and projects are being implemented properly. This happens when the political forces it represents and the government institutions it runs work honestly, efficiently and for the public good. This is otherwise known as "governance," which can principally be assured by institutionalising "accountability."​

This is where the present government has mostly failed, resulting in severely discrediting itself, crippling most institutions – through corruption and cronyism – and demoralising the youth by practising a culture of impunity.​

Let's start with a small example of accountability failure – but one that is highly symbolic.

On November 28, the newly launched Dainik Bangla published a report titled "Taka thakley jail o mukto jiboner moto (If you have money, life in jail is as good as life outside)." The story details how bribery starts the moment one enters the four principal prisons in Bangladesh, and how money can ensure better accommodation, better diet, better living facilities including access to TV and a mobile phone – the latter often used for running illegal business, and even terrorist activities. While going for obligatory court appearances, arrangements can be made for a family visit. Like hotels, you can book hospital accommodation priced at Tk 10,000 for the first week, and half that amount for subsequent weeks. Yaba and other narcotics are also available. Officials know all this, but cannot or will not do anything about it.

Prisons are supposedly under full control of the authorities. If criminal activities cannot be controlled inside, how can the public trust the same authorities to control it outside?
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A second example of accountability failure deals with delays in project implementation and the enormous cost escalation, with no one being questioned as to why. According to Jugantor of November 28, there was an additional cost of more than Tk 52,000 crore for 10 megaprojects caused by faulty designs, lack of proper feasibility study, additional work, lack of proper leadership and supervision, delay in release of funds, and other reasons. Not a single project was finished on schedule and the time extensions ranged from two to nine years, and still counting. Total funds allocated for these 10 projects amounted to Tk 63,757 crore. These are now estimated to cost Tk 116,198 crore.

A saying prevalent from the colonial days goes like this, "Sarkar ka maal, dariya mey dhal (If it is government money, it is okay to throw it in the sea)." Only now, instead of throwing it into the sea, we put it in our pockets. The Office of the Comptroller and Auditor General (CAG) may raise audit objections, but who has the time to look into them? And it does not pay to do so.

Here again, we raise the point of why no one has been held accountable for such an enormous waste of money. With Tk 52,000 crore, probably every nook and corner of Dhaka city's roads and its essential water supply could have been modernised. Not to be forgotten that the aforementioned amount is for only the 10 projects in question. Literally, there are a hundred others like them.

As for monitoring, there is a body called the Implementation, Monitoring and Evaluation Division (IMED) under the planning ministry. We occasionally hear about their reports, but without much impact as both time extension and cost escalation continue unabated.

Perhaps the most dangerous lapse of accountability is in the financial sector. This writer, in his column of November 17, drew attention to the rise of default loans from Tk 4,646 crore in 1990 to Tk 134,396 crore today – a growth of 29 times in nearly as many years. Here again, the truth is nothing has been done to remedy the situation except to pander to the culprits, which defies all logic and national interest. An exasperated High Court judge reprimanded, just a few days ago, an Anti-Corruption Commission (ACC) lawyer, saying, "Will the big loan defaulters remain untouched? They are misappropriating thousands of crores. The commission is busy catching small-time loan defaulters, but not the big ones."

News of the last few days dealing with loan disbursement of Tk 7,246 crore by the Islami Bank Bangladesh Ltd (IBBL) has shaken the financial sector and have raised serious questions about the monitoring and oversight role of the Bangladesh Bank (BB).

The IBBL disbursed Tk 7,246 crore this year to nine companies that were sister concerns of Rajshahi-based Nabil Group, of which Tk 2,460 crore were issued during 17 days of November. The bank officials told this newspaper that most of the companies gave fake addresses in their loan applications. How can that be? An address is one of the first things that banks check before considering any loan application – and that, too, one amounting to thousands of crores.

There are many more lapses that are unthinkable in the case of large loan disbursement. Either the IBBL staff have forgotten their trade, or its high-ups are more eager to loot it than to run it properly.

It must be mentioned here that the Islami Bank was once among the best banks run in the country. A few years back, it was suddenly taken over and a new board of directors, with a majority of new members and a new chair, was put in charge along with a new MD and some senior officials. How the changeover took place remains a mystery, but its effect is clear now. Surprisingly, the BB, which now monitors even the personal travels of bank MDs, did not take any serious note of this sudden and unexplained – to the public and especially to its depositors – takeover of the biggest private bank of the country.

What the accountability of BB or the finance ministry on this score is, remains a question.

The LC-related story of the Social Islami Bank Ltd (SIBL), which is currently making the rounds, is equally – if not more – horrendous if the BB investigation proves so. Sharpe Knitting and Dyeing Ltd has been using a bonded warehouse facility without exporting a single item. In the process, it has reportedly misappropriated about Tk 16,500 crore over a period of seven years.

Lack of accountability created the environment for this to happen.

At the very moment, banks have become burdened with so much mismanagement and loan defaults that the government amended the law to allow members of the same family to have a larger number of seats in banks' boards and for longer periods than before. This greatly increased family control of banks and weakened professional managers' power to enforce compliance and financial discipline.

Another nail in the accountability requirements.

Bigger budgets, bigger projects, bigger funding, bigger loans being defaulted, bigger corruption, bigger siphoning of project money, bigger amounts of laundered money, bigger houses in Malaysia and Canada, and lesser and lesser accountability.

A role model, indeed.

Post-script

This week, the finance minister asked the press, "How is the state of the banking sector bad? Let us know in writing and we will look into it." Obviously, he doesn't read the newspapers. Doesn't he have a huge staff to keep him informed? The minister does not know, so does it mean that his ministry does not know either? If they don't, then what are they doing, and do they deserve the salary and perks for which the public pay? If they do know, then why doesn't their minister know? There were numerous media reports recently on mega loans to dubious business houses. The Bangladesh Bank has initiated inquiries of its own on some loan disbursements by Sonali Bank Ltd, asking it to be stopped for now. The Parliamentary Committee on Estimates recently issued a report stating, "Sonali Bank's loan situation is frightening."

Yet, the finance minister knows nothing. His ignorance is highly irresponsible, extremely dangerous and totally unacceptable, especially at this critical time.

Mahfuz Anam is the editor and publisher of The Daily Star.​

 

[Saif]

Bank loan-related suspicious transactions surge: BFIU

The Bangladesh Financial Intelligence Unit (BFIU) on Tuesday revealed that suspicious transactions related to bank loans increased more than fourfold in the past couple of...

www.newagebd.net

Bank loan-related suspicious transactions surge: BFIU​

Overall suspicious transactions rise by 64.58pc in FY23​

Staff Correspondent | Published: 19:37, Feb 20,2024 | Updated: 23:08, Feb 20,2024

A file photo shows clients receiving services at a branch of a state-owned bank in the capital Dhaka. — New Age photo

The Bangladesh Financial Intelligence Unit (BFIU) on Tuesday revealed that suspicious transactions related to bank loans increased more than fourfold in the past couple of years due to significant loan scams.

BFIU head Md Masud Biswas disclosed the information while unveiling the unit’s annual report for the financial year 2022-23 at a press conference at the Bangladesh Bank headquarters in the capital Dhaka.

The BFIU is acting as the central agency of Bangladesh to combat money laundering, terrorist financing and proliferation financing of weapons of mass destruction.

The BFIU received a total of 14,106 suspicious reports comprising 9,769 suspicious transaction reports and 4,337 suspicious activity reports in FY23, which is 64.58 per cent higher than the previous year’s 8,571 reports.

Of them, the number of incidents of suspicious transactions related to bank loans shot up to 520 in FY23, which was 341 in FY22 and 98 in FY21.

The BFIU identified several reasons for the surge in suspicious transaction incidents related to bank loans.

The reasons include adjusting loans with large cash deposits or mortgaged assets, inconsistent cash payments, fraudulent loan acquisitions, multiple mortgages on the same property, deliberate non-payment despite cash flow, untraceable loan borrowers, business closures without repayment, misuse of loan funds, media reports on loan scams involving customers, loan scams in other banks even if the customer’s loan in the reporting bank is regular, requests for customer information by competent authorities and customer arrests by law enforcement agencies.

According to the BFIU report, criminals can seek loans to buy high-value assets and repay the loans with illicit money, or they can buy asset with criminal proceeds and take loans against the ‘dirty asset’ to enhance the same or make a new investment.

In both cases, loans or mortgages are repaid with lump sum amount or smaller ‘structured’ amounts, the report said.

According to Bangladesh Bank data released on Monday, the amount of defaulted loans surged to Tk 1,45,633 crore at the end of December 2023 from Tk 1,20,656 crore at the end of December 2022 and Tk 1,03,273 crore at the end of December in 2021.

Out of the total loan related STR/SARs received by the BFIU, it was found that 36 per cent STR/SAR (253 STR/SARs) was lodged on the ground of non-performing loan or wilful default culture issue.

About 409 STR/SARs were submitted by scheduled commercial banks based on concerns of property undervaluation during the registration of land or flats, especially indicating tax evasion.

About 18 per cent STR/SAR was lodged due to loan repayment or source of repayment fund issue, and 7 per cent STR/SAR was submitted on the ground of obtaining the loan through fraudulent means.

The BFIU received 1,112 STR/SARs related to loan issues from July 2018 to June 2023.

The number of such STR/SARs was quite low in the first three years of the mentioned period, but the number increased sharply in the following two years, the BFIU said.​