[🇧🇩] Corruption Watch

[Saif]

Amnesty for black money holders is a disgrace

It will not reduce capital flight, only encourage malfeasance

www.thedailystar.net

Amnesty for black money holders is a disgrace
It will not reduce capital flight, only encourage malfeasance

VISUAL: STAR

We condemn the parliament's decision to once again approve a provision allowing black money holders to legalise undisclosed wealth without any scrutiny by paying a 15 percent tax, despite protests over the past few weeks. The provision is set to come into effect from July 1. While the country's highest income tax rate stands at 25 percent, allowing black money holders—many of them accumulating their wealth through corrupt means—to legalise it at a much reduced rate is truly befuddling. Experts, anti-graft watchdogs and even some lawmakers had strongly opposed the move which would send a wrong message to both individuals amassing black money and honest taxpayers.

The message is simple: the law is set in such a way that it favours black money holders over honest taxpayers. The former will no doubt be encouraged by it. And when those who earn their money legally are made to pay higher taxes compared to those who do so illegally, why should they, too, not try to game the system? Because the Awami League government has regularised this budget provision over the years, citing scenarios that defy logic, honest taxpayers (belonging to the higher tax slabs) may be forgiven for thinking they would be better off by not filing regular taxes, and making use of this provision later to pay a reduced tax. When laws are designed to create such discrepancies and encourage immoralities, it is not difficult to understand the moral standards of those arguing for these laws.

Given how widespread corruption has become in the country, the provision would come as a huge relief for the corrupt. They would be assured to know that despite massive public outcries, many in key positions are still willing to bend the rules in their favour. Not only that, they are even willing to undermine Article 20(2) of the constitution to do so. Except in 2020-21 (during Covid-19), the amount of black money whitened through this process has been a drop in the ocean compared to the estimated size of our black economy. The data clearly debunks the government's narrative that providing such a facility is going to bring significant amounts of black money into the mainstream. But even if it did, why would lawmakers accept money made from drug dealing, human trafficking, or other criminal activities being legalised under a special provision in the first place?

Having provided this facility repeatedly, has the government succeeded in reducing the size of the shadow economy? Has it improved its tax system or revenue collection as advertised? Has it managed to reduce corruption and strengthen rule of law? The answer to all these questions is a resounding "No". The government should, therefore, immediately withdraw the provision, and make sure black money holders—particularly those involved with criminal and corrupt activities—are held to account.​

 

[Saif]

Corruption allegations: Liability falls on govt

Discover the latest corruption allegations surrounding former police chief Benazir Ahmed and NBR officers. Political analysts argue that the liability falls on the government for failing to ensure accountability within its agencies.

en.prothomalo.com

Corruption allegations: Liability falls on govt
Qadir Kallol
Updated: 02 Jul 2024, 11: 25

Bribery and other forms of corruption runs rife

Following the revelation of the mind-boggling corruption of former police chief Benazir Ahmed and National Board of Revenue (NBR) officers Matiur Rahman and Kazi Abu Mahmud Faisal, various discussions and debates are taking place. Even the ruling class is admitting that corruption has taken an institutional shape. However, many of the MPs of the ruling party in parliament are pointing fingers at the police and administration. But questions naturally emerge, who is liable for creating an environment of such unlimited corruption?

The liability ultimately falls on the government as the political analysts feel the government mainly failed to ensure the accountability of the government agencies. They said allegations of corruption are emerging one after another and causing people worry as the democratic institutions have become completely ineffective. Although ruling Awami League leaders are not willing to accept allegations of failure, many of them admit that although the government talks about the 'zero tolerance' against corruption, it has not been effective.

On 25 June at a press conference on an India tour, prime minister Sheikh Hasina said, "Some people become greedy. They make so much money that they have to keep money abroad and afterwards they have to flee the country. What is the benefit of making money? So much money they made that they cannot stay in the country. Then what is the benefit! The people don't consider it. Making money becomes an addiction."

Agitators against corruption feel the government has no scope to avoid liabilities. Anti-corruption non-government agency Transparency International Bangladesh (TIB) executive director Iftekharuzzaman said in case of high level corruption, there is a political patronisation in collusion with the users' institutional power, businessmen or investors. High level corruption takes place in collusion with multiple parties. This picture is being exposed due to the news of corruption by some high-ups.
A number of members of Awami League in parliament strongly delivered speeches over the recent incidents of corruption allegations. However, they criticised the corrupt government officials. Some of them also said politicians are being blamed due to the corruption of the government officials. Of these MPs, Awami League joint general secretary Mahbubul Alam Hanif, speaking to Prothom Alo, said that the picture of corruption of some incumbent and former officials has been published, tarnishing the image of the government.

However, prime minister Sheikh Hasina in parliament on Saturday said the government has launched drives against corruption. She said whoever he or she is, none will be spared. Steps will be taken against those who will be involved in corruption.

Agitators against corruption feel the government has no scope to avoid liabilities. Anti-corruption non-government agency Transparency International Bangladesh (TIB) executive director Iftekharuzzaman said in case of high level corruption, there is a political patronisation in collusion with the users' institutional power, businessmen or investors. High level corruption takes place in collusion with multiple parties. This picture is being exposed due to the news of corruption in some high-ups.

The US slapped sanctions on former army chief Aziz Ahmed due to corruption on 21 May. In the beginning, on the part of Awami League it was said steps are politically motivated. But when news was published that Aziz Ahmed exerted influence to make fake NID and passport for his brothers, it gave rise to various discussions. Before the end of this issue, huge assets beyond known sources of former IGP Benazir Ahmed came up for discussion. Allegations of smuggling and corruption have been raised against the murder of Jhenaidah-4 MP Anwarul Azim.

Moreover, news of allegations of huge assets of former Dhaka Metropolitan Police (DMP) Asaduzzaman Mia has been published in different news outlets. Under such a circumstance, the Police Service Association in a statement said the mass media should be more cautious in publishing news about police. Awami League general secretary Obaidul Quader at the time said police were being attacked randomly.

Analysts feel in the beginning, some of Awami League leaders tried to deny the allegations. The statements of Obaidul Quader over various issues and the statement of the Police Association were criticised widely. Awami League leaders are now saying none will be spared. Steps will be taken in accordance with the law. However, the Anti-Corruption Commission (ACC) has become active now.

Meanwhile, the assets of NBR (now OSD) Matiur Rahman have been published. ACC traces more than one plot, flat in the name of another NBR official (first secretary) Kazi Abu Mahmud Faisal and his family members. Besides, ACC is investigating allegations against several people.

Meanwhile, the assets of NBR (now OSD) Matiur Rahman have been published. ACC traces more than one plot, flat in the name of another NBR official (first secretary) Kazi Abu Mahmud Faisal and his family members. Besides, ACC is investigating allegations against several people.
Activities of the government are being seen in the face of criticism after these incidents have been published in the mass media or social media. There are various discussions over the questions of failure inside the party.

During the discussion on the budget in parliament, AFM Bahauddin Nasim said ACC, mass media or politicians could not identify NBR official Matiur Rahman. A 'dumb animal' has identified him. He also said whether there are such Matiurs, agencies concerned need to be identified before goats or any other dumb animal is identified.

Many of the leaders at the government policy making level are talking about whether there is any conspiracy behind the revelation of recent incidents. They are giving statements that the allegations of corruption are being brought randomly as part of a conspiracy from home and abroad. There are also discussions that the liability falls on the government whether it is admitted or not as the image of the government involves it.

But no special drive or plan is noticed to identify those who are involved in corruption. Cases or legal steps in connection with recent incidents are being talked about. Speaking to Prothom Alo, law minister Anisul Huq said agencies concerned including ACC work independently to ensure accountability. So those agencies will fix whether special measures will be taken or not. He said the government has not changed its policy towards zero tolerance.

The other leaders at the top level of the government are talking in the same tune. ACC is also not talking about any special plan under the current situation. ACC commissioner Md Johurul Haque, speaking to Prothom Alo, said the action against the corruption of ACC continues. Under the current procedure, widely-discussed incidents are being investigated and actions are being taken accordingly.

The agitators against corruption have questions over the stance of the government. They feel there was an attempt to avoid liabilities despite revelation of information of unbelievable corruption. Earlier, in 2019, drives were conducted against the casino. Most of the cases filed at that time are not yet disposed of. There was a huge outcry in 2011 after five organisations including Hall Mark embazzled Tk 35 billion from Sonali Bank. Trial of only one of 11 cases in connection with the incident has been finished.

TIB executive director Ifthekharuzzaman said there is a doubt whether it is just being said for the sake of saying on the part of the government that steps would be taken against Benazir , Matiur and others.​

 

[Saif]

S Alam must pay Tk 3,538cr in unpaid VAT: HC

The High Court said on Monday that S Alam Vegetable Oil Ltd and S Alam Super Edible Oil Ltd must pay unpaid Tk 3, 538 crore Value Added Tax that they evaded in...

www.newagebd.net

S Alam must pay Tk 3,538cr in unpaid VAT: HC
Staff Correspondent 02 July, 2024, 00:12

Mohammed Saiful Alam

The High Court said on Monday that S Alam Vegetable Oil Ltd and S Alam Super Edible Oil Ltd must pay unpaid Tk 3, 538 crore Value Added Tax that they evaded in three tax years between 2019 and 2022.

The bench of Justice Zafar Ahmed and Justice Sardar Md Rashed Jahangir said this when deputy attorney general Samarendra Nath Biswas told the court that the companies would not pay the unpaid VAT if their writ petition was entertained.

The court, however, issued a rule asking the National Board of Revenue to explain in 10 days why its notice on June 9 asking the firms to pay the VAT would not be declared illegal.

The court also set July 15 for a further hearing of the writ petition.

The DAG told reporters that there would be no ban on the NBR collecting the unpaid VAT from the companies as the High Court refused to stay on the realisaiton of the demand.

The companies' lawyer, Ahsanul Karim, told the court that the revenue board demanded the VAT without exhausting the legal process relating to their objection, the appeal against the demand.

DAG Samarendra Nath Biswas told the court that the revenue board gave the companies three deadlines to submit their replies.

According to an audit carried out by the NBR's VAT wing, S Alam Vegetable Oil Ltd and S Alam Super Edible Oil Ltd have unpaid VAT and a consequent penalty worth over Tk 7,000 crore, as they allegedly evaded VAT through various means, including by presenting lower purchase and sales data in VAT returns between 2019 and 2022.

During the period, the two companies, owned by Chattogram-based businessman Mohammed Saiful Alam, evaded Tk 3,538 crore in VAT, for which they were fined another TK 3,531 crore, said the audit report.

Of the amount, S Alam Vegetable Oil Ltd allegedly evaded Tk 1,917 crore and S Alam Super Edible Oil Ltd Tk 1,621 crore in three years from the financial years 2019-20 to 2021-22, according to the audit report submitted in October 2023 and the subsequent review report submitted in May 2024.

NBR came up with the unpaid VAT claims after analysing the VAT returns and the financial statements audited by the two companies› CA firm as well as their written response to the VAT Commissionerate.

The audit was carried out by the field office of Customs, Excise & VAT Commissionerate, Chattogram, and was subsequently reviewed by a five-member committee headed by an additional commissioner, Chattogram VAT Commissionerate, which drew the same conclusion.

The field office audit team submitted its report on October 2, 2023.

On June 9, the Customs, VAT & Excise Commissionerate, Chattogram, in its adjudication orders asked the companies to pay the 'evaded VAT' worth Tk 3,538 crore along with the penalty of Tk 3,531 crore and applicable interest to the state treasury within 15 working days.

The deadline ends on July 3. The two companies have 90 days to appeal by paying 20 per cent (over Tk 700 crore) of the VAT claim.

The VAT office came up with the findings by comparing the sales data given in the VAT returns and the annual financial statements from 2019–20 to 2021–22 that the companies submitted to the income tax office in Chattogram.

The VAT Commissionerate said that the companies showed 'deflated sales in their VAT returns' than in their annual reports, audited by a chartered accounting firm, and submitted to the tax authorities by the companies themselves.

As per the audited reports from FY2019-20 to 2021-22, total sales of S Alam Vegetable Oil Ltd were Tk 12,725.95 crore, while the reported sales by the organisation in the VAT returns were Tk 2,401.92 crore.

The company did not present sales worth Tk 10,324 crore in the VAT returns.

Bedside, S Alam Super Edible Oil Ltd›s sales value in its audited financial statement was Tk 12,850.48 crore but in the VAT return, the figure was Tk 3,620.63 crore, which is Tk 9,229.84 crore less than that presented in the audited reports.

During its audit, the field office sought explanations from the companies and asked them to appear in a hearing on October 30, 2023, but both companies submitted a written response and sought more time to be given detailed information in writing.

The Commissionerate office accepted time extensions for both companies three times, and the companies submitted their written response on December 28, 2023, seeking withdrawal of the charges after a review.

Following the written submission of the two companies and their appeal for a review of the unpaid VAT claims, the Customs, Excise & VAT Commissionerate formed the five-member committee, which submitted its report on May 21 this year after examining the audit report.

In its letter, S Alam admitted it showed excess transactions to avail of bank loans.

'Bank loans are needed to operate this large company. For availing bank loans, we have to show excess transactions, which is why excess sales and purchases of raw materials have been shown in the financial reports audited by the CA firm,' said both letters of the companies.

They also said that excess sales value had been presented in the audited reports by the CA firm to get loans from banks, but VAT returns had been filed as per the actual sales, and VAT had been paid accordingly.

However, the VAT authorities› review report says that the purchases and sales data of any firm should be the same in all its commercial documents submitted to regulators, banks, income tax authorities, and VAT authorities.

It is a legal obligation on the part of the firm concerned that its purchase and sales data presented to the VAT office, income tax office, banks, and in the financial reports audited by CA firms should all be the same, said the review report.

'They claim that to avail loans from banks, they prepared the report by incorporating inflated purchase and sales data. If this is true, they have clearly committed a criminal offence.'​

 

[Saif]

Unbridled corruption and a minister’s reckless comment

The ruling regime should focus less on talking and more on actions, to create a conducive environment that truly eliminates corruption.

www.thedailystar.net

Unbridled corruption and a minister's reckless comment
Reckless remarks about corruption

VISUAL: SHAIKH SULTANA JAHAN BADHON

As one of the fastest growing economies in Asia, Bangladesh is currently the 35th largest economy in the world (as of 2022) and aspires to clinch the 25th spot by 2035—earning the apt label of "the emerging Asian Tiger." Grand ambitions, grander dreams and the grandest rhetoric by our politicians and policymakers make the country look all set to conquer the future.

Unfortunately, the reality is, Bangladesh is mired in multiple economic and sociopolitical challenges that would make achieving these ambitious targets considerably difficult. With a persistent high inflation (9.89 percent in May 2024), rising poverty and people's shrinking purchasing power, uncontrollable foreign exchange volatility that we are having to cushion with foreign loans, non-performing loans (NPLs) reaching an all-time high of Tk 182,295 crore, and the economy struggling to grow with the IMF repeatedly slashing growth projections, our economic hurdles ahead look overwhelming.

However, the single biggest factor that creates the major roadblock to our growth aspirations is the unbridled corruption that has permeated every layer of every organ of the governance system, crippling the nation and creating a hollow at the heart of our economy. A study titled "The state of the business environment in Bangladesh," conducted by the Centre for Policy Dialogue (CPD) and World Economic Forum (WEF), identified corruption as the most problematic factor in doing business in Bangladesh in 2023, with 67.6 percent of respondents pointing to high levels of corruption. In the Corruption Perceptions Index (CPI) 2023 by Transparency International, Bangladesh secured the 10th lowest score at 24 out of 100. In South Asia, Bangladesh holds the second lowest position, just above Afghanistan. This is the lowest score for the country since 2012.

Recent reports on former law enforcement officials and revenue collectors being nose deep in various forms of corruption and criminal activities, including land grabbing and insider trading, as well as a sitting MP being involved in smuggling, which got him killed in a foreign country, are disturbing and portrays a picture of a society that is rotting from the inside.

But what is more alarming is the specious—almost defensive—narratives by the powers that be that have emerged following these revelations. The Bangladesh Police Service Association (BPSA), for instance, has come down heavily on the media in the aftermath of the investigative reports into the misdeeds and corruption of former and current police high-ups, terming these reports as "partial," "ill-motivated," and "exaggerated"—a smear campaign—and warning them to refrain from publishing such reports going forward. Meanwhile, a high-profile minister of the current regime has also made a bizarre comment about the latest wave of corruption revelations.

While the BPSA statement is reckless and paints a picture of a public institution that is trying to cover up the criminal activities of its members, rather than taking a rectification approach, the comment by the minister comes off as blatantly apologetic for the corrupt and corruption as a practice.

The minister's comment demands in-depth scrutiny for understanding. There are three main points to the comment: the universality of corruption and acceptance of corruption in his own ministry, as well as among politicians; asking for introspection for those who are asking for accountability of the corrupt officials; and reiteration of the government's zero tolerance policy against corruption.

To start with, saying that corruption is universal is tantamount to normalising it, which is undesirable and contrary to a lawmaker's oath of office, "I will faithfully discharge the duties of my office according to law: That I will bear true faith and allegiance to Bangladesh: That I will preserve, protect and defend the Constitution and the laws of Bangladesh: And that I will do right to all manner of people according to law, without fear of favour, affection or ill-will." While it is a positive sign that the minister has accepted that corruption is pervasive among his own political network and within his own ministry, one cannot help but ask: what has he done so far to prevent the spread of corruption among those he knows are corrupt, and how many have been held accountable for their actions?

The second point was perhaps a jab at the opposition parties who are blaming the disintegration of the integrity of the governance apparatus, resulting in rampant corruption among bureaucrats. However, just because previous governments have been engaged in corruption does not give the current regime the scope to take it as a normal practice, or allow it to evolve in new dimensions. So, there is no reason for anyone to look into the mirror before calling a spade a spade.

Finally, while it is nice to hear repeatedly that the government remains committed to its zero tolerance policy against corruption, it has unfortunately remained lip service only, and we are yet to see any meaningful actions being taken to walk the talk.

To put it short, the minister's comments are not only provocative, offensive and irresponsible, but at times a violation of his own oath as a member of parliament. There is no way we expect a responsible public representative to make such careless remarks that would put into question not only their own morals, but also the moral authority of the government. No wonder we have reached a point where bureaucrats and politicians alike are engaged in heavy corruption, plundering the hard-earned money of the people, with almost no consequences.

The minister owes the people an explanation of his remarks and an apology at the very least. And the ruling regime should focus less on talking and more on actions, to create a conducive environment that truly eliminates corruption from our governance system and supports our growth aspirations.

Tasneem Tayeb is a columnist for The Daily Star.​

 

[Saif]

Relaxing service rules will only exacerbate corruption

Govt should instead toughen up rules for employees given current trends

www.thedailystar.net

Relaxing service rules will only exacerbate corruption
Govt should instead toughen up rules for employees given current trends

VISUAL: STAR

In another questionable move with the potential to exacerbate corruption, the government seems set to allow public servants to engage in stock market trading, reversing a decades-old prohibition. According to a report, the law ministry has positively vetted an amendment to the Government Servants (Conduct) Rules, 1979 forwarded by the public administration ministry. If or once it is approved, employees will be able to legally buy or sell primary shares and bonds of registered companies. This is one of the several changes being billed as necessary for a "modern and time-befitting" code of conduct. But given past experiences, we must say this is the wrong way to go about it as allowing officials to trade stocks may open a Pandora's box of unethical practices.

We don't need to go that far back in time to understand why. Matiur Rahman, a top NBR official now under investigation for corruption, allegedly made a fortune through stock market investments, using insider information, both of which are illegal. He is not alone in such pursuits. Many government employees, despite current prohibitions, are believed to be engaged in stock trading. Many have already demonstrated their willingness to exploit their power and privileged access for personal gain. Against this backdrop, legalising stock trading could widen the scope for corruption. The speculative nature of stock markets means that losses are inevitable, and when faced with losses, employees might be tempted to recoup them through illegal means.

The proposed amendment, therefore, will further weaken, rather than fortify, the ethical framework governing public officials. Unfortunately, the public administration ministry seems to be blind to such concerns. In another editorial not long ago, we commented on its proposal to relax another provision in the Government Servants (Conduct) Rules requiring officials to submit wealth statements every five years, and how the removal of such an important layer of scrutiny could encourage dishonest officials to commit crimes with little fear of detection. Over the years, we have seen how such anti-graft rules and regulations have been relaxed, sometimes even lightening penalties for proven corruption.

As we write this, news has emerged of another top official, a former additional IGP, and his wife who illegally amassed wealth worth Tk 30.35 crore while concealing information of wealth worth Tk 36.91 crore—adding to the recent disclosures of scandals involving former and current security and revenue officials. The list will only grow, whether it comes to light or not, unless we toughen up relevant rules, enhance existing oversight mechanisms, and enforce stricter penalties for violations. Government employees, because of the power they exercise, must be held to the highest standards of conduct. We, therefore, urge the public administration ministry and other authorities to refrain from further relaxing service rules.​

 

[Saif]

A corrupt taxman and his 'blessed' in-laws

Faisal, his relatives undervalued their properties in official documents, claims ACC

www.thedailystar.net

A corrupt taxman and his 'blessed' in-laws
Faisal, his relatives undervalued their properties in official documents, claims ACC

"When you rise, lift others [read in-laws in this case] with you"-- even if it means bending a few rules along the way.

Quazi Abu Mahmud Faisal, former first secretary of the National Board of Revenue (NBR), seems to have lived up to these words.

Faisal, who was recently transferred to the Bogura office of NBR, has been under the spotlight recently for allegedly amassing a staggering Tk 1,000 crore illegally, as claimed by the ACC.

But it's not just Faisal whose fortune has risen exponentially thanks to his government job; his in-laws too seem to have hit the jackpot.

Faisal has purchased a 2,990-square-foot flat in Siddheshwari and 10 katha of land in Meradia, Dhaka, in the names of Ahmed Ali, his father-in-law, and Momtaz Begum, his mother-in-law.

The values of these properties were strategically undervalued in official documents.

Although the Siddehshwari flat was purchased in the name of Ahmed Ali on paper, in reality, it's Faisal and his family who have been living there for a year, according to locals.

The flat, located on the 10th floor of one of the four buildings in Rupayan Swapno Niloy in Siddheshwari, was shown to be bought for Tk 95.50 lakh.

The market value of the 2,990-square-foot flat is Tk 1 crore, according to an ACC document submitted to the court.

The Daily Star has a draft copy of the document.

Bazlur Rahman, who has been living in the area over the past three decades, also finds the official valuation "unbelievable".

"It's a real miracle," Rahman said, adding that the per square foot price in Siddheshwari ranges from Tk 10,000-15,000, and the actual market value of Faisal's flat is at least Tk 3 crore.

Besides, at least Tk 25 lakh more is required for parking space, he added.

Meanwhile, Momtaz Begum's fortune turned bright in February 2022 when she acquired 10 kathas of land in Meradia for Tk 52 lakh.

ACC believes the actual market value of the property is Tk 4.5 crore.

Besides, Faisal's father-in-law purchased a flat for Tk 1 crore from Rupayan Housing Estate in the city's Ramna area.

These are just the tips of the iceberg. The story goes even deeper.

For example, Faisal and his 11 relatives conducted transactions worth crores through 87 accounts across 19 banks and one non-bank financial institution.

The largest volume of transactions, amounting to Tk 11.57 crore, was found in the account of his father-in-law, a retired bank officer, who has eight bank accounts.

Faisal's mother-in-law Momtaz Begum, a homemaker, has 10 bank accounts, and transactions amounting to Tk 7 crore were spotted in these accounts.

ACC is now investigating how Faisal's father-in-law acquired so much wealth.

But Faisal didn't forget his wife Jesmin. She owns five kathas of land in Boro Kathaldia Mouza in Bhatara area, "valued" at Tk 18.17 lakh.

However, during the investigation, the ACC found the market value of this land to be Tk 75 lakh.

Moreover, there is also land "worth" Tk 7.5 lakh in Purbachal New Town, but the ACC has not disclosed its true value yet.

As for Faisal himself, he owns approximately 15.5 kathas of land spread across five places in Dhaka and Narayanganj, which he valued at Tk 40.29 lakh.

However, the ACC's investigators have stated that these land values have been significantly undervalued.

Faisal and his wife had also bought a five-katha plot from the Jolshiri Housing Project in Khilgaon, while his wife bought another five-katha plot for Tk 75 lakh from East-West Development.

Faisal has six accounts, which had transactions amounting to Tk 5.21 crore. Jesmin, a homemaker, has five bank accounts where transactions worth Tk 2.25 crore took place.

The Dhaka Metropolitan Senior Special Judge's Court ordered the seizure of Faisal's assets, including plots, flats, and bank accounts, which include 19 bank accounts and 87 financial institution accounts held by 11 of his relatives.

The seized assets, both movable and immovable, are valued at approximately Tk 17 crore as shown in official documents by Faisal and his family members.

However, ACC officials claimed in court that those properties were undervalued and they amount to no less than Tk 20 crore.

Faisal also purchased savings certificates worth Tk 2.55 crore between June 2019 and November 2023 in his and his family's names.

The allegations against Faisal include taking bribes for transferring income tax officials, intimidating taxpayers, and other irregularities.

ACC decided to investigate Faisal last year.

Faisal joined NBR in 2005 as a BCS cadre in the post of assistant tax commissioner.​

 

[Saif]

The incredible ‘goatness’ of being

The town is abuzz about how the astronomical price of a goat led to the opening of a gigantic can of worms

www.thedailystar.net

The incredible 'goatness' of being

The goat incident also sparked off quite a bit of family drama when the official claimed that the young man was not his son. VISUAL: Shaikh Sultana Jahan Badhon

The saga of a Tk 15 lakh goat with an impressive pedigree, followed by the unfolding of the jaw-dropping accumulation of wealth of an NBR official, may make us rethink our derisive attitude toward this misunderstood animal. I mean the goat, of course.

After all, we cannot deny that in Bangalee culture, we often refer to people who do dumb things as a "chhagol" (goat), going as far as calling someone the offspring of a goat (chhagoler bachcha), a term lost in translation: in English, it would be calling someone a "kid" (baby goat), which does not carry the same degree of humiliation.

We may have to rethink our "goat dismissiveness".

The town is abuzz about how the astronomical price of a goat the size of a small horse led to the opening of a gigantic can of worms and, for the media, a treasure trove of sensational stories. It was the son of the mysterious NBR member who had spilled the first beans that led to the revelation of his father's enormous real estate acquisitions and piles of cash made from shares. Like a typical rich spoilt brat, he made the mistake of bragging about the Tk 15 lakh goat he had acquired at a bargain price of Tk 12 lakh. A video clip of this went viral on social media, leading to intense speculations about the source of his father's wealth. The NBR official was eventually transferred to a post in another ministry as a reprimand for the embarrassment he caused his organisation, one presumes.

The Anti-Corruption Commission (ACC) is investigating allegations of corruption against the official whose basic salary was Tk 78,000 a month. According to media reports, the person under investigation and his family's wealth include luxury resorts, a shooting spot and multiple bungalows. A report by The Daily Star reveals he also has three crore shares in at least 10 companies. He even talked about his success in the stock market in an earlier TV interview, surprisingly revealing that he had inside information about these companies, which is a violation of capital market regulations.

The goat incident also sparked off quite a bit of family drama when the official against whom these allegations were made initially claimed that the young man was not his son (just like the Michael Jackson song "Billie Jean") naming only the two children from his first wife. The media reported that the young goat connoisseur was his second wife's son. While he may have reacted badly to the stupidity of his offspring for exposing him, albeit unintentionally, it cannot be denied that he has been a generous father giving him a bevy of fancy cars and enough cash to allow him to buy 50-plus lakh taka worth of sacrificial animals, which obviously he also bragged about and was gleefully reported by the media.

He is also, no doubt, a generous husband considering the queenly lifestyle of his first wife, a retired government college teacher and upazila parishad chairman who lives in a white, two-storied mansion in Raipura and has even managed to get the road that leads to her home named after herself, according to a Daily Star report.

In fact, all the highly placed public officials against whom there are allegations of acquiring illegal wealth through dubious means (corruption is such a boring, overused word these days) seem to be ultra-devoted to their families. They buy luxury flats and resorts for their wives and children and go as far as bestowing lavish "gifts" upon their in-laws. Another official the ACC is investigating bought Tk 30 lakh and Tk 29 lakh worth of saving certificates for his father-in-law and brother-in-law, respectively. Meanwhile, his mother-in-law, a homemaker, has 10 bank accounts with transactions amounting to Tk 7 crore, as detected by ACC, no doubt thanks to her charming son-in-law. Now who wouldn't want a "jamai" like that?

These individuals are also champions of local tourism, building luxury resorts in the unlikeliest of places on acres and acres of land, giving the fun-starved public a nice place to go to. Sure, some of them may have forcefully taken away the lands of the poor and marginalised, but one must look at the bigger picture and see the bigness of their hearts (and wallets) that have given us these beautiful spots to visit.

The series of reports on the unaccounted-for wealth accumulation of public officials, some being the top bosses of very important government entities, gives the impression that the state's "zero tolerance for corruption" policy is finally in action. Maybe, but one cannot help but be a little sceptical of the official repercussions these individuals have faced—transfers to a different ministry, or a slight demotion to a lower grade, which seem a mere slap in the wrist for what would be considered a serious crime. The ACC, meanwhile, seems to be the lone hero in this saga—investigating the cases, freezing assets and accounts and sharing its juicy findings with a hungry media. Oh, and of course, let's not forget the unlikely heroes like our giant, magnificent goat which has definitely given these neglected animals a far more elevated status than ever before.

Aasha Mehreen Amin is joint editor at The Daily Star.​

 

[Saif]

The paradox of whitening black money while fighting corruption

Has the government redefined corruption by excluding the concept of black money?

www.thedailystar.net

The paradox of whitening black money while fighting corruption

VISUAL: Shaikh Sultana Jahan Badhon

Bangladesh is often described as a "paradox"; it excels in crucial social indicators while scoring poorly on the quality of governance. This paradox was evident when two contrasting news stories emerged from the same session of the Jatiya Sangsad on June 29: one about the prime minister's vow to crack down on graft, and the other about retaining amnesty for possessors of black money. How does one reconcile such contradictions? Has the government redefined corruption by excluding proceeds from illegal transactions, graft, and tax evasion, commonly known as black money?

Critics argue that the definition of black money varies depending on who holds it. This money seems less problematic if the holder is connected to the ruling party. Despite loud proclamations of "zero tolerance," government efforts rarely make a lasting impact on curbing corruption.

Currently, the country is abuzz with complaints about bureaucratic corruption. Previously, there was noise about traders' excessive profits and syndicates. A few years ago, Awami League embodied the zero-tolerance mantra when it tackled illegal wealth from casinos, gambling, and extortion. There was no shortage of theatrics when alleged casino kingpins were arrested in raids, which included quite a few Jubo League leaders, such as Ismail Chowdhury Samrat, Khaled Mahmud Bhuiyan, Kazi Anisur Rahman, and AKM Mominul Haque. Now, however, prosecutors seem to have forgotten about pursuing conviction for the accused, with all of them out on bail.

Considering the slew of unresolved large-scale financial crimes such as fraud and embezzlement of bank loans, insider trading, and manipulations in the stock market involving thousands of crores, one may wonder why there is even talk of a crackdown on corruption.

In the past decade and a half, the stock market has experienced at least three major manipulations. Those who looted investors' wealth faced no significant consequences. Similarly, fraud and embezzlement of bank loans have been long-standing issues. In 2012, the late Finance Minister Abul Maal Abdul Muhith downplayed Hallmark's Tk 4,000-crore fraud, saying, "It is not a big sum." At the time, his words seemed incredible, but now, with the scale of corruption being uncovered, his statement appears less mistaken or humorous. Banks being used to break rules and create precedents for anonymous loans in the billions is now commonplace.

Despite the noise about corruption, the corrupt seem largely unaffected. Government measures, like transfers or demotions after grand corruption allegations, suggest a "hate the sin, not the sinner" approach. Thus, criminals have no trouble withdrawing money or transferring assets before fleeing abroad. Critics of the government or opposition members, however, struggle to secure court permission just to travel.

Everyone wants corrupt bureaucrats tried, but the belief that they will face justice is almost nonexistent. This scepticism arises from the long-standing patronage they receive from political authorities, reflecting a partisan state apparatus. This is evident from the various medals and awards given to administrative and police officials for suppressing political opposition and overseeing one-sided elections. The Suddhachar (integrity) Award, intended as part of the anti-corruption drive, ironically has been bestowed upon record-setting corrupt individuals like former police chief Benazir Ahmed.

The one-sided election on January 7 has probably faded from many of our memories, along with the asset lists of candidates. Since the election was boycotted, and most candidates were from Awami League, the wealth disclosures in their affidavits highlighted how lucrative politics is. Transparency International Bangladesh found that the assets of the top 10 wealthiest MPs multiplied by up to 55 times in five years. The wealth of the richest MP's wife increased about 35 times, and over 15 years, his wealth surged 2,436 times. Many of these politicians are businessmen, yet such business growth is rare even in the West. Transparency's analysis of ministers' and state ministers' wealth also found up to eleven-fold wealth growth and 22 times income growth in five years.

Transparency identified 18 billionaires among candidates. Despite laws limiting single ownership to 100 bighas of land, affidavits revealed many own agricultural and non-agricultural land far exceeding this limit. The top 10 landowners possess 1.5 to 20 times the legal limit.

On January 11, Transparency called for verifying candidates' affidavits, analysing their assets and income statements, and confiscating any illegal asset through proper legal processes. They also recommended seizing land exceeding legal limits, which was not too difficult as these disclosures came in their affidavits. None of this happened. Had politicians' illegal land been confiscated, bureaucrats might have been deterred from pursuing dreams of becoming zamindars.

It has already been proven that raising alarm bells about the corruption of various professionals and groups will achieve little if the political sponsors of corruption are kept out of the reckoning. What's happening now is best described as mega-corruption, and at the rate at which complaints are heard, corruption has become decentralised. Whoever has the power, the maximum of it is being used for corruption. There is no solution to this problem unless there is a change in politics and a return to accountable democracy and the rule of law.

Kamal Ahmed is an independent journalist​

 

[Saif]

What options are left for us to fight unbridled corruption?

Unfortunately, all the mechanisms meant to address corruption seem to have been weakened, if not completely destroyed, one after another in recent decades.

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What options are left for us to fight unbridled corruption?

What can ordinary citizens do to put a stop to the rampant corruption taking place in our government institutions? SOURCE: TIB

In recent times, allegations of serious corruption against a number of government officials have come to light. From former army chief Aziz Ahmed, former IGP and Rab chief Benazir Ahmed, and former Dhaka Metropolitan Police (DMP) Commissioner Asaduzzaman Mia and his family members, to public servants working in much lower positions in the government, corruption seems to have spread its tentacles across the country's public service sector.

During the Covid pandemic, we learnt how a driver of the Directorate General of Health Service (DGHS) named Abdul Malek acquired crores of taka through corruption. At the same time, graft allegations emerged against former DGHS chief Abul Kalam Azad as well. These two stories illustrate how corruption has become institutionalised from the very top to the very bottom echelons of our government.

Another recent case of sensational corruption involves a National Board of Revenue (NBR) official named Md Matiur Rahman, and his wife Laila Kaniz Lucky, chairman of Narsingdi's Raipura Upazila Parishad. What's interesting about their case is how they came to light. Matiur's corruption was revealed only after a video of Matiur's son buying a goat at Tk 15 lakh for Eid-ul-Azha went viral. Ironically, even the sellers of the goat were allegedly involved in corruption in the selling process as well as in other operations. Matiur's wife Lucky even submitted her tax files to the Election Commission (EC) before the upazila parishad polls earlier this year. But the commission failed to unearth the corruption of Lucky and her family at that time.

This brings into question how well our public institutions are doing in terms of identifying and addressing corruption. How is it that the EC failed to notice that Lucky had understated her wealth? In fact, prior to the last national election, this newspaper had reported how this election witnessed the highest number of candidates with movable or liquid assets of Tk 1 crore or more. A number of ministers saw their wealth increase by more than a few thousand percent. And the EC showed no curiosity as to how these ministers managed to multiply their wealth by such absurd amounts. Are they just that good at business and investment? If they are such financial geniuses, why isn't our economy doing as well under their leadership?

And the same absurd wealth increase was seen among candidates during the upazila parishad polls. Again, the EC showed the least bit of interest to find out how these candidates managed to acquire such massive wealth, similar to the national election candidates.

Far from addressing corruption, our public institutions seem to be doing the opposite. For example, right after the reports of alleged corruption concerning former law enforcement high-ups came out, the Bangladesh Police Service Association (BPSA) released a statement which seemingly threatened the media against reporting on corruption by law enforcers. Without being able to identify a single victim who was maligned by the media reports, the BPSA labelled the reports as "partial, motivated, exaggerated, and misleading."

The BPSA also claimed that the reports were "tarnishing the police's image," while ignoring the damage done by the alleged corruption of its former members. Such claims have become the go-to tactic whenever allegations of corruption are raised. For example, Awami League General Secretary Obaidul Quader recently alleged—as many of his party members had previously done—that corruption accusations were being brought forth to portray AL as a corrupt party. Making such claims, without verifying the authenticity of the allegations, can often be seen as the most commonly used tactic in kleptocracies around the world.

And this is what the Opposition Leader and Jatiya Party Chairman GM Quader recently pointed out in parliament: that corruption, at the scale that it is happening, has become the biggest threat to our economy. Quader rightly said that a wealthy circle has emerged comprising corrupt individuals, loan defaulters, and money launderers; in other words, we are being ruled by a kleptocratic and corrupt elite. And this has come about as a result of lack of accountability and governance failures.

Awami League MP AFM Bahauddin Nasim also rightly spoke about the fact that government bodies are doing the nation a huge disservice by coming to the defence of the corrupt. But the fact remains that it is his party that has weakened the law when it comes to identifying and preventing corruption by public servants—through the Government Services Act, 2018, for example, which even AL leader and lawmaker Mahbubul Alam Hanif said could be "considered a law to protect criminals."

Through an amendment to the Government Servants (Discipline and Appeal) Rules, 1985, the authorities in 2018 included "reprimand" as a penalty for corruption that has been proven through investigations. Before this amendment, the punishment was either "compulsory retirement," "removal from service" or "dismissal from service." To simply "reprimand" a public servant who has been found to be involved in corruption, while allowing them to remain in "service," is a slap in the public's face. And since 2018, numerous public servants proven to be involved in corruption have continued to remain in service due to this amendment, with only a slap on the wrist.

And it's not only the AL, but the BNP too, which through the 2002 amendment to the Government Servant (Conduct) Rules, 1979 relaxed the anti-graft rules for public servants. This only demonstrates the mindset of our political class in general: their primary motivation is to curry favour from public servants, rather than ensure transparency and accountability in public service for the sake of the public.

The only way to change this mindset is to get honest politicians into positions of power and hold to account those who are not truly serving the people. Unfortunately, all the mechanisms meant to do so seem to have been weakened, if not completely destroyed, one after another in recent decades. That's why the AL managed to make such an amendment to the public service rules, which can easily be argued to have breached Article 20 (2) of the constitution, while no other branch of government stepped in to prevent it.

So, ordinary citizens have only two options now: 1) allow corruption to run rampant and cost them in every sphere of life as a result; or 2) form mass movements that are strong enough to force politicians, public servants and other government authorities to not only rectify the legal issues that they have created, but enforce them to the letter, which will automatically deter government employees from getting involved in corruption.

Eresh Omar Jamal is deputy head of editorial at The Daily Sta​

 

[Saif]

Anti-Corruption Commission must live up to mandate

THE failure of the Anti-Corruption Commission to complete 4,008 inquiries and investigations and 3,348 cases that the commission filed having been pending with...

www.newagebd.net

Anti-Corruption Commission must live up to mandate
08 July, 2024, 00:00

THE failure of the Anti-Corruption Commission to complete 4,008 inquiries and investigations and 3,348 cases that the commission filed having been pending with court are worrying on a couple of counts. Official statistics show that trial proceedings are under way in 2,919 cases out of the total 3,348 cases pending with courts while trial proceedings have been stalled in 429 cases on High Court orders. Besides, 732 writ petitions, 927 criminal miscellaneous cases, 1,223 criminal appeals and 681 criminal revision cases are pending for disposal until March. Yet, which is more worrying is that the commission has failed, as official data show, to complete inquiries and investigations in 4,008 cases although, as commission rules lay out, an officer gets a maximum of 75 days to complete an inquiry and 270 days to complete an investigation. The commission has showed similar failures in 2023, too, when it could complete 2,029 inquiries but the rest of 2,399 inquiries remained pending. The commission that year could complete 555 investigations but investigation of 1,609 more cases remained pending. The failure to complete inquiries and investigations and delay in trial benefits corruption suspects because it creates the scope for the suspects to find a way out of the commission's net. The event of delayed or no punishment in corruption ultimately adds to the culture of impunity and entails injustice on people.

Experts criticise the commission for its failure to complete the investigation of 52 cases filed against former NRB Global Bank managing director Proshanta Kumar Halder and 85 others in 2020–2022 in connection with the embezzlement of Tk 34 billion from various financial institutions. In January 2023, the commission formed a two-member team for inquiries to establish whether the Dhaka Water Supply and Sewerage Authority managing director amassed illegal wealth and laundered money after the media had reported on his buying 14 houses in the United States. The inquiry has stalled. In 2019, the commission began inquiries of 22 former and sitting members of parliament, including several of the ruling Awami League, on charges of corruption, but the inquires have not been completed. The inquiry of the non-funded part of the Hallmark Group scam involving the embezzlement of Tk 12 billion has been pending for 12 years. The inquiry began in 2012. Most of the inquiries and investigations of corruption and irregularities in the health sector during the Covid outbreak has been pending for three years. More than a hundred people listed by the commission are suspected to have been involved in corruption in recruitment, tender forgery, purchase wrongdoings, illegal involvement in business and the accumulation of illegal wealth. The commission seeks to put the failure down to inadequate human resources, claiming to have put efforts in completing the tasks in time and hoping for a better future.

But what it comes down to is the commission's glaring failure to complete its tasks in time and making delays that not only denies justice, going by the legal maxim of 'justice delayed is justice denied', but also adds to the culture of impunity, entailing further injustice. The commission also must learn to rise above politics if there were any political considerations in the failure and delay at hand. The commission must live up to its mandate.​

 

[Saif]

Another public project gone awfully awry

Lack of progress in hi-tech parks project is unacceptable

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Another public project gone awfully awry
Lack of progress in hi-tech parks project is unacceptable

VISUAL: STAR

It is totally unacceptable that a project that was slated for completion in three years has achieved only 14.34 percent of physical progress after seven years. This glacial and, frankly, ridiculous pace of work has been noticed in an undertaking meant to build 12 hi-tech parks in various districts. Considering its nature, you would have thought a government so intent on bringing about the country's digital transformation would take it more seriously, especially when most of the budget is being borrowed from outside the country, indicating its significance. But this is how the project has ended up, like so many others before it, according to a report citing findings of the planning ministry's Implementation Monitoring and Evaluation Division (IMED).

The government initiated the project in April 2017, with the strategically placed hi-tech parks envisioned to prepare the nation for the future by fostering a skilled workforce in the information technology sector. It was originally scheduled to be complete by June 2020, but has since seen its deadline extended multiple times. The latest proposal is asking for a 2027 deadline, and an increase from the original budget of Tk 1,796 crore to Tk 2,000 crore. Even though project authorities claim more progress than shown by the IMED report, the level of progress claimed to have been achieved is still miniscule and varies widely among the parks, with some barely even started.

How will the authorities justify this abysmal pace of work? As per our report, it has been attributed to various financial and logistical issues, including insufficient allocations, COVID-19 pandemic, land acquisition issues, etc. But this is hardly convincing. Those behind the project should have accounted for potential challenges and have contingency strategies in place to deal with them. A proper feasibility study would have resolved many of the issues that arose. Clearly, what has really slowed the progress is systemic neglect and mismanagement which, combined with a lack of accountability for public officials, have undone so many projects before. The economic implications of such frequent cost and time overruns cannot be stressed enough.

The hi-tech parks project was meant to be a cornerstone of Bangladesh's vision for a digital future. Instead, it has become a cautionary tale of how ambitious plans can falter without effective execution. We urge the authorities to put their foot on the accelerator and resolve all issues preventing the timely execution of this project.​

 

[Saif]

ACC seeks info over Islami Bank’s Tk 3,300cr loan scam

The Anti-Corruption Commission on Monday sent letters to Bangladesh Bank and Islami Bank Bangladesh for second time, seeking information regarding the...

www.newagebd.net

ACC seeks info over Islami Bank's Tk 3,300cr loan scam
Staff Correspondent 09 July, 2024, 00:52

The Anti-Corruption Commission on Monday sent letters to Bangladesh Bank and Islami Bank Bangladesh for second time, seeking information regarding the Tk 3,300 crore loan scam.

The ACC in the letters sought the audit reports of loans along with the related documents of 11 companies of Nabil Group from the central bank and Islami bank.

A team of the commission, led by its deputy director Yasir Arafat, sent the two letters as part of the inquiry over the embezzlement of Tk 3,300 crore in the name of loan in favour of three fake companies, said the ACC officials.

The ACC sent the letters requesting the BB and Islami Bank to provide the information within seven working days for the relevant documents.

The commission sought information regarding the loans of Islami Bank's Chattogram's Chaktai branch customer, M/s Murad Enterprise; Khatunganj branch customer, Century Food Products Limited; and Jubilee Road branch's customer, United Super Trader.

The ACC secretary Khorsheda Yasmeean on Monday said that, 'A complaint of embezzlement of about Tk 3,300 crore from the related branch of Islami Bank PLC in Chittagong came to the ACC.'

A three-member inquiry team has been formed, and the team sent letters to the authorities concerned for the sake of inquiry, she said.

The ACC letter stated that the commission was conducting an inquiry against the owner of the United Super Traders, Golam Kibria Chowdhury, and others over the allegations of misappropriation of 3,300 crore of taka in the name of a loan from Islami Bank.

In the letter, the information of 11 companies of Nabil Group was sought from the Islami Bank's Gulshan Corporate Branch in Dhaka, Rajshahi and New Market Branch, Rajshahi, and Pabna Branch.

Nabil Group companies include Nabil Naba Foods Limited, Nabil Cold Storage, Nabil Feed Mills Limited, Nabil Auto Rice Mills, Nabil Auto Flower Mills, Shimul Enterprises, Naba Agro Trade International, Anwara Trade International, Naba Pharma Limited, Nabil Green Crops Limited, and International Product Palace.

The ACC officials said that it sent the first letter to the BB in November 2023, seeking the documents. But in January, the central bank said that as the inspection of the mentioned institutions was ongoing, the prepared report would be sent after the completion of the inspection.

According to the inspection report of the BB in the past year, loans of Tk 3,300 crore were given to Century Food Products, United Super Traders, and Murad Enterprises through those three branches of Islami Bank.

The central bank, however, did not find the existence of these institutions at the address used in the loan documents. In these nominal papers, new debts are created in the name of the companies, and the previous liabilities are adjusted.​