[🇧🇩] Corruption Watch

[Saif]

ACC not yet free from influences

Experts and stakeholders have underscored reforms in the Anti-Corruption Commission that would empower it to act with effective independence in its fight against corruption, freeing it from both political and bureaucratic influences...

www.newagebd.net

ACC not yet free from influences
Solamain Salman 28 November, 2024, 00:28

Experts and stakeholders have underscored reforms in the Anti-Corruption Commission that would empower it to act with effective independence in its fight against corruption, freeing it from both political and bureaucratic influences.

Their opinion has come as one in a set of recommendations which also include giving more power to the anti-graft body.

Most of the times since its establishment, the top three officials—chairman and two commissioners—have been appointed from among retired bureaucrats, while serving bureaucrats have been appointed to other key posts, including the secretary and directors general.

Although a search committee is there whose task is to recommend six potential names for the president to pick three officials from, in reality retired civil servants were awarded the positions in most cases.

The government, by dint of its authority for appointing the top brass of the organisation, placed its favoured officers in the commission and maintained comfortable control over it. As a result, the agency’s ability to act with independence in fighting corruption had remained severely tied down right from its establishment in 2004, experts told New Age.

Despite officially being an independent agency, the anti-corruption commission has rather been used as a weapon by the political governments against their opponents, they observe.

For the same reason, the agency could rarely take into account the corruption allegations brought against the powerful ones, particularly the politicians, bureaucrats and businesspeople belonging to or associated with the ruling parties, experts have said.

Even the commission, in most cases, had failed to initiate an inquiry or file any cases against powerful quarters without a go-ahead from the government.

Transparency International Bangladesh executive director Iftekharuzzaman observes, ‘The ACC never had played a role as an independent body as the partisan governments held the agency hostage, while it was all through controlled by the bureaucrats.’

‘All the political governments used the ACC as a weapon for harassing opposition people in the past, but the trend should change to fight corruption,’ he adds.

The Anti-Corruption Commission must be freed from political and bureaucratic influences with some of its rules requiring amendment to enable it to work independently, according to Iftekharuzzaman, also head of the ACC Reform Commission, one of the reform commissions recently formed by the incumbent interim government.

‘Reform is needed to free the ACC from the influence of bureaucrats and government, while there is also a need for political and administrative reforms,’ he added.

‘There is a search committee to appoint the chairman and commissioners [of the ACC], but there is no policy regarding the selection of the chair and commissioners, and none but those close to the government get appointed to these posts,’ said former anti-corruption commission director general Moyeedul Islam.

‘The government appointed people close to it. Being appointed, they worked according to the will and interest of the political governments instead of exercising its role as an independent body,’ he said.

‘The independence is only on paper. The ACC never showed its independence despite having strong laws,’ Moyeedul said.

Another former commission director general, Sayed Iqbal Hossain, underscores empowering the selection committee to work independently, saying, ‘The selection committee should be given the opportunity to work impartially, free from the influence of the government or any other groups, to recommend names of commissioners for appointment.’

The appointment in deputation at the anti-corruption commission should also be limited, he further suggests.

Iqbal also suggested bringing transparency to the selection of graft complaints, ensuring proof of receipt of each complaint, and ensuring immediate entry in the Investigation and Prosecution Management System.

He also suggested that skilled human resources should be developed for conducting investigation of money laundering complaints competently.

He also observes that the special judges’ courts which are tasked with dealing with the graft cases should not deal with other cases for quick completion of the cases, reducing the backlog.

‘Above all, the ACC should be granted the status of a constitutional and legal institution to make it a truly powerful institution like India’s Central Bureau of Investigation, and the United States’ Federal Bureau of Investigation,’ Iqbal added.

Former commission director general Moyeedul Islam is also for a powerful permanent prosecution unit at the agency, saying, ‘It is essential to establish an efficient and strong permanent prosecution unit at the ACC by formulating necessary rules as per section 32(2) of the ACC Act.’

He also suggests establishing a new court or tribunal to try only the corruption cases to reduce the backlog through expedited trial proceedings.

‘A provision should also be made to prohibit appeal revision in the High Court during the interim period before the case is settled,’ he said.

‘To expedite the final disposition of all corruption cases, it is necessary to form two or three completely separate anti-corruption appellate courts or tribunals, comprising of qualified judges from the High Court.’ Moyeedul added.

Stakeholders have also referred to the ACC Act, 2004 they says that the commission shall be an independent and impartial agency and so its officers must also have the freedom to work making it an independent body.

Section 54(2) of the ACC (Employees) Service Rules, 2008 states, however, says, ‘Notwithstanding anything to the contrary in these rules, the competent authority may, without mentioning any reason, remove any employee from service by giving him 90 days’ notice or by paying him 90 days’ salary in cash.’

‘It is never possible for the officers to work independently and impartially if this sword (section 54) is hanging over their heads,’ said a current director general of the ACC.

But the commission has no power to take any legal actions against any of the officials posted there in deputation from other government offices for any wrongdoing.

The commission’s reputation is compromised as many of its officers do not have adequate experience, understanding and skills regarding conducting inquiries and investigations into graft charges.

Also the commission’s Money Laundering Unit must be strengthened to bring back assets laundered abroad, according to experts.

Seven state agencies, including the ACC, are working to prevent money laundering, but all their efforts are fraught with a severe lack of coordination.

To bring back laundered money abroad, apart from vesting adequate power in the anti-corruption commission, the commission and Bangladesh Bank must sign agreements with the anti-corruption agencies of various countries.

The commission also needs to be fully digitalised and stop working manually, while a separate intelligence cell should be established within it to strictly monitor its officers and employees, experts suggest.

Apart from rewarding its officials for outstanding performance, they should also be provided with risk allowances.

Amid demands for reforms in the anti-corruption commission following the fall of the Awami League regime amid a student-led mass uprising on August 5, the Transparency International Bangladesh also presented a number of recommendations to the interim government.

It suggested the removal of the administrative and financial powers from the commission secretary that were given to the post through an order in 2023.

The TIB also said that a permanent task force should be formed, involving the Anti-Corruption Commission, Bangladesh Financial Intelligence Unit, National Board of Revenue, Criminal Investigation Department, and the Attorney General’s Office, for effectively fighting corruption and money laundering.

It also said that the provision of obtaining government permission to arrest government employees in criminal cases (Section 41, 1) in the ‘Government Services Act, 2018’ should be revoked.​

 

[Saif]

Politicians, businessmen from Bangladesh own £400m UK property: report

Prominent Bangladeshi figures, including politicians and business leaders accused of corruption, own UK properties worth approximately £400 million.

www.newagebd.net

Politicians, businessmen from Bangladesh own £400m UK property: report
Staff Correspondent 01 December, 2024, 00:13

Representational image. | AFP photo

Prominent Bangladeshi figures, including politicians and business leaders accused of corruption, own UK properties worth approximately £400 million.

An investigation, conducted by The Observer in collaboration with Transparency International, has revealed the information in a report published in the British daily Guardian.

The properties were acquired through offshore companies and family members, with ownership concealed using complex corporate structures, according to the report.

One of the figures is Salman F Rahman, former prime minister Sheikh Hasina’s private industry and investment adviser, who now faces allegations of money laundering.

Members of the Rahman family own – or hold stakes in – seven luxury apartments there, mostly through companies based in offshore jurisdictions, the report said.

One, bought for £26.75m in March 2022, is owned – via a British Virgin Islands company – by Ahmed Shayan Rahman. He also owns another flat in the square that cost £35.5m, according to the findings.

Offshore companies controlled by his cousin, Ahmed Sharyar, own a further four properties worth a combined £23m, in the same square and nearby.

Former Land Minister Saifuzzaman Chowdhury and his family have been linked to over 300 UK properties worth at least £160 million.

Family members of Ahmed Akber Sobhan, linked to the Bashundhara Group, own two vast properties here, acquired for a combined £13m and owned via companies registered in the British Virgin Islands, Golden Oak Venture Limited and Kaliakra Holdings Limited.

A third, a French-style mansion, owned by one of Sobhan’s sons, appeared to be under construction, the Observer investigation found.

One £10m mansion, on a gated estate in London’s Kensington, is owned by Shah Alam’s son and the vice chairman of Bashundhara Group, Safwan Sobhan, through a company called Austino Limited.

A similar arrangement relates to a £5.6m Chelsea waterfront property owned by Safwan’s brother, at a cost of £28m. The apartment was purchased by Red Pine Trading, which is based in the British Virgin Islands but gives its address as a tower in Singapore.

Nazrul Mazumder, the founder and chairman of another Bangladeshi conglomerate, Nassa Group, has also come under scrutiny.

His family owns Kensington properties worth £38 million, while he faces money laundering charges in Bangladesh.

Many of these properties are rented out, providing a steady income stream.

As of 2023, the UK publishes data on overseas entities that hold land titles. But ownership can be easily hidden by simply wrapping the property-owning company inside another offshore vehicle, like an anonymous trust.

This loophole is just one concern shared by those who question the adequacy of the UK’s transparency regime.​

 

[Saif]

Power and energy: A system designed for corruption

No less than $3 billion changed hands as kickbacks in awarding power plant projects during Sheikh Hasina’s autocratic rule, according to a white paper on the state of the economy.

www.thedailystar.net

Power and energy: A system designed for corruption

No less than $3 billion changed hands as kickbacks in awarding power plant projects during Sheikh Hasina's autocratic rule, according to a white paper on the state of the economy.

The white paper, submitted to Chief Adviser Prof Muhammad Yunus at his Tejgaon office yesterday, also highlighted irregularities in other areas of the power and energy sector with the tagline "A System Designed for Corruption".

The corruption and nepotism practiced at the top level trickled down to every project, the report said, adding that the paramount allegation of corruption was in awarding power plant projects in the form of commission.

"With an investment of $30 billion in power generation since 2010, at least $3 billion changed hands as kickbacks," the white paper said.

The report estimated that 10 percent of the project cost was spent as commission.

The report also termed the 2,400-megawatt (MW) Rooppur Nuclear Power Plant as a "misadventure" and overpriced.

Bangladesh is constructing its first-ever nuclear power plant in Pabna's Rooppur at a cost of $12.65 billion, with Russia providing $11.385 billion as credit.

With an initial expense of $550 million, the total cost amounts to $13.2 billion, the report said.

The unit cost of Rooppur stands at stands at $5,500/kWe, which much higher than a similar power plant in India's Kudankulam, the unit cost of which is $3,350/kWe, the report said.

"In the name of fuel diversification, the choice of nuclear was a misadventure. With the same kind of investment, 6,000 to 8,000 MW of renewable, gas or coal power plants could be installed," the report observed.

The power and energy sector in Bangladesh has become a hub for corruption, largely due to a lack of accountability stemming from the Special Provision Act of 2010, which allowed immunity to both government officials and political leaders, the report said.

The Prime Minister's Office (PMO) is the most powerful political institution in the country.

Throughout the period of the past government, the Ministry of Power, Energy and Mineral Resources (MPEMR) had no full-time minister.

Instead, the Prime Minister held additional responsibility as the Minister for MPEMR since 2009.

Under her leadership, ruling political party members, lobbyists, private business, and independent power producers became major stakeholders in this sector, bypassing due processes.

The report said the previous government portrayed a rosy economic future with hyped up growth figures promising energy security based on imported fuel.

Now, 65 percent of the country's primary energy needs to be imported at an annual cost of $10 billion and by 2030 this will rise to $20 billion. This will put pressure on the foreign exchange reserves.

Terming Bangladesh as a Low-Emitting Energy Poor (LEEP) country, with a per capita energy consumption of just 465 kWh (kilowatt hour) per year compared to the global average of 3,000 kWh, the report said that the deposed Awami League government has disproportionately increased the generation capacity without considering demand.

"Despite the forecasts in the 2010 and 2016 Power System Master Plans (PSMP), which projected peak power demand to be 33,700 MW and 27,100 MW respectively, the government inflated the targets for 2030 and 2040 to 40,000 MW and 79,000 MW (later revised to 60,000 MW) under the "Revisiting PSMP 2016" plan.

The government justified this revision by citing ambitious economic growth and lofty expectations for the future.

This approach resulted in a tailored plan by the Power Division that permitted uncontrolled expansion of generation units, facilitating corruption and improper allocation processes through the Quick Enhancement of Electricity and Energy Supply (Special Provisions) Act 2010.

Citing the peak summer demand of 17,000 MW in 2024, the report said that if 10 percent of the capacity is reserved for standby power and another 10 percent allocated for maintenance, the total required generation capacity for supplying the remaining 80 percent is 25,500 MW.

Consequently, the country has maintained nearly 5,000 MW of excess capacity, which is 20 percent more than necessary, leading to significant capacity charges that burden consumers.

With installed capacity far exceeding actual needs and the sector's heavy reliance on imported primary fuels, the entire economy is at risk, particularly as Bangladesh struggles with foreign exchange shortages necessary to finance essential imports, the report said.​

 

[Saif]

Real default loan may exceed 30pc, CA’s press secretary says, citing BB governor

Quoting Bangladesh Bank Governor, the Chief Adviser’s Press Secretary Shafiqul Alam said the real default loan in the banking sector may reach over 30 per cent. Responding to a question at a press briefing on the White Paper on the finance sector, he said the committee had to work based on o

thefinancialexpress.com.bd

Real default loan may exceed 30pc, CA’s press secretary says, citing BB governor
FE Online Report
Published :
Dec 01, 2024 19:44
Updated :
Dec 01, 2024 19:44

Quoting Bangladesh Bank Governor, the Chief Adviser’s Press Secretary Shafiqul Alam said the real default loan in the banking sector may reach over 30 per cent.

Responding to a question at a press briefing on the White Paper on the finance sector, he said the committee had to work based on official data and they were given only three months.

“The white paper report will be revised through incorporating the real data,” he stated when asked why the white paper said that the default loan is 10.2 per cent if the actual figure is over 30 per cent.

Mr Shafiq said the government is committed to bringing back the siphoned money and from December 10, a series of meetings will be held with the FBI and some other international organisations that specialise in recovering stolen money.

Replying to a question, he said that the persons who laundered the money will be brought to justice.

Responding to another question, he said that the recent move to provide Tk 225 billion to the banking sector will not at all impact the inflation situation.

Before the fall, the ousted government printed Tk 600 billion in a bid to help S Alam Group launder money, but the Tk 225 billion provided to the banking sector last week aimed at helping weak banks, he said.​

 

[Saif]

Wealth inequality way worse than income disparity

Bangladesh ranks among the countries with the highest income disparities globally, but there is another problem way worse than that: wealth inequality, which means a minuscule portion of the population owns a disproportionate amount of wealth compared to the majority.

www.thedailystar.net

Wealth inequality way worse than income disparity

Bangladesh ranks among the countries with the highest income disparities globally, but there is another problem way worse than that: wealth inequality, which means a minuscule portion of the population owns a disproportionate amount of wealth compared to the majority.

The Gini coefficient, a way of measuring inequality in a population, increased from 0.48 in 2016 to 0.50 in 2022 for income inequality, according to the white paper.

Meanwhile, wealth inequality rose from 0.82 to 0.84 over the same period, said the "White Paper on the State of the Bangladesh Economy".

These figures were calculated using data from the Household Income and Expenditure Survey (HIES).

A Gini index ranges from 0 to 1, with 0 representing perfect equality and 1 representing perfect inequality. This provides a numerical representation of inequality. A score approaching 0.50, as in Bangladesh's case, indicates a severe level of inequality.

Citing World Bank data, the white paper said among the 72 countries with Gini coefficient data, only Colombia, Brazil and Panama reported values over 0.50 in 2021.

Prepared by a panel of economists and submitted to Chief Adviser Muhammad Yunus on Sunday, the report said, "Although there are issues with the comparability of the estimates across countries, Bangladesh's current income inequality is worryingly high."

The paper mentioned that even the high Gini figures likely underestimate the true extent of wealth inequality due to incomplete data, especially for wealthy households.

For example, the wealthiest 10 percent of income earners, according to the HIES 2022 data, reported owning assets worth only Tk 7.36 lakh.

But Wealth-X, a global financial intelligence and data company, reported in 2018 that Bangladesh has had the highest rise in ultra-wealthy population, surpassing any other country in the world.

The growth rate calculated by Wealth-X stood at a solid 17.3 percent that year.

However, the company didn't reveal how many ultra-rich — those who own at least $30 million or Tk 25 billion — the country had.

Referring to the HIES wealth data, the white paper said, "These figures may seem implausible when compared to casual observations of wealth ownership."

Zahid Hussain, a former lead economist of the World Bank's Dhaka office and also a member of the white paper panel, said the asset Gini coefficient reveals a highly unequal distribution of assets in the country.

"This inequality is perpetuated by intergenerational inheritance, where wealth accumulates among the upper-income class and is subsequently passed down to their children."

This pattern, according to Hussain, also extends to education and human capital, as these advantages are often concentrated within families.

Persistent income inequality is also a cause of asset inequality. This, in turn, reinforces income inequality. "As a result, social mobility is limited and poorer individuals struggle to accumulate assets," Hussain added.

He pointed to the absence of inheritance tax in Bangladesh. This is unlike those in Scandinavian countries and the US, where such taxes play a key role in mitigating asset inequality.

While Bangladesh imposes a surcharge on wealth, its effectiveness is limited. The surcharge ranges from 0 percent for assets up to Tk 4 crore to 10-35 percent for higher asset brackets.

Mohammad Abdur Razzaque, chairman of Research and Policy Integration for Development (RAPID), criticised the current surcharge on wealth.

"What kind of system is it?"

He said the absence of effective policies, rampant tax evasion and corruption contribute to the concentration of wealth among the affluent.

For instance, the real price of land or flats and their registered values often differ significantly. Moreover, tax policies inadvertently encourage wealth accumulation among the affluent, Razzaque said.

Meanwhile, Hussain said massive corruption is another factor contributing to high wealth inequality.

To minimise this disparity, Hussain recommended defining income tax more precisely and enforcing tax compliance. Besides, he called for curbing illegal money generation.

According to the World Inequality Database, the bottom 50 percent of the Bangladeshi population owns only 5 percent of the country's assets.

The white paper said, "Despite underreporting, land accounts for half of the reported wealth and is heavily concentrated among the rich."

A breakdown of asset distribution by consumption decile reveals that land and real estate constitute over half of the total wealth accumulated across consumption deciles.

Real estate wealth inequality can stem from concentrated land ownership or appreciation of land and property values. Households in the highest income decile own the most significant portion of real estate.

They also show a higher propensity to invest in return-generating assets like stocks, bonds, and jewelry in both 2016 and 2022.

While the differences in the average land ownership among rich and poor households are relatively small, with the richest quintile owning only 0.03 acres more on average, the real disparity lies in land value.

Land values for the upper quintile were significantly higher in 2016 and increased dramatically by 2022, unlike those for lower quintiles.

The primary factors driving this stark inequality in land value are location, access to infrastructure, and utilities.

The disparity in land value appreciation across quintiles suggests that government infrastructure investments have disproportionately benefited the wealthy while neglecting the poor.​

 

[Saif]

Tk 1.46t bribes paid in service sectors in 15 years: TIB

Service-seekers in Bangladesh paid an estimated Tk 1.46 trillion in bribes between 2009 and April 2024 to access essential services, according to a new survey by the Transparency International Bangladesh (TIB). This period corresponds to the tenure of the previous Awami League government. Some 70

thefinancialexpress.com.bd

Tk 1.46t bribes paid in service sectors in 15 years: TIB
FE REPORT
Published :
Dec 04, 2024 09:35
Updated :
Dec 04, 2024 09:35

Service-seekers in Bangladesh paid an estimated Tk 1.46 trillion in bribes between 2009 and April 2024 to access essential services, according to a new survey by the Transparency International Bangladesh (TIB).

This period corresponds to the tenure of the previous Awami League government.

Some 70.9 per cent of households experienced corruption while accessing services from various public and private sectors or institutions in 2023, the survey titled "Corruption in Service Sectors: National Household Survey 2023" revealed.

The findings were unveiled at a press conference held at the TIB headquarters in the capital on Tuesday. The survey revealed passport is the most corruption-prone service sector, with 86 per cent of households reporting irregularities.

According to the TIB, the estimated Tk 1.46 trillion in bribes or unauthorised payments was calculated based on findings from six national household surveys conducted in 2010, 2012, 2015, 2017, 2021, and 2023. Since 1997, the TIB has conducted 10 national household surveys, with the latest one in 2023.

The 2023 survey identified passport (86 per cent) as the most corrupt sector, followed by Bangladesh Road Transport Authority (BRTA) (85.2 per cent), law enforcement agencies (74.5 per cent), judicial services (62.3 per cent), land services (51 per cent), public healthcare (49.1 per cent), and local government institutions (44.2 per cent).

It showed that overall, 50.8 per cent of households reported paying bribes or being forced to pay unauthorised money to access services.

The highest incidence of bribery was reported in passport services (74.8 per cent), followed by BRTA (71.9 per cent), law enforcement agencies (58.3 per cent), judicial services (34.1 per cent), land services (32.3 per cent), and local government institutions (29.7 per cent).

Among the households that paid bribes, 77.2 per cent cited the reason as "services cannot be obtained without paying a bribe", highlighting a concerning institutionalisation of bribery practices.

In this survey, households that had to pay bribes or unauthorised money while availing services from the included sectors/institutions during the period from May 2023 to April 2024 paid an average of Tk 5,680 per household.

Among the sectors/institutions receiving the highest bribe or unauthorised payment, judicial services (Tk 30,972 on average per household), land services (Tk 11,776 on average per household), banking services (Tk 6,681 on average per household), and BRTA services (Tk 6,654 on average per household) were prominent.

During the reference period of the survey, the estimated total amount of bribes or unauthorised money transacted across all included sectors/institutions was approximately Tk 109.02 billion, which is 1.4 per cent of the national budget (revised) for the 2023-24 fiscal year and 0.2 per cent of the gross domestic product (GDP).

The survey said the impact of bribes and unauthorised payments is comparatively high on low-income households.

Households with a monthly income below Tk 24,000 spend 0.93 per cent of their annual income on bribes, whereas for households with a monthly income exceeding Tk 85,000, the amount drops to 0.21 per cent.

The survey also revealed that corruption and bribery experienced by women, religious minorities, indigenous peoples, and individuals with disabilities create an additional burden on their limited socioeconomic capabilities, exacerbating their marginalisation.

Most respondents identified impunity, lack of social awareness, and rewarding corrupt individuals as the main reasons for corruption.

Meanwhile, 77.2 per cent of households who were victims of bribery stated that they had to pay bribes because "services cannot be obtained without paying bribes".

The fear of procedural complexities and harassment leads to a noticeable reluctance among households to file complaints despite being victims of corruption.

Regarding the process/mechanism for lodging complaints, the majority (59.6 per cent) of households have no idea about it, while those who do (40.4 per cent) know have very limited knowledge, particularly about the Anti-Corruption Commission (ACC) and the Grievance Redress System (GRS).

Speaking at the event, TIB Executive Director Dr Iftekharuzzaman said the survey highlighted the pervasive nature of corruption in both government and certain private service sectors.

He called for systemic reforms to address the structural issues enabling bribery and irregularities, emphasising the need for greater accountability and transparency in service delivery.

The survey was conducted among 15,515 households, representing a diverse cross-section of the population.

The TIB said legal actions must be taken against individuals involved in corruption within service sectors. In this regard, the ACC, as well as the relevant departments and institutions, should play an active role where applicable, it added.​

 

[Saif]

Tools against corruption should not be rhetorical

PASSPORT, road transport administration, law enforcement and judicial services have come up to be the top four corrupt services sectors from 2017 to 2023, as Transparency International Bangladesh surveys for 2023, 2021 and 2017, the latest three of the surveys that the corruption watchdog have...

www.newagebd.net

Tools against corruption should not be rhetorical
05 December, 2024, 00:00

PASSPORT, road transport administration, law enforcement and judicial services have come up to be the top four corrupt services sectors from 2017 to 2023, as Transparency International Bangladesh surveys for 2023, 2021 and 2017, the latest three of the surveys that the corruption watchdog have published since 1997, show. In the 2021 and 2017 surveys, the most corrupt service sectors were the same and in the same order — law enforcement, passport, road transport administration and judicial services. Only in the latest, Corruption in Service Sectors: National Household Survey 2023 that was made public on December 3, passport services have topped the list and road transport administration services have defeated law enforcement. Land services sector has come in the fifth place in the 2023 survey whilst in the fifth place, it was health services sector in the 2021 survey and land services sector in the 2017 survey. The 2015 survey lists passport, law enforcement, education, road transport and land administration services as the most corrupt sectors and the 2012 survey lists law enforcement, judicial services, education, agriculture, and tax and customs services as the most corrupt sectors. All this suggests that the government’s claimed commitment towards eliminating corruption, including the National Integrity Strategy that was introduced in October 2012, was hardly anything but rhetorical.

The latest report shows that about 71 per cent of the households surveyed faced corruption in getting services in 2023 and 50.8 per cent of the households had to pay bribes for services. It further shows that service-seekers paid Tk 109.02 billion in bribes to get services in 2023 which accounts for 0.22 per cent of the gross domestic product for the 2024 financial year. The survey also adds that service-seekers have paid Tk 1,460 billion in bribes between 2009 and April 2024, almost the whole consecutive tenures of the Awami League government, which was toppled in a mass uprising on August 5, to access essential services. The 2023 report says that 86 per cent of the households seeking passport services faced corruption against 70.5 per cent that the 2021 report showed. In road transport administration services, 85.20 per cent of households are reported by the 2023 survey to have faced corruption against 68.3 per cent in the 2021 survey whilst in law enforcement services, 74.5 per cent of the households are reported by the 2023 survey to have faced corruption against 70.5 per cent as reported in the 2021 survey. Transparency International Bangladesh says that there are several tools to fight corruption but they have not been properly used, causing the persistence of high levels of corruption.

If no surveillance, no punishment for offences and rhetorical steps continue to persist, it is only natural that corruption could be institutionalised. If corruption becomes institutionalised, the row would be hard enough for the authorities to hoe. The government should, therefore, take legal action against individuals and quarters involved in corruption and strengthen institutions of accountability and other public agencies so that they could play a role in fighting corruption. In the changed political context, which came about with the toppling of the Awami League government, it should not be that hard given the will.​

 

[Saif]

Policy swings, corruption lead to forex market crisis

Regulatory mood swings and corruption during the Awami League regime created disorderly conditions in the foreign exchange market, which led the foreign exchange reserves declining to levels too low for comfort, according to the White Paper on the State of Bangladesh economy submitted to chief...

www.newagebd.net

Policy swings, corruption lead to forex market crisis
Staff Correspondent 05 December, 2024, 22:13

A file photo shows a man counting dollar notes in the capital Dhaka. Regulatory mood swings and corruption during the Awami League regime created disorderly conditions in the foreign exchange market, which led the foreign exchange reserves declining to levels too low for comfort, according to the White Paper on the State of Bangladesh economy submitted to chief adviser Muhammad Yunus on Sunday. | New Age photo

Regulatory mood swings and corruption during the Awami League regime created disorderly conditions in the foreign exchange market, which led the foreign exchange reserves declining to levels too low for comfort, according to the White Paper on the State of Bangladesh economy submitted to chief adviser Muhammad Yunus on Sunday.

The white paper submitted by a 12-member committee headed by economist Debapriya Bhattacharya observed that the Bangladesh Bank’s erratic policies, lack of transparency, and their consequences were responsible for the country’s financial health.

‘BB’s mood swings on exchange rate policy turned lethal when a multiple fixed exchange system was put in place in September 2022, disrupted the foreign exchange market. It discouraged the repatriation of export proceeds and remittance through formal channels and incentivised capital flight,’ it said.

Confidence among international lenders deteriorated, leading to credit downgrades and reduced external financing options, it said.

The government sought an International Monetary Fund programme to mitigate external imbalances, but policy inconsistencies remained a concern.

Historically, the BB operated under a managed floating exchange rate system from 2003 to 2022, but the recent shift to a multiple fixed exchange rate regime marked a departure from this approach.

The resulting market distortions highlighted the challenges of sustaining an artificially controlled exchange rate in the face of global and domestic pressures.

With the dollar being central to Bangladesh’s trade and finance, underpricing and multiplicities in exchange rates created loopholes for bypassing the system.

The report revealed that the BB overstated its foreign exchange reserves. While the central bank claimed $46 billion in June 2021, an IMF review identified only $39 billion in reserves.

Trade and current account deficits exerted significant pressure on reserves.

The trade deficit tripled from $9.5 billion in FY17 to $33.2 billion in FY22, while the current account deficit surged from $1.3 billion to $18.6 billion during the same period.

These deficits were exacerbated by rising global commodity prices, a stronger US dollar, and declining exports to non-US markets.

Another concerning trend was the rapid increase in unaccounted outflows, reported under errors and omissions.

Between FY22 and FY24, these outflows totalled at $19 billion, compared with those of just $1.5 billion in the preceding three years.


The report linked these figures to capital flights, saying that it was supported by anecdotal evidence of funds leaving the country before the August 2024 political transition.

The foreign exchange market faced persistent shortages as BB’s interventions failed to address underlying issues.

Artificially low exchange rates widened the gap between official and parallel markets, diverting dollar inflows to informal channels.

Banks depleted their NOSTRO accounts, and the BB sold substantial amounts of foreign currency — $13.58 billion in FY23 and $12.79 billion in FY24 — to settle import bills, particularly for state-owned entities like the Bangladesh Petroleum Corporation.

However, a lack of public disclosure about these transactions fuelled speculation and mistrust.

Exchange rate volatility further aggravated inflation.

The taka depreciated steadily against the US dollar, moving from Tk 60 a dollar in FY2003 to Tk 84.81 in FY21, with sharper declines from FY22 onward.

The US dollar reached a two-decade high in September 2022, driving inflation higher.

The white paper noted a strong correlation between the exchange rate and inflation, with headline inflation and food inflation closely tracking currency depreciation.

Corruption and regulatory inefficiencies during the Awami League regime eroded the credibility of Bangladesh’s financial institutions, exacerbating economic vulnerabilities, the report observed.​

 

[Saif]

White Paper finds systematic corruption in health sector

The White Paper on the State of Bangladesh Economy finds rampant systematic corruption in health sector through procurement and supply chain management, outsourcing of services, and career mobility of young doctors....

www.newagebd.net

White Paper finds systematic corruption in health sector
Staff Correspondent 06 December, 2024, 00:11

The White Paper on the State of Bangladesh Economy finds rampant systematic corruption in health sector through procurement and supply chain management, outsourcing of services, and career mobility of young doctors.

Corruption was also reported in connection with pharmaceuticals, diagnostics tests, private hospitals, and through appointments, promotions, transfer, leave permission of doctors and health professionals.

On December 1, a 12-member committee headed by economist Debapriya Bhattacharya submitted the report to the interim government chief adviser Professor Muhammad Yunus.

The interim government formed the committee on August 29 following taking over power on August 8 after the fall of the longest serving prime minister Sheikh Hasina in a student-led peoples uprising on August 5.

According to the paper, the Directorate General of Health Services has more than 60 procurement entities under its umbrella.

The DGHS oversees the procurement of various medical and non-medical commodities essential for healthcare provision. In this system of procurement, the health related products are being bought through open tender where, allegedly, the corruption is rampant.

There are instances where the under-the-table dealing is to receive less/quality compromised products that are not at par as specified in the tenders.

Deployment of human resources to clean and run a hospital with health workers, ‘outsourcing’ of such service deliveries in public hospitals, community clinics have been introduced.

There has been allegedly widespread corruption in contracting out the services, and largely, the services provided by the outsourced service providers are unsatisfactory to public health service entities.

The paper said that it was a common practice in the health service sector that pharmaceutical companies through their representatives maintain a good relationship with the practicing doctors so that doctors prescribe their medicines.

The paper said that the doctors and diagnostic centres are allegedly believed to be connected. The diagnostic centres use to offer doctors a percentage of the test cost which is borne by the patients. It is a common complaint by the patients in Bangladesh that the doctors suggest for unnecessary diagnostic tests.

According to the White Paper, the country lost $16 billion annually on an average between 2009 and 2023 because of the illicit fund flow amid systemic tax evasion, misuse of exemptions, and poorly managed public finances under the authoritarian Awami League regime.

The white Paper revealed that the significant fiscal opportunities lost to corruption, stated that halving tax exemptions could double education funding and triple health allocations.​

 

[Saif]

Bribery has cost the nation dearly

That service seekers in the country are hapless victims of bribery and corrupt practices of the public service delivery system had remained endemic until the first quarter of this year under review. A recent survey by the Transparency International Bangladesh (TIB) throws further insight revealing

thefinancialexpress.com.bd

Bribery has cost the nation dearly
FE
Published :
Dec 06, 2024 00:10
Updated :
Dec 06, 2024 00:10

That service seekers in the country are hapless victims of bribery and corrupt practices of the public service delivery system had remained endemic until the first quarter of this year under review. A recent survey by the Transparency International Bangladesh (TIB) throws further insight revealing a detailed account of the pervasive culture of bribery in the country. The findings underscore the staggering extent of this entrenched malpractice. Between 2009 and April 2024, an estimated Tk 1.46 trillion was paid in bribes by service seekers to access essential services. According to the survey, a shocking 70.9 per cent of households encountered corruption while engaging with various public and private sector institutions.

The data, drawn from six national household surveys conducted between 2010 and 2023, highlight widespread corruption across sectors. Passport-related services saw the highest incidence of bribery (74.8 per cent), followed closely by the Bangladesh Road Transport Authority (71.9 per cent), law enforcement agencies (58.3 per cent), judicial services (34.1 per cent), land services (32.3 per cent), and local government institutions (29.7 per cent). An astounding 77.2 per cent of households that paid bribes felt it was an unavoidable part of the system, where services were inaccessible without such payments. Between May 2023 and April 2024 alone, households paid on an average of BDT 5,680 in bribes, with the total reaching Tk 10,902 crore. This sum equates to 1.44 per cent of the national budget for 2023-24 and 0.22 per cent of GDP. These corrupt practices disproportionately affect low-income and marginalised groups, who often lack the means to cope with additional financial burdens. Households earning below BDT 24,000 per month spent nearly 0.93 per cent of their annual income on bribes. Women, religious minorities, indigenous communities, and individuals with disabilities face greater challenges. Women, in particular, are significantly affected in sectors like local governance and education, where corruption hinders their participation and progress.

The survey also finds that in-person service delivery is more prone to corruption compared to digital or mixed methods (partly on-line, partly in-person). Despite efforts to digitise services, corruption persists due to flawed implementation. The reliance on mixed methods, where digital systems are only partially used, creates loopholes that facilitate bribery. This indicates a pressing need to fully digitise service delivery, as partial measures fail to eliminate opportunities for corruption. The absence of comprehensive digitisation and the persistence of impunity for corrupt officials exacerbate the problem. Bribery thrives in an environment where accountability mechanisms are weak and consequences for unethical behaviour minimal.

The TIB's recommendations highlight critical reforms to address these challenges. Strengthening the Anti-Corruption Commission (ACC) and other relevant institutions is paramount. Full digitisation of services, coupled with the implementation of "one-stop" service systems, could significantly reduce direct interactions and opportunities for bribery. The adoption of modern codes of conduct, including clear protocols, timelines, and service standards, along with mechanisms for recipient feedback, is essential for fostering accountability. These measures are not just idealistic aspirations; they represent foundational steps the government must take to combat corruption effectively. With the interim government committed to restructuring state operations, prioritisation of these reforms is crucial to restoring public trust and ensuring equitable access to essential services.​

 

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Dev projects still marred by misspending, wastage: adviser

Adviser for power, energy and mineral resources Muhammad Fouzul Kabir Khan on Friday said that development projects in Bangladesh were still besmirched with wastage and misspending.

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Dev projects still marred by misspending, wastage: adviser
Staff Correspondent 06 December, 2024, 23:02

Muhammad Fouzul Kabir Khan | File photo

Adviser for power, energy and mineral resources Muhammad Fouzul Kabir Khan on Friday said that development projects in Bangladesh were still besmirched with wastage and misspending.

He made the remark at the inaugural event of the 6th National HR Convention 2024 organised by the Federation of Bangladesh Human Resource Organisations at Southeast University in the capital Dhaka on the day.

‘The government does not have the means to understand these things. Different donor agencies and consultants explain these issues to us,’ he said.

‘We have already seen the consequences of wastage once. If these misspending and wastages continue, there will be an even bigger rebellion next time. Some think that the interim government is a one-time episode, but it’s not,’ Fouzul Kabir Khan added.

‘When I go on field trips and talk to the people, I observe that the anger still remains inside them,’ the power adviser said.

‘Karnaphuli tunnel was built at the cost of Tk 10,000 crore, however, I have observed while visiting, vehicles do not use that tunnel much. There is no end to wastage in development projects wherever I go,’ the adviser noted.

Fouzul said, ‘A power plant was built in Rupsha, Khulna, costing Tk 8,000 crore, but there is no gas available for it. On my way back, I saw that Tk 41,000 crore was spent on the Padma rail bridge, though a few thousand crore was saved in the final stages.’

He continued, ‘I learned that the project was expected to generate Tk 1,400 crore in revenue every year, and I thought it was a good initiative. However, in six months, it only earned Tk 37 crore in revenue, according to officials. This is how these projects are justified.’

He pointed out that such actions were simply wasteful and said that the blame did not lie only with politicians, government officials were also involved.

Md Sabur Khan, chairman of Daffodil International University and Global Entrepreneurship Network- Bangladesh Chapter, among others, was present in the event.​

 

[Saif]

Businesses call to curb red tape, corruption to spur investment

Investment barriers at the National Board of Revenue (NBR) and the Office of the Registrar of Joint Stock Companies and Firms (RJSC) must be addressed immediately to bolster investor confidence and increase investment growth, according to experts and top business leaders.

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Businesses call to curb red tape, corruption to spur investment

Investment barriers at the National Board of Revenue (NBR) and the Office of the Registrar of Joint Stock Companies and Firms (RJSC) must be addressed immediately to bolster investor confidence and increase investment growth, according to experts and top business leaders.

The laws concerned must be amended right away in order to end the culture of bribery and establish corruption-free service organisations, they suggested.

"Facilitation of trade and investment must be a priority. A trade and investment commission with active participation from the private sector is required," Ashraf Ahmed, president of the Dhaka Chamber of Commerce and Industry (DCCI), said while speaking with The Daily Star recently.

He added that many reforms could be implemented immediately, such as those that can be initiated through executive orders or require changes in the rules rather than the law.

However, some major reforms will require changes to existing laws. So, they will require approval from parliament.

According to Ahmed, numerous laws must be updated to reflect changing global circumstances and business needs. This includes the Companies Act 2014, Export Import Control Act 1950, Foreign Exchange Regulation Act 1947, Competition Act, Income Tax Act, Customs Act, and VAT Act.

Ahmed said amending and updating these laws is required to create a conducive environment for investment.

However, many reform opportunities which will not require changes in the law also exist, such as automation of filing procedures for the RJSC, Chief Controller of Import and Export or customs.

Mohammed Amirul Haque, managing director of Premier Cement Mills, stressed the need for a platform that will focus on trade and investment as well as address problems and bottlenecks faced by entrepreneurs.

He alleged that the inconsistent policy governing the adjustable advance income tax of investors was discouraging investment by increasing the business cost by around 10 percent.

Haque added that entrepreneurs would have to keep a 35 percent profit margin to sustain the businesses in line with the existing income tax law.

This type of bottleneck indirectly encourages the siphoning of money, he alleged.

Asif Ibrahim, former president of DCCI, said the business community hopes the burning issues in the private sector of Bangladesh will now get due priority from the interim government.

Ashik Chowdhury, executive chairman of the Bangladesh Investment Development Authority (Bida), said he met over 300 chief executive officers over the past 50 days to identify the challenges faced by businesses and was focusing on addressing the barriers.

"Basically, I am doing this to bring necessary changes and reforms to create a business-friendly environment," he said.

According to Chowdhury, everybody acknowledges that corruption occurs at the NBR, posing a major obstacle to doing business transparently and smoothly.

Zaved Akhter, president of the Foreign Investors' Chamber of Commerce and Industry (FICCI), said although no reform commission has been formed regarding investment, all the reforms that have been taken will ultimately support investment and business.

Bangladesh is the only country in the world where investors raise capital for investment from the money market, he said, while investors in other countries raise capital from the stock market. Reforms are needed in this area, he suggested.

However, he said initiatives taken to change the structure of the stock market would undoubtedly support the investment.

Investment reforms should come mainly from the Bida, where everything can be done under one umbrella, he said, adding: "If the initiatives taken by the BIDA can be implemented, the confidence of investors will increase."

He added: "I am extremely confident that these changes will help create an environment for doing business."

Mohammad Hatem, president of the Bangladesh Knitwear Manufacturers and Exporters Association, said a zero-tolerance policy must be formulated immediately and implemented to improve the state of law and order.

Additionally, he advocated for trade associations to be free of politics.

M Masrur Reaz, chairman and chief executive officer of the Policy Exchange of Bangladesh, said think tanks have already conducted a lot of research on how to build an investment-friendly environment and attract FDI.

"All the barriers have been detected. We just need the Bida or another high-powered government entity to address the issues by implementing the recommendations," he said.

In order to boost the confidence of foreign investors, he emphasised the importance of improving the ease of doing business.​

 

[Saif]

Capital flights, corruption make ensuring equality challenging

Planning and education adviser Wahiduddin Mahmud on Saturday said that building an equitable society in the current reality was challenging, given that huge capital flights, corruption and massive irregularities...

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Capital flights, corruption make ensuring equality challenging
Staff Correspondent 07 December, 2024, 23:01

Planning and education adviser Wahiduddin Mahmud. | File photo

Planning and education adviser Wahiduddin Mahmud on Saturday said that building an equitable society in the current reality was challenging, given that huge capital flights, corruption and massive irregularities had constrained investments in education, health, human resource development and other areas.

He made the comment at the inaugural session of the Annual BIDS Conference on Development (ABCD) 2024, organised by the Bangladesh Institute of Development Studies at the Hotel Lakeshore at Gulshan in the capital Dhaka.

Wahiduddin, also an economist, inaugurated the four-day development conference titled ‘Equality, Opportunity, Freedom, and Dignity for Equitable and Sustainable Development’.

BIDS director general Binayak Sen delivered the opening remarks during the inaugural session.

Discussing how Bangladesh could build an equitable society following the student-led mass uprising, Wahiduddin highlighted the severe resource constraints faced by the interim government.

He pointed out that significant amounts of money were siphoned off abroad, while domestic funds remained in banks but were inaccessible.

Regarding the projects initiated during the previous government’s tenure, he pointed out that several projects were prestige-driven, undertaken primarily for publicity rather than necessity.

The interim government is now re-evaluating their purposes and outcomes, he said.

‘We are still trapped in the lower middle-income bracket, far from achieving what the Philippines has, let alone Malaysia,’ the adviser observed.

He mentioned that Vietnam’s per capita income in the 1990s was similar to Bangladesh’s.

‘Now Vietnam’s per capita income is 40-50 times of Bangladesh. They secure $20 billion annually in foreign direct investment, while we attract just $2 billion,’ he said.

‘We lack substantial global economic integration and need significant advancements in education and technology,’ he added.

Regarding Bangladesh’s LDC graduation, he highlighted the country’s qualification twice for the graduation.

Seeking an extension to remain an LDC is seen as regressive, he said.

‘Once qualified, a nation must graduate. We need active global engagement to navigate this shift,’ he added.

Wahiduddin Mahmud also expressed hope that Bangladesh would see an elected government in 2025.

‘No country can become rich overnight. It requires collective efforts and a sustained strategy. Our interim government is here for a short term,’ Wahiduddin said.

The interim government led by Nobel laureate Muhammad Yunus was formed on August 8 following the fall of the authoritarian regime of Sheikh Hasina, who fled to India amid a student-led mass uprising on August 5.

Indermit S Gill, the chief economist of the World Bank Group, said, ‘To escape being trapped in slower growth, middle-income countries need to balance the economic forces of creation, preservation and destruction.’

Middle-income countries which are home to six billion people, are in a race against time, he said.​

 

[Saif]

Mass uprising renews call to combat corruption

The country will observe International Anti-Corruption Day today with a fresh call to combat the widespread corruption upholding the spirit of the student-people uprising...

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Mass uprising renews call to combat corruption
Solamain Salman 09 December, 2024, 00:16

The country will observe International Anti-Corruption Day today with a fresh call to combat the widespread corruption upholding the spirit of the student-people uprising.

Experts said that corruption affected every aspect of the society in the past 15 years of the Awami League rule due to lack of governance and accountability, and indifference of the Anti-Corruption Commission.

The Awami League, in its election manifestos, had announced a zero-tolerance policy against corruption and then AL lawmakers, ministers, and deposed prime minister Sheikh Hasina had also promised to fight corruption, but the announcements remained on paper only.

People have witnessed massive corruption, including money laundering, abuse of power, accumulation of illegal wealth and embezzlement of money from banking and financial institutions in the name of loans, in the past 15 years.

The Anti-Corruption Commission, however, failed to check the graft as its independence was also held hostage to the successive governments in the past, the experts said.

The governments, by dint of its authority to appoint the top brass of the commission, placed their favoured officers in the commission and maintained comfortable control over it, they said.

As a result, the commission’s ability to act independently in fighting corruption has remained severely tied down right from its establishment in 2004, they added.

Despite officially being an independent agency, the commission has rather been used as a weapon by the successive governments against their opponents, they observed.

For the same reason, the agency could rarely take into account the corruption allegations brought against the powerful ones, particularly politicians, bureaucrats and businesspeople belonging to or associated with the ruling parties, the experts said.

Even the commission, in most cases, has failed to initiate an inquiry or file cases against powerful quarters without a go-ahead signal from the government, they said.

According to the White Paper on the State of Bangladesh Economy, the country lost $16 billion annually between 2009 and 2023 because of the illicit fund flow amid systemic tax evasion, misuse of exemptions, and poorly managed public finances under the authoritarian AL regime.

The white paper, submitted to chief adviser Muhammad Yunus on December 1, underscored the significant fiscal opportunities lost to corruption and stated that halving tax exemptions could double education funding and triple health allocations.

TIB executive director Iftekharuzzaman told New Age on Sunday that the promises about zero tolerance against corruption remained only on paper.

‘The corruption is on the rise, and it was also institutionalised in Bangladesh in the past through the tripartite collusion of bureaucracy, politics and business,’ he said.

‘The tripartite collusion had created scope for abusing power, weakening the state structure as corruption, especially high-level corruption and money laundering, increased,’ he added.

The past government not only allowed corruption but also gave protection to the corruption, said Iftekharuzzaman.

‘Our young generation created scope of bringing change through mass uprising, so we have to utilise the scope with the spirit of the mass uprising to combat corruption.’

A positive change is, however, a must in bureaucracy and politics to make an effective functional Anti-Corruption Commission to check corruption, he said.

According to a TIB survey titled Corruption in Service Sectors: National Household Survey 2023, people paid an estimated Tk 1.46 lakh crore in bribes to get services during the 15 years of AL rule.

The survey of 15,515 households revealed that 70.9 per cent of respondents encountered corruption while seeking services in 2023.

Between May 2023 and April 2024, service seekers paid about Tk 10,902 crore in bribes, which is 1.4 per cent of the revised national budget for the 2023-24 financial year and 0.2 per cent of the GDP, it says.

The survey also found that the Department of Immigration and Passports, the Bangladesh Road Transport Authority, and law enforcement agencies were the most corruption-prone sectors, respectively.

It said that 50.8 per cent of the surveyed households reported paying bribes or being forced to pay extra for services.

Former ACC director general Moyeedul Islam said, ‘The ACC could not play a role as an independent body during AL tenure as the partisan governments held the agency hostage and controlled it.’

He said, ‘All the political governments used the ACC as a weapon for harassing opposition people in the past, but the trend should change to fight corruption.’

He stressed the need for holding the corrupt people accountable to effectively combat corruption.

The commission should work effectively this time, as now a neutral government is in power, but top posts of the commission are lying vacant for more than one month, he expressed frustration.

The latest Transparency International report published in January also indicated that corruption was increasing in Bangladesh as the country slid two steps to the 10th position from the bottom among the 180 countries covered by its Corruption Perception Index 2023.

Bangladesh, which was in the 12th position in the same index in 2022, ranked 149th in 2023, down from 147th position in the previous year, while its points dropped to 24 points out of 100 in 2023 from 25 points in 2022.

Bangladesh is the 4th most corrupt country among 31 Asia-Pacific countries and second in South Asia, ahead of only Afghanistan, it said.​

 

[Saif]

Anatomy of Rolls Royce import

The news that eight Rolls Royce cars have arrived in the country for the first time following formal commercial import procedures over the past six months may cause some unease as an immediate reaction. But the unsettling feeling may get somewhat quieted when it is known that a certain type of the

thefinancialexpress.com.bd

Anatomy of Rolls Royce import
Neil Ray
Published :
Dec 09, 2024 00:45
Updated :
Dec 09, 2024 00:45

The news that eight Rolls Royce cars have arrived in the country for the first time following formal commercial import procedures over the past six months may cause some unease as an immediate reaction. But the unsettling feeling may get somewhat quieted when it is known that a certain type of the world's most luxurious car has been imported. Although these eight cars are still the most expensive cars ever imported over the past two decades, they are electric models the company has been producing of late.

The advantage of these cars is primarily their environmental non-pollution but what really prompted the importers and customers to procure those is the duty waiver on electricity-driven cars. Two of the cars were ordered by separate customers and the rest were imported by industrial groups for their own use. When the orders were placed with car traders and the manufacturer of the cars is not known. Most likely, a few of those were ordered before the August 5 political changeover.

Each of the luxury cars costs, according to a report carried in a contemporary, more than Tk46 million but import duty has been a modest 89.32 per cent. So the import duty stood at Tk41 million for each car and the total cost amounted to nearly Tk90 million. Had the cars not been electric ones, the import duty would be a whopping 826.60 per cent and the duty alone would be in the range of Tk 380 to 400 million. Surely not many could afford this extra buck on duty but some possibly could.

Possession of this ultimate brand of four wheeler is something special the aristocrats the world over savour. In Bangladesh aristocrats are hardly the top moneyed class. It is the ultra-rich or, as some would like to call, filthy rich who have the money at their disposal to own such cars. But they did not possibly go for the brand because it would have drawn closer attention from agencies like the National Board of Revenue and Anti-corruption Commission (ACC) or social backlash. What happened during the previous army-backed government may be an indication. At that time quite a few of the expensive cars were abandoned on the street just in panic. In case the owners who illegally imported those in collusion with the custom, excise and vat department got identified, they either hid those or abandoned on the unlikely points of street at wee hours!

Yet the ultra-rich section of society cannot avoid some vanity for societal pressures and pulls. For example, in some posh areas of Dhaka City, the residents' vanity is well fed if they keep their expensive cars right in front of their gates. Whether they drive those expensive cars or not, is immaterial; they want to show their prized possessions off. But after a movement of the August 5 order, the owners became cautious. The cars they deliberately placed for public view have suddenly disappeared. So the import of the more expensive and luxurious cars at this time could not happen unless those were ordered earlier.

The fact is money talks and does so in weird ways. Cars are a symptom, not the malaise. When the ill-gotten money accumulated at the expense of the rest of society starts talking, no one knows how the process will end up. For example, the Rolls Royce Beximco imported was burnt down. The system that gives rise to mindless inequality in society with no scientific and technological invention accompanied with--- more often than not--- devious development of entrepreneurships and businesses, presents opportunities for its correction. So, the nations that can learn lessons from the reversals of fortunes and mend their ways of wealth creation and its distribution in order to ensure socio-economic justice, have the right to live in peace and harmony. Bangladesh has one such opportunity right now, much will depend on how the country grabs it to rectify its system.​