[🇧🇩] Corruption Watch

[Saif]

Bangladesh Bank fails to address bank sector corruptions: BB dy governor

The Bangladesh Bank is responsible for addressing corruption and mismanagement in the banking sector, but it has failed to do so due to various reasons, including external influences, said deputy governor Kazi Sayedur Rahman on Tuesday...

www.newagebd.net

Bangladesh Bank fails to address bank sector corruptions: BB dy governor
Staff Correspondent 06 August, 2024, 17:51

Bank officials are seen working at a branch of a bank at Motijheel in the capital Dhaka on Tuesday. Banks opened on the day after remaining closed on Monday due to a general holiday. | Focusbangla photo

The Bangladesh Bank is responsible for addressing corruption and mismanagement in the banking sector, but it has failed to do so due to various reasons, including external influences, said deputy governor Kazi Sayedur Rahman on Tuesday.

The central bank will investigate corruption and money laundering issues and hold the corrupt accountable in accordance with the upcoming new government's directives, he added.

Sayedur made these comments during a meeting with the Economic Reporters Forum.

BB governor Abdur Rouf Talukder was absent on the first day after prime minister Sheikh Hasina resigned on Monday and fled the country, ending her 15-year rule amid an unprecedented student-led mass uprising against her authoritarian regime.

Sayedur said that the governor skipped office on the day due to mental stress.

On Tuesday, the Bangladesh Bank also lifted the restrictions on entering its premises for journalists.

Sayedur further said that the Bangladesh Bank was working on restructuring the banking sector and was ready to cooperate with the new government. Information will be shared with journalists as before, and there will be no restrictions on their entry, he assured.

On Tuesday, Bangladesh president Mohammed Shahabuddin dissolved the parliament following a high-stakes meeting with key stakeholders, including the chiefs of the three armed forces, leaders of various political parties, civil society representatives and leaders of Student Movements Against Discrimination.

Among others, BB deputy governors Nurun Nahar, Habibur Rahman, Md Khurshid Alam and executive director Mezbaul Haque were present in the meeting.

ERF president Refayet Ullah Mirdha and general secretary Abul Kashem, among others, were also present in the meeting.​

 

[Saif]

Money launderers will get no peace

Newly appointed Bangladesh Bank Governor Ahsan H Mansur yesterday announced that he would initiate tough measures against money launderers with international support so that “they are unable to live in peace”.

www.thedailystar.net

Money launderers will get no peace
Says BB governor

Ahsan H Mansur

Newly appointed Bangladesh Bank Governor Ahsan H Mansur yesterday announced that he would initiate tough measures against money launderers with international support so that "they are unable to live in peace".

Meanwhile, Finance Adviser Salehuddin Ahmed, in a separate programme, said names of several persons involved in financial crimes have come to light and steps have already been initiated against them.

Bank accounts of these people have been frozen, he told journalists after a meeting of a national coordination committee on anti-money laundering and counterterrorism financing at the finance ministry.

"Those who have smuggled the country's money abroad will not be allowed to sleep peacefully…on pillows of money," Mansur told a media briefing on his first day in office.

We will keep them in trouble irrespective of whether the money can be brought back or not, says Ahsan H Mansur

"Even if it is not possible to recover the money from them, at least they will be kept on the run as per the law," he said.

"International law is now helpful to some extent. It must be used. We will keep them in trouble irrespective of whether the money can be brought back or not. Hopefully we can do it," he said.

Mansur, an economist who had worked at the International Monetary Fund for about three decades, replaced Abdur Rouf Talukder who resigned last week amid protests.

He spoke on governance failures in the banking sector, one of the beleaguered areas of the economy.

"The central bank has a moral responsibility for banking governance as it's the custodian of the sector," he said.

Responding to a question about the alleged involvement of Bangladesh Bank officials in irregularities, he said the central bank to some extent was also responsible for the current sorry state of the banking sector.

"We will have to find the officials responsible, who were behind the corruption, and legal steps will be taken based on specific allegations through thorough investigations," said Mansur.

"We must restore good governance within the banking system, otherwise the sector will no longer yield anything good," he said.

Mansur said he would try to bring transparency to the system and help the markets with data and qualitative information.

He also shared his key priorities for the next 100 days. These include reining in inflation, increasing money flow and initiating reforms and bringing about discipline in the banking sector.

Talking about inflation staying persistently high, the governor said the key priority of Bangladesh Bank would be to control inflation.

He said the high inflation and the foreign exchange reserve crisis were the two "headline challenges" for the economy.

"And Bangladesh Bank's central responsibility is to control inflation," he said.

"We have to try to bring down the inflation rate as well as increase the level of foreign exchange reserves," he said.

The twin crises will not go away fully within a year but the utmost effort will be initiated to "normalise the situation as soon as possible".

Apart from that, Mansur said there are some major challenges for the economy as the whole financial sector has already collaged. But there is no silver bullet to immediately overcome the situation, he added.

"Our economic problems are deep and cannot be solved overnight," Mansur said.​

 

[Saif]

Extortion, a cause of high prices, sets alarm bells ringing

Just a day after a mass uprising toppled Sheikh Hasina’s government on August 5, a group of people, introducing themselves as activists of a major political party, visited an outlet of a leading footwear maker in Rangpur and demanded Tk 5 lakh in return for allowing the showroom to operate.

www.thedailystar.net

Extortion, a cause of high prices, sets alarm bells ringing

Just a day after a mass uprising toppled Sheikh Hasina's government on August 5, a group of people, introducing themselves as activists of a major political party, visited an outlet of a leading footwear maker in Rangpur and demanded Tk 5 lakh in return for allowing the showroom to operate.

The company declined to provide the sum, but the group warned they would come again.

The same day, a businessman running a joint venture factory in Chattogram's Anwara upazila, located more than 550 kilometres southeast of Rangpur, received a phone call from a person claiming to be a leader of the student front of a political party.

The caller demanded money from the businessman, hinting that there would be consequences if the amount was not paid.

Similarly, a group of people demanded Tk 10 lakh from a top official of a real estate firm in Savar, on the outskirts of the capital Dhaka. They threatened to set the firm's offices ablaze unless the money was given.

Such examples do not end here. Over the past week and a half since the political changeover, many businesses have complained of attempted extortion.

Such complaints reverberated at a conference organised by the business community on Wednesday.

Mir Nasir Hossain, a former president of the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI), said extortion was a longstanding concern.

Businesses present at the conference supported his allegations, shouting: "Right, right."

The allegations came several days after Home Affairs Adviser Brigadier General (retired) M Sakhawat Hussain warned extortionists by threatening tough action against perpetrators.

"I have requested the army chief to break your [extortionists] legs … I don't care, go to hell," he said.

"Whoever resorts to extortion -- no matter what party you are associated with -- I ask the people to give them a beating. Those who extort, catch them on the spot. We'll do what needs to be done. We'll restore law and order. The country cannot run like this. We cannot lease out the country."

Even during Hasina's tenure, businesses complained about extortion, a menace that has been blamed for increasing the cost of business and thereby contributing to hikes in the prices of commodities and essentials.

Businessmen said extortion occurred at all stages, from production to transportation and sales, significantly raising commodities prices.

It also reduces the competitiveness of exporters as their costs are raised without any value addition.

However, although businesses have taken a vocal stance against extortion over the years, no government has taken strict steps to curb it.

Instead, when the government changes, the baton of extortion is passed. This was reflected by the experiences of a street food seller in Mirpur's Rupnagar area.

"Some people came to me on Wednesday and said I would have to pay Tk 300 per day from now on," he lamented, adding that he paid Tk 50 per day to ruling party men during the Awami League government's tenure.

Risan Uddin, an apparel seller in the capital's Farmgate, said he had to pay Tk 500 per day to extortionists during the previous government's tenure.

He added that no one had attempted to extort him yet. He further said that some people came on August 7 to enquire about whether he had been facing any problems after reopening his shop. They asked him to inform them if any problem arose.

But judging from their tone, it seemed that they were laying the groundwork so that the money would flow to them in future.

"In fact, whichever party comes to power, we must pay. There is no other way."

Economists believe this is the perfect time to end the culture of corruption and extortion in the county, especially since the interim government has assumed charge in light of students' demand for reforms.

Sumon Howlader, president of the Bangladesh Poultry Association, said extortion was a major reason for the price hike of eggs and chickens.

He also complained that, alongside payments to local extortionists, they are also forced to provide bribes to police at various stages of transport.

"All extortion absolutely fuels costs, but that burden is ultimately passed onto the consumer while the businessmen bear some of the load," Howlader said.

Rashed Al Mahmud Titumir, a professor of Development Studies at the University of Dhaka, said: "When rent-seeking increases in an economy, the burden ultimately falls on people through higher prices of goods."

He also illustrated how this occurs.

"Rent-seeking occurs in many ways, such as by allowing cost-inflated development projects, lending to wilful defaulters using assets that are deposited by small depositors, and by grabbing rivers and forests. Politically influential players get many undue benefits," he said.

All these factors heighten the sufferings of general people. To save the economy from these unwarranted costs, a political change was necessary, and it has now been achieved, he added.

(Jagaran Chakma contributed to the story)​

 

[Saif]

Action to be taken against corruption ring surrounding Taqsem: Hassan Arif

AF Hassan Arif, adviser to the Ministry of Local Govt, Rural Development and Cooperatives, has said that a probe will be launched into the corruption network allegedly formed around sacked Dhaka WASA Managing Director Taqsem Khan. Taqsem's contract was terminated on Thursday following allegations

thefinancialexpress.com.bd

Action to be taken against corruption ring surrounding Taqsem: Hassan Arif
FE ONLINE DESK
Published :
Aug 15, 2024 21:08
Updated :
Aug 15, 2024 21:08

AF Hassan Arif

AF Hassan Arif, adviser to the Ministry of Local Govt, Rural Development and Cooperatives, has said that a probe will be launched into the corruption network allegedly formed around sacked Dhaka WASA Managing Director Taqsem Khan.

Taqsem's contract was terminated on Thursday following allegations of extending his tenure for 12 years through various means.

Addressing the media at the Secretariat on Thursday, Hassan stated that the information regarding Taqsem's corruption, including photographs and other evidence, has become public knowledge. "The corruption ring associated with him is still active, with some members either still operating or hiding. We will take legal action against those involved," he affirmed.

The adviser further emphasised the need to address systemic issues that create opportunities for corruption. "Wherever there is a large budget and extensive operations, the possibility of corruption arises. We must plug these loopholes. While we cannot undo the corruption that has already occurred, we will ensure that such incidents do not repeat in the future," he noted.​

 

[Bilal9]

Various media reports are now circulating which say that the former Hasina advisor Salman Rahman (popularly known as "Darbesh" because of his white beard) stole and misappropriated 36,000 Crore Taka (a little over US$ 3 Billion) from various state-controlled banks. He single handedly attempted to destroy the economy of Bangladesh

It has also been reported that one bank (Janata Bank) loaned him 25% of their entire loan portfolio!

https://www.dhakatribune.com/business/354940/how-salman-f-rahman-stole-36-865c-from-7-banks