[🇧🇩] Corruption Watch

[Saif]

Nearly US$3.15b drains from BD annually

Nearly US$3.15 billion flows out illicitly from Bangladesh annually through offshore accounts while the country smarts from dearth of foreign-exchange reserves for over a year now, the World Bank reveals. The offshore financial wealth of Bangladeshis is estimated at 0.7 per cent of the natio

thefinancialexpress.com.bd

Nearly US$3.15b drains from BD annually
WB shows tip of iceberg, economists say and suggest prompt action to save forex reserves
FHM HUMAYAN KABIR
Published :
Apr 17, 2024 00:09
Updated :
Apr 17, 2024 00:09

Nearly US$3.15 billion flows out illicitly from Bangladesh annually through offshore accounts while the country smarts from dearth of foreign-exchange reserves for over a year now, the World Bank reveals.

The offshore financial wealth of Bangladeshis is estimated at 0.7 per cent of the nation's GDP, the WB says quoting the State of the Tax Justice Report 2020.

Findings by the Washington-based multilateral financier just show the tip of the iceberg in capital flight from the country through several conduits, economists and analysts say.

The illicit fund flight, mainly taking place through alleged corporate abuse and offshore tax evasion, deprives Bangladesh of over US$700 million worth of revenue income, the Bank states in its latest Bangladesh Development Update report.

The amount is equal to 2.2 per cent of the country's total revenue income in fiscal year (FY) 2019-20, it says as one reason why the financial crunch finds little or no letup and affects main economic spectrum.

Local economists have raised grave concern over the illicit capital flight and suggested that the government take immediate measures for checking further cross-border money flow.

They say the Bangladesh Financial Intelligence Unit (BFIU), a dedicated public-sector organisation for tracing illegal money transfers, should track down those who lie low behind the capital flight through offshore accounts.

The economists are of the view that such illicit financial flows outside the country lead to loss of government revenue and depletion of foreign-currency reserves.

The WB, on a note of concern in the Development Update report, further says the illicit capital flows into offshore accounts from Bangladesh have been on the rise.

It has also estimated that as much as US$3.6 billion worth of funds, on average per year, have been laundered from Bangladesh through trade mis-invoicing.

Referring to the latest Global Financial Integrity Report 2021, the WB has said: "As much as $3.6 billion on average per year has been laundered from Bangladesh through trade mis-invoicing between 2009 and 2018."

Former World Bank Lead Economist Dr Zahid Hussain says it's a big concern for Bangladesh that there is large amount of money being trafficked through the offshore accounts in addition to its typical money laundering through different other ways every year.

This capital flight has the immediate negative impact on foreign-exchange reserves, investment and revenue generation, he told the FE.

"It is reality that the money already siphoned off is difficult to bring back. But the government has to undertake those kinds of policy and institutional measures which will prevent further capital flight," Dr Hussain suggests.

The WB in its Development Update has said Bangladesh's illicit capital outflow through offshore accounts is high compared to some of Bangladesh's peer countries.

Meanwhile, Bangladesh currently ranks 54 among 133 countries in the Financial Secrecy Index, which measures how intensely country's tax and financial systems serve as a tool for individuals to hide their finances from the rule of law, the WB says.

Besides, according to the WB, Bangladesh ranked 44th globally and 3rd in South Asia in terms of illicit outflows through trade mis-invoicing.

Distinguished fellow of the Centre for Policy Dialogue (CPD) Professor Mustafizur Rahman told the FE correspondent that it's really a concern for Bangladesh that people are illegally transferring money to other countries through a new tool, "offshore account".

"The Bangladesh Financial Intelligence Unit (BFIU) is a dedicated public-sector organisation for tracing the illegal money transfer. This Unit has some agreements with different international anti-money laundering bodies. So it should work promptly to track such illicit capital flight from Bangladesh," he said.

The economist suggests that the BFIU and the central bank should have realtime data of money transfer and accordingly they should go for prompt action against any suspicious transactions in and outside the country.

BFIU has agreements with the Financial Action Task Force (FATF), an inter-governmental body established in 1989 by the ministers of different countries, the Asia/Pacific Group on Money Laundering, an inter-governmental organisation for combating money laundering, terrorist financing and proliferation financing of weapons of mass destruction, and Egmont Group, a platform of 170 Financial Intelligence Units (FIUs) for securing exchange of expertise and financial intelligence to combat money-laundering and terrorist financing.

Meanwhile, the government agencies have identified top 10 countries where tainted money is siphoned from Bangladesh.

As per a government report, the money finds safe haven in the USA, the UK, Canada, Australia, Singapore, Hong Kong, the UAE, Malaysia, Cayman Islands and British Virgin Islands.​

 

[Saif]

Anontex Loans: Janata in deep trouble as BB digs up scams

Bangladesh Bank has ordered Janata Bank to cancel the Tk 3,359 crore interest waiver facility the lender had allowed to AnonTex Group, after an audit found forgeries and scams involving the loans.

www.thedailystar.net

Anontex Loans: Janata in deep trouble as BB digs up scams
The state-run bank waived Tk 3,359cr in breach of rules

Bangladesh Bank has ordered Janata Bank to cancel the Tk 3,359 crore interest waiver facility the lender had allowed to AnonTex Group, after an audit found forgeries and scams involving the loans.

Scam-hit Janata will also have to classify Tk 6,528 crore AnonTex owes to the state-run bank as defaulted loans in line with the BB order given on April 1.

It will take Janata's total bad loans to over Tk 23,000 crore, putting it in deeper trouble, said a senior Janata Bank official on condition of anonymity.

According to the findings of a recently-completed functional audit, Janata approved the Tk 3,359 crore interest waiver facility for the company and recorded the company's loans as regular in June 2022. The audit also unearthed forgeries and scams involving the principal loans approved over a decade ago.

As per central bank regulations, loans sanctioned through irregularities and scams cannot be rescheduled and their interest cannot be waived.

By recording the AnonTex loans as regular borrowing, Janata essentially reduced its defaulted loans artificially, although it will now have to reverse the decision in line with the BB instruction.

In its April 1 letter to the Janata Bank managing director, the regulator also asked the lender to classify the loans and keep appropriate provisions against it, and then report back to the Credit Information Bureau (CIB) of Bangladesh Bank. Janata has also been asked to take steps to recover the loans.

Janata will have to keep 100 percent provision against the Tk 6,528 crore, although the bank's board has yet to approve it, a senior Janata Bank official said.

Contacted, Bangladesh Bank Executive Director and Spokesperson Md Mezbaul Haque said the BB gave the instructions after a functional audit found the loans were approved through forgeries.

After five years of insistence from the central bank, Janata Bank in July last year appointed audit firm Ahsan Kamal Sadeq & CO to look into the alleged loan scam.

Janata Bank Managing Director and CEO Md Abdul Jabbar declined to comment on the BB instruction to cancel the interest waiver.

But talking to The Daily Star at his Motijheel office yesterday, he said, "AnonTex has yet to repay the loan even after the interest waiver facility."

He said he is worried that the bank's bad loans will now soar further.

At the moment, the bank is not approving large loans and is trying to recover the previous loans, he added.

Janata Bank disbursed around Tk 3,527.9 crore in loans among 22 companies of AnonTex Group between 2010 and 2015. Including the interest, the amount stood at Tk 6,528 crore in December 2022.

The amount exceeds 25 percent of the lender's capital base, and violates the Single Borrower Exposure Limit set by the Bank Company Act 1991.

After a central bank probe unearthed large-scale irregularities in loan approvals by Janata, the regulator in 2018 had ordered the lender to conduct a functional audit and take legal action against those involved in the scandal. But Janata has yet to take any legal action against anyone.

JANATA'S FINANCIAL HEALTH

Janata was once one of the most reputed banks in Bangladesh, but its financial health started to slide downhill thanks to a series of loan scams involving AnonTex and Crescent Group.

In 2017, its bad loans stood at Tk 5,818 crore, which skyrocketed to Tk 17,501.44 crore in December last year, which is 19.2 percent of its total disbursed loans.

BB data show the bank had a capital shortfall of Tk 2,189 crore till June last year.

A recent central bank report shows 75 percent of the bank's total loans are concentrated in five branches, which is highly risky.​

 

[Saif]

TIB calls for halting implementation of bank merger

Transparency International Bangladesh has called for halting the implementation of the merger of banks

www.thedailystar.net

TIB calls for halting implementation of bank merger

Transparency International Bangladesh has called for halting the implementation of the merger of banks.

The way it is proceeding, it can sidestep the main problem of the banking sector and give impunity to the people who are responsible for loan default and forgery, the anti-graft watchdog said in a press release issued today.

Recently, the central bank initiated steps to merge underperforming banks with stronger counterparts in order to save weak banks in the sector which creates anxiety and uncertainty among the banking people.

The TIB asserts that the lack of transparency in the bank merger process, particularly concerning the management of default loans and issues of accountability within weak banks burdened by default loans.

It essentially sidesteps the main problem of the crisis and gives impunity to the factions responsible for loan defaults and forgery.

Based on media reports, only one bank has shown interest in voluntary merger which suggests that the entire process has been imposed on them arbitrarily, which is a clear violation of the declared policies, said Dr Iftekharuzzaman, executive director of the TIB.

"How fair and reasonable is it to transfer the burden of default loans and forgeries to good banks without first assessing the assets and liabilities of the weaker ones?" he questioned.

"It appears that the ongoing actions are akin to prescribing paracetamol for cancer treatments," he added.

On one hand, the culture of loan defaults is exacerbated by shielding factions responsible for them and forgery under the guise of mergers, he said.

Contrarily, significant attempts are underway to compel good banks to digest weaker ones as a result of their success. This has fostered an atmosphere of anxiety and restlessness across the entire sector.

It is unrealistic to believe that simply merging banks, without ensuring effective accountability-based good governance to address the basic challenges in the banking sector, will resolve the problem or safeguard the interests of clients, he said.

The TIB criticised the provisions of the merger policy, which permit directors of underperforming banks to return to the board of the merged bank after a five-year break as well as the provision for the reappointment of top executives.

"This provision rewards the perpetrators behind the banking crisis with impunity rather than holding them accountable," the statement added.​

 

[Saif]

https://www.prothomalo.com/business/g2h0p6fzch

সরকারি প্রতিষ্ঠানও কর দিতে চায় না, অভিযোগ এনবিআর চেয়ারম্যানের
নিজস্ব প্রতিবেদকঢাকা
আপডেট: ০১ মে ২০২৪, ১২: ২৫

রাজধানীর গুলশানে একটি হোটেলে পিআরআই আয়োজিত সেমিনারে কথা বলেন এনবিআর চেয়ারম্যান আবু হেনা মো. রহমাতুল মুনিম। এ সময় প্রধানমন্ত্রীর অর্থনৈতিক উপদেষ্টা মসিউর রহমানসহ অন্যরা উপস্থিত ছিলেন।ছবি: প্রথম আলো

জাতীয় রাজস্ব বোর্ডের (এনবিআর) চেয়ারম্যান আবু হেনা মো. রহমাতুল মুনিম বলেছেন, শুধু ব্যক্তি ও করপোরেট প্রতিষ্ঠান নয়, অনেক সরকারি প্রতিষ্ঠানও কর দিতে চায় না। তারা কর না দেওয়ার জন্য তদবির করে।

গতকাল মঙ্গলবার অভ্যন্তরীণ রাজস্ব আদায়ে করণীয় বিষয়ে আয়োজিত এক সেমিনারে এসব কথা বলেন এনবিআর চেয়ারম্যান। রাজধানীর গুলশানের একটি হোটেলে সেমিনারের আয়োজন করে গবেষণাপ্রতিষ্ঠান পলিসি রিসার্চ ইনস্টিটিউট (পিআরআই)।

প্রধানমন্ত্রীর অর্থনৈতিক উপদেষ্টা মসিউর রহমানের সভাপতিত্বে অনুষ্ঠানে প্রধান অতিথি ছিলেন অর্থ প্রতিমন্ত্রী ওয়াসিকা আয়শা খান। বিশেষ অতিথি ছিলেন এনবিআর চেয়ারম্যান আবু হেনা মো. রহমাতুল মুনিম ও ব্যবসায়ীদের শীর্ষ সংগঠন এফবিসিসিআইয়ের সভাপতি মাহবুবুল আলম। মূল প্রবন্ধ উপস্থাপন করেন পিআরআইয়ের নির্বাহী পরিচালক আহসান এইচ মনসুর।

আবু হেনা মো. রহমাতুল মুনিম বলেন, 'যতই মুখে মুখে বলা হয় যে আমরা সবাই কর-ভ্যাট দিতে চাই; আসলে একটা বড় অংশই কর দিতে চায় না। এটা তাদের জন্য সহজ বিষয় নয়। শুধু ব্যক্তিপর্যায়ে নয়; করপোরেট প্রতিষ্ঠান থেকে, এমনকি সরকারি প্রতিষ্ঠান থেকেও অনবরত তদবির আসে করছাড় দেওয়া বা কর না দেওয়ার বিষয়ে।'

এনবিআর চেয়ারম্যান আরও বলেন, 'কাঁচামাল আমদানির খরচ বৃদ্ধি, পরিবহন খরচ বৃদ্ধি, মূল্যস্ফীতির কারণে জিনিসের মূল্যবৃদ্ধি—এ সবকিছুই আমরা হজম করতে পারি। শুধু কর দেওয়ার ক্ষেত্রে ইতিবাচক মানসিকতা নেই।'

উন্নত দেশ হতে হলে রাজস্ব উৎস বাড়ানোর বিকল্প নেই উল্লেখ করে রহমাতুল মুনিম বলেন, উন্নত দেশগুলো শুল্কর চেয়ে প্রত্যক্ষ করের ওপর বেশি নির্ভর করে। দেশে ব্যবসায়িক কর্মকাণ্ড বেশি থাকলে অর্থনীতির পরিসর বাড়ে। কিন্তু স্থানীয় শিল্পকে সুবিধা দিতে হলে তাদের শুল্কছাড় দিতে হবে। ফলে প্রতিষ্ঠান থেকে রাজস্ব আদায়ের নির্ভরতা কমিয়ে তা ব্যক্তিপর্যায়ে (প্রত্যক্ষ কর) নিতে হবে।

প্রত্যক্ষ রাজস্ব বাড়াতে অটোমেশনের সঙ্গে সঙ্গে ব্যক্তি করদাতাদের উদ্বুদ্ধ ও সচেতন করা প্রয়োজন বলে মনে করেন এনবিআর চেয়ারম্যান। তিনি বলেন, 'আমরা দোকানে দোকানে ইএফডি যন্ত্র বসিয়েছি। কিন্তু দোকানদারেরা ভ্যাটের রসিদ (ইনভয়েস) তৈরি করে না। এ ক্ষেত্রে ক্রেতাদের সহযোগিতা প্রয়োজন। ক্রেতারা বিক্রেতার থেকে ভ্যাট রসিদ নিলেই সরকারের কোষাগারে সে টাকা জমা হবে।'​

 

[Saif]

Why is the government not nabbing those who are looting billions?

The aim of our liberation war was to establish democracy in all spheres and to bring an end to inequality. The declaration of independence also called for equality, human dignity and social justice. But does that justice exist?

en.prothomalo.com

Why is the government not nabbing those who are looting billions?
Sohrab Hassan
Published: 05 May 2024, 08: 32

When there is a dearth of people who tell the truth, someone or the other must screw up the courage to stand up and speak the truth. In recent times economist and member of Bangladesh's first planning commission Professor Rehman Sobhan has being voicing the hard truth at various meetings and seminars, giving our dozing consciences a stern wake-up call.

He has been speaking the mind of the people. The man who stirred up a sensation with his two-economy theory during Pakistan times, can well call out at these critical times of history, "You are losing your way!"

And it was his student too, former governor of Bangladesh Bank Farashuddin, who also highlighted some unpleasant truths last Thursday during a solo lecture at the Economic Reporters Forum (ERF).

At a juncture when government policymakers every day spew out rhetoric that all is well, there are no problems anywhere, Farashuddin, who was the governor of Bangladesh Bank during the term of Prime Minister Sheikh Hasina's first government, laid bare the problems of the banking sector in layman's language. He deserves kudos for explaining things with such clarity.

Farashuddin, who was involved in progressive student politics back in the sixties, studied economics at Dhaka University and taught there for two years too. Later he joined the Civil Service of Pakistan (CSP). After independence of Bangladesh, he became personal secretary of Bangabandhu Sheikh Mujibur Rahman.

So Farashuddin can't be categorised as either extreme left or extreme right. He has always been middle-of-the-road. And being a former bureaucrat for former governor of Bangladesh Bank is not his only identity.

He has served in several countries as a resident representative of UNDP. Returning to the country, in 1996 we established East West University and was its first vice chancellor. As he had been the governor of Bangladesh Bank during the Awami League government, he faced considerable harassment during BNP rule.

Despite being out of the sphere of power for the past 15 years, Farashuddin has given the Awami League government much sound advice. His role as head of the public pay and services commission was much praised. He believed the corruption of government officials and employees could be curtailed with appropriate salaries and benefits. Accordingly, the salaries and benefits of civil servants was increased, but corruption in the public service sector did not decrease.

When bureaucrats see politicians indulging in corruption, they see this as 'justified'. When businessmen see politicians exploiting them to make money, they refuse to lag behind. Businessmen would make "contributions" to the politicians in the past, not they simply become politicians themselves.

Farashuddin made no comments about businessmen joining politics. But about bureaucrats he said, "I do not think any bureaucrat should join politics. The country wasn't rendered independent for the sake of any particular coterie. Some people are hardly enjoying the benefits of independence, why others are enjoying huge benefits."

Bangladesh's economy has advanced a long way over the past 53 years. This country which once faced acute shortage of food, today dreams of food autarky. People's average income and life expectancy has increased. But the benchmark for development remains hazy.

Sleeping people can be woken. But when the government is sleeping with its eyes wide open, it is hard to awaken them. That message echoed on the lecture delivered that day by Mohammed Farashuddin at the Economic Reporters Forum event.

The aim of our liberation war was to establish democracy in all spheres and to bring an end to inequality. The declaration of independence also called for equality, human dignity and social justice. But does that justice exist? The government's economic policy now seems to be to reward the haves and cheat the have-nots. Many are looting millions of taka from the banks in the name of loans, but the government cannot touch a hair on their heads. But there is no relenting for the poor. No one will listen to any excuse from them.

Mohammed Farashuddin said, "When loan defaults grow too big, then some go to jail for defaulting on a thousand taka agricultural loan, while the one defaulting on 10 thousand crore taka sits by the side of the goverment.... We will send a man to jail for defaulting on a 10 thousand taka agricultural loan, but will bow to the man who defaults on a 10 thousand taka default loan. This cannot be. Action must be taken against them and the loans must be recovered."

Referring to BASIC Bank, he said, "BASIC Bank at one time was the only government bank that showed profit. The objective of setting up this bank was to create entrepreneurs. The bank was gradually destroyed. No matter what merger BASIC Bank is pushed into, it will never recover. I hear the man responsible for the predicament of the bank is in the country. His name was one thing before, later he added a 'Sheikh' to it. I do not know who is sheltering him. Even if I did, I would not be able to reveal the name. Even at this age, I still want to live a little longer!"

His words ring with anger, pain and even a sense of helplessness. Why can't the government nab the man who has destroyed a bank, the man through whom millions of taka has been siphoned off overseas? ACC can be so active against others, but totally inert when it comes to the former chairman of BASIC Bank. What explanation is there for this?

The former Bangladesh Bank governor also deliberated on bank mergers, the taka and dollar exchange rate, income disparity, inflation, money laundering, as well as the strengths and weaknesses of the central bank.

He feels that the forceful merging of banks will not have good consequences. This is not the only way to revive a sick bank. There are alternative ways and means. Four of the banks which are now being called good, once were tended and supervised by Bangladesh Bank to be brought to this good stage. And that was during Farashuddin's tenure.

Other than default loans, Farashuddin also laid emphasis on bringing a halt to money laundering and lowering inflation. Alongside IMF, he also criticised the government's silence on capital flight.

About inflation, he questioned why we failed to reduce inflation while other countries were able to halve their inflation to 5 per cent over the past 15 months. Among other reasons, he also pointed to the monopoly business of a handful of importers. Meanwhile, rather than taking any measures to prevent money laundering or lessen inflation, the government merely used the Russia-Ukraine war and the Middle East crisis as a scapegoat.

Sleeping people can be woken. But when the government is sleeping with its eyes wide open, it is hard to awaken them. That message echoed on the lecture delivered that day by Mohammed Farashuddin at the Economic Reporters Forum event.

* Sohrab Hassan is joint editor of Prothom Alo and a poet.​

 

[Saif]

Goods worth Tk 16k imported at Tk 2.63 crore

State-run Power Grid Company of Bangladesh Ltd (PGCBL) imported 68 kilograms of tower bolts, nuts and washers from India for a whopping $2,39,695 or Tk 2.63 crore, which is 1,619 times the contract value.

www.thedailystar.net

Goods worth Tk 16k imported at Tk 2.63 crore
State-run power supplier now cites 'human error' but customs authorities reject the explanation

State-run Power Grid Company of Bangladesh Ltd (PGCBL) imported 68 kilograms of tower bolts, nuts and washers from India for a whopping $2,39,695 or Tk 2.63 crore, which is 1,619 times the contract value.

The actual price of the consignment should have been $148 (Tk 16,280) at $2.18 per kg, according to the purchase agreement PGCBL submitted to the customs authorities.

The consignment reached Mongla port in April last year, but customs officials halted its release after spotting the abnormally high price.

Chinese firm TBEA Co Ltd, contractor of Extension and Empowerment of Eastern Grid Network project under PGCBL, imported the items from Skipper Limited of India for installation of electric lines and building towers in Chattogram, Cumilla and Feni regions.

Earlier, the state-owned power supplier imported 178.8 tonnes of the same goods at a cost of $3,89,252 ($2.18 per kg), customs documents and purchase agreement show.

"This time the price is high even though the import volume is less. It is because more goods were sent by mistake in the previous shipments," the company wrote to the Mongla Customs House commissioner on June 5 last year, seeking to explain the abnormal value.

The company also said the average import price was within the limit of the purchase agreement.

Mongla Customs House Commissioner AKM Mahbubur Rahman told The Daily Star that the consignment was held as PGCBL failed to give a satisfactory reply regarding the inflated price and submit relevant documents such as LCs and invoices of two previous consignments.

Having failed to have the items released in various ways, the power supplier is now seeking to send back (re-export) the goods on the pretext of a human error in the paperwork, customs officials say.

Mahbubur said they sought NBR's opinion in this regard and are awaiting the regulator's response.

PGCBL signed an agreement with the Chinese company on June 23, 2022, to supply 178.87 tonnes of tower bolts, nuts and washers. Subsequently, the Indian supplier and the Chinese importer fixed the price at $2.176 per kg, documents show.

Skipper Limited, the Indian supplier, did not respond to our email.

Phone number and email ID of the Chinese firm was not available. This correspondent visited the Dhaka office of the Chinese firm yesterday, but was not allowed in. One staffer at the front desk said they had no comment.

DAMAGE CONTROL?

According to Mongla customs sources, PGCBL applied for re-exporting the goods on March 10 this year after failing to have the shipment released.

The application, signed by Project Director and Chief Engineer of PGCBL Md Shahadat Hossain, said, "No payment was made to the contractor TBEA Co Ltd for this shipment."

The application also maintains that the goods were imported "by mistake".

However, a customs official said the company has long been trying to get customs clearance in various ways. The project director even appointed a C&F agent to clear the goods.

"After all the attempts failed, the company now claims that the goods were imported by mistake, which is ridiculous," the official said, asking not to be named as he is not authorised to speak to the press.

Customs documents support his view.

Documents show PGCBL appointed a C&F agent named SI Chowdhury & Co to clear the goods and even permitted the Chinese company to use its own Business Identification Number for the import.

Contradicting the company's claim that it was a mistake, the Mongla Customs commissioner wrote to the NBR for its opinion on April 16 this year.

"The statement of the importer that the consignment was carelessly sent to a wrong destination is untrue," the letter reads.

"An explanation was sought from PGCBL when officials concerned noticed the abnormal prices. But its explanation was not satisfactory because it only submitted a sales contract and the proforma invoice. Moreover, although the sales contract stipulates that 80 percent of the import cost should be paid to the exporter through LC, the importer did not file any copy of the LC," it adds.

Shahadat, the project director, told The Daily Star that they have an agreement with Chinese company TBEA to purchase the goods. It was up to the company how and at what prices it will import the goods from the Indian company.

"We permitted the Chinese company to use our BIN to import the items as we are the customer of the goods," he said.

He would not comment on the inflated price, and asked The Daily Star to contact PGCBL Executive Engineer Fakhrul Islam.

Fakhrul said the high price was a result of "carelessness" on the part of the Indian company.

"We noticed it later and took the initiative to send the consignment back," he told this newspaper.

Md Mahbubur Rahman, first secretary of NBR, told this correspondent on April 23 that he received the letter from the Mongla Customs commissioner.

For any re-export, they first need to verify if the payment for the consignment has been made through banking or non-banking channels. "We also need to verify the import permission that the importer obtained from the commerce ministry. Until we know all these, we cannot determine if the items will be allowed to re-export."

Dr Moinul Islam, a former professor at Chattogram University, said corruption like these are meant for money laundering.

"It's easier to launder money through project contractors than through LCs with banks. There is little accountability, and hardly anyone is held responsible even after getting caught," the economist said.

"Project officials dare to go for purchase of even some tower bolts and nuts at inflated prices since the ruling class itself is involved in corruption," he said.​

 

[Saif]

https://www.thedailystar.net/business/economy/news/troubled-nbl-offers-cash-journalists-snacks-box-3603576

Troubled NBL offers cash to journalists in snacks box

Trouble-ridden National Bank, which suffered the highest loss in the banking industry, today held a press conference where its new board said they would inject Tk 1,000 crore through shareholders.

At the press conference at the headquarters of the bank, NBL's new chairman Khalilur Rahman told journalists that National Bank was their bank and he hoped everyone would write positively about the bank.

Rahman left the press conference in a hurry without answering all the questions from journalists, saying that that he had an appointment with the Bangladesh Bank governor.

After the press conference, the bank officials offered packets with snacks to journalists. However, after taking the packet, journalists noticed that it contained an envelope with Tk 5,000 inside.

After seeing that, a group of journalists refused to take the packet of snacks and left the office.

A journalist told The Daily Star that it was very embarrassing for a bank to offer money to journalists for campaigning.

Contacted, NBL Managing Director Md Touhidul Alam Khan did not comment on the matter.

After incurring losses of Tk 3,285 crore in 2022, the oldest private bank suffered losses of Tk 1,497 crore in 2023.

NBL's bad loans stood at Tk 12,368 crore, which was 28.92 percent of its total disbursed loans, according to BB data.​

 

[Saif]

Cybergangs now selling ‘genuine’ NIDs

Imagine someone ordering and taking delivery of your personal data -- national identity card information, phone call records, and statements from your mobile financial accounts – as conveniently as ordering food online.

www.thedailystar.net

Cybergangs now selling 'genuine' NIDs
They provide people's personal data, location, financial records too; cops bust one such gang

Imagine someone ordering and taking delivery of your personal data -- national identity card information, phone call records, and statements from your mobile financial accounts – as conveniently as ordering food online.

Astonishingly, this is what is going on.

Cybergangs in connivance with a section of unscrupulous staffers at the Election Commission and other government offices have been selling people's personal data.

They even offer "services" like providing a genuine copy of an NID card, changing one's information in the NID server and even locating a person by phone triangulation.

Anyone can avail themselves of these "services" via websites, Telegram channels, WhatsApp and Facebook groups for money.

Counter Terrorism and Transnational Crime Unit of police arrested two members of one such cybergang on Tuesday.

The gang, via encrypted messaging apps, gets orders for personal information of people or other "services" from clients. The demand is then sent to the unscrupulous staffers at the EC, who provide the details or deliver the "services".

It pays EC staffers involved, said Md Asaduzzaman, the chief of the Counter Terrorism and Transnational Crime Unit, during a press conference in the city yesterday.

The press conference was arranged following the arrest of suspects Md Jamal Uddin, data entry operator of IDEA 2 project of the election office in Kurigram Sadar, and Liton Mollah.

The CTTC arrested Liton from Bagerhat and Jamal from Pabna on Tuesday. They are now being quizzed on remand to find out who else is involved.

Asaduzzaman said Liton opened a WhatsApp group for getting orders from his clients while Jamal provided Liton with his credentials for the NID server.

Jamal would forward the one-time password (OTP) to Liton every time Liton logged on to the server.

Jamal received Tk 3,000 a day from Liton.

Liton, who studied up to HSC, made over Tk 1 crore in one year and paid Jamal around Tk 10 lakh, the CTTC chief said.

Officials said changing personal data on the NID server requires the credentials of at least the top EC official at an upazila or top EC officials at district or divisional level.

"So, there must be corrupt EC officials who aided him. We are trying to find out who else is involved," said an official of the CTTC.

Brig Gen Abul Hasnat Mohammad Sayem, project director for the Identification System for Enhancing Access to Services (IDEA) (2nd Phases), said Jamal was an employee of a company to which they outsourced the data entry job.

"Data entry operators have limited access. We have informed the company ... Besides, police will take legal action against him as per the law," he added.

Asked about the possible involvement of EC officials who have the authority to change data on the server, he said they were looking into the matter.

"Access to one's NID can facilitate the opening of fraudulent bank accounts and getting loans on fake documents, alongside committing other crimes…," said cybersecurity expert Sumon Ahmed Sabir.

It is the job of the government and private entities entrusted with the personal data to protect people from identity theft, emphasised Sabir, chief technology officer of international internet gateway Fibre@Home.

DATA ON SALE

The Daily Star correspondents on Wednesday accessed one of the websites created by a cybergang.

Upon entering multiple NID numbers and their corresponding dates of births, all personal information of the individuals, including photos and signatures, appeared on the screen.

The gang was offering a range of "services", including personal data from the NID server for Tk 60, phone call records for Tk 1,600, statements of mobile financial accounts for Tk 2,300, and birth certificate "correction" and TIN certificate for Tk 100.

Apart from "genuine" ones, they also offered fake NID cards, birth certificates, Bureau of Manpower, Employment and Training certificates, and health certificates for potential migrant workers.

To avail the "services", clients are required to pay via mobile financial services.

Earlier in February, the CTTC busted a cybergang who obtained the NID information from a government website. They also cloned websites of some government agencies, according to investigators.

Imranul Islam, assistant commissioner of the CTTC's cybercrime investigation department, told The Daily Star that they had arrested seven people, including three "super admins" of a website.

"We found that the gang was involved in selling original NID information and statements of mobile financial accounts," Imranul said.

In April, detectives arrested Pallab Das, data entry operator of IDEA 2 project of the EC office in Rangpur, for issuing NID cards to fraudsters who embezzled crores of taka from banks and financial intuitions by taking out loans.

Joynal Abedin alias Idrish, a former salesman at a jewellery shop in Dhaka's Mirpur, obtained six NID cards with the help of Pallab, investigators said.

An official at the NID wing of the EC said about 176 organisations have access to the NID server.

On June 7, 2023, TechCrunch, a San Francisco-based online publisher of start-up and technology industry news, reported that personal information of about 5 million Bangladeshi nationals have been leaked from a government website.​

 

[Saif]

‘City tolls’ now an easy way of extortion

Having driven his truck all the way from Chattogram, Kashem Mia reached Swamibagh in the capital around 1:00am on March 27, when a group of young men appeared on the road and waved desperately.

www.thedailystar.net

'City tolls' now an easy way of extortion
Illegal city toll collection in Dhaka

Having driven his truck all the way from Chattogram, Kashem Mia reached Swamibagh in the capital around 1:00am on March 27, when a group of young men appeared on the road and waved desperately.

To Kashem, it appeared that the men needed help.

He stopped the truck and ended up paying Tk 70 "toll".

The men gave Kashem a receipt bearing the Dhaka South City Corporation (DSCC) logo, and the truck started moving again.

However, there are no leases handed out by the DSCC to collect tolls from trucks in this particular area. In fact, trucks that enter the capital after 9:00pm have to leave by 6:00am the following day. The DSCC can only charge parking fees, and that too at two specific locations.

"Extortion in the name of collecting city tolls is a regular practice. If we do not pay the money, they beat us with rods and sticks," Kashem told these correspondents, who were present at the spot.

The correspondents witnessed similar instances of extortion at Kajla intersection, Gulistan, Tikatuli, Demra staff quarters, Kaptan Bazar, and Dolairpar, during a visit in the first week of April.

Hundreds of trucks and pick-up trucks cross these areas daily, and groups such as those seen in Swamibagh collect huge sums from the vehicles. This racket springs into action late at night when long-haul trucks ply the city roads.

The DSCC, through lessees, collects tolls from city buses (Tk 40 or Tk 60), pickups and human hauliers (Tk 40), and auto-rickshaws (Tk 10). It only charges trucks for parking (Tk 80 or Tk 90).

In reality, excess tolls are being collected and from unauthorised locations too.

Our correspondents saw that Tk 100 was regularly being collected from drivers of pick-ups and trucks.

These collectors seen charging heavily loaded trucks extra toll, even though the lease agreement does not allow them to do so.

Sources in police said at least 60 cases were filed over collecting tolls illegally, and hundreds were arrested in 2023, but the extortion continues.

Mohammad Iqbal Hossain, the deputy commissioner of Wari division police, said there were irregularities in collecting the city corporation toll.

"The collectors often do not return the change if given a Tk 100 note for a Tk 30 or Tk 60 toll. They [the collectors] were even found providing unsigned receipts, and collecting tolls at unauthorised locations," Iqbal told The Daily Star.

Iqbal also said toll collectors were supposed to wear designated uniforms or high-visibility vests, and valid identity cards but they often don't do so.

"Sometimes, they try to use muscle power if the police try to take action," he said.

"But we are taking stern action against these extortionists and have adopted a zero-tolerance policy. At least 15 cases were filed and dozens arrested in less than three months," said Iqbal.

"We may not be able to stop the extortion completely but an awareness was created about this, and we are hopeful that the situation will improve soon," added the DC.

Osman Ali Khan, general secretary of the Bangladesh Road Transport Workers' Federation, told The Daily Star, "In the name of collecting city tolls, extortion is going on at 71 locations inside the DSCC area. It is not only creating a long tailback on roads but also chaos in city transport."

The collectors extort drivers just like robbers, he added.

The DSCC database shows that a lease was issued to three firms in January this year to collect tolls from 57 locations around the Sayedabad bus terminal, the Joy Kali Temple in Gulistan, and the truck parking lots at Doyaganj and Dholaikhal.

The firms are Himachal Gold Line, authorised to collect tolls at 35 locations near the bus terminal, its sister company 7-Eleven Enterprise, (authorised to collect tolls at 20 locations near Joy Kali Temple, and Saddam Enterprise, at the truck parking lots.

At least 10 people supposedly of Himachal Gold Line were arrested last year for collecting tolls illegally.

Locals said 7-Eleven Enterprise collects Tk 100 from vehicles in the Joy Kali Temple area and Saddam Enterprise stops trucks on the road to extort money.

These correspondents visited Sayedabad on an auto-rickshaw on the night of March 30 and saw five people stopping a truck going towards the Sayedabad level crossing. Noticing the press sticker on the auto-rickshaw, the five fled the scene.

On another occasion, the correspondents followed a truck from Swamibagh to Gulistan and managed to talk to the driver, Md Alimur, near the Joy Kali Temple.

Alimur showed a receipt for a Tk 100 parking fee, although he said he did not stop at any parking lot.

DSCC Mayor Sheikh Fazle Noor Taposh told The Daily Star, "The DSCC transport wing collects tolls from different vehicle at the bus terminal and its adjacent areas, and the property wing collects parking fees in different areas of the city corporation."

The lessees have specific conditions, like where they can collect tolls, from which types of vehicles, and how much. Collecting tolls violating the condition is illegal, said the mayor.

"If we receive any complaint in this regard, we inform the police, and they take action. We have a watchful eye on this issue."

Aftab Uddin is the owner of Himachal Gold Line and 7-Eleven Enterprise. He is also the chairman of a company called Himachal Transport.

He told The Daily Star, "Police have arrested some people of my company on charges of extortion. But no one in my organisation collects money from trucks.

"We collect city toll from buses, minibuses, and pickups. If anyone extorts in the name of my organisation, I am not responsible for it.

"I have told my collectors not to do anything beyond the terms of the lease. For this, I have also taken their signatures on a Tk 100 stamp. I have also filed five general diaries against those extorting using the name of my organisation."

Sources said Aftab appointed six people to supervise the collection of tolls. He also has a written agreement with them.

This paper could not find Saddam Enterprise officials for comments. The phone number mentioned in its contract with the DSCC was found switched off.​

 

[Saif]

Who said Bangladesh is poor! Just visit the candidates' homes

The highest increase in wealth over the past 10 years has been of the woman vice chairman candidate in Kapasia, Gazipur, Raushan Ara Sarkar. The increase in her wealth has been 18,233 per cent. Next is the Gazipur Sadar upazila chairman candidate Rina Parveen. Her wealth has gone up by 10,074...

en.prothomalo.com

Who said Bangladesh is poor! Just visit the candidates' homes
Sohrab Hassan
Published: 11 May 2024, 16: 08

According to the household income and expenditure survey of Bangladesh Bureau of Statistics (BBS), the poverty rate in Bangladesh is 18.7 per cent. Over the past six years, the rate of poverty has dropped by around 6 per cent. The rate of extreme poverty in the country has dropped too. The decrease in poverty and extreme poverty stands at around 1 per cent per year.

A comparison can be drawn with increase in the number of wealthy persons. The first phase of the upazila election was held on 8 May. There are all sorts of political analyses as to why the voter turnout was so low in this election. Some blame BNP and some blame Awami League. We won't get into that argument. What we want to see is the increase in income and assets of the candidates who contested in the election.

According to the TIB (Transparency International Bangladesh) analysis of information concerning the candidates, the highest increase in wealth over the past 10 years has been of the woman vice chairman candidate in Kapasia, Gazipur, Raushan Ara Sarkar. The increase in her wealth has been 18,233 per cent. Next is the Gazipur Sadar upazila chairman candidate Rina Parveen. Her wealth has gone up by 10,074 per cent.

There are 117 multimillionaires contesting in the election for various posts. As it is difficult to assess the exact value of land, this hasn't been included in the calculations regarding these multimillionaires

There were 37 candidates with wealth over Tk 10 million (Tk 1 crore) in the last upazila election. This has gone up to 94 this time. The wealth and assets of many have skyrocketed almost unbelievably. Around 70 per cent of the chairman candidates in the first phase of the election are businesspersons. There are 94 "crorepati" of "kotipati" candidates (multimillionaire candidates having over one crore or over Tk 10 million). This is around a threefold increase in the number of multimillionaire candidates. Among vice chairmen candidates, there are 17 multimillionaires and 6 women multimillionaire vice chairmen candidates. All in all, there are 117 multimillionaires contesting in the election for various posts. As it is difficult to assess the exact value of land, this hasn't been included in the calculations regarding these multimillionaires.

Around 90 per cent of the people in this country are of the poor, lower income and middle class. We have never heard of those who practice politics for them, who become people's representatives, who are installed in the top echelons of the state and administration, being poor. From the union parishad to the national parliament -- it is rare to ever spot a poor individual.

West Pakistan's economy was much better than that of East Pakistan. Most of the budget was spent there. It was in the struggle against this inequality that Bangladesh became independent. But the inequality and exploitation persists. Before it was the outsiders that exploited us, now Bangladeshis exploit Bangladeshis.

In its 2008 election manifesto Awami League stated that the people's representatives would make public declaration of their wealth and assets and that of their family members. They later moved away from that. Now the leaders say, these details are submitted to NBR and so there is no need for any separate declaration.

However, due to directives from the Supreme Court, the candidates must declare their income, expenditure and assets. That is why the wealth of the present and future candidates can be discerned. A comparison can be made between the present and the past.

In the first phase, 69.86 per cent off the chairman candidates declared themselves to be businesspersons. Ranking on top of the list with the most moveable assets is Gopalganj chairman candidate Kamruzzaman Bhuiyan. His total moveable assets amount to Tk 252.4 million (Tk 25 crore 24 lakh) in worth. Next is Anwarul Islam of Kaunia upazila, Rangpur, with Tk 203 million (Tk 20 crore 30 lakh).

TIB's analysis indicates reveals that eight candidates have crossed the limit of land ownership. According to the law, a citizen can own 100 bighas or 33 acres of land at the most. This number will be much higher in the Jatiya Sangsad (national parliament) election. The people exceeding legal limitations are our lawmakers and our servers.

In comparison to the 2009 upazila polls, the highest increase in income has been of Pradip Kumar Karbari, chairman candidate for Ramgarh, Khagrachhari. His assets have shot up by over 3000 per cent. The income of another four candidates has gone up by over 1000 per cent.

Who will say that Bangladesh is poor after perusing the accounts of the assets owned by the candidates of the last parliament election and this upazila election! "Poor Bangladesh" doesn't exist in the Jatiya Sangsad or the zila and upazila parishads. Poor Bangladesh exists in the urban slums, the factories, the crop fields and in the emaciated faces of the marginalised people.

In Pakistan times there was a dual economy. West Pakistan's economy was much better than that of East Pakistan. Most of the budget was spent there. It was in the struggle against this inequality that Bangladesh became independent. But the inequality and exploitation persists. Before it was the outsiders that exploited us, now Bangladeshis exploit Bangladeshis.

Bangabandhu had said, "The world is divided into two -- the exploiters and the exploited. I am on the side of the exploited." But Awami League's present economic policy and programmes indicate that they are actively protecting the exploiters. The looting of billions from the banking sector is even defended in parliament. They say, "The culture of loan default started during the rule of Ziaur Rahman and expanded during the rules of Ershad and Khaleda Zia." It is easy to criticise others. It is difficult to face reality.

Former commerce minister Tipu Munshi once said, the standard of living of 40 million people in Bangladesh is equal to that of people in Europe. But have the people' representatives any idea about the lower rung of 40 million people steeped in abject poverty, struggling for a decent meal?

According to the BBS report, the average monthly income of a person in Bangladesh is Tk 7,614. People in the cities have a much higher income than those in the villages. The average monthly income of an urban person is Tk 10,951. And for the rural person it is Tk 6,091.

The average is calculated from the highest and the lowest earnings. Say, if a persons earns Tk 100,000 a month and another earns nothing at all. Their average income stands at Tk 50,000. That doesn't mean the man with no income will get a share from the other man's income. Along with development, the income gap has increased in Bangladesh too. Around 41 per cent of the total income in the country is owned by the wealthiest 10 per cent. The poorest 10 per cent have 1.31 per cent of the earnings.

All the people's representatives in the elections are rich. Some are ultra-rich. But the majority of the voters are poor or ultra-poor. In the past, a couple of poor people would be elected too. Now no poor persons will even dare to contest. The deposit required to contest as chairman in the upazila election has been increased to Tk 100,000 and for vice chairman Tk 75,000. It is not possible on the part of any poor person to deposit this sum of money.

A few years ago the US-based Wealth-X reported that Bangladesh had the highest growth in ultra-wealthy persons, higher than in various big economies. The increase in ultra-wealthy persons has been around 17 per cent on average. Details of some of these ultra-wealthy were seen the affidavits of the candidates. To get further details of the others, one may have to visit the second homes built up in Malaysia, Abu Dhabi or in Begumpara built up in Canada.

* Sohrab Hassan is joint editor of Prothom Alo and a poet​