[🇧🇩] Corruption Watch

[Saif]

A corrupt taxman and his 'blessed' in-laws

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

www.thedailystar.net

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

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

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

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

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

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

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

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

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

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

The Daily Star has a draft copy of the document.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

ACC decided to investigate Faisal last year.

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

 

[Saif]

The incredible ‘goatness’ of being

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

www.thedailystar.net

The incredible 'goatness' of being

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

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

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

We may have to rethink our "goat dismissiveness".

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

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

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

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

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

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

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

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

 

[Saif]

The paradox of whitening black money while fighting corruption

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

www.thedailystar.net

The paradox of whitening black money while fighting corruption

VISUAL: Shaikh Sultana Jahan Badhon

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

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

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

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

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

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

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

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

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

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

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

Kamal Ahmed is an independent journalist​

 

[Saif]

What options are left for us to fight unbridled corruption?

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

www.thedailystar.net

What options are left for us to fight unbridled corruption?

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

 

[Saif]

Anti-Corruption Commission must live up to mandate

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

www.newagebd.net

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

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

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

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

 

[Saif]

Another public project gone awfully awry

Lack of progress in hi-tech parks project is unacceptable

www.thedailystar.net

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

VISUAL: STAR

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

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

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

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

 

[Saif]

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

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

www.newagebd.net

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

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

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

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

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

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

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

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

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

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

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

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

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

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

 

[Saif]

Looking to live in luxurious flats of ex-police chief in Gulshan? Contact ACC

The Anti-Corruption Commission, or ACC, has taken over four flats owned by Benazir Ahmed’s family in Dhaka’s Gulshan as the former inspector general of police faces graft investigation. A team led by Manjur Morshed, the ACC director of asset management, made an inventory of goods in th

thefinancialexpress.com.bd

Looking to live in luxurious flats of ex-police chief in Gulshan? Contact ACC
BDNEWS24.COM
Published :
Jul 08, 2024 20:39
Updated :
Jul 08, 2024 20:39

The Anti-Corruption Commission, or ACC, has taken over four flats owned by Benazir Ahmed's family in Dhaka's Gulshan as the former inspector general of police faces graft investigation.

A team led by Manjur Morshed, the ACC director of asset management, made an inventory of goods in the flats at Rancon Icon Tower on road No. 126 on Monday as the receiver appointed by the court.

"We'll try to rent the flats out and submit the money to the exchequer," Manjur said.

Benazir bought the flats in March 2023 within six months from his retirement – three registered with the name of his wife Zeeshan Mirza, and the other with his own name as the guardian of their younger daughter.

Two of the flats have an area of 2,242 square feet each and the others 2,353 square feet each. All four were connected to use as a single unit on the 12th and 13th floors of the building.

Dhaka Metropolitan Senior Special Judge Mohammed Ash-Shams Joglul Hossain had earlier ordered the attachment of the four flats and then on Jun 30 appointed a magistrate to open those.

The ACC has been investigating the assets of the former inspector general of police and his family following media reports that he had accumulated wealth beyond means.

The High Court has also ordered seizure of their properties and freezing of their bank accounts.

But media reports suggest the former police chief had withdrawn most of the funds from his accounts and left the country before the court passed the order.​

 

[Saif]

Anti-graft drive: How has Awami League fared in first six months?

While the corrupt hoards wealth beyond our wildest imagination, ordinary people are barely surviving the onslaught of rising costs.

www.thedailystar.net

Anti-graft drive: How has Awami League fared in first six months?

VISUAL: BIPLOB CHAKROBORTY

The Awami League-led government completes six months of its fourth consecutive term in office today. Generally, six months is not enough time to assess the performance of a government. But for an incumbent government in seat since 2009, whose comeback was accompanied with many promises, it seems a good enough timeframe to evaluate its deeds over the last six months in the context of its 15-year rule.

In the past six months, the issue of corruption has truly come to the fore, and the government has acted in a handful of high-profile cases. Prime Minister Sheikh Hasina recently vowed that no one indulging in corruption will be spared, irrespective of their identity, and that the ongoing drive against graft will continue. At the maiden cabinet meeting on January 15, she also gave strict instructions to not tolerate corruption and irregularity.

However, there are as yet no indications that the government is ready to tackle corruption holistically. No policy reforms have been suggested, no directives have been issued to concerned agencies, nor have law enforcement authorities been bolstered to act against those deemed corrupt. Instead, what seems to be clearer as days go by is that the government is cherry-picking certain individuals who may no longer be in favour, and conducting isolated drives against them, while others go scot-free.

The Anti-Corruption Commission is currently investigating the accumulation of illegal wealth by former inspector general of police Benazir Ahmed and his family members, former National Board of Revenue (NBR) official Matiur Rahman, immediate past NBR first secretary Quazi Abu Mahmud Faisal, customs commissioner Enamul Haque, former NBR commissioner Wahida Rahman, former additional inspector general of police Shamsuddoha Khondoker, Rajdhani Unnayan Kartripakkha (Rajuk) director Mobarak Hossain and his wife, among others.

The amount of assets that the initial investigation by ACC has unearthed is mindboggling. It found illegal assets worth Tk 43.5 crore belonging to Benazir Ahmed, his wife, and two daughters. But the actual price of his wealth is many times higher than the amount shown in the documents.

Meanwhile, former NBR official Faisal has accumulated about Tk 1,000 crore by taking bribes for transferring income tax officials, intimidating taxpayers and resorting to other irregularities, according to ACC documents submitted to the court.

But the question that must be asked is, why is ACC investigating them now, rather than when they were at the helm of power? Does the ACC truly deserve compliments for acting on command, rather than doing its constitutionally mandated duty? While the AL throws its sacrificial offerings to a crowd thirsty for blood, the one prickly issue getting sidelined is whether the AL government can escape responsibility for such unbridled corruption.

There have been innumerable occasions when the party has quite blatantly used the state machineries for political benefits. There has been widespread immunity for overreach of influential individuals and institutions, which has given many the illusion of unbridled power—a perfect breeding ground for corruption and tyranny. The flurry of corruption allegations that have been raised against some former and incumbent government officials in recent times is nothing but an outcome of that situation.

Even a portion of AL leaders believe the government has failed to ensure accountability of government bodies, and is predominantly responsible for giving corruption its current institutional shape. On June 25, AL joint general secretary Mahbubul Alam Hanif told the parliament that corruption is overshadowing all the government's achievements and that despite its policy of zero-tolerance against corruption on paper, corruption remains out of control in reality.

The very next day, AL General Secretary Obaidul Quader said it isn't just government officials who are corrupt, but politicians too. But then, in the very next minute, he tried to justify corruption in the country by saying it is a common phenomenon across the globe.

Such contradiction, unfortunately, seems to be the very mantra of the party's professed commitment to tackling corruption. The Awami League, in its manifestos before the last four national elections, vowed to strengthen the ACC, but Bangladesh Public Service Act 2018 essentially limits the anti-graft watchdog's power to arrest corrupt government officials, as it must get prior permission from the authorities concerned to arrest public servants.

On June 10, ACC Chairman Moinuddin Abdullah accused ministries of fostering corruption by not including anti-corruption clauses in their regulations. The former bureaucrat also stated that all ministries have opened the floodgates to corruption. Meanwhile, ACC Commissioner (investigation) Md Jahurul Haque said, "Those in power in society are the ones who commit corruption. The CIP and VIP individuals, whom you try to honour, are involved in corruption."

The corrupt, indeed, are running the country, with impunity. Around Tk 92,261 crore has been plundered from the country's banking sector in 24 major scams over the past 15 years, as a result of irregularities, misuse of power, and potential money laundering, according to a report of the Centre for Policy Dialogue (CPD). The figure can only confirm the ineffectiveness of the Money Laundering Prevention Act and the futility of the government's commitments to safeguard the banking sector.

The AL, in its manifesto, promised to recover default loans through enforcement of laws, but the total defaulted loan in the banking sector stood at Tk 1,82,295 crore as of March, highest in the country's history. But in 2009 when the AL-led government came to office, the figure of total defaulted loan was Tk 22,000 crore.

We see the same impunity in the stock market. Low-performing stocks frequently appear on lists of top gainers or highest traded volumes in the stock market due to manipulations. Even when the Bangladesh Securities and Exchange Commission (BSEC) detects such manipulations, the BSEC's punishments are too lenient, discouraging effective deterrence. For instance, in 2023, the BSEC fined Abul Khayer Hiru and his associates only Tk 5.25 crore for manipulating the stocks of NRB Commercial Bank and Fortune Shoes. This fine pales in comparison to their estimated gains exceeding Tk 68 crore, according to BSEC enforcement records.

Data suggests this may be a recurring issue. In 2022, the BSEC uncovered manipulation in several stocks, where the perpetrators gained an estimated Tk 253 crore but were only fined Tk 21 crore. In contrast, the US Securities and Exchange Commission (SEC) identified 16 individuals involved in a stock manipulation scheme in June 2023 that generated over $35 million in illegal profits. Consequently, the SEC imposed collective fines exceeding $75 million, as reported on their website. This example highlights the significant disparity in how market manipulation is penalised in Bangladesh compared to the US. Instead of strong deterrents, we seem to be encouraging such practices by either turning a blind eye to them or letting perpetrators off the hook with a slap on the wrist.

Meanwhile, the success of every development project in the country is tainted by cost-overruns and innumerable project extensions due to corruption at every level for which no one is ever held to account. All this comes at a tremendous cost—the burden of foreign debt, which has now crossed $100 billion, a nearly four-fold increase compared to $25.3 billion in 2009.

And while the corrupt hoards wealth beyond our wildest imagination, ordinary people are barely surviving the onslaught of rising costs. The AL's top promise before the January 7 national poll was to address inflation and ensure a smooth supply chain to bring down commodity prices. But food inflation stood at 10.76 percent in May, a seven-month high. In June 2009, when the AL formed the government, the point-to-point inflation was 2.25 percent, while the average inflation rate was recorded at 6.66 percent.

The finance minister, while placing the proposed budget for FY 2024-2025, hoped to bring the inflation down to 6.5 percent. But given the country's current economic health and in the absence of any clear policy directives, it appears nothing more than a lofty assurance.

The party also promised to take strict action against illegal wealth acquisition in its election manifesto. The government, however, has taken the opposite position by once again deciding to allow black money holders to legalise undisclosed wealth without any scrutiny by paying a 15 percent tax.

The AL has long promised to establish a humane society by reducing social inequality, but the latest data of Household Income and Expenditure Survey reveals a totally different picture. Income inequality is at an all-time high in the country, with the top 10 percent of the wealthiest households now holding 40.92 percent of its total income.
The above-scenario paints a depressing picture of the first six months of the government's tenure. We can only hope that morning does not show the day. Sheikh Hasina has proven be the strongest leader of the country and we want to have faith in her to clamp down on corruption, regardless of affiliation, with greater vigour and steer her government to prioritise the welfare of the people.​

Partha Pratim Bhattacharjee is planning editor at The Daily Star.

 

[Saif]

The rot has gone too deep

In recent months, financial or other scams have been hitting the news headlines one after another. Indeed, it has become difficult for people to keep track of those who are coming at them thick and fast. First came the incidents of bank money plundering that eroded the financial health of many pri

thefinancialexpress.com.bd

The rot has gone too deep
SHAMSUL HUQ ZAHID
Published :
Jul 10, 2024 22:17
Updated :
Jul 10, 2024 22:17

In recent months, financial or other scams have been hitting the news headlines one after another. Indeed, it has become difficult for people to keep track of those who are coming at them thick and fast.

First came the incidents of bank money plundering that eroded the financial health of many private banks. Some people have strong links with the powers-that-be, who allegedly managed to take control of several banks and financial institutions and divert funds worth billions of taka.

This unique development added a new dimension to the country's financial sector. Until then, a considerable volume of non-performing loans (NPLs) was a matter of intense debate in the public domain and at the policymakers' level. Instead of improving, the NPL situation has deteriorated, with the total soured asset soaring to more than Tk. 4.0 trillion. The amount includes loans under rescheduling, litigation and written-off categories.

As if to divert the public attention from scam stories involving the financial sector to something else, there came stories of how some high-level government officials, former and present, acquired wealth in unbelievable proportions, resorting to corruption and abuse of power. Those proved to be saucy. People are now devouring such stories, courtesy of print and electronic media.

Amidst all the scams, financial or otherwise, at least a couple of revelations have drawn widespread attention. They are the involvement of the chairperson and some other officials and employees of Bangladesh Technical Education Board in preparing and selling forged educational certificates and the leak of PSC exam question papers.

A private TV channel made yet another shocking revelation early this week. It has unearthed how question papers are leaked by a syndicate of officials and employees of the Public Service Commission (PSC). What has been revealed until now is that the syndicate leaked question papers to people seeking second-class and other government jobs in various departments. The police have arrested at least 17 persons, including two deputy directors and one assistant director. According to media reports, the syndicate has been active inleaking question papers for more than 12 years for various government jobs, including those for the Bangladesh Civil Service (BCS) examinations. The private TV channel prepared an investigative report based on allegations of irregularities received from some people who had taken part in a recruitment examination for Bangladesh Railway on July 05 last.

Following the detection of such cases, the newspapers are now agog with reports highlighting the wealth amassed by individuals involved in corruption, bank loan fraud, and other irregularities. With PSC people's latest question paper leaks, a former PSC chauffeur has received the most attention. He allegedly made disproportionate wealth, amounting to Tk.500 million, out of the occasional question paper leaks.

The PSC high-ups were aware of the developments surrounding periodic recruiting exams. In 2014, following the detection of question paper leaks, they took action against some of its officials and employees. However, the actions were half-hearted, leading to the recurrence of such criminal activities in the following years.

The unearthing of PSC question papers comes as thousands of university and college students have taken to the streets to support the demand for reforming the quotas in government jobs. They have been blocking roads and railways to press home their needs, which include abolishing the reserved quota for grandchildren of freedom fighters.

If people can get government jobs using leaked question papers, what is the use of engaging in street protests? They will eat up most jobs reserved for both quota and non-quota candidates. The street demonstrators should add yet another demand to their list-- -make the PSC examination systems free from manipulation and irregularities.

Leaking question papers prepared for public and admission examinations is a familiar practice. It has been happening in Bangladesh and many other developing countries, in particular.

Only recently, the leaking of question papers for medical examinations rocked neighbouring India. The integrity of the entry exam came under severe scrutiny when the news of a massive question paper leak broke. Anurag Yadav, a key figure in this scandal, confessed that the leaked papers matched the actual ones.

Question paper leaks have been a persisting issue in the education sector. Despite taking all safeguards, some question papers get leaked because of the involvement of insiders who can hardly resist the lure of unearned income. Because of these greedy individuals, the credibility of public examinations is undermined.

It is beyond dispute that the traditional methods of paper setting and distribution need to be revised to prevent loopholes and plugging of the same necessitates something different.

Secure technology-driven solutions might help the authorities concerned to stem the rot. Setting of personalized questions much like GRE and GMAT, generation of AI-driven questions, last-minute delivery of question papers to examination centres, multi-factor authentication in the matters of opening and accessing of question papers, advanced encryption of information, implementation of an effective question paper generation solution etc., might help stop, to a large extent, the incidence of question papers leaks.

Stringent laws should supplement technological advancements to deal with question leaks. The crime of leaking question papers prevents competent people from securing government jobs and deprives deserving students of their best in public examinations. It needs to be stopped at any cost.​

 

[Saif]

Tk 500 million deposited in bank accounts of Faisal’s 14 relatives

Around Tk 500m was deposited in bank and other financial institution accounts of NBR’s former secretary Quazi Abu Mahmud Faisal and his 14 relatives

en.prothomalo.com

Tk 500 million deposited in bank accounts of Faisal's 14 relatives
AsaduzzamanDhaka
Updated: 08 Jul 2024, 15: 41

Quazi Abu Mahmud Faisal Official photo

Around Tk 500 million was deposited in bank and other financial institutions' accounts of National Board of Revenue's former first secretary Quazi Abu Mahmud Faisal and his 14 relatives in the last eight years.

The relatives include Faisal's mother, brother, sister, sister-in-law, wife and in-laws.

According to an investigation of the Anti-Corruption Commission (ACC), the amount was deposited (including investment at savings certificates) between 2016 and 2023. Besides, flats, plots and land worth Tk 210 million (as shown in deeds) were bought in the names of Faisal and his relatives. None of the relatives of Faisal are involved with any large business. They neither do any jobs in high posts in government or private jobs.

Faisal's mother, sister, mother-in-law, sister of mother-in-law are housewives. Of the relatives, Faisal's brother-in-law Syed Abdullah is a police inspector. He was officer in charge of Mothbaria police station in Pirojpur and is now attached with Feni police lines. Faisal's brother is a lawyer.

An official of ACC said the information of NBR official Faisal's huge wealth was leaked mainly during the investigation of his brother in law Abdullah's wealth. Abdullah allegedly amassed huge wealth while he was OC of Mothbaria police station. Later, an investigation committee consisting of three ACC officials of Pirojpur was formed in February last year to investigate police officer Abdullah's wealth.

Syed Abdullah was the OC in the police station between 29 March in 2019 and 24 March in 2020.

The ACC official said the probe body primarily learnt about the huge wealth of Abdullah during the investigation. The ACC later in May last year got information that Abdullah's wife Farhana Akhter (Faisal's sister) owns two flats and a commercial space in Dhaka, mother-in-law Karima Khatun owns a flat in Gulshan. Also, the ACC investigators traced millions of taka transactions in the bank accounts of Faisal's sister. The ACC applied to the court for confiscation and attachment of wealth amassed in the names of Faisal's sister, mother and brother-in-law. The court on 28 May last year ordered confiscation of the movable and immovable properties of them worth Tk 180 million.

After 11 months of the order, ACC submitted the wealth lists of Faisal and his 10 relatives to the court. Based on this, Dhaka metropolitan senior special judge Mohammad As Shams Jaglul Hossain directed to confiscate properties of Faisal and his 11 relatives on 27 June. During the court order, Faisal was the first secretary of NBR Dhaka office (tax). He was later 'released' from the NBR and transferred to Bogura tax zone.

The ACC in its report to the court said Faisal amassed huge amounts of wealth through misuse of power and corruption including transfer of income tax officials in exchange of money and intimidating the taxpayers.
Prothom Alo tried to contact Quazi Faisal several times in the last seven days for his comment on an allegation of amassing illegal wealth. But he did not respond to calls.

The ACC in its report to the court said Faisal amassed huge amounts of wealth through misuse of power and corruption including transfer of income tax officials in exchange of money and intimidating the taxpayers.

The ACC report also made similar observations about Faisal's brother-in-law Syed Abdullah in a separate report submitted to the court. The report said Abdullah amassed huge wealth by restoring to corruption including misuse of power and relations with drug traders.

Prothom Alo tried to contact Syed Abdullah also. He received the call only once, and after knowing the identity of this journalist, he hung up the phone saying he cannot talk now.

Properties of Faisal's mother-sister

ACC investigation finds that most of the wealth of police official Abdullah is in the names of his wife and mother-in-law. Both of them are housewives.

According to the court order on confiscation of wealth, Abdullah's wife Farhana has saving certificates worth Tk 10 million. She has nine bank accounts in her name, of which six were opened in 2021-2022. A total of Tk 10 million was deposited in an account opened in 2021. A total of Tk 17.6 million was deposited in her nine bank accounts. Besides, Farhana owns a 2386-square feet commercial space in a building in Kakrail worth Tk 27 million. She also has a Tk 20 million flat in Moghbazar and Tk four million flat in Khilgaon. Faisal's mother Karima Khatun has a Tk 88.3 million flat in the city's Gulshan.

Faisal's brother-in-law Abdullah has a 12-katha plot at Ananda Police Housing Limited in Narayanganj's Rupganj.

Wealth of Faisal and other relatives

According to the ACC investigation, Faisal's properties are mainly in the names of his wife Afsana Naznin, father-in-law Ahammed Ali and mother-in-law Momtaz Begum. He bought plots in Dhaka and Narayanganj in his own name. He has six bank accounts. A total of Tk 52.1 million was deposited in these accounts from 216 to 2023.

Faisal's wife has savings certificates worth Tk five million. Besides, there are five bank accounts in her name. A total of Tk 22.5 million was deposited in these accounts opened between 2016 and 2023. Besides, a total of 10 katha plots in Dhaka and Rupganj were bought in his name.

Meanwhile, another 10 katha plot was bought in the name of Faisal's mother-in-law in Dhaka in 2022. Although the price of the land was shown Tk 5.2 million in deeds, the ACC told the court that the land is actually worth Tk 45 million. Besides, over Tk 60 million was deposited in eight bank accounts opened in her name between 2016 and 2023.

According to ACC investigation, a flat worth Tk 10 million was bought in the name of Faisal's father-in-law Ahammed Ali (retired bank officer) last year. Besides , savings certificates worth Tk 3 million were bought in his name in 2020-2021. The ACC investigation finds that Tk 110 million was deposited in eight bank accounts in his name. Savings certificates worth Tk 3 million were bought in the name of Faisal's brother-in-law Aftab Ali in 2020 and 2021. Five bank accounts were opened in his name between 2016 and 2023 where Tk 14 million was deposited.

ACC investigation finds that Savings Certificates worth Tk 3 million were bought in the name of Faisal's brother Quazi Khalid Hasan in 2021. A total of Tk 21.2 million was deposited in his six bank accounts in 2021-2023. A total of Tk 17.1 million was deposited in two accounts Sheikh Nasir Uddin, maternal uncle-in-law of Faisal, in 2021-2022. Besides, Tk 37.6 million was deposited in a bank account of Mahmuda Hasan, Faisal's maternal aunt-in-law, in 2021. Tk 12.1 million was deposited in four bank accounts of Farhana Afroze, Mahmuda's daughter.

According to the ACC report submitted to the court, saving certificates worth Tk 4 million were bought in the name of Khandakar Hafizur Rahman, an acquaintance of Faisal, in 2021. Besides, Tk 137.2 million was deposited in five bank accounts in his name between 2019 and 2021.

Transparency International, Bangladesh's executive director Iftekharuzzaman told Prothom Alo that it is not possible for anyone to amass such a large amount of money legally. A section of corrupt officials have become wealthy due to lack of transparency and accountability.
Hafizur is from Boyra area in Khulna city. A visit to his house in Khulna on 25 June revealed that Hafizur has a one storied building. Hafizur's wife Rizia Begum told Prothom Alo that her husband is a seasonal paddy trader. He cannot renovate his house for want of money. Rainwater seeps into their house.

Asked about his relations with Faisal, Rizia said they are not relatives but Faisal's father is a family friend.

According to the ACC investigation report, a total of Tk 84.5 million was deposited in two bank accounts in the name of Faisal's relative Rowshan Ara Khatun. The bank accounts were opened in 2019 and 2020.

Transparency International, Bangladesh's executive director Iftekharuzzaman told Prothom Alo that it is not possible for anyone to amass such a large amount of money legally. A section of corrupt officials have become wealthy due to lack of transparency and accountability. The government should see the wealth statement of public servants and take strict actions against those who have ill-gotten money.​

 

[Saif]

ACC to sue Sadeeq Agro, livestock officials

The Anti-Corruption Commission is set to file a case against eight people, including Sadeeq Agro owner Imran Hossain and officials of the livestock department, on charges of...

www.newagebd.net

ACC to sue Sadeeq Agro, livestock officials
Solamain Salman 13 July, 2024, 00:21

The Anti-Corruption Commission is set to file a case against eight people, including Sadeeq Agro owner Imran Hossain and officials of the livestock department, on charges of irregularities and corruption.

A team of the commission, led by its assistant director Abul Kalam Azad, completed an inquiry and submitted a report to its higher authority recommending filing of a case, said a commission official on Thursday.

The case would be filed on Sunday following approval of the commission, and the number of accused would be eight or nine, said an official who was involved with the inquiry.

Sadeeq Agro Limited came under scrutiny recently for selling a goat worth Tk 12 lakh to the young son of National Board of Revenue official Matiur Rahman who is now facing a barrage of graft charges.

According to the probe findings, the Ministry of Fisheries and Livestock sent a letter to its Department of Livestock on March 3, 2024, giving approval to sell the meat of 448 cows, including 15 Brahman cows at a fair price through mobile sales centres.

Of them, 168 cows, including 15 of Brahman breed, were from the Central Cattle Breeding and Dairy Farm in Savar, 42 were from Rajshahi Dairy and Cattle Development Farm, 20 were from District Dairy Farm in Sylhet, 81 from Dairy and Cattle Development Farm in Bogura, 20 from Dairy and Cattle Development Farm in Faridpur, 47 from Dairy and Cattle Development Farm at Kashipur of Barishal, and 70 cows were from Dairy and Cattle Improvement Farm at Hathazari in Chittagong.

Later on, Sadeeq Agro owner Imran Hossain, also president of the Bangladesh Dairy Farmers Association, in collusion with some officials of the livestock department, took the 15 Brahman cows along with the other cows from the Savar's central cattle breeding farm in April without maintaining the proper process.

Neither did they maintain the mandatory condition spelt out by the ministry that the cows must be slaughtered and their meat must be sold at a fair price from mobile centres during the month of Ramadan, said anti-corruption officials involved in the probe.

Later on, during Eid-ul-Azha observed in June, Sadeeq Agro was allegedly found selling some Brahman cows at high prices.

In 2021, Imran imported 18 Brahman cows, a breed whose import is restricted in Bangladesh, from the United States with fake identification documents claiming them as Shahiwal breed. The customs department seized these cows at the airport.

The customs authorities then handed over the cows to the Central Cattle Breeding and Dairy Farm in Savar under the Department of Livestock. Officials at the Savar farm said that three of the 18 Brahman cows died, while the rest of the 15 were in their custody.

An anti-corruption enforcement team recently launched an inquiry over the allegations against Sadeeq Agro of selling the Brahman cows alive instead of selling their meat, said the commission's assistant director Abul Kalam Azad.

On July 1, three separate teams conducted day-long drives at the Savar central cattle breeding farm as well as at Sadeeq Agro's farms in Savar, Mohammadpur in the capital and Narsingdi for information and evidence.

Abul Kalam Azad said that their drives traced and recovered six Brahman cows from Sadeeq Agro's Mohammadpur farm on July 3, and confirmed through code numbers on the cows that they were from the set of 18 Brahmans seized at the airport.

The anti-corruption probe teams also found that Sadeeq Agro was involved in artificial breeding of beef cattle at its farm, violating the government restriction.

According to the guidelines of the Department of Livestock, artificial breeding of beef cattle is controlled by the government, and there is no scope to do it privately.

The anti-corruption team also recovered seven Brahman calves from Sadeeq Agro during its July 1drive, which was a proof of the company's act of violating the government rule, said anti-corruption officials.

They also said that the Central Cattle Breeding and Dairy Farm in Savar did not take any action against Sadeeq Agro for irregularities.

Besides suing the Sadeeq Agro officials, the anti-corruption commission is going to sue the officials of the central farm too.​

 

[Saif]

The nine lives of a corrupt public servant

Let's delve into the hypothetical lifelines in a public servant’s career that help them indulge in corruption.

www.thedailystar.net

The nine lives of a corrupt public servant

VISUAL: SHAIKH SULTANA JAHAN BADHON

Cometh the hour, cometh Obaidul Quader. Part of the charm of Awami League's long-running general secretary is that he always seems to deliver the most poetic lines about his opponents, even if they aren't entirely original. So recently, after a barrage of high-profile scandals rocked the administration, he set out to outline the government's strategy to curb corruption, using a reference that would seem strange to many: khela hobe. Yes, that all's-fair-in-love-and-war inspired mantra that guided Awami League's ruthless campaign against its rivals prior to the 2024 election.

"The game is on again [Abaro khela hobe]," Quader declared while addressing a party gathering. "It's on against corruption, plundering, and money laundering. Bangladesh must be rid of corruption." This is not the first time he used a sporting reference to attack corruption. The question is: how does the administration plan to play this game? Will it be like how it played last time, through force and coercion? Or does it have any special plan we are not privy to yet? Details are scarce at this point. So far, beyond rote reiterations of its "zero tolerance" commitment, occasional disciplinary spectacles that hardly qualify as punishment, and lengthy proceedings that may kick the judicial can down the road indefinitely, the administration has betrayed little awareness that it is no longer enough to go after a few rotten apples—it must go after the very system that enables corruption.

We can talk about how corruption has spread its tentacles in every sector, from banking to health to energy to transport to construction to civil aviation. We can talk about how nothing moves without bribery. But for a fuller grasp of how it all works and where it all originates from, we must examine civil service—the system governing public officials—which seems designed from start to finish to foster a partisan and corrupt bureaucracy. But since we are into references, let me use one that aptly portrays the seamless progression of public servants through this system: the cat with nine lives.

The general idea behind this myth is to celebrate cats' natural suppleness and swiftness allowing them to get out of potentially fatal situations. Now, think of the nine lives granted to cats as the nine or so lifelines or stages through which state officials are supported, sometimes starting even before recruitment and continuing well into retirement. Think of how they are favoured or shielded at every turn. And ask yourself if so many of them turning out to be corrupt or compromised is a coincidence.

Corruption at pre-recruitment stage

The whole process of corruption in the civil service starts with the cultivation of the idea that government jobs are superior to all others. Power, prestige, money, and job security—nothing beats this lucrative offering, with the private sector proving to be a poor substitute. Hence the mad race for all recruitment tests held under public authorities. Hence the demand for leaked question papers and all those supplying them, even from within the PSC. Hence the metamorphosis of public universities into BCS factories, and their libraries into BCS workshops. Hence the debate on extending the age limit for government jobs to 35 years.

I can go on and on, but you get the message: that the unhealthy competition in civil service recruitment and the lack of private sector alternatives have created an atmosphere that breeds and feeds off desperation. This is where future officials get their first lesson: that corruption can give you an edge over the teeming thousands. So you see some candidates spending lakhs for that golden goose of a job. You see others leaning on the preferential quota system, or leaked question papers, or their political connections. You see Chhatra League leaders locking up university VCs, or the government—forever wary of dissent—delving into irrelevant details like candidates' political affiliations during post-exam background checks, thus further undermining meritocracy. How likely are those emerging from such a compromised process to respond to Obaidul Quader's plea to "play," and rein in corruption or refrain from corrupt practices themselves?

We can talk about how corruption has spread its tentacles in every sector, from banking to health to energy to transport to construction to civil aviation. We can talk about how nothing moves without bribery. But for a fuller grasp of how it all works and where it all originates from, we must examine civil service—the system governing public officials—which seems designed from start to finish to foster a partisan and corrupt bureaucracy.

Post-recruitment privileges and exemptions

There are about 14 lakh government employees spread across the public sector. Once recruited, employees receive lucrative salaries, allowances, and benefits, with a side dish of opportunities for corruption. It's no wonder why certain departments and postings are so highly sought after, or why so many medical and engineering graduates are lining up for BCS general cadre, forgoing once-cherished careers in specialised fields. State officials are granted powers and privileges, sometimes even undeserved promotions, that come with little scrutiny or accountability. Further relaxations of rules governing their activities are on the cards.

For example, the public administration ministry is reportedly set to allow public servants to engage in stock market trading, reversing a prohibition in the Government Servants (Conduct) Rules, 1979. If it comes to pass, they will be able to buy or sell shares legally. Why is this problematic? Recall that Matiur Rahman, a top NBR official now under investigation for corruption, allegedly made a fortune through stock market investments, using insider information, both of which are illegal. Many government employees are similarly engaged in stock trading and have demonstrated their willingness to exploit privileged access for financial gain. So, legalising it may open a Pandora's box of unethical practices. Or, think of the proposal to relax another provision in the service rules requiring officials to submit wealth statements every five years, removing an important layer of scrutiny that already stands significantly diluted.

Those who are honest have nothing to fear from punishment. But when penalties are reduced by relaxing anti-graft rules, it benefits only the corrupt, and this is what the administration has done on a number of occasions. For example, in 2018, an amendment to the Government Servants (Discipline and Appeal) Rules (1985) introduced "reprimand" as a penalty for proven corruption, besides other penalties. You often hear of salary reduction, or "closing," or demotion, or transfer—so often the penalties of choice—which does feel like a slap on the wrist given the gravity of some of the crimes, thus further encouraging corruption.

Over the years, we have seen how such anti-graft regulations have been relaxed. In any sector other than public, the punishment for proven corruption would be instant termination. A recent editorial by this daily recounts three incidents where the accused, despite being found guilty of corruption, continue to be in service as they have been spared harsher departmental actions and even legal consequences. What message does it send to the wider public servant community? This policy of leniency provides a safety net for dishonest officials and contrasts sharply with the government's zero tolerance stance on corruption.

Lack of accountability for failures and inefficiencies

Another lifeline extended to government officials is through a collusive arrangement in which departments, and relevant officials, responsible for certain failures are seldom held accountable. You often see people die or suffer terribly because of accidents, disasters, and crimes that can be linked to the mismanagement, negligence or inefficiencies of certain government departments. Yet rarely, if ever, is a higher-up punished or even subjected to a reprimand. There is a tendency to let them off the hook during interdepartmental inquiries.

The case of a former deputy commissioner of Cox's Bazar, who reportedly got his name removed from a list of accused for misappropriation of funds with the help of several court officials, including a former judge, shows to what extent power can be abused to both commit crimes and protect criminals—both being the same person in this case. But he wasn't acting alone, neither do corrupt or compromised or inefficient officials, as they protect each other. And more often than not, the system allows it. We may recall how the attorney general himself told the apex court a few years ago that the parliament had passed the Government Service Act, 2018 to protect public servants, considering them a "different class of people." The same act had mandated law enforcers to seek "permission" for arresting public servants in criminal cases before the court, in August 2022, scrapped the relevant provision. But this culture of impunity has reached such a state that top officials are often seen directly flouting court directives, with no consequences faced.

Scandal-hit top officials, politicians, MPs, vice-chancellors or anyone like them rarely, if ever, resign in Bangladesh, even amid public protests. A common refrain among those under pressure to step down from their positions is that they will only do so if directed by the prime minister, indicating a culture where political loyalty supersedes accountability. Their connection and conviction further undermine what few accountability mechanisms we have left, however fragile.

Endless opportunities for corruption

The extent to which government officers and even low-level operatives can exploit their positions to engage in corruption, taking advantage of the protection and lack of oversight provided by the system, has again come to light following a series of financial scandals reported by the media. Beside the power they hold, some even post-retirement, what these revelations show is how rampant corruption has been. With so many present and former officials facing court proceedings, there is still a palpable sense that we are only scratching the surface. The iceberg still lies beneath it. Such massive presence not only indicates the normalisation of corruption, but also serves as a boost to the corrupt-minded.

Undeserved rewards and honours

Another lifeline or boost granted to the corrupt is the possibility of getting state rewards and recognition, so long as they are connected to the powers that be. The case of former IGP Benazir Ahmed, who was given state honours despite his controversial record, exemplifies this trend. But we are only getting to know about it now, post-retirement, which raises the question: how many such cases have there been? What really influences the decision to recognise state officers? Their service record, or political connection? Or is it their strategic importance to the government? Whatever it is, honesty is certainly not among the criteria. The implication of handing what serves as a symbolic victory to a potentially corrupt person—and all the way in which they can further shield themselves or advance their careers using such honours—cannot be stressed enough. Over the years, we have also seen how once-revered state awards for writers have been made objects of ridicule because of overzealous bureaucrats lobbying for their own candidature, and they sometimes got their way.

To read the rest of the news, please click on the link above.​

 

[Saif]

Getting out of the abyss of corruption in Bangladesh

We certainly don’t want to leave a failed nation for our children.

www.thedailystar.net

Getting out of the abyss of corruption in Bangladesh

VISUAL: OISHIK JAWAD

We are living in a society where corruption is rampant, pervasive, and institutionalised. The organisational structure of any institution should make it impossible for corruption of massive proportions to go undetected or continue unhindered without the knowledge of the higher echelons, unless they too are complicit in the crime and benefits from the loot. Unfortunately, that appears to be the case with the unravelling of illicit wealth amassed by some of the top echelons of the state machinery.

In Bangladesh, we are witnessing white-collar thugs who abused their power and position and allegedly committed crimes of all sorts and magnitude including intimidation, extortion, embezzlement, insider-trading, illegal occupation and possession of lands to become superrich overnight. Their reported accumulation of illicit wealth and illegal exercise of power dwarfs that of even Al Capone.

The questions that arises are—what were the public institutions or departments, where these thugs worked, doing when these crimes were being committed. Similarly, where were the agencies, responsible for monitoring monetary transactions? Also, what roles did the central banking authority and Bangladesh Financial Intelligence Unit (BFIU) play while billions were being laundered, which the Global Financial Integrity (GFI) terms as Illicit Financial Flow (IFF). The interesting thing is while overseas organisations keep figures of IFF from Bangladesh, our own agencies or authorities remain oblivious to it, therefore, raising suspicion of their complicity in the crimes. GFI, the Washington-based think tank on illicit financial flows, corruption, illicit trade, and money laundering had reported that a struggling economy like Bangladesh lost an astonishing sum of $61.6 billion during the period 2005-2014 in outward illicit financial flow or money laundering. The outward IFF is alleged to have spiked since then, as a result of which the economy of the country has been further crippled and the foreign reserve has depleted from over $48 billion in August 2021 to $12.8 billion in net reserve in April 2024. The country is now in a serious crisis to meet its import payments which impacts its foreign trade and balance of payment. The resultant upward surge in inflation has brought misery to the lives of the common people.

Meanwhile the Anti-Corruption Commission (ACC), which is too weak, too compromised, and too scared, is failing to effectively prosecute the Al Capones of Bangladesh. Even the criminal justice system is not faring any better. Thus, the Al Capones often manage to obtain a safe passage to countries where they can stash their illicit money and properties.

This perhaps explains why Benazir could leave the country and Matiur could flee despite the massive allegations of corruption. The case of Matiur is even more amusing. On June 24, the ACC went to court seeking an order to bar him and his family from leaving the country after, but according to news reports, Matiur and his family had already fled the country. ACC's actions remind us of the English grammar lessons in schools: "the doctor arrived after the patient had died." It also raises the obvious question why the ACC didn't institute the same proceedings against Benazir, rather made it possible for him to pass through the border check post manned by the very force that he had commanded once. On the other hand, many people are detained or refused clearance to embark on their outward journey on flimsy grounds.

Returning to Matiur's case, it is alleged that a very influential cartel facilitated the former revenue boss's safe passage out of the country. The drama doesn't seem to have ended yet with some reports saying that Matiur hasn't fled but is hiding in the country. Interestingly, his companion in corruption—his wife—is boasting with shameless pride that they have managed powerful media and power centres and nothing would happen to them. She is correct to an extent that law in the country never gets hold of the wealthy and powerful no matter what illegal, illicit or immoral actions they take. The fact is: an unholy nexus of unlawful cartels, regulators, politicians, and bureaucrats exercise such ruthless power and influence that the interests of the state and that of the people become secondary to theirs. Their triumph is visible but none dares to point it out because "justice" is long dead.

The nation is in hibernation and unlikely to wake up soon because the rot has gone on for so long and so deep that it has infested the entire social system, losing its strength to take measures to clear the mess it has gathered over time. The most concerning factor is not the money lost through corruption but the fact that it is leading us to a hopeless future. The prevailing perversions are damaging, and are creating an unhealthy social structure. Young people are helplessly witnessing crimes in high offices and how the criminals remain immune from prosecution. The statutory institutions are becoming weak putting democracy in jeopardy. Honesty and integrity are being replaced by insatiable greed and debauchery. Different branches of the state are failing to uphold and discharge their respective functions. Finally, meritorious youths are getting frustrated at the prevailing state of affairs and leaving the country in droves. Only the half-educated, mediocre and illiterates are left behind to run the country.

The devastatingly falling standard of our tertiary education is a major contributing factor to the abyss of moral depravity. The shameless sycophancy in academia and the failure to nurture and cherish meritocracy is creating an atmosphere where learning is becoming absent and earning money has become the main objective for students. I am not aware of any nation apart from ours which permits student politics of the kind and nature, that dominates our educational institutions. Students in other countries aspire to become responsible members of the society and contribute to its development and prosperity. They don't have the time or leisure to indulge in activities that are fraught with corruption and servility to power.

It is time we ask ourselves the most pertinent question of our time—whether we want to see ourselves as a failed state or should we bury all our ills and work towards building a nation dreamt by Bangabandhu and the millions who shed their blood and dignity to liberate the country and gifted us a free and sovereign nation. We certainly don't want to leave a failed nation for our children. It is about time and absolutely imperative that the nation mustered all its strength to rise and shake itself off the mud and filth it has accumulated thus far. It is not going to be easy to come out of the unfathomable quagmire of corruption and moral turpitude, but if we start the hard work now, a new generation will rise to pull the country out of its misery.

Khandaker R Zaman is an alumnus of the Australian Maritime College, University of Tasmania, and a former fellow of the Chartered Institute of Logistics and Transport.​

 

[Saif]

A country where loan defaulters are rewarded!

All over the world, strict actions are taken against loan defaulters, with many countries imposing travel bans and seeking legal recourse. In Bangladesh, however, defaulters get mega-discounts.

www.thedailystar.net

A country where loan defaulters are rewarded!

Cartoon: Biplob Chakroborty

All over the world, strict actions are taken against loan defaulters, with many countries imposing travel bans and seeking legal recourse. In Bangladesh, however, defaulters get mega-discounts.

For instance, the Bangladesh Bank (BB) last week extended an offer to loan defaulters named "exit policy", which allows an interest waiver for defaulters in exchange for paying only 10 percent as a down payment.

As per the policy, defaulters will get a maximum of three years to repay their loans.

The move, which comes at a time when interest waiver facilities are being widely criticised in parliament, appears to be nothing more than window dressing.

Through the policy, the BB aims to reduce bad loans to 10 percent for state-run banks and 5 percent for private banks by 2026 in line with the prescription of the International Monetary Fund.

"The financial condition of clients has been adversely affected by various uncontrollable factors -- that's why an exit policy is needed to recover the loans from them," the BB said in a statement last week.

However, industry insiders opine that there is a massive scope to misuse the policy, especially as it is being offered year after year.

After being pressured by the business community in 2019, the central bank introduced a "one-time exit policy", allowing defaulters to get interest waivers by paying only 2 percent as a down payment against their total loans.

A good number of defaulted borrowers were rewarded with interest waivers and loan rescheduling facilities under the policy. But the "one-time" exit policy has continued for each year thereafter, with thousands of crores of taka in interest repeatedly waived by banks.

In 2022, banks waived Tk 5,065 crore in interest, which was up 173 percent from around Tk 1,855 crore the previous year, central bank data showed.

Alongside interest waivers, defaulters have also been allowed to reschedule bad loans repeatedly.

In 2019, delinquent borrowers were allowed to reschedule their loans for 10 years after paying only 2 percent as a down payment. That year, a record Tk 52,770 crore was regularised under the policy and the one-time exit policy, as per BB data.

At the time, the central bank cited the same reasons as it is now. It had said that it introduced relaxed policies to reduce the amount of bad loans in the banking sector.

However, the generous offer has proved to be counter-productive since non-performing loans (NPLs) have surged.

For instance, when the BB introduced the exit policy in 2019, defaulted loans stood at Tk 93,911 crore. It climbed to Tk 182,000 crore in March this year, according to central bank data.

Furthermore, stressed assets, including rescheduled loans, written-off loans and loans involving lawsuits, now stand at more than Tk 400,000 crore.

Economic experts believe that repeat offerings of such relaxed policies have motivated defaulters not to repay since they believe they will always get mega discounts.

However, due to such rewards for delinquents, good and regular borrowers also being motivated to become defaulters.

Most countries, including India, China, the US, and Malaysia, are strict against defaulters, especially willful ones.

For example, defaulters in Malaysia are not allowed to leave the country while China imposes curbs such as travel bans and reduced employment opportunities.

In some countries, children of defaulters cannot enroll in elite schools. But in Bangladesh, defaulters and their families are enjoying all the social benefits that regular citizens are entitled to.

What is more, loan defaulters always get discounts to repay bad loans, and, in some cases, they enjoy more benefits than ordinary citizens.

Some steps have finally been taken to rein in NPLs. Recently, the government amended the Bank Company Act, introducing harsh measures against wilful defaulters.

The revised rules ban wilful defaulters from becoming bank directors for five years after they exit the defaulter list. It also renders them ineligible for national awards.

Wilful defaulters are ineligible for interest waiver and loan rescheduling facilities.

However, there are concerns that it may be difficult to implement such harsh restrictions on willful defaulters without political will, according to experts.​

 

[Saif]

The anatomy of corruption in BD

Of late, the media in Bangladesh is abuzz with news of high profile cases of corruption coming in quick succession, sometimes simultaneously. Senior officials, both in office and retired, have been implicated in allegations of corrupt practices and for amassing wealth well beyond their known source

thefinancialexpress.com.bd

The anatomy of corruption in BD
HASNAT ABDUL HYE
Published :
Jul 15, 2024 21:42
Updated :
Jul 15, 2024 21:42

Of late, the media in Bangladesh is abuzz with news of high profile cases of corruption coming in quick succession, sometimes simultaneously. Senior officials, both in office and retired, have been implicated in allegations of corrupt practices and for amassing wealth well beyond their known sources of income. Moveable assets and immoveable properties have allegedly been acquired by officials and shown in the name of near relatives, besides their own. Assets include money deposited in bank accounts, gold in lockers of banks and stocks of various companies, while properties include apartments in metropolitan cities and land all over Bangladesh. Among the cases made public, there are quite a few where land acquired with ill gotten money have been converted into 'resorts', an investment of preferred choice by the noveau riche of the errant kind. It is suspected the alleged offenders may also have immoveable properties abroad, Canada and Malaysia for instance, and cash stashed away in offshore safe havens.
Sensational as the cases of alleged corruptions are, it has long been a public knowledge that many departments under various ministries are mired deep in corruption.

Government officials and functionaries at all levels are alleged to be indulging in corrupt practices of one kind or another for personal gains. So far some officials of only a few ministries and departments like NBR of ministry of finance, the health directorate of the ministry of health, public service commission (PSC) of the ministry of public administration and police department of the ministry of home, have come under the radar of investigation by Anti-Corruption Commission (ACC). Given the widespread and longstanding nature of corruption that has been flagged by independent authorities like Transparency International (TI) it is suspected that almost all branches of government are now wallowing in corruption in degrees allowed by their writ. In this respect there appears to be no scope for any government entity in Bangladesh to adopt a holier than thou attitude visa vis other departments. However, it will be a sweeping generalisation to say that everyone in government service is or was corrupt. There have been honourable exceptions, as is the case with other cases of unethical conduct. But as the rot of corruption set in and it festered like a malignant wound, the dragnet spread wider, embracing an ever increasing number of offenders. Apart from public perception, the unpleasant truth of corruption running riot across the whole spectrum of government could not be beyond the knowledge of higher authorities. Whatever may be the causes of their failure to call the corrupt elements to account until now, the recent cases of high profile anti-corruption probes indicate a clear policy of cleaning up the proverbial Aegean stable. It remains to be seen whether the current spate of anti- corruption cases will be sustained, morphing into a zero tolerance policy for the economic crime of the gravest kind. When it comes to promoting good governance, cleansing administration of malpractices, including corruption, take a seat right at front and centre. The current high profile cases against some senior officials give hope that at long last the campaign launched has political will behind it.

CAUSES AND CONSEQUENCES OF CORRUPTION: All cases of corruption are not the same. They do not stem from the same causes and do not have same consequences. The causes and consequences of different types of corruption constitute the 'anatomy' of the malignancy (corruption) in the body eco-politic that will be discussed in this section, using mostly the cases of alleged corruption that have made 'hot news' in recent weeks. Though limited in number (the alleged cases of corruption), the examples can be used as case studies of corruption in general with wider application.

Three cases of alleged corruption have been made public in which senior officials of National Bureau of Revenue (NBR) have been implicated. None of them were caught at the time of committing the venial act. All the alleged offenders were given away by their ill gotten wealth, either through ostentatious style of living or by the sheer size and value of assets. The advantage of being a country of limited geography and high population is that nothing remains secret for long. Tongues start to wag and rumour mill continue to churn stories of high fliers whose ballast is ill gotten money. No secret intelligence is required to unearth cases of corruption in Bangladesh. But this is one aspect of the anatomy of corruption. The most important part is how did the NBR officials on the dock indulge in corruption in the first place? For the answer one has to look at the responsibility and power of NBR officials. They are entrusted with the task of collecting taxes, VAT and fees from individuals and business and industrial entities liable to pay these under existing rules and provisions of laws. Those who want to evade paying their due may resort to bribery with cash, either directly or through an intermediary. If the NBR officials responsible for determining the tax due from taxpayers agree to the desired evasion, fully or partially, in consideration of money paid, an unholy contract is signed. Tax evasion takes place and money changes hands. This is the most common case of corruption that may be resorted to by a NBR official. When this becomes regular and is institutionalised everyone in the office may get his/her cut. Wherever an official of NBR is alleged to take bribe this is how it takes place. The case of Mr Motiur of NBR is slightly different as he reportedly made money through insider information to buy stocks in companies to which he was privy. Illegal as such an act is, it will be interesting to see if his wealth can be accounted for by this source of earning money alone or whether this is a ploy to cover up income through the classic means mentioned above. In all cases where NBR officials are implicated in cases of corruption they invariably are seen to have misused their discretionary power.

The consequences of allowing tax evasion to take place are obvious. To the degree and extent tax evasion is allowed for monetary consideration by NBR officials there is a consequent shortfall in revenue collection. The entire economy suffers from inadequate resource mobilisation, forcing government to borrow money to balance the budget. The tax-GDP ratio languishing at the paltry rate of 9 per cent can be mostly explained by this.

The second case of corruption that have made news in recent weeks involve very senior police officials, including the former head of the police department, now retired. In these instances also, the officials in question were given away by their wealth and assets. They are alleged to have assets in banks and immoveable properties (apartments and land) well beyond their known sources of income. How do police officials like the ones in the news make oodles of money? It is alleged that one source of making illegal money by police is the misuse or abuse of power by police. Police has been given immense power under law over the liberty and property of people and they have discretion in using these selectively. For instance, they can arrest anyone on suspicion under section 54 of criminal procedure code or include/exclude names in FIR of heinous cases. They also have the right to take cognisance of an offence. In short, personnel of no other department of government has as much and as wide a power as police has. With so much power at their disposal some of them may be tempted to use it for personal gains. The police officials who are being investigated and have made news may have misused and abused their power while in office quite liberally. Like the NBR officials, they too are guilty of misusing their power, though their powers differ and scope of work vary.

It is not so much the economy as the society that suffers when police misuse their power. The rule of law is undermined or made short shrift of when bias is seen in the conduct of police in applying rules and laws selectively. Good governance has a great deal to do with rule of law and therefore use of power vested in police matters very importantly.

The third case of alleged corruption concerns some doctors under the ministry of health. They are alleged to have made money illegally by using their power in matters of purchase and appointments. Purchases increase when there are development projects and tenders are called. Suppliers and contractors vie with one another to get the order for which they don't think too much to offer bribe. Here too, the cause of corruption is misuse of power as rules may be bent to accommodate preferred parties. The consequence of misuse of power by officials in health ministry results in both high cost paid for items purchased and diminished service delivery to the public because of the increase in out of pocket expenses for relatives of patients.

The fourth case of alleged corruption that has made news involves officials and staff of PSC. The former chairman of public service commission, a former professor of a university, is reportedly among the suspects. They are accused of divulging question papers for BCS examination of a certain year. Here too, the cause of corruption is abuse of power that resulted in leaking official secrets (question papers) for pecuniary gains of the corrupt. The consequence of this misuse of power is to society, in so far as those who contested honestly might have lost in competition to candidates less meritorious than them. The quality of service provided by government may have been compromised by this loss of talent in public service. Another result of this alleged offense is the undermining of trust in the neutrality of public service commission.
The fifth case of corruption in the news relate to a state-owned bank whose chairman made thousand crores of money by sanctioning huge loans to parties having little or no credible credentials. This is just a tip of the ice berg as most of the institutions in the financial sector are floundering because of the egregious growth of non- performing loans (NPLs) and widespread incidence of self-serving management. In many cases both bank officials and directors of boards are guilty of misuse of power or failure to exercise due diligence.

CONCLUSION: The above discussion on the anatomy of corruption, causes and consequences, has been confined to cases that pertain to recent news in media. There is no doubt that corruption is taking place in other ministries and departments under them in varying degrees. If misuse of power happened in the reported cases in police, health, NBR and PSC, other departments and agencies in the government cannot be aseptic to this malaise. However, there is one case of misuse of power that requires elaboration as it has become endemic to the entire system of governance. In a great variety of cases and at all levels of government, services to which public are entitled free of charges, monetary payment is demanded by government functionaries. This kind of rent seeking is pervasive and has almost become routine. Universal in nature, this practice has become firmly entrenched.

To read the rest of the news, please click on the link above.​

 

[Saif]

HC orders ACC to continue probing corruption allegation against Benazir, family

The High Court today ordered the Anti-Corruption Commission (ACC) to continue probing the corruption allegations against former IGP Benazir Ahmed, his wife, and two daughters and to submit updates before it by November 5

www.thedailystar.net

HC orders ACC to continue probing corruption allegation against Benazir, family

Photo: Collected from Facebook

The High Court today ordered the Anti-Corruption Commission (ACC) to continue probing the corruption allegations against former IGP Benazir Ahmed, his wife, and two daughters and to submit updates before it by November 5.

After accepting a preliminary probe, the court also asked the commission to inform it by this period if any case is filed against them.

The HC bench of Justice Md Nazrul Islam Talukder and Justice Kazi Ebadoth Hossain passed the order while hearing a writ petition.

Advocate Khurshid Alam Khan, who placed the preliminary report on behalf of the ACC on Sunday, told the HC bench that his client has found unusual and suspicious bank transactions of Benazir and his wife and two daughters in the primary inquiry.

The commission has collected relevant records and information about their properties, he said, adding that more information may be found in the complete inquiry.

In the preliminary probe report submitted to the HC on Sunday, the ACC said Benazir Ahmed, his wife, and two daughters amassed properties worth Tk 43.46 crore beyond known sources of income.

"From records and information received so far, Benazir Ahmed has movable and immovable assets worth Tk 9.25 crore, his wife Jissan Mirza Tk 21.34 crore, their eldest daughter Farheen Rishta Binte Benazir Tk 8.11 crore, and their second daughter Tahseen Raisa Binte Tk 4.76 crore worth of assets," the report said.

Following a writ petition filed by Supreme Court lawyer Md Salahuddin Reagan, the HC bench on April 23 directed the ACC to submit a progress report on the inquiry into reported allegations of corruption against Benazir Ahmed.​

 

[Saif]

Politically-motivated lending causing bad loans to spiral: WB

The amount of bad loans has been spiralling in Bangladesh owing to rampant politically-motivated lending and inadequate credit risk management, according to a World Bank report.

www.thedailystar.net

Politically-motivated lending causing bad loans to spiral: WB

The amount of bad loans has been spiralling in Bangladesh owing to rampant politically-motivated lending and inadequate credit risk management, according to a World Bank report.

"Non-performing loans (NPLs) are rising, triggered by widespread related-party and politically directed lending on the back of weak credit risk management," it said.

The global lender prepared the report as a project information document for a $400 million loan project for Bangladesh, which is still under scrutiny. This project is designed to support financial stability and inclusion by enhancing financial sector infrastructure and safety net and fostering access to catalytic private sector finance in Bangladesh.

The WB said NPLs had officially increased by 20.7 percent year-on-year at the end of December 2023 to 9 percent of the loan portfolio, but that was significantly understated due to lax NPL definition, poor accounting and disclosure standards and regulatory forbearance.

State-owned banks account for almost half of the NPLs, it added.

"Growing NPLs and rising cost of funds lower banks' returns and ability to build additional capital buffers, while the requirement to distribute dividends even by loss-making banks further depletes banks' reserves and increases risks to depositors and creditors," it added.

The WB said the four watchdogs who regulate the financial sector -- namely Bangladesh Bank, Insurance Development and Regulatory Authority, Bangladesh Securities and Exchange Commission, and Microcredit Regulatory Authority -- lack operational independence, powers, skills, and the modern legislation necessary for sound financial sector development.

Despite recent efforts supported by the World Bank and other international financial institutions, much of the financial sector regulatory framework still needs to be brought in line with international standards, it said.

The banking sector's risks are also being triggered because of long-standing poor governance, weak market discipline, and low capital buffers, according to the report.

"The reported aggregate banking sector capital adequacy ratio (CAR) – 11.64 percent in December 2023 – is too low given the high level of risks in the banking sector. At least 16 banks are undercapitalised, with special BB waivers for deferred loan loss provisions (LLP) and capital increases."

Besides, the existing framework for intervening in ailing financial institutions is weak, with authorities relying on mergers and capitalisation using state money to deal with failing banks, it said.

In December 2023, the central bank adopted a new Prompt Corrective Action (PCA) framework, supported by the WB, but it will not be fully in force until April 1, 2025, it said.

As a way forward, the World Bank said broad-based financial sector reforms are crucial for mobilising the private capital necessary to drive further growth.

"This in return requires the authorities to address in a timely and orderly manner the persistent financial sector vulnerabilities which distort credit flows and, if left unattended, may lead to large losses to the budget and the people's savings."

The WB also said the financial sector safety net and crisis preparedness framework need to be strengthened in the face of rising stability risks.

The deposit insurance system (DIS) for banks and non-bank deposit-taking institutions, while established under BB two decades ago, is not fully operational and does not comply with international standards, according to the report.

It said deposit insurance coverage is low and the payout mechanism is undeveloped and was never tested. While BB revoked the licences of several banks in the past, it did not trigger insured deposits despite a large accumulated DIS fund of nearly $ 1.2 billion as of the end 2023.

"The crisis response framework remains fragmented, non-transparent, and underdeveloped, including access to lender of last resort, least cost resolution and liquidation tools, use of government funds to bail out domestic systemically important banks, mandate and operations of financial stability committee, and crisis communications framework."

Upgrading the regulatory and supervisory capacity of the central bank is also required to safeguard market confidence and foster sustainable financial intermediation, it said.

The global lender added that while the banking sector has shown rapid growth in loans and deposits over the past decade, private sector access to credit is now constrained by tightened liquidity in the banking sector and rising interest rates.

Private sector credit growth slowed to 9.9 percent in the first nine months of FY24 from 16.2 percent in the same period a year earlier.

New letters of credit declined from $8 billion per month in FY22 to $5 billion per month in FY24, according to the report.​

 

[Saif]

Nearly two-thirds of TIN-holders don’t submit tax returns

Bangladesh recently reached a milestone registering one crore Taxpayer Identification Numbers (TINs), yet nearly 59 percent of these individuals did not file tax returns in the just-concluded fiscal year of 2023-24.

www.thedailystar.net

Nearly two-thirds of TIN-holders don't submit tax returns

Bangladesh recently reached a milestone registering one crore Taxpayer Identification Numbers (TINs), yet nearly 59 percent of these individuals did not file tax returns in the just-concluded fiscal year of 2023-24.

The number of registered taxpayers is gradually increasing but tax return submissions are failing to keep up with the size and growth of the economy, for which collection of tax required for public expenditure remains lower than the potential.

According to data from the National Board of Revenue (NBR), there were 1.04 crore TINs as of last month, when the fiscal year ended.

Meanwhile, only 43 lakh tax returns were submitted, up 22 percent year-on-year.

Bangladesh has one of the lowest tax-to-GDP ratios in the world, even though it posted high economic growth over the past decade.

"The increase in the number of TIN holders is a positive development. Overall, the tax net has not yet been adequately expanded in Bangladesh," said MA Razzaque, research director of Policy Research Institute (PRI).

But the number of tax returns being submitted is very low. Bangladesh still lags behind Southeast Asian countries such as Vietnam, Thailand and Malaysia in this regard, he said.

Many taxpayers do not submit tax returns to simply avoid going through all the paperwork and out of apprehensions over being harassed by the tax administration, Razzaque said.

The economist suggested reducing individual contact between the NBR officials and taxpayers through automation.

"The NBR should ensure automation in auditing to reduce the scope of corruption and harassment," he said.

At present, filing of tax returns is mandatory for all with a TIN.

Currently, a TIN is required for availing around 40 services, so many people secure it but do not submit tax returns, according to the NBR.

Analysts blame inadequate monitoring and enforcement, the absence of regular taxpayer surveys by independent agencies, and the slow pace of automation of the tax administration for the low number of tax returns being submitted.

In a report prepared recently, the NBR said around 5 lakh people do not submit tax returns as they only needed the TIN for land transfers while around 4 lakh people availed TINs to seek specific services.

Over 2 lakh people with TINs have already passed away and some 3 lakh people availed TINs to migrate abroad for jobs and other purposes, according to the NBR.

Another prime reason is a lack of awareness among taxpayers.

Besides, a huge number of firms that registered as companies have become inactive.

The NBR found that Bangladesh has around 1.37 lakh inactive companies under the Registrar of Joint Stock Companies and Firms.

A large number of people availed TINs to get trade licences but those firms later became dormant.

Shams Uddin Ahmed, a former member of tax policy at the NBR, said the culture of tax payment needs to be developed gradually.

The NBR has initiated various steps to motivate taxpayers, said Ahmed, hoping that interest among taxpayers in doing their share in building the nation would increase in the coming days.

There is a lack of understanding among tax officials about new modes of digitalisation and innovative business models, he said.​

 

[Saif]

Huge amount of money has been recovered from the house of Awami League leader Amir Hossain Amu.

 

[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