[🇧🇩] Corruption Watch

[Saif]

Defaulted loan rises to Tk 4.2 trillion

Loans distributed through irregularities during the past government have become defaulted. At the same time, the loans of many businesspersons close to the ousted Awami League also have become irregular. As a result, the amount of defaulted loans in the banking sector rose to Tk 420,334 crore...

en.prothomalo.com

Defaulted loan rises to Tk 4.2 trillion
Staff Correspondent Dhaka
Published: 15 Jun 2025, 23: 16

Loans distributed through irregularities during the past government have become defaulted. At the same time, the loans of many businesspersons close to the ousted Awami League also have become irregular.

As a result, the amount of defaulted loans in the banking sector rose to Tk 420,334 crore (over 4.2 trillion) at the end of March. The amount stands at 24.13 per cent of all distributed loans, the Bangladesh Bank revealed Sunday.

The amount of defaulted in December last year was Tk 345,765 crore (over 3.45 trillion). That means, the amount of bad loans increased by nearly Tk 75,000 crore (750 billion) in the span of three months.

Bangladesh Bank officials have said that funds were withdrawn from banks under various names, both real and fictitious, during the tenure of the Awami League government—ousted by a student and public uprising. These funds are now beginning to be classified as defaulted loans.

At the same time, with the classification criteria for defaulted loans being raised to meet international standards, the volume of defaulted loans is increasing, they also pointed out.

The officials also said many of the loans that have been renewed are not being recovered. Due to irregularities, the central bank is itself categorising many loans as defaulted, which is further contributing to the rise in bad loans. The amount of such loans may continue to rise in the coming days.

It has been learned that at the end of March, the total amount of loans in the banking sector had risen to Tk 1,741,992 crore (nearly 17.42 trillion), which was Tk 1,711,402 crore (17.11 trillion) at the end of December.

According to data from Bangladesh Bank, as of March, the proportion of defaulted loans in state-owned banks had increased to 45.79 per cent, up from 42.83 per cent in December. In private commercial banks, 20.16 per cent of loans had become defaulted, compared to 15.6 per cent in December.

When the Awami League formed the government in 2009, the total amount of the defaulted loan was Tk 22,481 crore (224.81 billion). Since then, the volume of bad loans has steadily increased.

Economists have long alleged that people close to and influential within the then-government took out large sums of money from banks through various irregular practices, much of which has been laundered abroad.

Since the fall of the government on 5 August last year, the true scale of the defaulted loan crisis has started to emerge. During the previous government’s rule, powerful people were granted a significant amount of loans under favourable conditions. Successive policies were also implemented to artificially reduce the apparent volume of defaulted loans on paper.

Following the change in government, the central bank has abandoned these policies. It has also announced a plan to merge five Shariah-based banks plagued by high default rates.

Sources said that once the banks that were previously controlled by the controversial business conglomerate S Alam Group—closely associated with the ousted Awami League—were freed from its influence, the real picture of their loan books began to surface.

Among them, Islami Bank has seen the highest increase in defaulted loans. Similarly, default rates have surged in First Security Islami Bank, Global Islami Bank, Union Bank, Social Islami Bank, and EXIM Bank.

At the same time, several major business groups—including Beximco (owned by former Prime Minister Sheikh Hasina’s adviser Salman F Rahman), Bashundhara Group, and S Alam Group—have become loan defaulters, further inflating the defaulted loan amount.​

 

[Saif]

ACC conducts drive over alleged irregularities in RAJUK's Rupsha Apartment project

The Anti-Corruption Commission (ACC) on Wednesday conducted an enforcement drive at the RAJUK Rupsha Apartment project in Gulshan over allegations of corruption and irregularities in flat allocations. According to the complaint, during the tenure of the previous government, a number of high-v

thefinancialexpress.com.bd

ACC conducts drive over alleged irregularities in RAJUK's Rupsha Apartment project

UNB
Published :
Jun 18, 2025 21:42
Updated :
Jun 18, 2025 21:42

The Anti-Corruption Commission (ACC) on Wednesday conducted an enforcement drive at the RAJUK Rupsha Apartment project in Gulshan over allegations of corruption and irregularities in flat allocations.

According to the complaint, during the tenure of the previous government, a number of high-value apartments in the Rupsha Apartment project-located behind the Westin Hotel in Gulshan-2-were allegedly allocated at reduced prices to politically influential individuals, their children, and senior government officials, in a non-transparent manner.

During the drive, the ACC enforcement team took statements from the officials involved in the project and conducted an on-site inspection of the apartment complex.

Initial observations by the team suggest signs of procedural irregularities in the allocation process.

To investigate further, the team collected relevant documents, including allocation applications, approval records, and the list of beneficiaries.

The collected records will be reviewed and a detailed report will be submitted to the Commission for further action.​

 

[Saif]

Politicians, bureaucrats unwilling to end corruption: Energy Adviser

Emphasising the need for good governance, Energy Adviser Muhammad Fouzul Kabir Khan said on Saturday that neither politicians nor bureaucrats in Bangladesh are truly committed to eradicating corruption. He made the remarks while speaking at a seminar on budget policy debate organised by the Bangla

thefinancialexpress.com.bd

Politicians, bureaucrats unwilling to end corruption: Energy Adviser

Published :
Jun 21, 2025 20:56
Updated :
Jun 21, 2025 20:56

Emphasising the need for good governance, Energy Adviser Muhammad Fouzul Kabir Khan said on Saturday that neither politicians nor bureaucrats in Bangladesh are truly committed to eradicating corruption.

He made the remarks while speaking at a seminar on budget policy debate organised by the Bangladesh Economic Association (BEA) at CIRDAP Auditorium in Dhaka, UNB reports.

The seminar, presided over by BEA Convener Mahbub Ullah, brought together leading economists for an in-depth discussion on the national budget.

The Adviser highlighted the widespread wastage of resources, stressing the interim government's commitment to preventing such occurrences in the future. “Waste, corruption and inefficiency are major obstacles to Bangladesh's economic progress.”

Fouzul Kabir cited examples, such as the construction of a power plant six kilometres from its water source solely for the convenience of a minister, unnecessary road development and the mismanagement of state funds.

Regarding the interim government's mandate, Fouzul Kabir emphasised their aim to set a positive precedent for the future. "We want to leave behind an example where we do not appoint relatives or grant business favours," he said, underscoring a commitment to good governance.

Focusing on the power sector, he noted the growing reliance on imported LNG due to declining domestic gas reserves, which requires significant government subsidies.

To address this, he said, an initiative has been launched to install solar panels on all government buildings, with the electricity generated intended for the national grid.

He also pointed out the potential for the private sector to contribute at least 2,000MW of electricity by installing solar panels on rooftops.

The seminar featured presentations on nine key budget issues by renowned experts. Sajjad Zahir, Executive Director of the Economic Research Group, underscored the importance of short and medium-term sustainable development, advocating for greater transparency in the government's domestic and foreign borrowing to address the budget deficit.

Md Gulzar Nabi, Research Director at Bangladesh Bank, expressed strong optimism for the medium and long-term stability of the country’s macroeconomy, citing Bangladesh's current GDP of $467 billion.

He highlighted self-sufficiency in food production, strong remittance inflows, and the significant contribution of the ready-made garment sector as key drivers.

Professor Saima Haque Bidisha, Pro-Vice-Chancellor and Professor of Economics at Dhaka University, said contractionary monetary and fiscal policies in certain budget sectors could hamper the creation of new jobs.

She also raised concerns about persistently high inflation and its potential to obstruct youth employment in the private sector.

Addressing the health sector, Professor Shafiun Nahin Shimul of Dhaka University's Institute of Health Economics drew on examples from Thailand, Sri Lanka, and the Philippines, urging a shift in perception from health budget as merely sectoral expenditure to a smart investment in human resource development.

He described the allocated 1.7 per cent of GDP for health in the proposed budget as inadequate.

On the education front, Zulfiqar Ali, Research Director at BIDS, emphasised the need for increased investment in science, technology, and technical education to bridge the existing gap between the education and employment sectors.

Referring to India, Nepal and Malaysia, he noted with concern the declining trend in education budget allocations in Bangladesh and called for more funds for teachers and educational resources.

He also expressed disappointment at the government’s ‘failure’ to establish an education commission.

Dr Munshi Sulaiman, Research Director at the BRAC Institute of Governance and Development (BIGD), criticised the insufficient allocation for the social safety net in the budget, particularly in relation to poverty alleviation and income inequality.

He proposed implementing productive social safety net programmes supported by modern technologies.

Professor Sharmind Nilormi of Jahangirnagar University's Economics Department pointed out a reduction in budget allocation for women's safety, workplaces and access to government services, suggesting that even a token allocation would have been appropriate.

Kazi Iqbal, Research Director of the Industrial Division at BIDS, criticised the national industrial policy for failing to reflect global trends of deglobalisation and the growing inclination of global economic powers towards domestic industrialisation.

He argued that tariff reduction without specific targets and long-term strategies for export-oriented industries would be ineffective.

Professor Rashed Al Mahmud Titumir of Dhaka University's Department of Development Studies characterised the national budget as a product of political struggle and advocated for the re-establishment of public ownership over public funds.

Abdul Awal Mintoo, Chairman of National Bank PLC, highlighted the destructive subculture of vested interests capturing and exploiting constitutional, social, and economic institutions.

He stressed the political nature of the budget and warned that investment growth would be unachievable without meeting key preconditions, particularly in light of the tightened monetary policy.

Leading researchers, economists and policy analysts attended the event.​

 

[Saif]

Corruption culture lives on

The Bangladesh Bureau of Statistics (BBS) has recently published its Citizen Perception Survey, which demonstrated no let-up in the pervasiveness of corruption faced by service-seekers in government offices. It's a disheartening reality that public servants, paid by the very people they're meant to

thefinancialexpress.com.bd

Corruption culture lives on

Published :
Jun 22, 2025 01:16
Updated :
Jun 22, 2025 01:16

The Bangladesh Bureau of Statistics (BBS) has recently published its Citizen Perception Survey, which demonstrated no let-up in the pervasiveness of corruption faced by service-seekers in government offices. It's a disheartening reality that public servants, paid by the very people they're meant to serve, are instead compelling them to pay bribes for services. According to the survey, the Bangladesh Road Transport Authority (BRTA) has been identified as the most corrupt public office, with 63.29 per cent of respondents reporting that they were forced to pay bribes to receive services. BRTA handles essential tasks such as issuing driving and vehicle licenses and route permits. This rampant graft directly contributes to the alarming frequency of fatal road accidents, as the focus appears to be more on who can pay rather than who is qualified. Law enforcement agencies ranked second with 61.94 per cent of service-seekers reporting bribery and corruption, an indictment that undermines public trust and signals a serious breach of duty. This is a classic case of fox guarding the henhouse where those meant to protect incite fear and anxiety. Passport offices, which are supposed to facilitate services for expatriates whose remittances are vital to the economy, came in a close third. Furthermore, over 50 per cent of survey participants reported encountering corruption when dealing with land-registry offices, courts and land records offices.

The latest survey reveals that the same government offices previously notorious for corruption and bribery continue to perform poorly, demonstrating little improvement despite public outcry. Even the ousting of a fascist government in mass uprising and subsequent reform measures aimed at curbing corruption by the interim government failed to change their behaviour. Their corrupt ways persist, seemingly immune to accountability measures. Many public servants seem to believe that passing a civil service exam grants them unchecked authority over the public rather than an obligation to serve. At the survey report launch, planning adviser Dr Wahiduddin Mahmud observed that wealthier citizens today are increasingly offering bribes to receive quicker or better public services. This turns what should be fair and equal services into a system where money buys privilege. He noted that when the rich use bribes to skip ahead, they create an alternative service stream that runs parallel to the official one that makes corruption worse. In doing so, they share responsibility for perpetuating the very corruption they would later decry.

Public perceptions of law and order were also measured in the survey by asking how secure respondents feel in daily life. It found that 84.81?per cent of citizens feel safe walking alone in their neighbourhoods after dark, while 92.54?per cent feel safe inside their homes after sundown. In what should be a civilized society, it is shocking that nearly one in ten individuals don't feel safe in their own homes and two in ten feel vulnerable in their neighbourhoods. In principle, diligent policing should curb crime and strengthen the sense of safety both indoors and outdoors. Yet when 61.94?per cent respondents report being victims of law enforcement corruption, behaviour that is itself criminal, it is hardly surprising that genuine offenders grow more brazen.

Overall picture painted by the survey is undeniably gloomy. Without strict surveillance and exemplary punishment for wrongdoing, corruption in government offices has apparently become institutionalised. This is the reason why reports like this must not be dismissed as routine data collection. Instead, it should serve as a wake-up call for the authorities to prosecute corrupt officials and ensure that accountability structures function without fear or favour. In the current political context, shaped by the fall of authoritarian Awami League government, achieving this should not be difficult, provided there is sufficient will.​

 

[Saif]

Governments come and go, but bribery stays on

Latest BBS survey reveals enduring corruption in public services

www.thedailystar.net

Governments come and go, but bribery stays on
Latest BBS survey reveals enduring corruption in public services

VISUAL: STAR

We are concerned to learn of the findings of the latest survey by Bangladesh Bureau of Statistics (BBS) that paints a troubling picture of public service delivery in the country. The survey period covered both the tail end of the now-ousted Awami League regime and the first few months of the interim government, thus requiring its findings to be read with nuance. But the fact that 31.67 percent of respondents, or nearly one in three, reported having to pay bribes for essential services is a stark reminder of how entrenched corruption remains. The massive sample size—with 84,807 respondents from 45,888 households interviewed—also makes the data a fair representation of the experience of ordinary citizens. Although by now we would have appreciated a survey exclusively focused on the interim period, what has emerged still makes a case for why we should worry.

For that, we just need to look at some of the details. For instance, according to the BBS data, the worst offender among public service agencies was the Bangladesh Road Transport Authority (BRTA), where 63.29 percent of citizens reported being forced to pay bribes, followed closely by law enforcement agencies (61.94 percent), the Department of Immigration and Passports (57.45 percent), and the Directorate of Registration (54.92 percent). These institutions have long been synonymous with corruption, and the latest data suggests that the situation has not improved significantly despite the change in government. Another sector with a notable incidence of corruption is education where, as noted by the planning adviser at the BBS ceremony, the bribery rate for transfers is very high.

These findings more or less align that of other reports on corruption in Bangladesh. We may recall a December 2024 assessment of the Transparency International Bangladesh (TIB)—based on six household surveys conducted between 2010 and 2023—that an estimated Tk 1.46 lakh crore was paid in bribes for services during the rule of Awami League. According to the most recent of those surveys, covering the period between May 2023 and April 2024, some 70.9 percent of respondents had collectively paid Tk 10,902 crore in bribes while seeking services. It is no surprise that the same institutions flagged by TIB as most corruption-prone have also been named by BBS. Clearly, things have changed little.

The level of access and affordability in public services may have improved of late, but the quality and timeliness of service delivery still leave much to be desired. Just over half of the BBS survey respondents have expressed satisfaction with how long services take to process. While the interim government has taken some notable steps in recent weeks, such as replacing the BRTA chairman and conducting anti-corruption raids at BRTA offices, these actions are not enough to curb corruption unless systemic reforms are undertaken to support full automation of services, elimination of middlemen, de-politicisation, and rigorous trials and punishment of corrupt officials. Corruption must be confronted not with token measures but with genuine political will and long-overdue institutional changes.​