[🇧🇩] Corruption Watch

[Saif]

Ensuring cyber security of banks

Digital transformation is taking place rapidly across all sectors and the shift is an inevitable consequence of technological advancement. As Bangladesh embraces this digital revolution, concerns about cyber security have also been rising. Government institutions, the financial sector, milita

thefinancialexpress.com.bd

Feasibility of projects and use of fund
FE
Published :
Nov 04, 2024 22:06
Updated :
Nov 04, 2024 22:06

This is for the first time that anyone highly responsible has claimed, "We have destroyed the infrastructure of corruption". If it is so, the statement should pour honey in ears of the people in Bangladesh. While speaking at a seminar in the city, Road Transport and Bridges and Energy Adviser Muhammad Fauzul Kabir Khan made this claim in relation to feasibility study of projects. The two ministries he is in charge oversee projects integral to the country's infrastructure development involving the highest annual financial allocation. So dismantling the nexus of corruption that had been on a relentless march over the past decades thanks to nefarious collaboration between corrupt politicians and bureaucracy should be considered a sterling success. The adviser is quite aware of the return of the practice under political government and, therefore, assures that the system will be reformed so that the avenues for corruption in future will be minimised as much as possible. For transparency to reign supreme in undertaking projects and their implementation, both systemic streamlining and integrity of the persons in positions are essential.

This country has witnessed sprees of development projects--- many of which without any feasibility studies ---under both autocratic and the political governments. Over the past few years, ministers and lawmakers were simply intoxicated with mega and multiple projects evidently to ensure their personal gains rather than giving scant thought to people's benefit. Of course, a few of those projects have proved highly pro-people because of their contribution to people's welfare and the economy as well but still the lining of pockets by many actors involved has vitiated their implementation process. The overdrive for project undertaking and execution has gone to such extent that bridges and culverts were built in paddy fields with no road on either side or one side. In one case, an influential minister constructed a bridge as a personal property over a canal to connect his residence depriving the entire village population of its benefit way back in the early 2000s.

No wonder, even the considerably better executed projects overran schedule and costs and a significant number had either to be left partially structured or half completed in the past. Digging drains and sewerages repeatedly and redesigning undamaged footpaths in this very capital are examples of atrocious development works. All such Sysiphean exercises are infamous for causing immense suffering to inhabitants of the city and wastage of money. Similarly, the construction of thermal power plants ---one of it at Rampal, Bagerhat in defiance of the environmental concerns for the Sundarbans, is the height of indiscretion. It is because they could not be run for irregular supply or want of coal whereas the captive power plants were paid billions of Taka under a shady deal.

If this abominable culture of wastage of public money on showy and unviable development projects can be brought to an end, the country will be able to save a huge fund for putting in place highly essential and beneficial projects. Financial transparency in expenditure of public money is a sine qua non for spurring development of infrastructure and economic growth. If the interim government can set the tone of transparency in expenditure for the governments to come in the future to follow, the nation will remain ever indebted to it.​

 

[Saif]

Anti-graft work stalls as no top boss in ACC for 2 weeks

The Anti-Corruption Commission has yet to get its new chairman after its immediate past chairman Mohammed Moinuddin Abdullah had stepped down nearly two weeks ago amid demands for his resignation...

www.newagebd.net

Anti-graft work stalls as no top boss in ACC for 2 weeks
Solamain Salman 10 November, 2024, 00:30

The Anti-Corruption Commission has yet to get its new chairman after its immediate past chairman Mohammed Moinuddin Abdullah had stepped down nearly two weeks ago amid demands for his resignation following the ouster of the Awami League regime in August.

Also new commissioners have not yet been appointed after Asia Khatoon, commissioner for inquiry, and Zahrul Haque, commissioner for investigation, had resigned facing the same situation.

The situation has left initiatives for new inquiries and approval for cases and charge sheets against corruption suspects left in limbo as such decisions can come only from the full commission comprising its chairman and two commissioners.

The commission’s three top officials, appointed by the immediate past Awami League government, resigned on October 28.

Commission officials said that inquiries over graft charges were now underway against a number of former ministers, lawmakers and civil servants of the Sheikh Hasina-led Awami regime toppled amid a student-led mass uprising on August 5.

Following the regime change, the commission initiated a huge number of new inquiries, including around 100 former Awami lawmakers and ministers and high-profile individuals over graft charges.

Many more allegations are waiting at the ACC scrutiny cell for decision regarding inquiry, while inquiries, investigation reports and approval of filing new cases also remain pending in the absence of the full commission, causing disruption and stagnation in its activities.

According to the commission’s statistics, over 3,000 cases are now pending at trial stage with different courts, while inquiries and investigations for 4,008 other allegations and cases remain pending with the commission.

As per the commission rules, an officer gets maximum 75 days to complete an inquiry, and 270 days to complete an investigation, while a provision and a Supreme Court order make it mandatory to complete the trial of any corruption case within 180 days.

But most of the pending enquiries and investigations and trial have far crossed the legally stipulated deadlines.

Transparency International Bangladesh executive director Iftekharuzzaman told New Age, ‘Since the chairman and commissioners have resigned as advised by the government at this crucial stage, it is incumbent upon the government to form the new commission as early as possible in the due process.’

‘The urgency is warranted by the fact that a large number of high level individuals associated with the fallen regime have been under inquiry or investigation of the ACC. Despite genuine doubts about the possible outcome of such cases because of the commission’s well known partisan bias and lack of capacity to take effective action against such high level individuals, the process cannot be allowed to slow down or to freeze.’

Iftekharuzzaman, also head of the Anti-Corruption Commission reform commission formed recently by the interim government, further said that the government should also make sure that no politically biased individuals or anyone even remotely connected with any political parties was not appointed to the commission any more, which had been the main factor behind the institution’s ineffectiveness in the past.

Contacted, the commission’s former director general Md Moyeedul Islam confirmed New Age that law did not permit it to do crucial tasks such as, conducting inquiry into allegations, filing cases or charge sheets, without a full commission.

The situation had created an impasse, he said.

‘As we’ve heard that president has accepted the resignation of the chairman and commissioners, so I think there is no ground for delaying the appointment of a new commission,’ said Moyeedul , who served as its director general from 2015 to 2019.

‘If forming a new commission is further delayed, the workload on the commission will mount, while the delay in legal action will give opportunity to corrupt people to flee abroad and handover their illegal wealth to others.’

Stakeholders alleged that since its establishment in 2004, the recruitment of the commission staff was influenced by political and bureaucratic power holders who used the institution as an instrument to fulfill their own purposes.

The Moinuddin Abdullah-led commission faced allegations that it had failed to hold accountable politically influential people involved in massive corruption.

The interim government, led by professor Muhammad Yunus and assuming power on August 8, has recently formed the Anti-Corruption Reform Commission, led by TIB executive director Iftekharuzzaman.

The reform commission has been tasked with proposing essential reforms to enhance the effectiveness, independence, and impartiality of the ACC.

Commission secretary Khursheda Yasmeen could not reach for comments over phone.​

 

[Saif]

Cox’s Bazar Sadar OC withdrawn over corruption

The Officer-in-Charge of Cox's Bazar Sadar Police Station Fayzul Azim Noman has been withdrawn from the police facility over his alleged involvement in taking bribes and extorting money from innocent people by threatening to file cases against them

www.thedailystar.net

Cox’s Bazar Sadar OC withdrawn over corruption

Fayzul Azim Noman

The Officer-in-Charge of Cox's Bazar Sadar Police Station Fayzul Azim Noman has been withdrawn from the police facility over his alleged involvement in taking bribes and extorting money from innocent people by threatening to file cases against them.

The OC has been withdrawn after a month and 28 days of his joining Sadar Police Station following an order by the office of the Deputy Inspector General (DIG), Chattogram range.

The OC has now been attached with the range office following the order, confirmed Cox's Bazar Superintendant of Police Muhammad Rahmat Ullah.

The OC joined the Sadar Police Station on September 19.​

 

[Saif]

Govt prepares list of 150 most corrupts: CA Yunus

Chief Adviser Professor Muhammad Yunus on Sunday said the government has prepared a list of 150 top corrupt persons. “A list of 150 persons accused of corruption and money laundering has been prepared and probes have begun against 79 people, he said. The chief adviser said this while addres

thefinancialexpress.com.bd

Govt prepares list of 150 most corrupts: CA Yunus
FE ONLINE DESK
Published :
Nov 17, 2024 22:40
Updated :
Nov 17, 2024 22:40

Chief Adviser Professor Muhammad Yunus on Sunday said the government has prepared a list of 150 top corrupt persons.

“A list of 150 persons accused of corruption and money laundering has been prepared and probes have begun against 79 people, he said.

The chief adviser said this while addressing the nation this evening on the completion of 100 days of his interim government, reports BSS.

Prof Yunus said the work for restructuring the Anti-Corruption Commission (ACC) is almost at the final stage.

He said the provision of whitening undeclared assets-black money- by paying 15 percent tax has been abolished.

Citing data of the Transparency International Bangladesh (TIB), the chief adviser said the ousted government and its allies siphoned off US$ 12-15 billion abroad per year during its regime.

The chief adviser said the government has taken steps to bring back the laundered money. He sought cooperation of different international agencies in bringing back the stolen money.​

 

[Saif]

Cox’s Bazar court orders the seizure of Ctg ASP's assets

A court in Cox’s Bazar has ordered the confiscation of the illegally acquired assets of former officer-in-charge of Teknaf Model Police Station Ranjit Kumar Barua

www.thedailystar.net

Cox’s Bazar court orders the seizure of Ctg ASP's assets

A court in Cox's Bazar has ordered the confiscation of the illegally acquired assets of former officer-in-charge of Teknaf Model Police Station Ranjit Kumar Barua.

The senior special judge of Cox's Bazar, Munshi Abdul Aziz, gave the order yesterday afternoon following an application of the Anti-Corruption Commission (ACC) Cox's Bazar office.

Ranjit Kumar Barua is currently serving as assistant superintendent of police in Chattogram Industrial Police. He hails from Shilghata village of Dhopchari union of Satkania upazila of Chattogram.

Meanwhile, the same court also ordered to seize the assets worth over Tk 1 crore of Mozammel Haque of South Jaliapara in Teknaf. He has been accused of being involved in yaba trade.

ACC lawyer Siraj Ullah confirmed the authenticity of the asset seizure orders.

Sobel Ahmed, deputy director of ACC's Cox's Bazar district office, said Md Riaz Uddin investigated and got the information of former OC's illegal assets include a two-storeyed house on 24.5 decimal land worth Tk 52.20 lakh in Shilgatha village of Satkania and a 1,675 square feet flat bought for Tk 31.88 lakh in Alamshah Kathghar area of Kotwali Police Station of Chattogram.

The court ordered the seizure of the properties and appointed the deputy commission of Chattogram as receiver.


Ranjit Barua served as officer-in-charge in various police stations including Teknaf Model Police Station, Cox's Bazar Sadar Model Police Station. While working at Teknaf Police Station, he received the best OC award in the district.

Meanwhile, the court appointed the assistant commission (land) as the receiver of the seized asset of Mozammel.

Sobel Ahmed, said Ranjit and Mozammel were trying to sell these assets after the information of illegal assets came under ACC's radar.

ACC pleaded to the court to seize the assets so that they could not sell the properties, he said.​

 

[Saif]

Bangladesh loses $335m a year for corporate tax abuse

Bangladesh is losing $355 million in tax annually because of outward profit shifting by the corporates, particularly multinational firms, and abuses by individuals who have wealth, especially in tax havens.

www.thedailystar.net

Bangladesh loses $335m a year for corporate tax abuse

Bangladesh is losing $355 million in tax annually because of outward profit shifting by the corporates, particularly multinational firms, and abuses by individuals who have wealth, especially in tax havens.

Of that, the revenue-hungry country lost $335.9 million to profit shifting abroad by corporations and $19.1 million on account of tax abuse by individuals owning properties abroad, according to the State of Tax Justice 2024 report published yesterday.

The amount of tax losses is 21.4 percent of Bangladesh's health expenditures, said the report by the Tax Justice Network (TJN).

The report shows that Bangladesh is one of the countries that altogether are losing $492 billion in tax a year to multinational corporations and wealthy individuals using tax havens to underpay taxes.

And nearly half the losses are enabled by the eight countries: Australia, Canada, Israel, Japan, New Zealand, South Korea, the UK and the US, it added.

The report comes at a time when Bangladesh suffers from a shortage of required taxes to finance its annual development and operating expenditure.

The country's revenue-to-gross domestic product (GDP) ratio is estimated at 8.5 percent at the end of fiscal year 2023-24, one of the lowest in the world, according to a World Bank report.

In Bangladesh, tax irregularities and incidents of tax evasion are rampant.

The TJN in its State of Tax Justice report last year said the country's annual losses for corporate abuses amounted to $396 million. And firms shifted $1.48 billion of profits from Bangladesh, according to the previous report.

In the latest report, TJN said multinational companies shifted $1.3 billion away from Bangladesh which accounted for 0.1 percent of Bangladesh's roughly $460 billion economy.

The TJN said despite reduced corporate tax rates, multinational corporations shifted more profits into corporate tax havens, rising to the highest value yet recorded in the State of Tax Justice reports.

Bangladesh has also reduced its corporate taxes in the last one and half decades to encourage firms to invest more in the country, create jobs and drive the country's economic growth.

The National Board of Revenue (NBR) has cut corporate tax to 27.5 percent in the fiscal year (FY) 2023-24 from 40 percent in FY08.

TJN said the theory that cutting corporate tax rates can generate more tax revenue and vice versa often has been long debunked.

It said of the $492 billion lost to global tax abuses a year, two-thirds are lost to multinational corporations shifting profit offshore to underpay tax. The remaining third is lost to wealthy individuals hiding their wealth offshore.

In the statement by TJN, Liz Nelson, director of advocacy and research at the network, said tax is our most powerful tool for choosing the kind of societies we want to live in.

"Our governments chose to use tax as a tool to make the super-rich and their corporations even richer, thinking this would make our economies stronger. The data shows this had the opposite effect. Higher levels of extreme wealth, fuelled by ever-growing global tax abuse, have made our economies insecure, households worse off and our planet unstable," Nelson said.

"People in countries around the world are calling in large majorities on their governments to tax multinational corporations properly. But governments continue to exercise a policy of appeasement on corporate tax."​

 

[Saif]

Form high-powered committee to review contracts with Adani Group: HC

The High Court on Tuesday directed the interim government to establish a high-powered committee of international experts in energy, fuel and legal matters to investigate the controversial...

www.newagebd.net

Form high-powered committee to review contracts with Adani Group: HC
M Moneruzzaman 19 November, 2024, 15:45

The photo was taken in front of Supreme Court building. | File photo

The High Court on Tuesday directed the interim government to establish a high-powered committee of international experts in energy, fuel and legal matters to investigate the controversial power purchase agreement signed with India’s Adani Power in November 2017 during the regime of the now deposed Awami League.

The bench of Justice Farah Mahbub and Justice Debasish Roy Chowdhury instructed the secretary of the Energy and Mineral Resources Division to form the committee within 30 days and produce a detailed report within two months of its formation.

The court set February 25 for further orders on the matter.

It also directed the chairman of the Bangladesh Power Development Board to provide any documentation on negotiations that took place prior to the agreement signed on November 5, 2017.

The court also ordered the authorities to investigate whether due process was followed in signing the deal and submit a report within 30 days.

The directive came in response to a public interest writ petition filed by Supreme Court lawyer Md Abdul Qaium Liton on November 12.

The petitioner lawyer alleged serious irregularities in the agreement, which was negotiated under the direct supervision of then prime minister Sheikh Hasina, who was also the energy minister, and Indian prime minister Narendra Modi, and claimed that it violated Section 13 of the Procurement Act, 2006.

The act mandates that all procurement, particularly by state entities, must be conducted transparently and through a competitive process.

During the hearing, the court emphasised prioritising Bangladesh’ national interest, stating that India as a neighbouring country should also take this issue into account.

The High Court issued a ruling asking the government authorities to explain within four weeks why the BPDB-Adani (Jharkhand) Limited power purchase agreement, allegedly detrimental to Bangladesh’s public interest, should not be declared illegal.

It also sought clarification on why the deal should not be scrapped.

Respondents to the ruling include the BPDB chairman, the managing director of Power Grid Company of Bangladesh, the chairpersons of the Bangladesh Energy Regulatory Commission and the Anti-Corruption Commission, and Adani (Jharkhand) Limited.

The Adani power deal has drawn widespread criticism for its alleged potential for harming Bangladesh’s energy sector and lack of transparency with growing calls for accountability and reform.

The power purchase agreement, better known as PPA, allowed Adani Power to generate electricity in its 1,600MW Godda power plant in India by burning coal with comparatively lower quality, while charging Bangladesh for a higher quality coal.

At the plant Adani burned coal with a calorific value of 4,600kcal/kg, but charged Bangladesh for coal carrying the higher calorific value of 6,322 kcal/kg, creating significant cost discrepancies.

The deal with Adani Power has come under intense scrutiny with critics highlighting its role in driving up electricity prices by as much as 8 per cent.

The agreement has drawn comparisons to electricity purchased from India’s exchange market, which costs nearly half as much as power from Adani’s 1,600MW coal-fired plant.

In 2023, Bangladesh bought power from Adani at Tk 14.02 per kilowatt-hour, while it purchased 1,100 MW from India’s electricity exchange market at just Tk 7.83 per unit.

The Adani power plant, built without public disclosure, was exclusively dedicated to supplying Bangladesh until the recent political shift as a result of which Sheikh Hasina resigned as prime minister and fled to India on August 5 driven by a student-mass uprising.

Shortly afterward, the Indian government permitted Adani Power to sell electricity in its domestic market as well.

Energy experts, including M Shamsul Alam, vice president of the Consumers Association of Bangladesh, called for a thorough review of the deal.

Describing it as unsolicited and heavily skewed in favour of Adani, Shamsul Alam criticised the lack of competitive bidding and argued that the agreement heavily undermined Bangladesh’s national interest.

‘When procurement costs rose, the state-owned Power Development Board simply passed the burden onto consumers, forcing them to pay exorbitant prices. Here, the government itself appears to be profit-driven,’ Shamsul added.

The High Court also dealt a critical blow to the controversial Quick Enhancement of Electricity and Energy Supply (Special Provision) Act, 2010, which allowed power deals to bypass competitive bidding.

On November 14, the court invalidated two core provisions of the law, dismantling mechanisms that enabled opaque procurement processes and indemnity for officials involved in energy projects.

The law, originally set to expire, was extended in 2021 for another five years, despite widespread concerns over its lack of transparency. It had permitted deals related to electricity generation, transmission, and fuel imports to proceed without tenders, drawing significant criticism.

The same High Court bench struck down Section 6(2), which authorised the Ministry of Power, Energy and Mineral Resources to submit procurement proposals directly to the purchase committee with only the energy minister’s approval.

The court also nullified Section 9, which provided indemnity to officials from legal accountability for actions taken under the act, declaring it unconstitutional.

The court’s ruling clarifies that government authorities are now free to review, reassess, and, if necessary, take action against any contracts or decisions made under these provisions.

The verdict permitted legal action against officials if corruption or irregularities are identified.

The judgment, delivered in response to a writ petition filed by Shahdeen Malik and his colleague Tayeb-Ul-Islam Showrov on August 28, marks a pivotal moment in Bangladesh’s energy governance.

By dismantling these provisions, the High Court has opened the door for greater transparency and accountability in the energy sector, addressing long-standing concerns over procurement practices.

Senior lawyer Shahdeen Malik, the main petitioner in the writ, argued that the indemnity provision caused a staggering loss of Tk 1 lakh crore in public funds.​