[🇧🇩] Corruption Watch

[Saif]

Source : https://www.thedailystar.net/news/bangladesh/news/saifuzzaman-chy-owns-over-350-properties-uk-3548121

Saifuzzaman Chy owns over 350 properties in UK​

Reports Bloomberg News

Land Minister Saifuzzaman Chowdhury

Former land minister Saifuzzaman Chowdhury has built up a UK real estate empire of more than 350 properties worth about £200 million, Bloomberg News reported on Sunday.

The figures were based on a Bloomberg analysis of available Companies House corporate accounts in the UK, mortgage charges and HM Land Registry transactions.

Saifuzzaman properties range from luxury apartments in central London to housing in Tower Hamlets -- home to the largest Bangladeshi community in England -- and student accommodation in Liverpool.

The international news agency headquartered in New York City analysed nearly 250 of his UK properties and found that almost 90 percent were classified as new-builds when bought, a valuable component in a UK housing market suffering severe shortages.

These transactions took place during a period when the UK government had committed to making foreign property ownership more transparent amid criticism of the ease with which Russian oligarchs were able to hide their wealth in the UK. This process became more urgent in the wake of Moscow's 2022 invasion of Ukraine.

His property deals could revive questions over whether UK's legislation to scrutinise such purchases involving politicians are effective, according to transparency advocates.
Bloomberg also identified at least five properties in Manhattan in the USA belonging to Saifuzzaman, bought for a total of about $6 million between 2018 and 2020, according to municipal property records.

He was re-elected as an MP, but lost his cabinet post after the January 7 national election, which was boycotted by the opposition after anti-government protests were violently put down. He has since become the chair of the parliamentary committee for land.

On December 29 last year, The Daily Star ran a report on Saifuzzaman's properties in the UK. Based on the newspaper's calculation from company filings publicly available on UK government websites, it found at least 260 properties in the UK, for which he has paid at least GBP 134.76 million or Tk 1,888 crore.

The three-time AL lawmaker also has at least 537 mortgages against properties in the UK, a vast majority of which are in London. However, his tax returns, submitted along with his affidavit to the Election Commission, states that he has no foreign income, The Daily Star reported.

The Bloomberg report said that in a pre-election declaration of his interests in December, Saifuzzaman listed his total assets at about Tk 258.3 million ($2.4 million), and those of his wife, Rukhmila Zaman, at about $993,000. He did not include his UK property holdings in the declaration of assets in Bangladesh. His 2022-23 salary as a minister of state is listed as about £10,000.

Bloomberg talked to Mezbaul Haque, a Bangladesh Bank spokesperson, who without commenting specifically on Saifuzzaman, said, "While residing in Bangladesh, there is no provision for an individual to accumulate wealth abroad…. As a general rule, we do not permit individuals to do so."

Saifuzzaman falls into the category of a "politically exposed person (PEP)," as defined in the UK's 2017 anti-money laundering legislation. It puts the onus on estate agents, lenders, property lawyers and others involved in business transactions in the UK to have procedures in place to identify PEPs.

Although these individuals can engage in business transactions such as buying property, their involvement should attract extra scrutiny.

Bloomberg approached the companies named in its story, including financial services and legal firms involved in the property purchases for the Chowdhury-owned companies. The firms that responded said relevant procedures had been followed. They, however, could not provide an elaborate comment due to concerns over commercial confidentiality.

The Daily Star made several phone calls to Saifuzzaman yesterday but found his mobile phone switched off. A text message was also sent to his number, but no response came.

Bloomberg also did not get any response from the former minister and his wife to requests for comments on his property holdings outside Bangladesh or his asset declaration.

On December 26 last year, Transparency International Bangladesh (TIB), at a press conference, first raised the issue of a minister's business abroad worth over Tk 203 billion.

TIB did not disclose the name of the minister, but the anti-graft body said if any government authorities seek the information, they are ready to provide evidence.​

 

[Saif]

Tax evasion by the rich is setting us back as a nation

Experts’ suggestions on increasing revenue collection must be heeded

www.thedailystar.net

Tax evasion by the rich is setting us back as a nation​

Experts’ suggestions on increasing revenue collection must be heeded

VISUAL: STAR

That the vast majority of rich people are not paying income taxes has once again been highlighted by the Bangladesh Economic Association (BEA) which estimates that a staggering 87 percent of the country's rich and upper middle-class people are evading taxes. Even though one always suspects the number to be high in Bangladesh's context, especially given its poor tax-GDP ratio, the percentage given by the BEA shows how alarming the situation is.

In April 2023, the Centre for Policy Dialogue (CPD) estimated that Bangladesh is losing potential taxes from as low as Tk 41,800 crore to as high as Tk 223,000 crore because of tax evasion every year. If tax avoidance is also taken into account, the amount rises even further. This is not only denying the government a huge revenue and lowering the country's tax-GDP ratio—which is the lowest in South Asia and one of the lowest in the world—but also defeating one of the main purposes of taxation: reducing inequality. As such, experts have proposed that the government set up a commission to increase revenue collection and reform the revenue sector, simplify the tax payment system, and focus on collecting more taxes from the rich.​

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Several think tanks participating in dialogue on the issue gave further suggestions to the government that are worth noting: stopping the opportunity to whiten black money, bringing back laundered money, increasing taxes for unlisted companies, revising tax rates for individual taxpayers, withdrawal of tax on interest on foreign loans, etc. Additionally, according to the BEA, there are 27 sources for increasing the government's revenue collection, which can massively help us amid the ongoing economic crisis. These include imposition of wealth tax, tax on excess profits, tax on luxury goods, tax collection by abolishing duty-free facility on vehicles for privileged persons including members of parliament, securing proceeds from the recovery of black and laundered money, etc.
Read more​

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The government has, for a long time, failed to increase its tax revenue that, added with the ongoing economic crisis, has eroded its fiscal space. However, it is precisely to tackle this crisis that it urgently needs to implement the various reforms suggested by experts. Otherwise, it will continue to struggle to address the crisis and fund programmes that are essential to stimulate the economy and bring relief to the majority of people.
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[Saif]

Awami League looted 'Tk 900bn in 15 years', alleges BNP's Mirza Fakhrul

bdnews24.com

Awami League looted 'Tk 900bn in 15 years', alleges BNP's Mirza Fakhrul

He called for a collective effort to 're-establish democracy and accountability'
Senior Correspondentbdnews24.com
Published : 13 Oct 2023, 05:12 PM
Updated : 13 Oct 2023, 05:12 PM


BNP Secretary General Mirza Fakhrul Islam Alamgir has accused the Awami League of looting Tk 900 billion during their 15 years in power.

He decried rampant 'corruption, mismanagement, and money laundering' within the banking sector, asserting that it has left the national economy in shambles.

"In truth, they plundered all our national resources and funnelled them abroad.

Through various sources and media reports, we have learnt that they embezzled Tk 900 billion from both the banking sector and other domains from 2009 until now," he said at a media briefing on Friday.


Due to the absence of fresh investments, Bangladesh has failed to create new employment prospects, leading to a persistent cycle of poverty for the underprivileged, and ever-widening income inequality, according to Fakhrul.

The BNP leader called for a collective effort to "re-establish democracy and accountability" and replace the current government with a non-partisan caretaker government to ensure free and fair elections.


He further criticised the government for presenting a misleading narrative of development through infrastructure projects, while allegations of corruption and irregularities have plagued the economy.

Fakhrul highlighted a recent loan scam of Tk 300 billion, labelling it the biggest in Bangladesh's history, and expressed concern over the economic slowdown.

The BNP leader underscored the importance of accountability for good governance and the rule of law in Bangladesh, arguing that the current government's lack of accountability jeopardises various aspects of society.

“As the fascist Awami League government isn’t accountable to the people, the country's economy, politics, culture and judicial system aren’t safe in their hands.”​

 

[Saif]

Bangladesh 12th most corrupt country in the world, 2nd in S Asia

Bangladesh ranked as the 12th most corrupt country among 180 countries in the world and 2nd in South Asia as per the Global Corruption Perception Index (CPI) 2022 of the Transparency International (TI). Dropping one position from 2021, Bangladesh scored 25 out of 100 in 2022, said Dr...

www.tbsnews.net

Bangladesh 12th most corrupt country in the world, 2nd in S Asia​

Photo: TBS

Bangladesh ranked as the 12th most corrupt country among 180 countries in the world and 2nd in South Asia as per the Global Corruption Perception Index (CPI) 2022 of the Transparency International (TI).

Dropping one position from 2021, Bangladesh scored 25 out of 100 in 2022, said Dr Iftekharruzzaman, executive director of the Transparency International Bangladesh (TIB), at a press conference in Dhaka on Tuesday.

Iran and Guinea scored the same points as Bangladesh – only one point ahead of Afghanistan – in the index this year.

If Bangladesh's decline in terms of corruption continues, the country could surpass Afghanistan to be the most corrupt in South Asia soon, he added.

As per the CPI report, Bangladesh ranked 147th in 2022 among 180 countries which was the same a year earlier. The country ranked at 146 in 2020.

In the latest report, India and the Maldives both scored 40, Sri Lanka 36, Nepal 34, Pakistan 27 and Afghanistan 24 among South Asian nations.

Denmark, Finland and New Zealand ranked first, second, and third respectively among the least corrupt countries.

The Transparency International prepares the CPI report annually on 180 countries and territories around the world by their perceived levels of public sector corruption. The global average score is 43.

As per the latest report, countries with low scores are still unable to make significant progress in terms of restrictions and attacks on civic space, basic freedoms, security and stability, democracy and human rights.

The TIB executive director said Bangladesh has not done enough to improve in terms of corruption.

He said the country has gone through a stream of money laundering cases in recent times but almost no actions have been taken against those involved in these crimes.

Those who have political connections can get away easily with any corruption, which is very frustrating, he added.

"We were astonished that the people responsible for the corruption were not made accountable. But those who raised their voice against corruption, including government officials, were harassed and actions were taken against them," said Ifthekharuzzaman.

He further said, "The Bangladesh government has to create an environment where people's access to information, freedom of expression would be easier. Laws such as the Digital Security Act, Data Protection Act, and the OTT regulations act should be repealed."​

 

[Saif]

Mega-projects, mega-corruption, mega-greed

For how long will public money be plundered without any accountability?

www.thedailystar.net

Mega-projects, mega-corruption, mega-greed​

For how long will public money be plundered without any accountability?

In a capital where traffic remains the most pressing concern for an overwhelming majority of dwellers, the only thing the government agencies seem interested in is wasting – or rather, consuming – public money on ill-conceived projects. According to a report by this daily, government agencies have undertaken eight different projects in and around the capital, ignoring the Revised Strategic Transport Plan (RSTP) and without consulting each other. For instance, the Bangladesh Bridge Authority (BBA) has already spent Tk 321 crore in conducting a feasibility study and preliminary design for a 258km subway network in the capital and adjacent areas, while another government agency is already implementing a plan for six metro rail lines about 140km long.

More inconceivable still is that five of these projects have been initiated along a single alignment, with different agencies proposing and implementing their own agendas, without any coordination or consideration as to how these projects will work in tandem, or whether they will ease public suffering at all. The agencies did not even bother to consult with the Dhaka Transport Coordination Authority (DTCA), which is responsible for coordinating transport-related projects in Dhaka and five surrounding districts, and is currently reviewing and updating the RSTP. As a result, it is only likely that most of these projects will end up in the bin and, in the process, crores of taxpayers' money will be wasted without anyone having to answer for them.
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The mega-projects, now synonymous with mega-corruption, seem to have whetted the mega-appetite of our government officials, so much so that repeated calls for austerity, from the prime minister no less, are being left unheeded.​

But how can this be the state of development work in the country, particularly at a time when we are repeatedly told that Bangladesh's economy is bleeding profusely and that we all need to practice austerity? How can flyovers be built only to be broken? How can feasibility studies be conducted and designs finalised only for the project to be scrapped a few years later? How can such ludicrous projects be funded with the limited amount of taxpayers' money that should be going into social safety net programmes, health, and education?

It appears that the civil servants invested in these projects only care about them in so far as they are a means for them to earn some major bucks. The mega-projects, now synonymous with mega-corruption, seem to have whetted the mega-appetite of our government officials, so much so that repeated calls for austerity, from the prime minister no less, are being left unheeded. The question now is, will the PM – and the government at large – continue to allow such ruthless and reckless plundering of public resources at such a critical juncture, when the country and its people are suffering so acutely?

We demand accountability from the respective agencies and the government for these wasteful projects. It is downright disrespectful to the people of this country that their hard-earned money is being looted by those whose job it is to ease their suffering and ensure their best interests.
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[Saif]

Are we becoming incorrigibly corrupt?

Latest CPI score paints a sorry picture of Bangladesh’s progress

www.thedailystar.net

Are we becoming incorrigibly corrupt?​

Latest CPI score paints a sorry picture of Bangladesh’s progress

The latest edition of the Corruption Perceptions Index (CPI) by Transparency International (TI) is now out. And just as predictable as this publication is at this time of the year, it pains us to see that Bangladesh's performance in this annual undertaking by the global corruption watchdog has become equally predictable. In the 2021 edition, the country has once again scored 26 out of 100—the same as in 2020, 2019 and 2018. Once again, we have ranked second-worst in South Asia, above only Afghanistan, and third-lowest among 31 countries in the Asia Pacific region. In fact, a 10-year CPI trend analysis shows that Bangladesh has stagnated in the neighbourhood of the same score over the last decade, meaning there's been no real progress during the two latest tenures of this government.

Since the CPI measures "perceived" levels of public-sector corruption, we may soon see a firm rebuttal from the government, disputing this badge of shame. True, there are questions about the methods used for measuring corruption. But one doesn't need TI to reaffirm what we already know to be true: that corruption has permeated every aspect of our lives, ranging from bribery, use of public office for private gain, diversion of public funds, and nepotism in public sector appointments to red tape and ineffective mechanisms for corruption control—to name a few areas of measurement cited by TI. We have seen repeatedly how a section of officials and politically influential people, including public representatives, indulged in various forms of corruption using their connections and poor institutional safeguards, and how they have been let go. In fact, the all-encompassing nature of corruption means that spillover effects of public sector corruption have ruined any chance of progress in the private sector too.

As a consequence, corruption has become a way of life. We can't get rid of it, but since the system has become so crooked, we can't live without it either. A key factor in the non-delivery of the pledges of "zero-tolerance" for corruption, according to the chief of the Bangladeshi chapter of TI, is the intrinsic linkage among politics, money and corruption, causing a disconnect of public decisions and actions from the common people's interests. "Without a paradigm shift in our political culture to put public interest first, replacing the practice of treating political affiliation as a licence for abuse of power, corruption cannot be controlled," he says. We cannot agree more.

To see a change in this scenario, we need drastic reforms, starting with building a political consensus on the need for insulating public institutions from the influence of politics, money and criminality. The Anti-Corruption Commission (ACC) must be empowered to do its job. There should also be legal provisions to manage conflict of interest transparently, depoliticising institutions of accountability, and establishing professional integrity and impartiality of all vital institutions, including public service, administration and law enforcement agencies. We can't continue to repeat the mistakes of the past or allow the corrupt elements to eat away at the hard-earned achievements of our nation.
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[Saif]

Big budget, bigger corruption

Lack of accountability and the culture of impunity destroyed governance from within.

www.thedailystar.net

Big budget, bigger corruption​

Lack of accountability and the culture of impunity destroyed governance from within

In democracy, there are two types of accountability of the government: first, to the people who elect them, and second, to itself so that it can survive the wrath of public judgement.

This it does by knowing and monitoring whether it is fulfilling its election pledges and whether its own policies and projects are being implemented properly. This happens when the political forces it represents and the government institutions it runs work honestly, efficiently and for the public good. This is otherwise known as "governance," which can principally be assured by institutionalising "accountability."​

This is where the present government has mostly failed, resulting in severely discrediting itself, crippling most institutions – through corruption and cronyism – and demoralising the youth by practising a culture of impunity.​

Let's start with a small example of accountability failure – but one that is highly symbolic.

On November 28, the newly launched Dainik Bangla published a report titled "Taka thakley jail o mukto jiboner moto (If you have money, life in jail is as good as life outside)." The story details how bribery starts the moment one enters the four principal prisons in Bangladesh, and how money can ensure better accommodation, better diet, better living facilities including access to TV and a mobile phone – the latter often used for running illegal business, and even terrorist activities. While going for obligatory court appearances, arrangements can be made for a family visit. Like hotels, you can book hospital accommodation priced at Tk 10,000 for the first week, and half that amount for subsequent weeks. Yaba and other narcotics are also available. Officials know all this, but cannot or will not do anything about it.

Prisons are supposedly under full control of the authorities. If criminal activities cannot be controlled inside, how can the public trust the same authorities to control it outside?
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A second example of accountability failure deals with delays in project implementation and the enormous cost escalation, with no one being questioned as to why. According to Jugantor of November 28, there was an additional cost of more than Tk 52,000 crore for 10 megaprojects caused by faulty designs, lack of proper feasibility study, additional work, lack of proper leadership and supervision, delay in release of funds, and other reasons. Not a single project was finished on schedule and the time extensions ranged from two to nine years, and still counting. Total funds allocated for these 10 projects amounted to Tk 63,757 crore. These are now estimated to cost Tk 116,198 crore.

A saying prevalent from the colonial days goes like this, "Sarkar ka maal, dariya mey dhal (If it is government money, it is okay to throw it in the sea)." Only now, instead of throwing it into the sea, we put it in our pockets. The Office of the Comptroller and Auditor General (CAG) may raise audit objections, but who has the time to look into them? And it does not pay to do so.

Here again, we raise the point of why no one has been held accountable for such an enormous waste of money. With Tk 52,000 crore, probably every nook and corner of Dhaka city's roads and its essential water supply could have been modernised. Not to be forgotten that the aforementioned amount is for only the 10 projects in question. Literally, there are a hundred others like them.

As for monitoring, there is a body called the Implementation, Monitoring and Evaluation Division (IMED) under the planning ministry. We occasionally hear about their reports, but without much impact as both time extension and cost escalation continue unabated.

Perhaps the most dangerous lapse of accountability is in the financial sector. This writer, in his column of November 17, drew attention to the rise of default loans from Tk 4,646 crore in 1990 to Tk 134,396 crore today – a growth of 29 times in nearly as many years. Here again, the truth is nothing has been done to remedy the situation except to pander to the culprits, which defies all logic and national interest. An exasperated High Court judge reprimanded, just a few days ago, an Anti-Corruption Commission (ACC) lawyer, saying, "Will the big loan defaulters remain untouched? They are misappropriating thousands of crores. The commission is busy catching small-time loan defaulters, but not the big ones."

News of the last few days dealing with loan disbursement of Tk 7,246 crore by the Islami Bank Bangladesh Ltd (IBBL) has shaken the financial sector and have raised serious questions about the monitoring and oversight role of the Bangladesh Bank (BB).

The IBBL disbursed Tk 7,246 crore this year to nine companies that were sister concerns of Rajshahi-based Nabil Group, of which Tk 2,460 crore were issued during 17 days of November. The bank officials told this newspaper that most of the companies gave fake addresses in their loan applications. How can that be? An address is one of the first things that banks check before considering any loan application – and that, too, one amounting to thousands of crores.

There are many more lapses that are unthinkable in the case of large loan disbursement. Either the IBBL staff have forgotten their trade, or its high-ups are more eager to loot it than to run it properly.

It must be mentioned here that the Islami Bank was once among the best banks run in the country. A few years back, it was suddenly taken over and a new board of directors, with a majority of new members and a new chair, was put in charge along with a new MD and some senior officials. How the changeover took place remains a mystery, but its effect is clear now. Surprisingly, the BB, which now monitors even the personal travels of bank MDs, did not take any serious note of this sudden and unexplained – to the public and especially to its depositors – takeover of the biggest private bank of the country.

What the accountability of BB or the finance ministry on this score is, remains a question.

The LC-related story of the Social Islami Bank Ltd (SIBL), which is currently making the rounds, is equally – if not more – horrendous if the BB investigation proves so. Sharpe Knitting and Dyeing Ltd has been using a bonded warehouse facility without exporting a single item. In the process, it has reportedly misappropriated about Tk 16,500 crore over a period of seven years.

Lack of accountability created the environment for this to happen.

At the very moment, banks have become burdened with so much mismanagement and loan defaults that the government amended the law to allow members of the same family to have a larger number of seats in banks' boards and for longer periods than before. This greatly increased family control of banks and weakened professional managers' power to enforce compliance and financial discipline.

Another nail in the accountability requirements.

Bigger budgets, bigger projects, bigger funding, bigger loans being defaulted, bigger corruption, bigger siphoning of project money, bigger amounts of laundered money, bigger houses in Malaysia and Canada, and lesser and lesser accountability.

A role model, indeed.

Post-script

This week, the finance minister asked the press, "How is the state of the banking sector bad? Let us know in writing and we will look into it." Obviously, he doesn't read the newspapers. Doesn't he have a huge staff to keep him informed? The minister does not know, so does it mean that his ministry does not know either? If they don't, then what are they doing, and do they deserve the salary and perks for which the public pay? If they do know, then why doesn't their minister know? There were numerous media reports recently on mega loans to dubious business houses. The Bangladesh Bank has initiated inquiries of its own on some loan disbursements by Sonali Bank Ltd, asking it to be stopped for now. The Parliamentary Committee on Estimates recently issued a report stating, "Sonali Bank's loan situation is frightening."

Yet, the finance minister knows nothing. His ignorance is highly irresponsible, extremely dangerous and totally unacceptable, especially at this critical time.

Mahfuz Anam is the editor and publisher of The Daily Star.​

 

[Saif]

Bank loan-related suspicious transactions surge: BFIU

The Bangladesh Financial Intelligence Unit (BFIU) on Tuesday revealed that suspicious transactions related to bank loans increased more than fourfold in the past couple of...

www.newagebd.net

Bank loan-related suspicious transactions surge: BFIU​

Overall suspicious transactions rise by 64.58pc in FY23​

Staff Correspondent | Published: 19:37, Feb 20,2024 | Updated: 23:08, Feb 20,2024

A file photo shows clients receiving services at a branch of a state-owned bank in the capital Dhaka. — New Age photo

The Bangladesh Financial Intelligence Unit (BFIU) on Tuesday revealed that suspicious transactions related to bank loans increased more than fourfold in the past couple of years due to significant loan scams.

BFIU head Md Masud Biswas disclosed the information while unveiling the unit’s annual report for the financial year 2022-23 at a press conference at the Bangladesh Bank headquarters in the capital Dhaka.

The BFIU is acting as the central agency of Bangladesh to combat money laundering, terrorist financing and proliferation financing of weapons of mass destruction.

The BFIU received a total of 14,106 suspicious reports comprising 9,769 suspicious transaction reports and 4,337 suspicious activity reports in FY23, which is 64.58 per cent higher than the previous year’s 8,571 reports.

Of them, the number of incidents of suspicious transactions related to bank loans shot up to 520 in FY23, which was 341 in FY22 and 98 in FY21.

The BFIU identified several reasons for the surge in suspicious transaction incidents related to bank loans.

The reasons include adjusting loans with large cash deposits or mortgaged assets, inconsistent cash payments, fraudulent loan acquisitions, multiple mortgages on the same property, deliberate non-payment despite cash flow, untraceable loan borrowers, business closures without repayment, misuse of loan funds, media reports on loan scams involving customers, loan scams in other banks even if the customer’s loan in the reporting bank is regular, requests for customer information by competent authorities and customer arrests by law enforcement agencies.

According to the BFIU report, criminals can seek loans to buy high-value assets and repay the loans with illicit money, or they can buy asset with criminal proceeds and take loans against the ‘dirty asset’ to enhance the same or make a new investment.

In both cases, loans or mortgages are repaid with lump sum amount or smaller ‘structured’ amounts, the report said.

According to Bangladesh Bank data released on Monday, the amount of defaulted loans surged to Tk 1,45,633 crore at the end of December 2023 from Tk 1,20,656 crore at the end of December 2022 and Tk 1,03,273 crore at the end of December in 2021.

Out of the total loan related STR/SARs received by the BFIU, it was found that 36 per cent STR/SAR (253 STR/SARs) was lodged on the ground of non-performing loan or wilful default culture issue.

About 409 STR/SARs were submitted by scheduled commercial banks based on concerns of property undervaluation during the registration of land or flats, especially indicating tax evasion.

About 18 per cent STR/SAR was lodged due to loan repayment or source of repayment fund issue, and 7 per cent STR/SAR was submitted on the ground of obtaining the loan through fraudulent means.

The BFIU received 1,112 STR/SARs related to loan issues from July 2018 to June 2023.

The number of such STR/SARs was quite low in the first three years of the mentioned period, but the number increased sharply in the following two years, the BFIU said.​

 

[Saif]

S Alam money laundering probe underway

Breaking News, International News & Multimedia

thedailynewnation.com

S Alam money laundering probe underway​

21 Feb 2024, 12:00 am0

News Desk :

Masud Biswas, head of the Bangladesh Financial Intelligence Unit (BFIU), has said that an investigation into money laundering allegations against Mohammad Saiful Alam, the owner of conglomerate S Alam Group, and his wife Farzana Parveen is underway.

He discussed the matter on Tuesday during an event marking the release of the BFIU’s annual report, which focuses on combating money laundering and terrorism financing in Bangladesh, reports bdnews24.com

The BFIU’s latest report highlights a significant increase in suspicious financial transactions and activities within the country’s financial sector over the past year.

S Alam Group, which has expanded from the edible oil and consumer goods market into the energy sector, came under judicial scrutiny following a newspaper indicating that Alam bought huge amounts of properties abroad without the Bangladesh Bank’s approval.

Asked about the steps taken by the BFIU to address these allegations, Masud said, “Our activities are ongoing based on a court order. We are taking the necessary actions.”

The issue gained public attention on Aug 4, 2023, when The Daily Star published an article titled ‘S Alam’s Aladdin’s lamp’.

A lawyer subsequently brought the report to the High Court’s attention two days later. The court later directed an investigation into the claims that Alam made large-scale property purchases abroad and built a business empire in Singapore valued at approximately $1 billion.

It also asked why the failure of the BFIU, the Anti-Corruption Commission and the central bank to prevent money laundering in this case would not be declared as illegal.

The Daily Star’s report alleged that over the past decade, Alam purchased at least two hotels, two residential properties, one retail space, and other assets, while seeking to remove his name from the paper trails.​

 

[Saif]

US aware of report on ex-land minister Saifuzzaman

US State Department spokesperson Matthew Miller on Tuesday said the US encourages elected officials of Bangladesh to comply with the country’s laws and financial regulations in regards to corruption.

www.thedailystar.net

US aware of report on ex-land minister Saifuzzaman​

US State Department spokesperson Matthew Miller on Tuesday said the US encourages elected officials of Bangladesh to comply with the country's laws and financial regulations in regards to corruption.

The comments were made at a regular briefing in response to a question.

A journalist, citing a detailed Bloomberg report, observed that it was an open secret that people in the Bangladesh regime were involved in corruption.

He said former land minister Saifuzzaman Chowdhury is alleged to have built an empire in the UK and US valued at 200 million pounds sterling, equivalent to one percent of the country's foreign reserve. This is just one case among many.

Miller said, "We are aware of these reports and encourage the Government of Bangladesh to ensure that all elected officials comply with the country's laws and financial regulations."​

 

[Saif]

Another case filed over Tk 300cr embezzlement

Another case was filed in Rajshahi on Thursday over the alleged embezzlement of about Tk 300 crore through a mobile-based unauthorised app ‘US Agreement’. A...

www.newagebd.net

Another case filed over Tk 300cr embezzlement​

Staff Correspondent . Rajshahi | Published: 00:40, Feb 23,2024

Another case was filed in Rajshahi on Thursday over the alleged embezzlement of about Tk 300 crore through a mobile-based unauthorised app ‘US Agreement’.

A Rajshahi University former official, who requested this correspondent not to disclose his name, filed the case with Boalia Thana Amoli Court against four people of the app, including its head Sajib Kumar Bhowmick alias Mahadi Hasan.

The three other accused are – Rajshahi divisional head Waheduzzaman Sohag, his wife and Rajshahi divisional manager Fatema Tuz Jahura alias Mili and agent Mithun Mondol.

So far, 11 cases have been registered with different courts and police stations in Rajshahi and Natore districts in the past month over the embezzlement of money by the app.

Plaintiff’s lawyer Shamim Akhter said that the judge took cognisance of the case and directed the criminal investigation department of police to investigate the case.

In the case statement, the plaintiff stated that he invested Tk 38 lakh of his pension as the accused lured him of getting a profit of Tk 11,200 per month against an investment of Tk 1 lakh.

Apart from the plaintiff, five witnesses in the cases also invested another Tk 1.19 crore in the app as they were made to understand that ‘US Agreement’ was a United States-based mobile app and they would get its share of profit at every month like that of remittance from abroad.

On January 3 and February 18, about 200 victims of the fraud formed human chains in Kadirganj area of Rajshahi city, demanding their money back and immediate arrest of the accused.

In the human chains, speakers said that the accused went into hiding after embezzling Tk 300 crore from 2,000 investors.

Meanwhile, a court in Rajshahi on February 12 sent ‘US Agreement’ Rajshahi divisional manager Fatema Tuz Jahura alias Mili to jail in a case filed by one of the victims with Godagari police station on January 23.​

 

[Saif]

For a brighter tomorrow, put an end to corruption today

The intricate connection between politics and corruption in Bangladesh raises profound concerns that demand immediate attention.

www.thedailystar.net

For a brighter tomorrow, put an end to corruption today​

Illustration: Oishik Jawad

"I will not tolerate any kind of corruption and irregularity. My goal is to ensure transparency and accountability in all areas, including government procurement," Prime Minister Sheikh Hasina declared during her introductory speech at the cabinet meeting of the new government. During her speech, she acknowledged the pervasive presence of corruption in governance, recognising it as a serious stain on the otherwise commendable reputation of the country.

From a global perspective, Bangladesh is ranked 149th out of 180 countries in the Corruption Perceptions Index (CPI) 2023 by Transparency International. However, it is important to recognise that this ranking does not implicate every citizen in the web of corruption. I firmly believe that the majority of Bangladeshis are honest and possess integrity. Only a handful of individuals within key sectors such as government offices, businesses, healthcare, education, and political institutions are involved in corrupt practices, tarnishing the image of the entire country. Nevertheless, the PM's commitment to combat "corruption in any form" is welcome news.

When we think of corruption, bribery often comes to mind first. However, bribery is just one facet of this complex problem, which manifests in various forms. Notable figures such as businessmen, politicians, government officials, and celebrities are involved in various forms of corruption, including bank loan scams, tax evasion, embezzlement of public funds, money laundering, under- and/or over-invoicing, and accepting kickbacks from international contracts.

Furthermore, corruption expands its influence to cover illegal promotions, postings and recruitment of public officials and employees. Some individuals even engage in the adulteration of food and drugs, massive wetland seizures for mega construction projects and deception of the public through various unfair means.

According to Genevan philosopher Jean-Jacques Rousseau, the belief holds that individuals are inherently pure at birth; it is the influence of political and social institutions that makes them bad and corrupt. People frequently look up to individuals in high-status positions, such as politicians, teachers, business leaders, and celebrities, considering them as ethical role models. Notably, ethical values, including honesty, are often transmitted from these influential figures.

Conversely, the potential for corruption exists when these authority figures engage in dishonest practices, setting unfavourable examples. For instance, when politicians resort to fraudulent tactics like election rigging, nepotism or bribery, or when prominent business leaders exhibit high levels of tax evasion and loan fraud, or doctors take kickbacks from pharmaceutical companies for prescribing their medications, such reprehensible behaviour has a trickle down effect on the general population. The repercussions of such actions contribute to a broader erosion of moral values within society. Hence, the actions of those in positions of "power" play a pivotal role in determining the moral trajectory of society.

Unfortunately, over the years, we have observed a disheartening trend where specific business entities and individuals, responsible for causing considerable harm to our economy, continue to enjoy official favour. We have seen how certain officials and politically influential figures, including public representatives, exploit their connections and take advantage of weak institutional safeguards, and then go unpunished. A striking example is the alarming increase in non-performing loans (NPLs) in the banking sector, attributed to lax policies, political interference, and a pervasive lack of good governance. Rather than holding the most powerful or influential loan defaulters accountable, laws have been repeatedly amended to protect their interests. And this protective stance extends beyond the banking sector, covering individuals engaged in misconduct across non-bank financial institutions, capital market, insurance sector, health sector, market syndicates, and those involved in illegal land-grabbing.

The intricate connection between politics and corruption in Bangladesh raises profound concerns that demand immediate attention. It should be noted that when citizens lose faith in their leaders, it undermines the democratic process and hinders the development of a robust and accountable political system. Moreover, corruption creates an uneven playing field in the business sector, favouring those with connections and financial resources. This discourages foreign investments, hinders economic growth, and perpetuates income inequality. Bangladesh could have achieved greater and more inclusive growth and development for its people if accompanied by higher standards of governance and improved control over corruption.

Therefore, it is high time for the government to address institutional and structural corruption, which currently holds the nation and the economy hostage. It is crucial to note that instances of overlooking or condoning corrupt practices among associates, friends, and political supporters not only undermine the foundations of trust, but also contribute to the perpetuation of a culture where dishonesty is seemingly justifiable. Social scientists argue that human goodness thrives on positive influences. Hence, holding powerful wrongdoers accountable, regardless of political affiliations, and implementing stringent anti-corruption measures are crucial steps. Going after individuals at the pinnacle of power sends a potent signal that resonates throughout society, reinforcing the principle that "no one is above the law."

This unwavering commitment to justice serves as a guiding light, inspiring both citizens and future leaders to uphold the highest ethical standards and support the creation of a community built on principles of honesty and integrity. Therefore, to achieve meaningful progress, the new government must ensure that those involved in corruption face justice, and that the culture of impunity is dismantled. Doing so will pave the way for sustainable development, creating a brighter and more promising future for our country.​

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Abu Afsarul Haider is an entrepreneur.​

 

[Saif]

ACC prosecutes BTRC commissioner, 7 others

The Anti-Corruption Commission on Tuesday filed a case against eight people, including Bangladesh Telecommunication Regulatory Commission commissioner Aminul Hasan, on charges of depriving the government...

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ACC prosecutes BTRC commissioner, 7 others​

Staff Correspondent | Published: 18:45, Feb 27,2024 | Updated: 00:54, Feb 28,2024

The Anti-Corruption Commission on Tuesday filed a case against eight people, including Bangladesh Telecommunication Regulatory Commission commissioner Aminul Hasan, on charges of depriving the government of a loan of Tk 521 crore from the Japan International Cooperation Agency by indulging in irregularities and corruption.

The commission’s assistant director, Muhammad Zainal Abedin, filed the case with its integrated district office in Dhaka, said ACC deputy director for public relations, Aktarul Islam.


The other accused are the then Teletalk managing director Shahab Uddin, former BTCL director and current managing director of Bangladesh Submarine Cable Company Limited Moshiur Rahman, former BTCL director and now general manager of Bangladesh Submarine Cable Company Limited Azam Ali, BTCL general manager and Telecommunication Network Development project director Ashoke Kumar Mandal, BTCL former managing director Mahfuz Uddin Ahmed, and its former directors Maksudur Rahman Akand and Ataur Rahman.

According to the case statement, the accused, in collusion with each other, misused government power to cut the lowest bidder in the tender process for the Telecommunication Network Development project with the ill intention of getting the work done by the contractor of their choice.

The accused have caused undue delay by not following procurement rules and JICA guidelines, including crucial changes in pre-qualification evaluation and fixing estimates two months after the original tender invitation.

As a result, the donor organisation lost its interest and withdrew Tk 521 crore with 0.01 per cent easy-term interest on May 7, 2015, and the country was deprived of credit and suffered financial losses.
The incident took place between 2011 and 2016.​

 

[Saif]

Corruption control: Can the righteous and benevolent exercise of monopolized power help?

Corruption is a global menace that no country has succeeded in bringing down to zero level.

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Corruption control: Can the righteous and benevolent exercise of monopolized power help?​

Illustration: Biplob Chakraborty
Corruption is a global menace that no country has succeeded in bringing down to zero level. However, some have succeeded in effectively controlling and preventing it. International good practices show political will and uncompromising enforcement are the key drivers for corruption control, especially through exemplary accountability and systemic integrity mainstreamed across politics, governance, and society. Above all, a strong evidence-based message across society that corruption is a punishable offense for anyone irrespective of status or identity is indispensable.

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The Government may consider commissioning an independent task force to develop a White Paper on a time-bound Anti-Corruption Action Plan. It can be constituted by an equal number of Government representatives and independent experts.​

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In terms of pledges against corruption, Bangladesh may be at par with many countries in similar situations. We also have a fairly elaborate façade of state capacity backed by policies, procedures, strategies, laws, institutions, and systems in place, which have so far delivered precious little.

Iftekharuzzaman is the Executive Director, Transparency International Bangladesh

Political Will - the Rhetoric & Reality

Bangladesh Awami League's election manifestos over the years show specific anti-corruption pledges repeated since the election manifesto of 1986 when Sheikh Hasina took over the leadership of the party. Anti-corruption pledges have featured in important public documents like the successive five-year plans, perspective plans, laws, and policies adopted during her successive regimes. Starting from the Right to Information Act 2009 enacted in the very first session of the ninth parliament, a series of laws and policies have been created like the Protection of Information Disclosure Act 2011, National Integrity Strategy 2012, Anti-money Laundering Act 2012, and many more. That the pledges and the anti-corruption legal and institutional capacity remain unenforced and that many of these have also been undermined many times in the name of reforms is also well-documented.


Legal and administrative changes that have curbed the authority of the Anti-Corruption Commission (ACC) include the 2023 Income Tax Act which thwarted the ACC's access to income tax-related data of individuals under investigation for corruption. Nothing but the agenda of selective protection of officials can explain the discriminatory and unconstitutional provision for ACC to obtain prior permission under the Civil Service Act before taking into custody public officials for corruption-related investigations. No less damaging is the amendment of the Money Laundering Prevention Act, 2012 to deprive ACC of the authority to investigate all but one of the 27 scheduled offenses related to illicit financial transfers. ACC itself set in January 2023 an unprecedented example of motivated self-disempowerment when by an administrative order bulk of the Commission's executive authority was transferred to its bureaucracy perceived to be designed to protect those linked with power. The commitment to annually disclose the income and wealth statement of parliament members, ministers, and respective families has not been met. Abuse of power related to public contracts, illegal grabbing, and occupancy of land, water bodies, forests, and khas lands by the leaders, agents, and activists of political leaders have become part of the political culture.

Public procurement rules were amended to provide participation in bidding without expertise or experience for contracts up to a certain threshold. Good initiatives like Electronic Government Procurement have been manipulated to benefit the politically linked. To facilitate kleptocratic control of procurement in the power sector an initially short-term provision to freeze the scope of checks and balances has been subsequently given permanent legal status. Nothing has been done to keep the constitutional commitment repeated under the election manifesto to establish the Ombudsman's office except an abortive creation of a so-called tax ombudsman's office intended to reward a favored individual rather than a stated purpose. Defying the Constitutional provision and electoral commitment the provision has been successively made to and legalize black money which for all practical purposes encourages further corruption.

Cartoon: TIB


CORRUPTION – THE 'VERY SERIOUS PROBLEM'

There is no doubt that pervasive corruption is among the top-ranking issues of public concern in Bangladesh, especially for the common people who are not only the worst victims of petty corruption in service delivery sectors, but also the load bearers of grand corruption that eats up 3 percent of GDP by conservative estimates. Bangladesh has acquired a dubious reputation as a global leader in money laundering with at least $12 billion illicitly transferred annually out of the country. The beneficiaries of power abuse are not only enjoying impunity but also accumulating vast wealth. The election affidavit data showing mind-boggling rates of increase of income and wealth of the candidates for the 2024 parliamentary elections represent just the tip of the iceberg that explains why the number of super-rich grows at one of the fastest rates in the world. Nothing but discriminatory implications of corruption can explain why the top 10 percent of people own 40 percent of income, 5 percent own 30 percent, and just one percent own more than 16 percent.

Although grouped in the second lowest category of 'hybrid regime' as per the Democracy Index of the Economic Intelligence Unit, Bangladesh's score is not only twelve points lower than its group average of 36 but also five points less than 29 for the lowest category of authoritarian regimes. Our performance is also seven points worse than countries having no electoral democracy as per Freedom House research. Bangladesh remains the second lowest in South Asia, above only Afghanistan. We have the fourth lowest score among 31 Asia-Pacific countries, while our score is also lower than the average for the globally lowest-performing Sub-Saharan Africa region.

Where lies the key

Reasons for our poor performance in corruption control are not far to seek. Corruption – grand or petty – has rendered our institutions dysfunctional which has in turn prevented the rule of law, and granted impunity to the corrupt, especially the politically and governmentally connected. State institutions mandated to control corruption including the Anti-Corruption Commission (ACC) have been under political and bureaucratic influence. The Parliament, the apex accountability institution has been converted into the monopolized territory of the ruling party denying it the due role of holding the government to account and control corruption.

Other institutions of national integrity and accountable governance, especially law enforcement, administration, rule of law, and justice have also been subjected to partisan political influence. Policy capture using lobby power, especially in the banking sector ravaged by loan default, financial fraud, and money laundering has flourished. Governance has become dependent on surveillance for targeted control and intimidation of media and civil society driven by intolerance of dissension, disclosure, and reporting on corruption.

THE RECIPE IN THE 2024 MANIFESTO

In this context, the recipe for corruption control as listed in the 2024 election manifesto of the ruling party, perhaps the most elaborate set of pledges so far against corruption in such a document, deserves particular attention. Pledging continuation of the zero-tolerance policy against corruption, the manifesto recognizes that "corruption stands as the primary impediment to the economic development, poverty alleviation, infrastructure improvement and moral advancement of the nation. It hinders the realization of overarching developmental goals for the country. Combating corruption necessitates more than just law enforcement and punishment, it requires the establishment of a social movement." It also pledges to add education curriculum content addressing the evils of corruption and prevention measures to instill an anti-corruption attitude among students.

The ruling party commits that "strict measures will be implemented to eradicate illegal wealth acquisition, bribery and abuse of power, nepotism, muscle power violence, and racketeering". It further pledges that "transparency and accountability in project selection, cost determination, quality audit of completed projects, and government procurement and tender verification will be consistently ensured." It goes on to commit that the "use of information technology will be expanded across all areas including administration, the police department, courts, education, and healthcare, to prevent corruption in the administration."

All these are like music to the ear of any Bangladeshi today. However, the only question is whether and to what extent these lofty promises will be translated into practice and what is the roadmap, or whether these will once again remain just a wish-list to gather dust.

IN-BUILT NO BREACH OF THE SYSTEM

Countries that have consistently performed at the top levels in credible global corruption control assessments over the years include Singapore which is attributed to the arguably benevolent authoritarian rule of Lee Kuan Yew and his uncompromising practice of zero tolerance against breach of the system. That is not to say corruption does not exist in Singapore. High-profile politically connected people including Ministers in Singapore have been involved in corruption. In a recent such episode, on January 16, 2024, the powerful Transport Minister resigned after being charged with allegations of accepting gifts from a Malaysian billionaire for a business favor. Singapore's reputation as the least corrupt country is also tainted by the fact that like many of its peers of the least corrupt club, it remains one of the most attractive destinations of illicit financial transfers facilitated by syndicates of various 'professional experts'.

Although Singapore has lost five points in twelve years since 2012, in terms of CPI it continues to be among the top ranking countries in terms of corruption control. Many often attribute Singapore's success to one of the highest-paid public sector officials and politicians, which is only part of the story. The most important factor is the built-in deterrence against corruption in the system. In 1986, soon after the Singapore Corrupt Practices Investigation Bureau (CPIB) started an investigation in November for corruption against Teh Cheang Wan, incumbent Minister for National Development since 1979, he resigned and committed suicide, leaving a note that said, "I feel it is only right that I should pay the highest penalty for my mistake".

What Lee Kwan Yew said in a parliamentary speech a few weeks after the incident, is pertinent for any political leader, Leader of the House, and Head of the Government committed to corruption control, "there is no way a Minister can avoid investigations and a trial if there is evidence to support one. The purpose is not just to be righteous. The purpose is to create a system which will carry on because it has not been compromised… if I had compromised, that is the end of the system."

Delivering her opening speech at the first meeting of the Cabinet formed after the 12th national election, the Prime Minister stated that she would not tolerate any corruption, particularly in the public sector and public procurement, and stressed the need for financial discipline as well as transparency and accountability. One would expect the message to be not only to her Cabinet and public officials but also to every component of the power base of the Government. The extent to which corruption in Bangladesh will be effectively controlled consistent with these lofty pledges and pronouncements will depend on whether the individual and collective lobby-power lobby power of the key actors in political and governance space will be exercised with some semblance of public interest instead of treating their respective positions of power as a license for private gain.

RIGHTEOUS AND BENEVOLENT EXERCISE OF THE MONOPOLIZED POWER?

Only a righteous and benevolent exercise of the monopolized authority in political and governance space can take us anywhere near any meaningful implementation of the anti-corruption election pledges of the government. To prevent more of the same, the Government may consider commissioning an independent task force to develop a White Paper on a time-bound Anti-Corruption Action Plan. It can be constituted by an equal number of Government representatives and independent experts.

The Prime Minister started her fifth overall and fourth successive tenure with much higher authority and power. She has made it incumbent upon herself to walk her talk, especially her declaration while launching the party manifesto 2024 that lessons will be taken from past mistakes to serve the public interest. The problem is that within her power base lie the perpetrators, protectors, and promoters of corruption. It remains to be seen if she can exercise the unrestricted and unaccountable authority that has no conventional institutional structures of checks and balances, with righteousness and benevolence putting public interest on top where no one will enjoy impunity irrespective of identity or status.​

 

[Saif]

The malady of corruption

Breaking News, International News & Multimedia

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The malady of corruption​

11 Apr 2023, 12:00 am1

Debbie Peterson :

The idea that the choices leaders make will carry into future generations is not new. The Old Testament admonishes fathers that their sins affect their sons unto the third and fourth generations. The 12th-century Iroquois constitution required leaders to weigh the effects of their decisions unto the seventh generation.

While it is difficult to perform psychological assessments that span centuries, it is possible to consider whether historical choices achieve desired outcomes. Considering the historical choices of the happiest countries, the United Nations Happiness Report finds that the countries in which people are happiest have a history of equality and high-quality institutions. In the late 1800s, with the intention of generating national cohesion, today’s happiest countries implemented free and widely available education for all citizens.

When researchers Uslaner and Rothstein evaluated the impacts of that action, they found that the countries with the highest mean number of years of schooling in 1870 had the lowest levels of corruption in 2010. The UN Happiness Report concludes that cohesiveness and low corruption co-occur. This generations-long focus on equality in education achieved its aim of generating cohesiveness, which in turn, perpetuated low corruption and trust between people and institutions. Widespread free education as a corruption-buster passes the test of time.

Conversely, Rothstein and Uslaner observed that inequality perpetuates corruption. Inequality begets low trust whereby people are trapped in a downward spiral of social division and unwillingness to pay taxes or support reforms that improve the welfare of citizens because “other” groups benefit.

Over time, a divided society fails to provide quality representative institutions and public services. The countries that do not provide for widespread education become trapped in cycles of corruption, while those that educate equally perpetuate cycles of well-being. Thus, as time-honored wisdom and more recent studies point out, the effects of a single act can indeed continue for generations.

Another way in which corruption spreads, according to psychologists, is much more immediate. In 2019 Schram, Di Zheng, and Zhuravleva, in their study, “Contagious corruption: cross-country comparisons,” found that decades of research support the phenomenon that corruption is contagious. No matter the test or the culture, the phenomenon holds. Psychologists agree that universally, corruption is highly contagious, despite differing cultural norms surrounding corrupt behaviors. They explain that simply seeing corruption by others makes people more corrupt and that once it starts, it’s hard to stop.

Psychologists provide observations on how corruption spreads. It starts when one person commits what may be a very small act that strays from best practice. In an organization, it may be as simple as stealing a pencil or taking a safety shortcut on a production line. If the act is not criticized, it becomes the standard for what is allowable. It’s all about what is going on in the minds of observers. Even though many in the organization may think that something is wrong, they may not say so if they are insecure about their position in the organization or are in a lower position in the hierarchy.

Others may not speak up because they don’t hear others speaking up and conclude that because no one said anything against it, others think the act is acceptable. They then rationalize that the act is more normal and more ethical than previously thought. When a next slightly more unethical action arises, it is weighed against the benchmark of past practices. Tenbrunsel and Messick call this the induction mechanism: “If the past practices were ethical and acceptable, then practices that are similar and not too different are also acceptable.”

In this way, bit by bit, an organization slides into immorality. The small steps over time may progress so slowly that no one is even aware of subsequent acts that multiply or are more extreme. This is how people who would not be thought of as bad people are infected with corruption. Behavioral economists and psychologists say that it is so contagious that bystanders who see corrupt acts become blind to them.

Psychologists agree that corruption can be both inherited and contagious. The good news is that virtuous behavior is also inheritable and contagious. Read more here: “The 4 Virtues of World Happiness.”

(Former Mayor Debbie Peterson is the author of The Happiest Corruption: Sleaze, Lies, & Suicide in a California Beach Town and has a BSc in Communications. Courtesy: psychologytiday.com).​

 

[Saif]

BFIU, AACOBB organise anti-money laundering conference in Cox’s Bazar

The Bangladesh Financial Intelligence Unit (BFIU), in collaboration with the Association of Anti-Money Laundering Compliance Officers of Banks in Bangladesh (AACOBB), organised a conference titled “Anti-Money Laundering Compliance Officers Conference-2024” to raise awareness about methods to...

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BFIU, AACOBB organise anti-money laundering conference in Cox’s Bazar​

Abdur Rouf Talukder, governor of the Bangladesh Bank, delivers his speech at the “Anti-Money Laundering Compliance Officers' Conference-2024”, for creating awareness to prevent money laundering at the Ocean Paradise Hotel and Resort in Cox’s Bazar recently. Photo: Exim Bank

The Bangladesh Financial Intelligence Unit (BFIU), in collaboration with the Association of Anti-Money Laundering Compliance Officers of Banks in Bangladesh (AACOBB), organised a conference titled "Anti-Money Laundering Compliance Officers' Conference-2024" to raise awareness about methods to prevent money laundering at the Ocean Paradise Hotel and Resort in Cox's Bazar recently.

Abdur Rouf Talukder, governor of the Bangladesh Bank, attended the conference as chief guest, the bank said in a press release.​

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The BB governor advised banks to adopt plans targeting marginalised people to make Bangladesh 100 percent cashless by 2031.
He also discussed the steps taken by the central bank to control the import of luxury goods, encourage remittances through banking channels, and continue the growth of export earnings.

Md Masud Biswas, head of the BFIU, presided over the event, where Mashrur Arefin, chairman of the Association of Bankers Bangladesh (current duty), and Mohammad Ziaul Hasan Molla, chairman of the AACOBB, were present.

Among others, Sheikh Mohammad Salim Ullah, secretary of the financial institutions department of the ministry of finance, along with managing directors and CEOs of various commercial banks, and chief and deputy chief of anti-money laundering officers of 61 commercial banks were also present.​

 

[Saif]

Corruption: draining the nation

MORE than a quarter century ago, in 1998, the Fiscal Affairs Department of the International Monetary Fund launched a Working Paper...

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Corruption: draining the nation​

Published: 00:00, Mar 02,2024

— New Age/Mehedi Haque

A culture of confrontational politics between political parties has weakened, beyond imagination, the rule of law and has led to the complete politicisation of all major state institutions, including the judiciary and bureaucracy, writes Humayun Kabir

MORE than a quarter century ago, in 1998, the Fiscal Affairs Department of the International Monetary Fund launched a Working Paper, written by Vito Tanzi, entitled ‘Corruption Around the World: Causes, Consequences, Scope and Cures’. In the abstract of the paper, Tanzi wrote, ‘…the fight against corruption may not be cheap and cannot be independent from the reform of the state. If certain reforms are not made, corruption is likely to continue to be a problem regardless of actions directly aimed at curtailing it.’ In this essay, we will focus on corruption history and trends in Bangladesh, explore options to contain corruption, and challenge the impunity with which it is treated. More than anything else, we ought to see how this menace has become a serious threat to our democracy and diminished our rightful place as a civilised nation. This scourge may explode before long, destabilising our economic and social lives and thereby rendering us empty from the inside.


At the outset, we must remember that it is not possible to measure corruption, but it is possible to measure perceptions of corruption. Also, actions can be taken to reduce corruption, but the fight against it cannot be seen independently from the need to reform the role of the state. Tanzi, in his paper, highlighted that a ‘certain role of the state almost inevitably creates a fertile ground for corruption.’

Bangladesh, over time, has shown all those symptoms to have taken hold at every level of society. It is generally accepted that corruption in Bangladesh is the most widespread pandemic today.

At a workshop on corruption held in Dhaka eight years ago, it was noted that ‘politics in Bangladesh can be characterised as a battle between established elites over state resources.’ Nothing could be a bigger truth than that. A culture of confrontational politics between political parties has weakened, beyond imagination, the rule of law and has led to the complete politicisation of all major state institutions, dare I say, including the judiciary and bureaucracy. As well, the powerful, resource-rich business interests, most of whom are also members of parliament, have increasingly taken over the parliament and the control of the political parties. It does not take a genius to fathom that even if we claim to have a relatively strong legal framework to deal with corruption, weak implementation (due to poor quality bureaucrats) and political interference and patronage undermine efforts in Bangladesh. Transparency International Bangladesh contextualised the situation of ongoing battles between parties over state resources by saying,’ the winner takes it all, and the game is played by the use of force and resorting to violence. Staying in power or capturing it is the only option, and hence election only under such terms would ensure victory.’

TI has also noted, and quite correctly by any standard of measure, that conflicts between and within political parties’ spill over into the public sector, impeding reform of state structures, progressive policy making and the development of an enabling environment for strong leadership at different levels of government. At the same time, while scoring very poorly consistently on the TI Corruption Perception Index, Bangladesh has recorded moderate to good progress on other indicators of socio-economic development, leading many observers to speak of a ‘Bangladesh Paradox’. It has long been argued that there is a strong connection between governance, ethics, integrity and corruption, all of which are the product of a complex interplay of political, economic, social and even psychological factors and forces. In the case of Bangladesh, it is argued that there exists an integrity-governance-corruption nexus, as a result of which virtually all the organs of government have become pervaded by corruption.

In all the major ranking institutions over the past decade, Bangladesh routinely finds itself among the most corrupt countries in the world. These reports emphasised that corruption is pervasive at all levels of society, and such practices go with impunity. They note that the Code of Criminal Procedure, the Prevention of Corruption Act, the Penal Code, and the Money Laundering Prevention Act criminalise attempted corruption, extortion, active and passive bribery, bribery of foreign public officials, money laundering and using public resources for private gains. Nevertheless, the fact remains that our anti-corruption legislation and all other national instruments aimed at containing corruption are inadequately enforced.

It is common knowledge, and many believe by heart that if a vigorous investigation is mounted against corruption in the public sector, we will find that huge amounts of public money have been swindled from the sector through malpractices and corruption. Shameful as it looks, it is to be admitted that Bangladesh has dropped two notches in the Corruption Perception Index 2023 of TI and now ranks 10th from the bottom. In Asia, only Afghanistan is worse than Bangladesh, and Pakistan, Sri Lanka, Nepal, India, the Maldives and Bhutan are all better placed than Bangladesh. And we share the spot with Iran, Lebanon, Zimbabwe and the CAR in Africa.

In this regard, the TI has observed that non-fulfilment of the government’s commitment to zero tolerance against corruption, intensified corruption in the public sector, and no effective action against money laundering were among the reasons that left Bangladesh facing a ‘very serious corruption problem.’ I must also point out against this fact the response from the Awami League general secretary as follows: ‘Corruption is found more or less around the world, but the way Bangladesh is being blamed is not fair at all.’ It would be relevant to point out that 105 of 180 countries scored below the global average, which means 80 per cent of the global population lives with a ‘very serious corruption problem.’

Rather than boldly facing the problem of corruption and dealing with it squarely, the Awami League general secretary has said in public that the government does not pay any heed to the CPI report. He said the TIB is the BNP’s (opposition party) agent, and it says whatever the BNP says. However, in September 2023, the then-planning minister of Bangladesh told the parliament that corruption had increased in many areas. His is the single honest voice from the Treasury Bench of the Parliament recently heard.

The Citizens’ Platform’s survey showed that nearly 70 per cent of youths described corruption and nepotism as the main obstacles to the country’s development. Quoting media reports, a newspaper ascribed a statement by an opposition political leader that, from 2009 until 2023, around Tk 900 billion has been looted. The news report added more such open loot from Islami Bank, with an alleged amount of Tk 300 billion. Global Financial Integrity reported that wealth is being syphoned out of the country by means of mis-invoicing the price of import and export products. In just nine years (2009–2018), Bangladesh lost $74 billion by means of money laundering. On September 11, 2023, Dhaka newspapers, quoting the CID, reported that by means of ‘Hundi’, TK 750 billion was laundered out of the country each year. In May 2023, the Global Rating Agency Moody’s downgraded Bangladesh’s credit rating from Ba3 to B1. A report from Bangladesh Bank said that surplus liquidity in the banking sector had fallen to TK 39.09 billion from TK 234.35 billion in 2022.

In July 2022, the Centre for Policy Dialogue, in partnership with the World Economic Forum, conducted a survey in which 64.6 per cent of the respondents’ said corruption was the biggest obstacle to doing business in the country, as they had to bribe even for tax payments, licences and utilities. It was revealed that though corruption remains the most problematic factor for doing business for most enterprises, the severity of its impact has gradually spread to other structural and newly emergent issues. Thus, 2022 and 2023 signified a situation of government instability, crime, and rampant theft. This survey concludes that rapid and sustained inflation, the debt crisis, and severe commodity price shocks remain the top three risks for Bangladesh in the near-term future. Similarly, it concludes that the cost-of-living crisis, unemployment at 41 per cent, and the livelihood crisis are the top three societal risks. All these symptoms are already in full play today in the economy of Bangladesh.

Is it possible to pinpoint the main public-sector institutions and agencies that have proven susceptible to rampant corruption? Analysts and researchers have concluded that bribery, rent-seeking and inappropriate use of public funds, excessive lobbying, long delays in services, pilfering, irresponsible conduct from government officials, and excessive bureaucratic intemperance and mindset have made public sector departments like law enforcement, water supply, electricity, gas supply, education, health, transportation, issuance of passports, and land records services susceptible to corruption. A total lack of accountability appears to have been a cause for this susceptibility to corruption.

The impact of corruption on the poor and ordinary citizens is profound. In Bangladesh, corruption hinders proper allocation of resources, weakens public services, reduces productivity, worsens poverty, marginalises the poor and helps create social unrest and discord. We now know that while corruption affects everyone, poorer sections of society suffer more acutely. A TIB study showed that the cost of petty corruption was estimated to be nearly 5 per cent of average annual household expenditure. For the well-to-do it is 1.3 per cent. Sadly, studies have concluded that despite the existence of a reasonably sound legal framework, the implementation and enforcement of legislation are largely inadequate, and a culture of non-compliance generally prevails.

It should also be highlighted that media, both print and on-air sources, have, at best, a mixed role in reporting on corruption. From time to time, in responding to allegations of corruption at the top of the government, the Prime Minister makes statements against corruption and frequently invokes the zero-tolerance policy. It is necessary to do so. But occasionally, as the situation demands, this policy should be seen to be applied too. That is what leadership in a democracy does. After all, what is needed for zero tolerance to yield a concrete result is a comprehensive, target-oriented national anti-corruption strategy to be developed by experts and stakeholders, and for this to be strictly enforced and independently monitored in the short, medium and long run.

In the end, it is necessary to make a forceful case for the Anti-Corruption Commission to be made totally independent from the administration and be empowered to investigate corruption without fear or intervention from any quarter. It must grasp the fact that corruption is a termite that shatters and paralyses the systems upon which countries run and develop. Its infamous nickname as a toothless tiger must be done away with. A corruption-free Bangladesh has remained a dream that has eluded its people for five decades. As its rightful citizens, we all now have to say: enough is enough.

In the end, the following measures are recommended for the government and our people to consider as seriously as possible. For anti-corruption intervention to have a sustained impact, it needs to either be feasible within the current system or sufficiently alter the system.

A full compliance with adhering to the norms and practices of the United Nations Convention against Corruption, to which Bangladesh is a signatory, must be ensured. Collective efforts must emanate from the national authority.

A renewed full-scale inquiry should be undertaken as a priority to identify various types of corruption, their effects and levels of harm, who are involved in the chain, what the drivers are, and how these factors interact.

There are international bodies that have developed specific tools and resources to tackle corruption. The examples are: UNDP’s Capacity Assessment of Anti-Corruption Agencies; USAID’s Anti-Corruption Assessment Handbook; and GIZ’s Guidelines for Integrating Anti-Corruption into the Planning and Implementation of Technical Assistance Projects. This will help avoid reinventing the wheel.

All targeted reform efforts need to employ a holistic approach and be linked to wider national plans.

A combination of top-down and bottom-up approaches to anti-corruption may be the most sustainable path to reform. Singapore and Botswana are the best models of top-down policy success. The Republic of Korea is the example to be followed for the bottom-up approach.

Lastly, the government should study and follow the World Development Report 2017 (World Bank), which recommends reshaping the policy arena to expand the set of policies that can be feasibly implemented.

Humayun Kabir is a former senior official of the United Nations.​

 

[Saif]

Ex-land minister admits to having properties abroad

Former land minister Saifuzzaman Chowdhury admitted today to having businesses and assets abroad but denied any involvement in corrupt practices related to acquiring those properties

www.thedailystar.net

Ex-land minister admits to having properties abroad​

Former Land Minister Saifuzzaman Chowdhury

Former land minister Saifuzzaman Chowdhury admitted today to having businesses and assets abroad but denied any involvement in corrupt practices related to acquiring those properties.

Bloomberg News, on February 18 reported that Saifuzzaman has built up a UK real estate empire of more than 350 properties worth about £200 million. Moreover, he has assets in US. The Daily Star also ran a report based on its own investigation.

Saifuzzaman Chowdhury, presently chief of the parliamentary standing committee on the land ministry, came up with the statement at a press conference at the Jatiya Press Club.

The lawmaker from Chattogram-13 said his father started doing business in London in 1967.

Saifuzzaman said he studied in the United States and started doing business there since 1991. Later, he expanded his business to London.

Regarding the concealment of his assets abroad in the affidavit submitted in the election commission before the January 7 national election, the ruling Awami League MP said that the affidavit was completely based on the income tax returns of Bangladesh.

"It (the affidavit) does not have a separate table for information on foreign assets. Why should I provide additional information?" he asked.

Saifuzzaman said he maintains separate income tax documentation for his assets and businesses abroad. And he has bank loans against those assets.

Regarding the huge expansion of business in London during his tenure as a minister, Saifuzzaman Chowdhury said that the coronavirus pandemic became an opportunity for him.

He said, as the property price crushed and the bank interest lowered, he took risks and made fortune.

Saifuzzaman claimed that he didn't even make a single taka through corruption while he was a minister.

He urged the authorities to form a high-level investigation committee to probe the allegations, if necessary.

The AL MP said that he would resign as a member of parliament if any corruption against him is proved.

Saifuzzaman Chowdhury said that he is a businessman first and then a politician.

He said that he made wealth in his own name knowingly because his children were not old enough to be owners.

Saifuzzaman Chowdhury has built up a UK real estate empire of more than 350 properties worth about £200 million, Bloomberg News reported on February 18.

The figures were based on a Bloomberg analysis of available Companies House corporate accounts in the UK, mortgage charges and HM Land Registry transactions.

Saifuzzaman's properties range from luxury apartments in central London to housing in Tower Hamlets -- home to the largest Bangladeshi community in England -- and student accommodation in Liverpool.
The international news agency headquartered in New York City analysed nearly 250 of his UK properties and found that almost 90 percent were classified as new-builds when bought, a valuable component in a UK housing market suffering severe shortages.

These transactions took place during a period when the UK government had committed to making foreign property ownership more transparent amid criticism of the ease with which Russian oligarchs were able to hide their wealth in the UK. This process became more urgent in the wake of Moscow's 2022 invasion of Ukraine.

His property deals could revive questions over whether UK's legislation to scrutinise such purchases involving politicians are effective, according to transparency advocates.

Bloomberg also identified at least five properties in Manhattan in the USA belonging to Saifuzzaman, bought for a total of about $6 million between 2018 and 2020, according to municipal property records.

Saifuzzaman has been re-elected as an MP, but lost his cabinet post after the January 7 national election. He has since become the chair of the parliamentary committee for land.

On December 29 last year, The Daily Star ran a report on Saifuzzaman's properties in the UK. Based on the newspaper's calculation from company filings publicly available on UK government websites, it found at least 260 properties in the UK, for which he has paid at least GBP 134.76 million or Tk 1,888 crore.​

 

[Saif]

'Is syndicate more powerful than govt?'

Jatiyo Party MP and Deputy Leader of Opposition asks parliament

www.thedailystar.net

'Is syndicate more powerful than govt?'​

Jatiyo Party MP and Deputy Leader of Opposition asks parliament

File photo

Deputy Leader of the Opposition Anisul Islam Mahmud today in parliament raised questions whether the market syndicate is more powerful than the government.

"The government has reduced the duty of different goods to reduce prices. But prices of those goods didn't decrease. Why can't we control the syndicate? Is the syndicate more powerful than the government?" he asked.​

​

Anisul, also senior co-chairman of main opposition Jatiya Party said this while participating in the thanksgiving motion on the President's speech.

"Common people are suffering due to inflation. Weak banking sector, unstable dollar exchange rate, dwindling reserves make the overall economy unstable," he also said.

He said, in case of any problem, the government used to cite the Covid-19 pandemic and the Russia-Ukraine war.

"But it is useless to mention such reasons. We will have to figure out our own structural problems. Inflation has come under control in every country, including the United States. Why can't Bangladesh do that? These should be discussed in the parliament."

Anisul said, "This government is strong. All but 13 members of the parliament belong to the ruling party. Why can't the government stop extortion? It was expected that commodity prices would go down before Ramadan. But it's not happening."

He said good governance must be established in a bid to make development sustainable. Confidence in the judiciary should be increased. It should be ensured that the freedom of the media is not undermined.

Anisul said, "Recently, a delegation from the US visited the country. They were apparently visiting to know about the democracy in the country and the election. But I don't think that's true. They came here because of a geopolitical reason. They want to include Bangladesh in some platform."

He added, "My only request to the government is that we should not get involved in the internal affairs of Myanmar in any way, because it involves the integrity of our country."​

 

[Saif]

Bus operators pay Tk 1,059cr a year in bribes

A section of unscrupulous BRTA officials and staffers, policemen, transport associations, staffers of city corporations and municipalities, and people affiliated with political parties get shares of the bribes and extorted money

www.thedailystar.net

Bus operators pay Tk 1,059cr a year in bribes​

Finds TIB study

Buses block all four lanes and cut off each other on Dhaka-Chattogram highway as they race to pick up and drop off passengers near the Institute of Child and Mother Health in the capital’s Matuail. Violation of traffic rules, which often leads to accidents, has become a daily feature in the city. Photo: Amran Hossain/Star

Buses pay at least Tk 1,059 crore in illegal tolls and bribes every year, according to the Transparency International Bangladesh.

A section of unscrupulous Bangladesh Road Transport Authority (BRTA) officials and staffers, police officers, transport associations, staffers of city corporations and municipalities, and people affiliated with political parties get shares of the bribes and extorted money, said a research report of the TIB.​

​

However, the Tk 1,059 crore was a "very conservative estimate" and that the real figure could be many times more, the TIB said while unveiling its findings at a press conference at its Dhanmondi office yesterday.

It found that people with political affiliations were directly involved in the governing bodies of 92 percent of bus operators.

Of those people, 80 percent belong to Awami League and they often influence policies and ensure benefits for themselves and bus operators, it said.

"The private bus service sector is plagued by irregularities from top to bottom … This sector is kept hostage by the associations of owners and workers," said Iftekharuzzaman, executive director of TIB.
Workers are not getting their benefits and passengers the expected services, he added.

The TIB carried out the research titled "Integrity in Private Bus Transport Business" between May 2023 and February 2024. It collected information from 701 transport workers, 168 representatives of bus operators or associations, and 696 passengers on travel between September 11 and October 2023.

It also interviewed 37 stakeholders and monitored 51 bus terminals.

It did not include BRTC buses in its survey.

Researchers Md Nuruzzaman Forhad, Farhana Rahman, and Mohammad Nure Alam read out the summary of the findings at the press briefing.

Bus owners and workers have to bribe to get services from the BRTA, TIB said.

Over the last year, bus owners had to spend an average of 30 days, instead of a maximum of 14 days, to get their vehicles registered. They had to bribe an average Tk 12,272 for every vehicle, it said.

They had to spend 13 days on average, instead of the stipulated one to two days, to renew fitness certificates and had to bribe an average Tk 7,635 for each vehicle, it said.

For renewing route permits, they had to wait an average of 45 days, instead of the maximum of 20 days. They also had to bribe an average Tk 5,999, it said.

Over 28 percent of the surveyed workers said they have been accused in one or more cases filed by traffic police or highway police in connection with violating traffic rules.

By bribing police, many owners and workers avoid fines and keep unfit vehicles on roads, operate buses on routes they are not supposed to operate, and avoid requisition of their vehicles by government officials, it said.

Photo: Tuhin Shubhra Adhikary

About 29 percent of the workers said they bribed traffic or highway police.

On average, each long-haul bus paid Tk 1,019 in bribes over the last one year and regional buses paid Tk 1,133. City buses paid a staggering Tk 5,656, it mentioned.

Of the Tk 1,059 crore paid by privately operated as bribes and illegal tolls, Tk 900.59 crore went to BRTA officials for services, Tk 24.97 crore went to people with political clout, Tk 33.48 crore went to workers of city corporations and municipalities and political leaders, Tk 87.57 crore went to traffic and highway police, and Tk 12.76 crore went to transport owners' and workers' associations, it said.

Asked whether the officials and staffers of the BRTA were the only recipients of the bribes or ministry officials also got a cut, Iftekharuzzaman said it was difficult to say. "However, it is assumed that a section of the BRTA officials and staffers gets the money and it is an open secret. As the higher authorities [above the BRTA] is failing at curbing corruption, it could be asked whether a portion of the money goes to them," he said.

Workers' associations are failing to uphold the rights and interests of the workers due to their involvement in politics, the report read.

These organisations, taking the side of the owners, go on strikes to change the law, have their leaders released from jail, and to increase bus fare keeping the passengers hostage.

They collect Tk 30 to 50 for each trip of buses in the name of management fees, but the fund management lacks transparency, it said.

Ruling party activists lead most of the bus owners' associations, it said, adding that the leaders, who do not even own buses, hold key position in such associations, it said.

Contacted, Khondaker Enayet Ullah, secretary general of Bangladesh Road Transport Owners' Association and also the vice-president of Dhaka South City Awami League, termed the TIB report "fabricated".

Association President Moshiur Rahman Ranga is a former Jatiya Party lawmaker.

Enayet told this correspondent yesterday that there was no political influence in the activities of their organisation.

He said police fine vehicles owned by AL and BNP leaders just like they do for vehicles owned by others.

Enayet claimed that he was not aware of the allegations of bribery against BRTA and police officials and that some people, not affiliated with transport organisations, were extorting buses at terminals.

Contacted, BRTA Chairman Nur Mohammad Mazumder said all services are now delivered online and that there was no scope for bribery and corruption.

"We will hold a press conference tomorrow [Wednesday] to protest the TIB report," he told this correspondent last night.

Asked about the allegation of bribery against traffic and highway police, Enamul Haque Sagor, assistant inspector general (media) of Police headquarters, said he was not aware of any such report.

"However, our stance is very firm and clear about any kind of bribery. Our stance is the same irrespective of the identity [of the accused]," he told The Daily Star yesterday.

The TIB issued 15 recommendations, including legal action against individuals engaged in extortion on the roads and those responsible for irregularities and corruption.​

 

[Saif]

Corruption and capital flight

AS A social worker, it is a great opportunity to work with grassroots people. I worked for two years and seven months...

www.newagebd.net

Corruption and capital flight
Mohammed Mamun Rashid | Published: 00:00, Mar 07,2024

AS A social worker, it is a great opportunity to work with grassroots people. I worked for two years and seven months at Transparency International Bangladesh. It enhanced my visionary zeal for the anti-corruption campaign a lot because of my work in civic engagement, social movements, and good governance. Still, I abide by it. Once I asked one of my neighbours, ‘what do you mean by good governance?’ Naturally, he did not answer theoretically, as we usually expect. But he gave some real expectations from his heart. He said, ‘I want an honest officer-in-charge, land registration without bribery, easy access to public health services, etc.’

People’s pains, predicaments and expectations are often reflected in newspaper or television reports. Corruption and money laundering are two of the most important factors that cause inequality to grow and make people suffer. Corruption is not limited to bribery but can take a number of other forms, such as extortion, influence peddling, nepotism, fraud, the use of speed money (money given to government officials for speeding up their consideration of a business matter falling within their jurisdiction), embezzlement, etc. There are three broad forms of corruption: petty administrative or bureaucratic corruption, grand corruption and state capture or influence peddling.

Petty corruption means isolated corrupt transactions by individual public officials who abuse their office; grand corruption occurs when vast amounts of public resources are devoured or misappropriated by state officials, usually members of the political or administrative elite; and state capture or influence peddling takes place when actors of the private sector operate in collusion with public officials or politicians for their mutual and private gain. Corruption in the public sector, particularly in developing and lower-middle income countries like Bangladesh, is a more serious problem than that of the private sector.

Corruption in Service Sectors: National Household Survey 2021 by the TIB shows that overall, 70.9 per cent of households have been victims of corruption while taking services from 17 sectors. The seven most corrupt sectors are, according to the survey, law enforcement agencies (74.4 per cent), passport offices (70.5 per cent), BRTA (68.3 per cent), judicial services (56.8 per cent), health (48.7 per cent), local government institutions (46.6 per cent) and land services (46.3 per cent). The estimated total amount of bribery at the national level is around Tk 108,301.1 million, which is 5.9 per cent of the national budget (revised) for the fiscal year 2020–21 and 0.4 per cent of the GDP of Bangladesh.

The Corruption Perceptions Index 2023, released by Transparency International on January 30, 2024, shows further worsening of Bangladesh’s performance. The country has scored 24 on a scale of 100, the 10th lowest global score.

Another sophisticated, heinous, and complex crime is money laundering. The Global Financial Institute, a Washington-based think tank, identified four major ways of money laundering: under-invoicing of exported products, over-invoicing of imported goods, Voice Over Internet Protocol business, and Hundi. According to a Global Financial Integrity report for 2020, every year more than $7.5 billion is laundered from Bangladesh, much of which is via the mis-invoicing of export-import trades. The reports say dishonest businesses, politicians and financial institutions are often involved in smuggling money out of the country. Sadly, the country does not seem to be effectively using any of the tools to recover laundered money. The process of claiming money back typically involves identifying laundered money, the persons or groups behind the crime, and the location; gathering evidence; filing lawsuits in the country the money has been located in; obtaining a judgement from the court; and enforcing the judgement in the specific country.

Money laundering damages financial sector institutions that are critical for economic growth, promotes crime and corruption that slow economic growth, and reduces efficiency in the real sector of the economy. These problems also have social consequences. The increasing inequality causes social degeneration. One of the most critical damages of black money is its negative effect on income distribution. The gap between individuals in terms of income distribution increases the tendency to commit crimes and makes money attractive. Moreover, it is a serious burden for honest people to maintain their daily lives, which is difficult to measure by so-called indicators. The silent pains of those people are being overlooked.

The agencies, such as the Anti-Corruption Commission and the Bangladesh Financial Intelligence Unit, that are mandated to curb corruption and money laundering appear to lack capacity, resources and logistical support to deliver their duties. In addition, these institutions are not free from political and bureaucratic influence. Overall, there is a lack of political will.

Corruption and money laundering are like a metastatic cancer in Bangladesh. It is a serious threat to our economic growth. This metastatic cancer also creates hindrance to other social progress. The government never fails to give a lip service to the issue, often vigorously stating its zero tolerance policy against corruption, but when it comes to walk the talk, it fails.

Dr Mohammed Mamun Rashid has recently obtained his PhD degree from Universiti Sains Malaysia.​

 

[Saif]

Who will restrain prices in the month of restraint?

A government’s job is not to preach about people’s food choices, but to keep food prices stable and reasonably down. When it starts to preach, more often than not it is trying to deflect scrutiny of what it cannot achieve through actions.

www.thedailystar.net

Of Magic & Madness​

Who will restrain prices in the month of restraint?​

FILE ILLUSTRATION: BIPLOB CHAKROBORTY

A government's job is not to preach about people's food choices, but to keep food prices stable and reasonably down. When it starts to preach, more often than not it is trying to deflect scrutiny of what it cannot achieve through actions. So when the industries minister advises us to choose locally sourced fruits like plums and guavas for iftar—over imported delicacies such as dates or grapes—as a means of cutting down on Ramadan costs, any sincerity in his statement is lost on the consumers who are overwhelmed by the relentless tide of price rises over about three years now. Instead, it comes across as insincere, classist, and oddly evasive, as if he was responding to an unuttered accusation.

When people worry about food prices in Ramadan, they don't mean just grapes or dates. Despite the minister's claim, these are still outliers—one a luxury best afforded in kinder economic times, and the other a starter best had in small quantities. No one, frankly, rues not having more dates on their iftar plates. But it is their prices which are worrisome, where they become one with essential food items, with the humble date going for as much as Tk 1,500-2,000 per kg now, up from last Ramadan's Tk 500-700. This is even after the government reduced import tariffs on dates earlier last month. Prices of almost all other fruits have similarly shot up. One kg of sugar, another iftar essential, will set you back about Tk 140-150.​

​

Before we get into further details, consider this: if the total number of households in the country is 4.1 crore, price rises have affected over 2.9 crore (or 71 percent of all households), according to a World Bank report published in early January. Since then, nothing has changed to assuage their concern. On the contrary, food prices witnessed a fresh spike weeks before the start of Ramadan, which is when you usually expect it to happen.
As per a recent report by this daily, multiple price shocks have sent consumers reeling, with things set to turn worse following the imposition of newly set electricity prices. Barring exceptions, prices of most Ramadan staples including chickpeas, moshur daal, rice, eggs, and all varieties of meat have seen an increase. The price of onion has slightly decreased following news of imports from India, but only just. It is unlikely to go down much further if the state of other food imports is any indication.

So, try as the government may to get us to buy into its upbeat Ramadan forecast, with the finance minister even refusing to accept inflation as a major issue, the fact is that prices in general remain in the stratosphere. The question is: why can't the government control them despite supposedly enhancing market monitoring, vowing tough legal action against hoarding, shoring up supplies, and reducing import duties on some items? Checking commodity prices was one of the priorities outlined in Awami League's election manifesto. What possible reason could there be for an all-powerful government, saturated with MPs boasting enviable business pedigree, to fail to deliver on one promise?

Last week, at a meeting organised by the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI), business leaders identified four major reasons for the surge in prices, including the dollar crisis and the currency's increased rate, extortion, syndicates, and still-high import duties. Importantly, they said that traders are forced to pay extortionists at multiple stages while bringing a product from grassroots to the wholesale markets. Even after buying from wholesale markets, retailers also have to pay additional money to secure their release. Apart from extortion, traders also blamed the middlemen, saying a product changes hands at least four times before coming to the wholesale markets. Thus, prices of locally sourced items may increase abnormally.

There are other factors and forces as well. We can talk about market monopolies, or systemic issues making imports costlier as they reach our shelves. We can talk about the trickle-down effects of high costs of fuel and utilities, as well as ballooning indirect taxes hurting people's purchasing capacity. We can talk about the culture of rules violation that nullifies any price control measure, and also the culture of non-enforcement by relevant agencies. We can even talk about excessive greed. Many influences coalesced to create the perfect storm that is our commodity market.

But one aspect that rarely gets a mention from government functionaries is the crippling effect of patronage politics. The gaggle of syndicates, middlemen, hoarders, and extortionists who exert an oversized influence on the supply chain draw their power from their association with the ruling establishment. So when the government talks tough love, how tough can it be, really? How far or long can the deputy commissioners—who have been lately tasked with checking hoarding and ensuring the smooth transportation of supplies—go when the many beneficiaries of patronage politics push back? For they will push back, sooner or later.

Organised highway gangs are perhaps the most visible of these disruptive forces. Last month, Prothom Alo reported how about Tk 2 crore was being extorted every month from goods-laden trucks in Sylhet city. The men behind this racket? Activists of different groups and sub-groups affiliated with Sylhet Chhatra League. On Tuesday, Transparency International Bangladesh further revealed that private bus operators are forced to pay at least Tk 1,059 crore in bribes annually to unscrupulous BRTA officials, police, transport associations, staffers of city corporations and municipalities, and individuals affiliated with political parties. The list of "collectors" is really stupefying. What about goods-carrying trucks? One can only guess what insanity they, too, are subjected to on their route.

Against this backdrop, efforts like adjusting fuel prices, fixing rates of certain essentials, conducting drives against hoarding and price gouging, or occasional import tariff reductions are but baby steps that will take us only so far. To really make an impact, what we need are institutional reforms designed to prevent scope for undue influences in the market and resolve all systemic issues. If the government really wants to control or bring down prices during Ramadan and afterwards, it must be willing to go after its "own people."​

 

[Saif]

Govt hostage to syndicate: GM Quader

The government has failed to control the price hike of essentials, said Jatiyo Party Chairman and Leader of the Opposition GM Quader, adding that the government itself has become a hostage to the syndicate.

www.thedailystar.net

Price hike

Govt hostage to syndicate: GM Quader​

The government has failed to control the price hike of essentials, said Jatiyo Party Chairman and Leader of the Opposition GM Quader, adding that the government itself has become a hostage to the syndicate.

He made the remarks while talking to journalists in Rangpur yesterday.

"Most of the country's products are import-dependent. Many businessmen in the country do not have the ability to import, only businessmen with money can do so, and many are taking this opportunity. Also, most of those who are involved in importing from outside are at the government's policy-making level. This has already formed a syndicate," said GM Quader.

All these have caused the government to be hostage to the syndicate, he said.

"The government can not control the price hike now, even if it wants to. Without competition among traders, it is not possible to control the market," he added.

Regarding JP's recent crisis, GM Quader said those who are involved with the split in JP are outsiders. Kongkon Karmaker, Monday, 11 March 2024​

 

[Saif]

Ban on foreign travel, trade licence, national award for wilful defaulters

Bangladesh Bank issues new guideline on wilful defaulters today

www.thedailystar.net

Ban on foreign travel, trade licence, national award for wilful defaulters​

Bangladesh Bank issues new guideline on wilful defaulters today

Wilful defaulter will be banned from travelling abroad and they will not be allowed to receive trade licences and national awards, according to a guideline issued by Bangladesh Bank today.

The guideline was prepared for identification and finalisation of wilful defaulters and actions to be taken against them.

The banking watchdog took the move when the banking sector has been hit by massive irregularities of some lenders, directors' undue intervention and rising bad loans.

On February 4, the Bangladesh Bank unveiled a roadmap to bring down default loans below 8 percent by June 2026 from 9 percent in 2023 and ensure corporate governance in the banking sector.

The BB has taken 17 initiatives to implement the roadmap.​

 

[Saif]

How tough can Bangladesh Bank be with wilful defaulters?

Any success of its roadmap will depend on its enforcement

www.thedailystar.net

How tough can Bangladesh Bank be with wilful defaulters?​

Any success of its roadmap will depend on its enforcement

VISUAL: STAR

Bangladesh Bank's newly unveiled measures to rein in wilful loan defaulters—as part of a roadmap to bring down such loans to less than 8 percent by June 2026—may deliver results if properly enforced. But that's a big "if" given the central bank's past performance in this regard. On paper, its plan appears robust as it outlines stringent measures aimed at both banks and borrowers. Banks, as per the new guideline, will have to form a dedicated unit called "wilful defaulters identification unit" by April 9, and must carry out all related activities through it. The guideline also details the criteria for identifying wilful defaulters as well as punitive measures for those found guilty.

These punishments include bans on foreign travel and restrictions on trade licences. Wilful defaulters may also have trouble with the registration of moveable and immovable properties, and cannot become bank directors for a certain period of time. They will not be eligible for any national award, or any interest waiver and loan rescheduling facilities either. The problem with such measures, however, is that they are seldom, if ever, enforced. After all, what enables these politically connected businessmen to get their hands on loans in the first place also enables them to get out of any complication thereof. If it didn't, we'd have seen more action on the relevant clauses of the Finance Companies Act, 2023 that also provide travel bans and trade licence restrictions as well as criminal prosecutions.

As things stand, the banking sector stands at a critical junction. Defaulted loans soared to Tk 145,633 crore by the end of 2023, accounting for nine percent of all outstanding loans. The health of 38 banks also deteriorated between December 2020 and June 2023, according to a recent estimate, owing largely to mismanagement, loan irregularities and scams. The situation has reached such a point that the central bank has threatened to force "mergers and acquisitions of weak banks" if the latter fail to do so voluntarily by December this year. A lot of the problems facing our banks will disappear if we could just reduce the scope for habitual defaulters.

So, while we appreciate Bangladesh Bank sending the message that reckless lending practices will not be tolerated, we must recognise that the true challenge lies in ensuring consistent compliance with its guidelines across all banks. There are also concerns about rescheduling or writing off bad loans to show improved performance, which must be addressed. Regulators must go tough on wilful defaulters this time.​

 

[Saif]

‘RAJUK, most corrupt entity in country’

Breaking News, International News & Multimedia

thedailynewnation.com

‘RAJUK, most corrupt entity in country’​

19 Mar 2024, 12:00 am

Staff Reporter :

The Bangladesh Restaurant Owners Association (BROA) has asserted that the Rajdhani Unnayan Kartripakkha (RAJUK) is the most corrupt institution in the country.
Following the Baily Road fire incident, they alleged that RAJUK is extorting money from restaurants under the guise of a drive.

They also announced that all restaurants will remain closed on Wednesday (20 March) in protest against the ongoing crackdown on such eateries regarding safety measures.

Leaders of the association declared on Monday (18 March) during a press briefing at the Nasrul Hamid Auditorium of Dhaka Reporters Unity (DRU) in Segunbagicha that if necessary, all restaurants will be closed indefinitely in the future.

Imran Hasan, the general secretary of the association, alleged that there had been no pause in the arrest of workers and the crackdown on restaurants even during Ramadan, resulting in a decline in customer footfall, which was further worsened due to negative publicity.

“It is high time we should be allowed to reopen the closed restaurants so that restaurant workers can be paid their salaries, allowances, and bonuses before Eid,” he said.

Calling for an immediate halt to the “injustices” occurring in the restaurant sector, he said, “No benefit can be reaped from these arrests and restaurant closures if there is no proper guidance for crisis management in critical situations.”

He recommended providing SOPs for fire safety and suggested forming a high-level task force for a permanent solution.

He urged safeguarding investments and employment in the country’s restaurant sector, providing guidance for safe food supply, and promoting cooperation.

“Extend a helping hand. End this unnecessary drama during Ramadan. Business owners should not be blamed for the negligence on the part of regulatory bodies,” he added.

Insisting that the industry remains largely neglected, he said the sector can be managed effectively through proper accountability mechanisms if building owners, restaurant owners, and government institutions collaborate.

“This sector did not flourish overnight.

We obtain licenses/permits and regularly pay taxes to the government. Despite the sector’s significant contribution, the sector faces challenges while obtaining licenses and permits due to the complexities in procedures,” he said.

Earlier this month (5 March), BROA reported the closure of nearly 40 restaurants in the capital amid the ongoing crackdown.

According to data from the Bangladesh Bureau of Statistics (BBS), there are over 481,000 restaurants across the country, employing three million workers.

Nearly 200 million people are directly or indirectly dependent on this sector.

The restaurant industry in Bangladesh is valued at $3.79 billion, with investments totaling Tk2,00,000 crore.

On 29 February, 46 people were killed in a devastating fire at Green Cozy Cottage building on Bailey Road in the capital. Since then, the Dhaka Metropolitan Police has been conducting drives in various restaurants.

A total of 872 people have been arrested, and 20 cases have been filed so far during these drives. Disciplinary action was taken in 887 cases.

The administration sealed many restaurants due to allegations of insufficient fire safety measures and irregularities.​

 

[Saif]

TIB slams move to drop wealth statement obligation for govt employees, warns of more corruption

Transparency International Bangladesh (TIB) has strongly criticised the move to amend the Government Servants (Conduct) Rules-1979, which would repeal the obligation for government employees to submit wealth statements. If the existing rules are amended to relax the obligation, it would exempt nea

thefinancialexpress.com.bd

TIB slams move to drop wealth statement obligation for govt employees, warns of more corruption​

FE ONLINE REPORT

Published :​

Mar 19, 2024 20:38

Updated :​

Mar 19, 2024 20:51

Transparency International Bangladesh (TIB) has strongly criticised the move to amend the Government Servants (Conduct) Rules-1979, which would repeal the obligation for government employees to submit wealth statements.

If the existing rules are amended to relax the obligation, it would exempt nearly 1.5 million employees from accountability, facilitating corruption, the TIB said in a statement on Tuesday, calling for the immediate cancellation of the amendment move.

The Ministry of Public Administration recently initiated amendments to the Government Servants (Conduct) Rules, 1979, aiming to repeal the obligation for government employees to submit asset statements.

Once the draft amendment by the Ministry of Law, Justice, and Parliamentary Affairs is scrutinised, it will be forwarded to the Committee on Administrative Development for further consideration.

Expressing grave concerns about this, Dr Iftekharuzzaman, executive director of TIB, said that it could embolden dishonest government officials into engaging in corruption.

The proposed amendment contradicts the government’s electoral promise and commitment to zero tolerance against corruption at the highest levels, he said.

Dr Iftekharuzzaman pointed out that initially the obligation was to submit asset statements annually, which was later relaxed to every five years due to government employees’ reluctance.

However, many government servants did not adhere to even this extended timeframe, he said.

The TIB executive director said that the absence of asset statement submissions could evidently lead to increased corruption among government employees, facilitate the accumulation of illicit wealth, exacerbate difficulties for citizens seeking government services, escalate illegal financial transactions, and ultimately undermine efforts to establish a well-governed system.​

 

[Saif]

Hallmark loan scam: MD Tanvir, wife among 9 get life imprisonment

Breaking News, International News & Multimedia

thedailynewnation.com

Hallmark loan scam: MD Tanvir, wife among 9 get life imprisonment​

19 Mar 2024, 3:52 pm

NN Online Report: Saying that the highest penalty for embezzlement should be death sentence, a Dhaka court today (19 March) sentenced Hallmark Group Managing Director Tanvir Mahmud, his wife Jesmin Islam, and nine others to life imprisonment in one of the cases filed over the Tk3,500 crore Sonali Bank loan scam.

Tanvir and Jesmin, also the chairperson of Hallmark Group, were also fined Tk5 crore each.

Additionally, Sonali Bank’s former managing director Humayun Kabir and eight others have received various prison terms.

Dhaka Special Judge’s Court-1 Judge Abul Kashem passed the verdict today (19 March), ACC lawyer Mir Ahmed Ali Salam confirmed.

Among those sentenced to life imprisonment are also Tanvir’s brother Tushar Ahmed, who holds the position of chief executive officer, T and Brothers Director Taslim Hasan, Max Spinning Mills owner Mir Zakaria, Paragon Group Managing Director Saiful Islam Raja, Nakshi Knit managing directors Abdul Malek, Abdul Motin, and Taslim Hasan.

Eight other who were handed different terms in the same case are – Saval Hemayetpur’s Tantuljhora Union Parishad (UP) Chairman Md Jamal Uddin Sarkar, Sonali Bank Senior Executive Officer (Dhanmondi Branch) Meherunnesa Merry, Sonali Bank (head office) former general managers Nani Gopal Nath and Mir Mohidur Rahman, former managing director Humayun Kabir, Deputy Managing Director (DMD) Mainul Haque, Deputy General Manager (DGM) Safi Uddin, and AGM Md Kamrul Hossain Khan.

UP Chairman Jamal Uddin has been sentenced to five years in prison, while the others have received 10-year prison terms each.

Currently, Jamal Uddin and Altaf Hossain are out on bail. Saiful Islam, Abdul Matin, Humayun Kabir, Nani Gopal Nath, Taslim, Saiful Hasan, Meherunnesa, and Zakaria are still fugitives.

Meanwhile, Tanvir, Tushar, Jasmine, and the remaining eight accused are in custody.

Tanvir and Jasmine are accused of embezzling Tk16.5 crore after taking a loan of Tk525.62 crore in the name of a non-existent Max Spinning Mills.

They were accused of embezzling the money between 18 September 2011 and 30 April 2012 by opening fake LCs (Letters of Credit) in the name of 11 Hallmark Group companies to pay for imported goods.

On 4 October 2012, Nazmuchchadat, assistant director at the Anti-Corruption Commission Head Office, filed a case with Ramna Police Station for embezzling Tk135,44,9,484 from the Hotel Sheraton branch of Sonali Bank.

Tushar was arrested on 8 October 2012 in this case.

Following the investigation, on 7 October 2013, the investigating officer filed a charge sheet against the 17 accused in 11 cases. These 11 cases were transferred to Special Judge’s Court-1 in Dhaka for trial.

Later, on 17 February and 27 March 2016, the trial court framed charges against the accused.

business Following today’s verdict on one of those cases, the remaining cases are pending trial.
​

 

[Saif]

NRBC branch covered up capital flight

Export proceeds worth at least $3.45 million (Tk 34.41 crore) were not repatriated by six customers of NRB Commercial Bank’s Uttara branch, and the bank concealed the trail of the capital flight, according to the bank’s internal audit and case documents.

www.thedailystar.net

Capital flight covered up​

NRB Commercial (NRBC) Bank has often made headlines for alleged money laundering, loan irregularities, over-expenditure and recruitment anomalies. In 2017, Bangladesh Bank had to intervene to dissolve the bank's board and remove its managing director Dewan Mujibur Rahman over a loan scandal involving Tk 700 crore. The then chairman Farasath Ali had to resign from the board. Both Mujibur and Farasath were banned from bank directorship for two years by the BB, and the board was subsequently restructured. The new board is headed by a chairman against whom allegations of irregularities were already rife, and the bank continues to be dogged by anomalies. A six-month investigation by The Daily Star based on hundreds of pages of documents reveals numerous irregularities and even gun toting inside the bank.

The second installment of this four-part series tells the story of how the bank's Uttara branch sought to hide the trail of capital flight in the name of RMG export.

Export proceeds worth at least $3.45 million (Tk 34.41 crore) were not repatriated by six customers of NRB Commercial Bank's Uttara branch, and the bank concealed the trail of the capital flight, according to the bank's internal audit and case documents.

Additionally, five of these companies failed to make any exports at all against LCs worth $8.27 million (Tk 90 crore), leaving the bank grappling with dollars going out and none coming back in.
The amount was later turned into forced loans by the branch over the last four years, according to the bank's internal audit dated August 19, 2021.

Meeting minutes show that these forced loans were then converted into general loans to be rescheduled again and again, thereby covering up the tracks.

The companies, one of which is linked to Adnan Imam, the chairman of the bank's executive committee, collected bills against the orders without submitting shipping documents, while the money from exports never came.

"It has been observed quite a few times that the branch made payments of their back-to-back LC bills by creating Foreign Documentary Bills Purchase loan accounts, whereas these bills should have been settled through relevant export proceeds," says the audit report obtained by The Daily Star.

On July 11 last year, the Anti-Corruption Commission (ACC) sued 11 officials of the bank over swindling Tk 78.6 crore from the bank and laundering Tk 5.98 crore using a sweater factory called Ixora Apparels, one of the six companies accused of not repatriating export proceeds.

Asked about the overall condition of NRBC, Bangladesh Bank Executive Director and Spokesperson Md Mezbaul Haque said there have been multiple investigations into the bank and that actions are taken when required.

ADNAN'S LINK TO IXORA

Company registration documents show the company is linked to Adnan Imam, who along with current NRBC Chairman Tamal Parvez was previously investigated and removed from the bank's board over alleged money laundering through disguised loans.

Both have denied the money laundering claims, and said the allegations by "a vested group were false and motivated".

Adnan also denied having any link with Ixora.

According to the ACC investigation, Ixora Apparels exported 12 consignments of garments to the UK worth Tk 5.98 crore in 2018-2020, but did not remit the earnings.

The RMG maker is the 19th largest borrower of the bank, shows a memo from the bank's credit risk management division dated December 26, 2023.

The memo also shows that the company has had Tk 119 crore of its loans rescheduled till 2027 and 2028. But even after the regularisation, it has defaulted on instalments, with its overdue outstanding balance standing at about Tk 6 crore.

The company began banking with NRBC in August 2016.

​

"The central bank has done audit after audit on this bank but they do not follow through and there are no judicial outcomes."
— Dr Debapriya Bhattacharya​

When it took its first loan the same year, its owners were one Ruhul Amin Bhuiyan, who owned 40 percent of the share, and one Masud Rana who owned the same amount of the share. Their wives owned 10 percent each. Both Ruhul and Masud are accused in the ACC case.

In 2021, the company changed hands, giving 83 percent ownership to another company called Vibranium.

According to Vibranium's company registration documents, its chairman is Badrul Hasan Patwary. He is the company secretary of a firm called Genex Infosys whose chairman is Adnan Imam.

Vibranium was set up with a paid-up capital of only Tk 10 lakh. Less than two weeks after its incorporation in 2019, Vibranium proceeded to buy a company that owns 78,164 square feet of factory floor and over 800 pieces of capital machinery that produces over 8,000 pieces of clothing per day, according to the company's website.

NRBC renewed the company's composite loan limit at least eight times, thrice after Patwary assumed ownership.

​

"These are depositors' money and I am trying to recover it. I have to nurse these and recover the money anyhow. I take responsibility for these disguised (benami) loans and I will recover them."
— Tamal Parvez​

Patwary has not been charged by the ACC, although its investigation found that the client availed loan one after another but did not return the borrowed money.

"The loan was given even though the client's transactions were not satisfactory," said the ACC probe report.

In June 2023, Bangladesh Bank gave the company an extension up till September 2023 to adjust export proceeds worth $358,273 against the five orders from 2018 to 2020.

Adnan Imam refuted any relations with Ixora.

"Ixora Apparels is a client of NRBC Bank and in no way related to me. I was advised that Ixora went through financial struggles during the pandemic, like many other businesses at that time, and the bank has supported Ixora like any other normal business that required support. I am also advised that Tk 5.97 crore has been fully repatriated to Bangladesh. The ACC has investigated the matter and has found no issue," he said.

MISSING DOLLARS

Polygon Fashion Ltd is another company that failed to repatriate export proceeds worth $8,33,928 or Tk 9.15 crore, according to a 2021 report by the bank's Internal Control and Compliance Division (ICCD).

It also failed to make shipments, and could not settle LCs worth $3.27 million, which were opened to import raw materials for production.

In 2023, Polygon was the number one defaulting borrower of the bank. In November last year, its total outstanding loans stood at Tk 87.7 crore, and the bank had to file claims at the Money Loan Court (Artha Rin Adalat).

The bank's Uttara branch then turned the liability of the Gazipur-based company into 74 forced loans.

Polygon was over-financed although the company was likely incapable of availing such amounts of loan, the ICCD report said, adding, "As a result, the customer could not utilise funds properly and he had the opportunity to divert funds elsewhere and he may have diverted funds."

Before approving a loan, it is required by the bank to collect the customer's credit reports based on the value of the invoice. But during inspection, the audit team found that credit reports of some buyers were not available.

In addition, the team found that the bank did not collect all the original shipping documents as proof of shipments being made.

The ICCD report concluded that the liability has reached such a level that Polygon would not be able to pay it back. The loan was rescheduled in November 2021.

At the time of the ICCD report in 2021, Blessing Knitwear Ltd was the 20th largest borrower of the bank, having a loan of Tk 115.4 crore.

Its export proceeds worth $661,085 (Tk 7.2 crore) were not repatriated to the bank. It also failed to pay the bank an additional $2.33 million (Tk 25 crore) as it did not complete shipments against several other LCs.

"It has been observed that the branch allowed undue facility to the customer against incomplete documents without confirming shipping [sic] or having original authenticated bill of lading," the report said.

These unrepatriated proceeds were turned into forced loans, and the company may have diverted the fund elsewhere, the report noted.

On December 22, 2022, all of the liabilities were rescheduled into general loans.

Inside Knit Composite Ltd did not repatriate $301,191 or Tk 3.3 crore, again forcing the bank to turn the liability into forced loans, which the ICCD found "totally unexpected".

During the factory visit, the ICCD team did not see any stock of goods against the LC.

"It appears that the customer was free to open back-to-back LCs, and to sell those stock of goods on the local market at will," said the report.

In addition, the company did not complete other shipments, leaving the bank with an LC bill of $0.9 million (Tk 9.7 crore) and no incoming dollars.

Minutes of a meeting of the bank's credit risk division from December 24, 2023, show the bank rescheduled the forced loans to improve the bank's "ability to adopt new customers by reducing capital requirement of the bank" and its "market reputation".

5F Apparels did not repatriate $1.2 million (Tk 13.2 crore), said the report, adding that the bank allowed the customer loans against incomplete shipping documents.

The company also left the bank short of $0.7 million (Tk 7.6 crore) because it did not complete shipments.

"The branch negotiated without any shipping documents and original bill of lading, and consequently no shipment was executed against this bill," said the report.

While the bank converted the amount into forced loans, the company may have diverted the fund elsewhere, it said.

Minutes from the 129th board meeting held on November 20, 2021, show 24 forced loans worth Tk 12.23 crore were turned into general loans for a period of 10 years.

Relux Fashion Ltd did not repatriate $85,820 or Tk 94 lakh and the liability was turned into forced loans. In addition, incomplete shipments resulted in an unmet LC obligation of $0.8 million (Tk 9 crore) for the bank.

"Excess finance was allowed exceeding the value of export LCs violating export policy. Therefore, the export proceeds will be inadequate to settle back-to-back obligations," said the ICCD report.

However, NRBC Bank's board meeting minutes from April 12, 2023, show the forced loans were rescheduled for five years by converting them into general loans, wiping out the capital flight from record.

The Daily Star reached out to all these RMG companies via phone calls and emails. Only Polygon responded. Its Managing Director MD Shariful Islam said the company incurred forced loans as a result of the Covid-19 pandemic.

"There were instances where the shipment was made, but the buyers refused to accept it. In another case, the buyer received the shipment but did not pay us. This resulted in forced loans," he said.

NRBC Chairman Tamal Parvez, also known as Parvez Tamal, said when he took over the bank in 2017, he had inherited a legacy of bad clients.

"These are depositors' money and I am trying to recover it. I have to nurse these and recover the money anyhow. I take responsibility for these disguised (benami) loans and I will recover them," he told The Daily Star in an interview for this story.

He said that when he took over, over half the loans that the bank had given out were unsecured overdraft loans – meaning there were no assets attached to them.

Dr Debapriya Bhattacharya, a Distinguished Fellow at the Centre for Policy Dialogue, said it shows that the bank's governance does not look after depositors' interest.

"It must be established whether these kinds of forced loans are within the prudential guidelines," he noted.

The economist also termed it "a failure in governance" on the part of the central bank.

"The central bank has done audit after audit on this bank but it does not follow through and there are no judicial outcomes," he said.​

 

[Saif]

Gun in NRBC Bank boardroom

During the 40th board meeting of NRBC Bank on February 7, 2016, current Chairman Tamal Parvez and Director Adnan Imam entered the boardroom accompanied by a man carrying a large gun. Both Tamal and Adnan were board directors back then.

www.thedailystar.net

Gun in NRBC Bank boardroom​

NRB Commercial (NRBC) Bank has often made headlines for alleged money laundering, loan irregularities, over-expenditure and recruitment anomalies. In 2017, Bangladesh Bank had to intervene to dissolve the bank's board and remove its managing director Dewan Mujibur Rahman over a loan scandal involving Tk 700 crore. The then chairman Farasath Ali had to resign from the board. Both Mujibur and Farasath were banned from bank directorship for two years by the BB, and the board was subsequently restructured. The new board is headed by a chairman against whom allegations of irregularities were already rife, and the bank continues to be dogged by anomalies. A six-month investigation by The Daily Star based on hundreds of pages of documents reveals numerous irregularities and even gun toting inside the bank.
​

---

The first installment of this four-part series deals with alleged loan scandals and gun toting in the boardroom.​

​

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During the 40th board meeting of NRBC Bank on February 7, 2016, current Chairman Tamal Parvez and Director Adnan Imam entered the boardroom accompanied by a man carrying a large gun. Both Tamal and Adnan were board directors back then.

The gunman stayed in the boardroom until another director, Abu Bakr Chowdhury, asked him to leave, meeting minutes show.

Just at the previous board meeting, on December 20, 2015, Tamal, along with alternate director Abu Mohammad Saidur Rahman, allegedly assaulted the then board chairman Farashat Ali, the meeting minutes say.

At that point, the board was conducting an investigation into alleged money laundering from the bank amounting to Tk 64 crore and attempted money laundering worth Tk 165 crore by some of the board members.

Tamal Parvez entering the NRBC Bank boardroom to attend a board meeting accompanied by a gunman in 2016. Photo: Collected

The allegations involved three of their directors -- Tamal, Adnan, and Rafiqul Islam Mia Arzoo -- and sponsor shareholder AM Tushar Iqbal Rahman. There were 18 people on the board.

The board was also investigating alternate directors Saidur Rahman and AKM Mostafizur Rahman. Tushar is also Saidur Rahman's son.

Of these individuals, five currently serve on the board.

Over the last six months, The Daily Star has gone through hundreds of pages of the bank's meeting minutes, internal enquiry reports, bank statements and Supreme Court documents that reveal how these six, along with several others, formed an alliance to take fictitious loans in the name of companies tied to themselves or their friends and families, as well as for companies where they have business interests.

All six individuals named here have denied all the allegations, and said they were being framed as part of a conspiracy.

GUN TOTING

Displeased with the bank's investigation into the alleged scams, Tamal and Adnan brought the gun "to terrorise the board officials causing life threat," state the minutes of the 48th board meeting held on December 7, 2016.

"The purpose of violence and [brandishing] illegal heavy arms was to establish supremacy over the board to take and hide disguised/benami loans, disguised/benami contracts and other misdeeds of the accused directors and their associates," the minutes add.

Tamal denied all the allegations against him and defended bringing a gunman, saying the person was his licensed bodyguard.

Within two years of the gun-toting episode, Tamal was unanimously elected chairman of the bank's board on December 10, 2017, and has remained so since. At the same time, the board picked Rafiqul as the vice-chairman and Adnan as new chairman of the executive committee.

As per the 56th board meeting minutes, the findings by the internal enquiry committee against them were "resolved, set aside and cancelled" that year.

According to NRBC's website and Russian corporate registry, Tamal, originally from Barishal, was an expatriate having engagements in IT and real estate business and logistic consultancy in Russia.

Since his selection as the board chairman, Tamal's tenure has been peppered with allegations of disguised loans, illegal profiteering, violations of banking codes, and financial misappropriations, show the documents obtained by The Daily Star.
​

"The accusations made were false, concocted and distributed with an ulterior motive to defame me personally and to mislead the authorities."
— Adnan Imam​

For example, Lanta Services -- the same company that the previous board had investigated for allegedly being used by Tamal to take disguised loans -- was given credits worth crores of taka since he took the bank's helm.

Tamal is one of the founding sponsor directors of the bank established in 2013. In 2016, the bank's sponsor directors' capital was Tk 520 crore.

Of them, Tamal had a share capital worth Tk 20 crore, Tushar Tk 20 crore, Feroz Tk 20 crore, Rafikul Tk 20 crore and Adnan Tk 10 crore, according to meeting minutes.

His personal bodyguard escorts him to the boardroom. Photo: Collected

WHO TOOK WHAT?

In February 2016, the bank set up a committee and launched an investigation into a number of allegations, including the alleged money laundering by five directors and several others.

According to the 48th board meeting minutes, Tamal, Adnan, Rafiqul, Tushar, and Firoz took Tk 64 crore in disguised loans in the names of Pubali Construction, NES Trading, an NGO called Voluntary Organisation for Social Development (VOSD), Lanta Services and Ornita Agro. The loans were taken without the disclosure of the directors' affiliations with these companies.

In banking terms, these are called "related party loans", and according to Bangladesh Bank rules, in case of such loans, directors of borrower banks must declare their ties with the borrowing companies.

Of the Tk 64 crore, Adnan alone took two "disguised loans" of Tk 28 crore in the names of NES Trading (Tk 19 crore) and Pubali Construction (Tk 9 crore). He took another Tk 3 crore along with Mostafizur, Tushar and Firoz for a company called Ornita Agro, show the minutes of the 46th and 48th board meeting.

Ornita Agro was owned by Adnan and Mostafizur. After obtaining the Tk 3 crore loan from the NRBC, Ornita transferred an amount of Tk 3 crore to the bank account of IPE Capital in two tranches within two days, according to the bank's own enquiry report.

IPE Capital is Adnan Imam's family business where he is a director, their own stock exchange documents show.

NRBC's website lists Adnan as a UK citizen and a Commercially Important Person (CIP), having various businesses, including in real estate and private equity in London and Dhaka.

NES Trading is also owned by Adnan and his business partner and brother-in-law based in London, the bank's internal enquiry report said.

According to Adnan's own admission before the bank's enquiry committee, the owner of Pubali Construction is his employee, and that the Tk 9 crore loan for Pubali Construction was taken against the land of Adnan's father-in-law.

Tamal is also linked to Pubali Construction. He transferred at least Tk 87 lakh in two tranches to the account of Pubali Construction before the enquiry began, states the enquiry report.

On August 5, 2016, the then governor of Bangladesh Bank Fazle Kabir sent a letter to the then finance minister Abul Maal Abdul Muhith. The letter, obtained by The Daily Star, says that the BB had conducted a covert investigation and found that Adnan took disguised or "benami" loans worth Tk 3 crore using the name of Ornita Agro Industries.

Board members "observed with grave concern" that Rafikul, being the audit committee chairman, failed to prevent Adnan from swindling depositors' money, according to the minutes of 44th and 48th board meetings.

In a clear case of forgery, Adnan also submitted a bill of Tk 1 crore against the actual expenses of Tk 56 lakh for the interior work of the bank's Banani branch through his company, Adrita Trading, the 48th board meeting minutes recorded, citing board members.

VSDO, the NGO which was given Tk 30 crore loan, was founded by Mostafizur, a current director.

Tamal, the current chairman, took a disguised loan of Tk 3 crore in the name of Lanta Services, according to multiple meeting minutes.

The same day that Lanta was sanctioned the credit facility of Tk 3 crore, Tamal transferred Tk 1 crore to Lanta's account from his own, as lien, in the form of FDR.

Bank insiders say Tamal deposited the sum to facilitate the loan disbursement in favour of Lanta Services.

FROM BOARDROOM TO COURTROOM

Tamal, Adnan and Rafikul were removed from the board in April 2016 over these allegations, and the three took it to court.

A High Court bench led by Justice Md Rezaul Hasan reinstated them, but temporarily confiscated their shares and attached those to the bank. The court also said that they be kept out of board meetings that discussed the investigation against them.

The court made the decision to reinstate them only on the grounds that banking laws do not allow the board to relieve them. "However, this does not debar the bank or its board from taking proper action in accordance with the law."

The court ruled, "The petitioners [the accused directors] appear to have managed to slip through the fences [...] by contriving the path of taking disguised or benami loans."

The HC held that the board's enquiry report "shows the nexus of Adnan Imam with the loan of Pubali Construction and NES trading and his interest in these organisations."

It also said that there is prima facie proof of Tamal and Rafikul's link with Lanta, and there is a "seeable link of Tamal Parvez and his interest in Pubali Construction and NES Trading, and thus provide a basis that establishes on the preponderance of evidence that the petitioners had obtained disguised loans from the respondent bank and that they are the actual persons behind the veils of these two entities."

The gunman stands inside the boardroom with a firearm. Photo: Collected

LOVE FOR LANTA

Three years after these findings by the bank's board and the ruling by the High Court, NRBC gave Lanta Services loans worth Tk 14 crore, according to multiple meeting minutes.

At a meeting on February 19, 2019, the board led by Tamal allowed Lanta a composite credit facility of Tk 4.5 crore.

Meeting minutes show there was no discussion about the fact that Tamal was investigated for being related to Lanta, and that the High Court had instructed the bank to take action against him for taking disguised loans.

The loan limit for Lanta was increased by Tk 2 crore to Tk 6.5 crore within two months. On April 18, 2020, the credit line was further scaled up to Tk 9.5 crore. Three meetings later, Lanta got another Tk 50 lakh in a "stimulus loan". In 2021, Lanta's Tk 9.5 crore loan limit was renewed.

The company was also given three car loans worth Tk 4.28 crore in just two years, documents show.

Since Tamal became the board chairman, Lanta Services' subsidiary company Lanta Fortuna Properties bagged the interior design work of the bank on multiple occasions, including a Tk 87 lakh contract in June 2019.

Both companies have the same managing director, Faisal Bin Alam, a bank client.
​

"He [the gunman] simply escorted me to the boardroom…. I was under threat from the board and I had even sought protection from Rab through a written application."
— Tamal Parvez​

PILFERING PROVIDENT FUND

These two companies were also used for pilfering money from the provident fund of NRBC bank's junior tellers and assistant tellers, the junior most employees, show their bank statements.

The bank does not hire its contractual recruits itself. Instead, it uses a separate company called NRBC Management.

Founded in 2018, NRBC Management was owned by Tamal, Adnan, Rafikul and Mostafizur, among other people, until June 2022, documents show.

In a 2022 report by Bangladesh Bank's Financial Integrity & Customer Services Department, the central bank pointed out that obtaining third-party services from a company owned by the bank's management is a conflict of interest and a violation of the procurement policy.

Bank statements of NRBC Management's Provident Fund, Lanta Services, and NRBC Management show how the money went from the employees' provident fund to the NRBC Management's account, and then into Lanta Services', apparently using the recruitment company's bank account as a way to hide where the money was actually coming from.

There are many such transactions, but in one example, Tk 1 crore was transferred from the provident fund account to the account of NRBC Management on April 26, 2021. The same day, NRBC Management transferred Tk 60 lakh to Lanta Services.

This Tk 1 crore was returned by NRBC Management to the provident fund account nearly one and a half years later in October 2022.

But nowhere in the dozens of pages of bank statements in possession of this newspaper does it show Lanta returning the Tk 60 lakh it had taken from NRBC Management.

THE DENIAL

Tamal denied this, saying any bank statements in possession of The Daily Star are false or falsified.

In an interview at his Motijheel office, Tamal also defended bringing the gunman inside the boardroom, saying it was his licensed firearm and that the whole thing is being blown out of proportion.

"He [the gunman] simply escorted me to the boardroom…. I was under threat from the board and I had even sought protection from Rab through a written application," Tamal said.

However, during its proceedings, the High Court slammed Tamal for bringing the gunman, and said, "No personal gunman or personal bodyguard should be allowed to enter inside the bank."

Tamal also denied facilitating Lanta Services' loans.

"It is entirely possible that someone I personally know will have an account here. I was not the chairman of the bank when the overdraft facility was given, so I had no hand in who got the loans."

Adnan Imam denied having any business interest in Pubali Construction, Ornita Agro and NES Trading.

"The accusations made were false, concocted and distributed with an ulterior motive to defame me personally and to mislead the authorities," he said.

Both Tamal and Adnan said the HC judgement was based on false documents provided by vested quarters.

"The High Court in its judgement referred to the report prepared by the then chairman and his associates to frame me and other current directors of the bank. The reference in the judgement was neither a finding, nor an observation or obiter dictum, rather it was a direct reference to the so-called Comprehensive Enquiry Report. To put simply, the judge only read the allegations against me from the said false report made by the ex-chairman. It was not the judge's opinion," said Adnan.

But the HC verdict said it agreed with the findings of the NRBC bank's enquiry report because "no patent or latent irregularity or illegality or lack of competence has been found" in the entire proceedings of the probe committee.

When referred to the HC judgement, Tamal said, "The Appellate Division overturned the judgement…. This is a legal matter and whoever is in the chair can supply information according to his preference."

However, the Appellate Division did not overturn the HC Division verdict in full; it simply ruled that a portion of the HC judgement that took away his shares be set aside.

Mostafizur Rahman said that VOSD, the NGO he set up, is a non-profit and that the Tk 30 crore loan was taken in accordance with Bangladesh Bank's regulations.

These are "related party" loans, said Ahsan H Mansur, director of Policy Research Institute of Bangladesh.

"They needed to declare their relationships with the borrowing companies when such loans were sanctioned," the economist said.

Tushar Iqbal did not return our calls and text messages requesting his comment.

Saidur Rahman denied assaulting the former board chairman.

"They were pushing to sanction a loan for a company that did not have the credentials for it. Both Tamal and I demanded accountability on how our premiums were spent, and the chairman adjourned the meeting," he said.

Bangladesh Bank Executive Director and Spokesperson Md Mezbaul Haque said there have been multiple investigations into the NRBC and that actions are taken when required.

"We have not heard of any complaint about the chairman [Tamal] walking in with a gunman. If we had proof, we could have scrutinised the complaint," he said.​

 

[Saif]

How can he stop extortion when he is the one who is responsible for rampant extortion in the transport sector? He was protecting his share of the extortion money while making the comment.

Extortion can’t be stopped, but controlled: Quader

The authorities will monitor traffic congestion-prone 155 areas across the country to ease the travails of travel during the coming Eid-ul-Fitr...

www.newagebd.net

Extortion can’t be stopped, but controlled: Quader​

Congestion-prone areas to be monitored during eid holidays​

Staff Correspondent | Published: 00:32, Mar 22,2024

Obaidul Quader

The authorities will monitor traffic congestion-prone 155 areas across the country to ease the travails of travel during the coming Eid-ul-Fitr holidays.

The decision was taken on Thursday at a preparatory meeting for road travel during the forthcoming Eid.

Road transport and bridges minister Obaidul Quader, while chairing the meeting, said that extortion in the transport sector reached such a bad level that even the prime minister had to talk about it.

‘Extortion is impacting the prices of essentials. Naturally the prime minister can understand it and she was forced to talk severely on the issue,’ he said, adding, ‘extortion cannot be stopped. Maybe it can be controlled.’

The Bangladesh Road Transport Authority held the meeting at its headquarters in the capital in which former shipping minister and Bangladesh Road Transport Worker’s Federation president Shajahan Khan and senior officials of the ministry were also present.

Obaidul urged the authorities concerned to check some traffic congestion prone areas, Hanif Flyover in Dhaka, Gazipur, Chandra, Nabinagar and Bangabandhu Bridge west side among them, to reduce sufferings of Eid travellers.

Decisions were also taken to keep open CNG filing stations for 24 hours seven days before and five days after the Eid day and on the Eid day, stop movement of goods-laden vehicles on highways three days before and after the Eid day and monitor 155 traffic congestion-prone areas during the holiday.

Shajahan Khan said that extortions on the road should be brought at a tolerable level.

Extortion is crippling the transport sector, the former shipping minister added.

Obaidul also said that dilapidated buses on Dhaka roads are a shame for Bangladesh.

‘These buses are shameful for our development, achievement and height,’ he said, adding that in Dhaka city there are many factories of these buses.

He said that he had visited some of these factories to see that these buses were being painted with so low quality materials that they would last only 10 days.

‘I asked the owners’ leaders many times but nothing worked,’ he continued and urged the owners to ensure fitness of buses before the Eid holidays begin.

Fatal road crashes are mainly taking place after the Eid due to lax monitoring, he also observed.

He blamed movement of motorcycles and three-wheelers and reckless driving for fatal road crashes.

‘We do not evaluate the implementation of the decisions taken in these meetings. The effectiveness of these decisions in reality needed to be evaluated,’ he added.​

 

[Saif]

NRBC branch covered up capital flight

Export proceeds worth at least $3.45 million (Tk 34.41 crore) were not repatriated by six customers of NRB Commercial Bank’s Uttara branch, and the bank concealed the trail of the capital flight, according to the bank’s internal audit and case documents.

www.thedailystar.net

NRBC branch covered up capital flight​

NRB Commercial (NRBC) Bank has often made headlines for alleged money laundering, loan irregularities, over-expenditure and recruitment anomalies. In 2017, Bangladesh Bank had to intervene to dissolve the bank's board and remove its managing director Dewan Mujibur Rahman over a loan scandal involving Tk 700 crore. The then chairman Farasath Ali had to resign from the board. Both Mujibur and Farasath were banned from bank directorship for two years by the BB, and the board was subsequently restructured. The new board is headed by a chairman against whom allegations of irregularities were already rife, and the bank continues to be dogged by anomalies. A six-month investigation by The Daily Star based on hundreds of pages of documents reveals numerous irregularities and even gun toting inside the bank.

The second installment of this four-part series tells the story of how the bank's Uttara branch sought to hide the trail of capital flight in the name of RMG export.

Export proceeds worth at least $3.45 million (Tk 34.41 crore) were not repatriated by six customers of NRB Commercial Bank's Uttara branch, and the branch concealed the trail of the capital flight, according to the bank's internal audit and case documents.

Additionally, five of these companies failed to make any exports at all against LCs worth $8.27 million (Tk 90 crore), leaving the bank grappling with dollars going out and none coming back in.

The amount was later turned into forced loans by the branch over the last four years, according to the bank's internal audit report dated August 19, 2021.

Meeting minutes show that these forced loans were then converted into general loans to be rescheduled again and again, thereby covering up the tracks.

These companies, one of which is linked to Adnan Imam, the chairman of the bank's executive committee, collected bills against the orders without submitting shipping documents, while the money from exports never came.

"It has been observed quite a few times that the branch made payments of their back-to-back LC bills by creating Foreign Documentary Bills Purchase loan accounts, whereas these bills should have been settled through relevant export proceeds," says the audit report obtained by The Daily Star.

On July 11 last year, the Anti-Corruption Commission (ACC) sued 11 officials of the bank over swindling Tk 78.6 crore from the bank and laundering Tk 5.97 crore using a sweater factory called Ixora Apparels, one of the six companies accused of not repatriating export proceeds.

Asked about the overall condition of NRBC, Bangladesh Bank Executive Director and Spokesperson Md Mezbaul Haque said there have been multiple investigations into the bank and that actions are taken when required.

ADNAN'S LINK TO IXORA

Company registration documents show Ixora is linked to Adnan Imam, who along with current NRBC Chairman Tamal Parvez was previously investigated and removed from the bank's board over alleged money laundering through disguised loans.

Both have denied the money laundering allegations, and said the claims by "a vested group were false and motivated".

Adnan also denied having any link with Ixora.

According to the ACC investigation, Ixora Apparels exported 12 consignments of garments to the UK worth Tk 5.97 crore in 2018-2020, but did not remit the earnings.

The RMG maker is the 19th largest borrower of the bank, shows a memo from the bank's credit risk management division dated December 26, 2023.

The memo also shows that the company has had Tk 119 crore of its loans rescheduled till 2027 and 2028. But even after the regularisation, it has defaulted on instalments, with its overdue outstanding balance standing at about Tk 6 crore.

The company began banking with NRBC in August 2016.

When it took its first loan the same year, its owners were one Ruhul Amin Bhuiyan, who owned 40 percent of the share, and one Masud Rana who owned another 40 percent. Their wives owned 10 percent each. Both Ruhul and Masud are accused in the ACC case.

In 2021, the company changed hands, giving 83 percent ownership to another company called Vibranium.

According to Vibranium's company registration documents, its chairman is Badrul Hasan Patwary. He is the company secretary of a firm called Genex Infosys whose chairman is Adnan Imam.

Vibranium was set up with a paid-up capital of only Tk 10 lakh. Less than two weeks after its incorporation in 2019, Vibranium proceeded to buy a company that owns 78,164 square feet of factory floor and over 800 pieces of capital machinery that produces over 8,000 pieces of clothing per day, according to the company's website.

​

"The central bank has done audit after audit on this bank but it does not follow through and there are no judicial outcomes."
— Dr Debapriya Bhattacharya​

NRBC renewed the company's composite loan limit at least eight times, thrice after Patwary assumed ownership.

Patwary has not been charged by the ACC, although its investigation found that the client availed loan one after another but did not return the borrowed money.

"The loan was given even though the client's transactions were not satisfactory," said the ACC probe report.

In June 2023, Bangladesh Bank gave the company an extension up till September 2023 to adjust export proceeds worth $358,273 against the five orders from 2018 to 2020.

Contacted, Adnan Imam said, "Ixora Apparels is a client of NRBC Bank and in no way related to me. I was advised that Ixora went through financial struggles during the pandemic, like many other businesses at that time, and the bank has supported Ixora like any other normal business that required support. I am also advised that Tk 5.97 crore has been fully repatriated to Bangladesh. The ACC has investigated the matter and has found no issue."

MISSING DOLLARS

Polygon Fashion Ltd is another company that failed to repatriate export proceeds worth $8,33,928 or Tk 9.15 crore, according to a 2021 report by the bank's Internal Control and Compliance Division (ICCD).

It also failed to make shipments, and could not settle LCs worth $3.27 million, which were opened to import raw materials for production.

In 2023, Polygon was the number one defaulting borrower of the bank. In November last year, its total outstanding loans stood at Tk 87.7 crore, and the bank had to file claims at the Money Loan Court (Artha Rin Adalat).

The bank's Uttara branch then turned the liability of the Gazipur-based company into 74 forced loans.

Polygon was over-financed although the company was likely incapable of availing such amounts of loan, the ICCD report said, adding, "As a result, the customer could not utilise funds properly and he had the opportunity to divert funds elsewhere and he may have diverted funds."

​

"These are depositors' money and I am trying to recover it. I have to nurse these and recover the money anyhow. I take responsibility for these disguised (benami) loans and I will recover them."
— Tamal Parvez​

Before approving a loan, it is required by the bank to collect the customer's credit reports based on the value of the invoice. But during inspection, the audit team found that credit reports of some buyers were not available.

In addition, the team found that the bank did not collect all the original shipping documents as proof of shipments being made.

The ICCD report concluded that the liability has reached such a level that Polygon would not be able to pay it back. The loan was rescheduled in November 2021.

At the time of the ICCD report in 2021, Blessing Knitwear Ltd was the 20th largest borrower of the bank, having a loan of Tk 115.4 crore.

Its export proceeds worth $661,085 (Tk 7.2 crore) were not repatriated to the bank. It also failed to pay the bank an additional $2.33 million (Tk 25 crore) as it did not complete shipments against several other LCs.

"It has been observed that the branch allowed undue facility to the customer against incomplete documents without confirming shipping [sic] or having original authenticated bill of lading," the report said.

These unrepatriated proceeds were turned into forced loans, and the company may have diverted the fund elsewhere, the report noted.

On December 22, 2022, all of the liabilities were rescheduled into general loans.

Inside Knit Composite Ltd did not repatriate $301,191 or Tk 3.3 crore, again forcing the bank to turn the liability into forced loans, which the ICCD found "totally unexpected".

During the factory visit, the ICCD team did not see any stock of goods against the LC.

"It appears that the customer was free to open back-to-back LCs, and to sell those stock of goods on the local market at will," said the report.

In addition, the company did not complete other shipments, leaving the bank with an LC bill of $0.9 million (Tk 9.7 crore) and no incoming dollars.

Minutes of a meeting of the bank's credit risk division dated December 24, 2023, show the bank rescheduled the forced loans to improve the bank's "ability to adopt new customers by reducing capital requirement of the bank" and its "market reputation".

5F Apparels did not repatriate $1.2 million (Tk 13.2 crore), said the report, adding that the bank allowed the customer loans against incomplete shipping documents.

The company also left the bank short of $0.7 million (Tk 7.6 crore) because it did not complete shipments.

"The branch negotiated without any shipping documents and original bill of lading, and consequently no shipment was executed against this bill," said the report.

While the bank converted the amount into forced loans, the company may have diverted the fund elsewhere, it said.

Minutes of the 129th board meeting held on November 20, 2021, show 24 forced loans worth Tk 12.23 crore were turned into general loans for a period of 10 years.

Relux Fashion Ltd did not repatriate $85,820 or Tk 94 lakh and the liability was turned into forced loans. In addition, incomplete shipments resulted in an unmet LC obligation of $0.8 million (Tk 9 crore) for the bank.

"Excess finance was allowed exceeding the value of export LCs violating export policy. Therefore, the export proceeds will be inadequate to settle back-to-back obligations," said the ICCD report.

However, NRBC Bank's board meeting minutes from April 12, 2023, show the forced loans were rescheduled for five years by converting them into general loans, wiping out the capital flight from record.

The Daily Star reached out to all these RMG companies via phone calls and emails. Only Polygon responded. Its Managing Director MD Shariful Islam said the company incurred forced loans as a result of the Covid-19 pandemic.

"There were instances where the shipments were made, but the buyers refused to accept them. In another case, the buyer received the shipment but did not pay us. This resulted in forced loans," he said.

NRBC Chairman Tamal Parvez, also known as Parvez Tamal, said when he took over the bank in 2017, he inherited a legacy of bad clients.

"These are depositors' money and I am trying to recover it. I have to nurse these and recover the money anyhow. I take responsibility for these disguised (benami) loans and I will recover them," he told The Daily Star in an interview for this story.

He said that when he took over, over half the loans that the bank had given out were unsecured overdraft loans – meaning there were no assets attached to them.

Dr Debapriya Bhattacharya, a Distinguished Fellow at the Centre for Policy Dialogue, said it shows that the bank's governance does not look after depositors' interest.

"It must be established whether these kinds of forced loans are within the prudential guidelines," he noted.

The economist also termed it "a failure in governance" on the part of the central bank.

"The central bank has done audit after audit on this bank but it does not follow through and there are no judicial outcomes," he said.​

 

[Saif]

Drop in graft complaints to ACC raises eyebrows

The Anti-Corruption Commission has recorded a substantial drop in the number of corruption complaints in recent years though global corruption watchdogs have found corruption rising...

www.newagebd.net

Drop in graft complaints to ACC raises eyebrows
Experts blame lack of confidence in ACC
Solamain Salman | Published: 00:18, Mar 24,2024

The Anti-Corruption Commission has recorded a substantial drop in the number of corruption complaints in recent years though global corruption watchdogs have found corruption rising in the country.

The latest report from the Transparency International revealed that corruption increased in Bangladesh with the country sliding two steps down to the 10th position from the bottom among the 180 countries covered by the Corruption Perception Index 2023.

But the data from the ACC’s latest annual report to be made public on Sunday showed that the commission received 15,437 complaints in 2023, compared with 19,338 in 2022, 14,789 in 2021 during the Covid pandemic, 18,489 in 2020, and 21,371 in 2019.

Asked about the decrease in corruption complaints, good governance and anti-graft campaigners said that apparently it is the manifestation of people’s frustration from failing to get a remedy to the menace permeating the society.

‘People are losing confidence in the commission as they cannot see visible action after they filed graft complaints,’ said M. Hafizuddin Khan, a retired civil servant and former adviser to the caretaker government.

Former cabinet secretary Ali Imam Majumder told New Age that the ACC is failing to meet people’s expectation, prompting disinterest to come to the anti-graft body to end their sufferings.

An analysis of the last five years of data finds that the ACC received a total of 88,105 graft allegations between 2019 and 2023, but it took only 4,750 of them into consideration to launch inquiry. But the commission did not launch any inquiry into the rest of the 70,397 graft allegations which cover 94.61 per cent of the total allegations.

The ACC filed a total of 1,868 cases in the past five years.

‘The commission cannot take into consideration all the allegations submitted as most of them fall beyond ACC jurisdiction,’ said its chairman Mohammad Moinuddin Abdullah.

In a household survey on the services sectors, Transparency International Bangladesh in 2022 revealed that 70.9 per cent of people were victims of corruption, with 40.1 per cent having to pay bribes of Tk 6,636 on average to obtain services.

It also found that the law enforcement agencies topped the list of 17 service sectors surveyed as 74.4 per cent people became victims of their corruption. The passport office came in second among corrupt sectors, BRTA came in third, judicial services fourth, health sector fifth, local government institutions sixth, land related services seventh, education eighth, electricity ninth, climate change tenth, agriculture eleventh, insurance twelfth, NGO thirteenth, gas fourteenth, banking fifteenth, and tax and customs sixteenth.

Experts said that as the people filing complaints are not getting their expected remedies, they are becoming frustrated and losing confidence in the commission.

Hafizuddin Khan also said, ‘I think corruption is rather increasing than decreasing. As people coming with complaints do not get remedies their confidence erodes, resulting in the declining number of complaints.’


TIB executive director Iftekharuzzaman said that in the absence of relevant data, it is difficult to assess with certainty the implications of such a decline in the number of complaints from one year to another.

He, however, said that one thing is certain: this decline in the number of complaints to the ACC cannot be treated as evidence of reduced corruption.

‘On the contrary, since it has been noted that quite a large proportion of complaints remain unaddressed every year and complainants are not informed by the ACC about the fate of the complaints, the decline may be a syndrome of people’s perception that it makes no sense to complain,’ said Iftekharuzzaman.

‘To overcome this, the ACC would do well to develop a practice of regularly and systematically communicating the reasons behind complaints being unaddressed,’ he added.

According to the ACC annual report, in 2023, out of 15,437 allegations, 9,262 were submitted to the ACC headquarters, 771 were received from government offices and agencies, 308 from private departments and agencies, 1,080 from newspaper and television reports, 1,439 from divisional and district offices of the ACC, and 462 complaints were received through ACC hotline 106.

Apart from this, the commission also received 2,115 allegations from other sources, including the court, social media platforms like Facebook and emails, according to the latest annual report.

In 2023, the ACC initiated 923 new inquiries along with previous 3,505 pending ones. Of them, 1,206 inquiries were completed and 404 cases were filed and charges sheets were submitted in 363 cases in that year.

Apart from this, 12,958 allegations were sent to the departments and offices concerned for taking necessary measures.

A total of 361 cases were disposed of in 2023 in which the average conviction rate was 62.30 per cent. Currently, a total of 3,553 corruption cases are pending with the courts across the country.​

 

[Saif]

Experts doubt motive behind high number of small projects

A total of 30 projects, each worth less than Tk 50 crore, were brought to the meeting of the executive committee of the Economic Council...

www.newagebd.net

Experts doubt motive behind high number of small projects
Staff Correspondent | Published: 00:27, Mar 29,2024

A total of 30 projects, each worth less than Tk 50 crore, were brought to the meeting of the executive committee of the Economic Council on Thursday for appraisal, as opposed to five to six such projects in the past.

Prime Minister Sheikh Hasina presided over the meeting and was apprised of the overwhelming number of projects that were approved by the planning minister.

The planning minister holds the power to approve a project costing less than Tk 50 crore, while projects with higher costs need approval from ECNEC.

The details of 30 projects submitted to ECNEC during Thursday’s meeting, however, were not revealed.

Experts said not publicly revealing the details of projects might raise questions about whether those were taken to benefit certain groups against the backdrop of unnecessary projects crowding the annual development programme.

In the post-ECNEC briefing, planning minister Major General (retired) Abdus Salam said he did not approve any single of the 30 projects placed in the meeting for appraisal.

The projects were approved during the tenure of immediate past planning minister MA Mannan, he said.

He, however, claimed that there was nothing wrong with approving such projects.

All the projects are necessary, he said.

Answering a question about whether the planning commission placed so many projects for ECNEC appraisal in a single ECNEC meeting in the past, planning ministry secretary Satyajit Karmaker blamed the time gap in holding the ECNEC meeting for the matter.

Before the last general election, the ECNEC meeting was held every week, but now it takes

more than a month, he said, without elaborating on the reasons behind such a time gap.

The planning secretary did not name the projects placed for appraisal in the ECNEC meeting.

A planning ministry official, on condition of anonymity, said the number of projects with a cost of less than Tk 50 crore had never exceeded five in the past.

The ministries and divisions are showing interest in small projects to bypass the scrutiny process of the ECNEC, he noted.

Most of the projects are taken out of political consideration, he said.

The previous ECNEC meeting held on October 30, 2023, was apprised of only five such projects, he said.

Former World Bank Dhaka office chief economist Zahid Hussain said 30 projects was an overwhelming number, which showed growing interest in such projects.

The government should specify the number of such projects against the poor quality of development projects in the ADP, he said.

Transparency International Bangladesh executive director Iftekharuzzaman said the extraordinary number demanded more transparency since their costs involved public money.

Questions may be raised about the motive behind such projects, he said.

The day’s ECNEC meeting approved a total of 11 projects worth Tk 8,425.51 crore.

The projects include the construction of Union Parishad Complex under the third phase across the country at Tk 3,059 crore, the development of rural infrastructures in the Rangpur region at Tk 2,500 crore, procurement of 20 meter-gauge diesel electronic locomotives and 150 meter-gauge passenger carriages with an additional cost of Tk 288.07 crore to Tk 2,157 crore, upgrading the Kashinathpur-Dashuria-Natore-Rajshahi-Nababganj-Kansat-Sonamasjid-Baliadighi Border national highway at Tk 481.89 crore, development of infrastructure for enhancing the capacity of the government fisheries farms and boosting production at Tk 371.32 crore, and improvement of Fish Landing Centre of Bangladesh Fisheries Development Corporation in Cox’s Bazar at Tk 232.83 crore.

The planning commission officials said the PM directed keeping restrooms and adequate booths while constructing the Bangladesh Chancery Complex and Residential Building in Cairo, Egypt, at Tk 166 crore.

The PM also directed necessary steps to prevent river erosion in Kurigram while implementing development projects there and asked for the completion of union parishad complexes without any delay, according to the planning commission secretary.

Directives were also given by the PM for effective steps to avail maximum benefits and facilities after the country graduates from the bloc of Least Developed Countries in 2026.

The PM also ordered preparation strategies to face the challenges in the post-LDC graduation period.​

 

[Saif]

Era of complacency must come to an end

Taxpayer funds, earmarked for the advancement of knowledge and the betterment of society, must not be squandered on corrupt practices.

www.thedailystar.net

Corruption in public universities

Era of complacency must come to an end​

Chittagong University campus. File photo

Public universities in Bangladesh symbolise the collective ambition for intellectual growth and societal betterment. However, recent revelations have shaken this perception, laying bare a troubling reality of systemic corruption and irregularities which taint the integrity of these institutions. Despite being entrusted with the mission of nurturing minds and propelling research, certain university administrations, particularly the vice-chancellors, stray from their path. Many have become ensnared in a labyrinth of political intrigue and financial impropriety.

Those who have breached public trust must be held accountable for their actions. Only through steadfast commitment to the principles of integrity and fairness can we aspire to revive the noble ideals upon which our universities were established. The era of complacency must come to an end; the time for decisive action is upon us.

Most recently, Chittagong University finds itself engulfed in a morass of unjust and irregular activities, prompting a year-long protest by the teachers' association, calling for the resignation of both the vice-chancellor and pro vice-chancellor. The tenure of Vice-Chancellor Dr Shireen Akhter was fraught with a series of controversial and irregular appointments, casting significant doubt upon the integrity of the selection process. The now-former vice-chancellor oversaw at least 172 recruitments without adhering to mandatory advertising protocols or considering the needs of specific departments. Under her leadership, CU seemed to devolve into a mere job market, where appointments were handed out with alarming frequency and little regard for meritocracy. The institution, once revered as a beacon of learning, appeared to be reduced to a mere pawn in a game of patronage and self-interest.

The media landscape bore witness to this spectacle, with reports and exposés documenting the commodification of positions within the university hierarchy. For the past four years, news outlets have diligently chronicled the exploitation of the institution for personal gain, capturing the narrative through compelling audio-visual representations.

In protest against numerous transgressions, the Chittagong University Teachers' Association (CUTA) has persistently demonstrated for the past one year, calling for the resignation of both the vice-chancellor and the pro vice-chancellor. They organised a month-long exhibition showcasing reports of corruption and irregularities published in various newspapers. Eventually, a new vice-chancellor was appointed and the implicated vice-chancellor was removed from office. While the appointment of a new vice-chancellor and a new pro vice-chancellor represent a positive step forward, these remain insufficient in addressing the deep-rooted systemic issues plaguing the institution.

Meanwhile, the recent legal steps taken in response to allegations of corruption at another public university are commendable. At Rajshahi University of Engineering and Technology (RUET), the appointment process for 17 officers and employees faced significant scrutiny. Acknowledging the gravity of these allegations, the Anti-Corruption Commission (ACC) approved a case against both the former vice-chancellor and acting registrar of RUET, signalling a resolute stance against malpractice within a public educational institution.

Taxpayer funds, earmarked for the advancement of knowledge and the betterment of society, must not be squandered on corrupt practices. It is intolerable that educational institutions operate with impunity, shielded from consequences for their malfeasance. To rekindle faith in our education system, authorities must ensure that perpetrators of corruption face the full force of legal repercussions. Urgent and impartial investigation into the alleged misdeeds of past administrations are also crucial. Justice must be served clearly, with those implicated in corruption held accountable regardless of their status or influence.

Anything short of this risks further eroding of public trust in our educational institutions and the rule of law itself.
​

---

Dr Ala Uddin is professor of anthropology at Chittagong University. ​

 

[Saif]

Land minister calls for joint effort to end corruption in land service

Land Minister Narayon Chandra Chanda has called for working together to prevent corruption in land service by building a social movement against corruption and taking coordinated initiatives. "We are working by adopting a zero-tolerance policy against corruption under the leadership of the prime m

thefinancialexpress.com.bd

Land minister calls for joint effort to end corruption in land service​

FE ONLINE REPORT

Published :​

Mar 31, 2024 20:45

Updated :​

Mar 31, 2024 20:45

Land Minister Narayon Chandra Chanda has called for working together to prevent corruption in land service by building a social movement against corruption and taking coordinated initiatives.

"We are working by adopting a zero-tolerance policy against corruption under the leadership of the prime minister. Corruption will be rooted out from society as well as the state by taking coordinated initiatives with the people," said the minister.

The minister said this while addressing as the chief guest at a view exchange meeting with stakeholders aimed at establishing good governance in land service at Gopalganj Zila Parishad auditorium on Sunday.

Land Secretary Md Khalilur Rahman, chairman of land reform board Md Abdus Sabur Mondal, and Director-General of Land Record and Survey Department Anis Mahmud, among others, were present as special guests.

Speaking at the event, the land minister also said, "We have taken initiatives to include land-related information in the school curriculum so that citizens can get some idea about land management from school. You will directly tell the concerned land officer about any problem related to your land."

The minister informed the audience that 32 Upazila/Circle Land Offices and 64 Union Land Offices of the country along with the Tungipara Upazila Land Office of Gopalganj district and Patgati and Kushali Union Land Office have been brought under the 180-day programme of the Ministry of Land and the first district-level view exchange meeting has started from Gopalganj.

The minister hoped that the land offices of Gopalganj, which were selected for the 180-day programme, would set a unique example in land service.

In the meeting, the land secretary made a visual presentation on the modernisation of the land system and the ministry's 180-day plan.

Officials of the ministry also made visual presentations on the implementation of the integrity strategy, grievance redressal, Right to Information Act, and Citizen Charter.​

 

[Saif]

If this is not corruption, what is?

Take action against those overpricing products in Matarbari project

www.thedailystar.net

If this is not corruption, what is?

Take action against those overpricing products at Matarbari power plant
VISUAL: STAR

It is absurd that the state-run Coal Power Generation Company Bangladesh Limited (CPGCBL), which is constructing the Matarbari power plant in Cox's Bazar, has imported two pipe cutters for Tk 93 lakh. While inspecting its shipment, custom officials have also found the price of two German-made hammers being shown as Tk 1.82 lakh. However, on the German company's website, the same items were discovered to be priced at Tk 1,668 (for each hammer) and Tk 7,232 (for each pipe cutter) respectively. This means that the CPGCBL has shown an inflated price of 55 times more for the hammers and 642 times more for the pipe cutters.

Customs officials have said that these were not the only two items whose prices were inflated. In fact, all 19 items in the same shipment had been imported at absurdly high prices. Documents from the National Board of Revenue (NBR) show that the import cost of these products has been shown as five to 18,545 times higher than the value recorded in NBR's export-import database. According to the physical examination report by the customs authorities, the price of the pipe wrench that came in the shipment is 1,053 times more than the database value, the monkey pliers 912 times more, the screwdriver 833 times more, and so on.

Despite this gross anomaly, the Matarbari Power Plant project director claimed that the prices were "normal" as they were tailor-made upon special orders. However, import documents show that the tools would not be directly used in the power plant, and are freely importable as they are used in all types of construction and routine maintenance work. Moreover, customs officials confirmed that the CPGCBL did not provide them with any special order. Additionally, NBR records show that CPGCBL had gotten away with importing various goods at inflated prices for the project before.

The claim of procuring hand tools like pipe cutters, hammers and screwdrivers by special orders is ridiculous. As experts have said, this is most likely a case of large-scale corruption that the authorities must urgently investigate. Customs sources say that multiple consignments of other agencies containing such products were also cleared in Chattogram and Mongla from October 16 to January 15. At a time when the country's economy is going through a severe crisis, it is totally unacceptable that such corruption is being allowed to pile on the sufferings of citizens who have to bear these additional expenses. We urge the authorities to take stern action to stop the culture of price inflation in public procurement.​

 

[Saif]

He is one of the most corrupt businessmen who has been accused of taking massive amount of money from Islami Bank illegally.

Summit Chairman Aziz Khan only Bangladeshi in Forbes billionaire list

Forbes has released its 2024 World's Billionaires List, featuring 2,781 billionaires from 78 countries, showcasing the global spread and diversity of immense wealth. Among the entries is Muhammed Aziz Khan, Chairman of Summit Group, marking him as Bangladesh's first billionaire to be included in...

www.thedailystar.net

Summit Chairman Aziz Khan only Bangladeshi in Forbes billionaire list

Forbes has released its 2024 World's Billionaires List, featuring 2,781 billionaires from 78 countries, showcasing the global spread and diversity of immense wealth. Among the entries is Muhammed Aziz Khan, Chairman of Summit Group, marking him as Bangladesh's first billionaire to be included in this compilation.

The list, which ranges from fortunes of $1 billion to Bernard Arnault's $233 billion empire, highlights the luxury conglomerate LVMH's record year. The United States leads with 813 billionaires, including Elon Musk with an estimated worth of $195 billion. Following closely are China, including Hong Kong, with 473 billionaires, and India, with 200. The Asia-Pacific region boasts the highest number of billionaires, totalling 1,000. The Americas and Europe follow.

Muhammed Aziz Khan, now a Singapore permanent resident, was earlier ranked as the 41st richest man in Singapore, according to Forbes.

In 2018, when Khan was first listed in Forbes Singapore's list of billionaires, his net worth was $910 million. Currently, his real-time net worth, according to Forbes, stands at $1.1 billion, which is numbered 2579th highest in the world at the time of writing.

In 2019, Khan sold a 22% stake in Summit Power International to Japan's JERA for $330 million, which valued the company at $1.5 billion, states the listing by Forbes.

Summit Group is a top private sector conglomerate of Bangladesh and has interests in power, ports, fibre optics, real estate and liquefied natural gas.​

 

[Saif]

Fighting corruption or feeding it?

Once a little boy wanted to have his own cricket bat. But he did not have any money to buy it.

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Fighting corruption or feeding it?

Once a little boy wanted to have his own cricket bat. But he did not have any money to buy it. He prayed to God for weeks and nothing happened. So, he decided to write a letter to God asking for Tk 500.

The postman was so amused that he decided to send it to the President's office. Finding it cute, the President sent him Tk 300. Thrilled, the boy wrote a thank you note to God where he complained, "God, the only problem was it came through the President's office where the corrupt donkeys ate Tk 200!"

In our country, we agree or disagree on global statistics as long as it suits our purpose. According to the Corruption Perceptions Index (CPI) 2023, Bangladesh ranks 149th among 180 countries.

Over the last few decades, the CPI score of Bangladesh varied from a low of 4 out of 100 in 2001 to a high of 28 in 2017, with 100 indicating a very clean public sector. In the face of such dire statistics, some justify their dubious acts by claiming corruption and development go hand in hand.

The fight against corruption hinges on understanding the gap between perception and reality. While public perception of corruption can be a powerful indicator, it does not always reflect its true extent. Barriers in uncovering hidden practices and biases can skew perceptions.

However, a widespread belief in corruption can itself be damaging, hindering investment and trust in institutions. Addressing the actual problem and the public perception is crucial in creating a truly transparent society. From my experience of dealing with international investors, Bangladesh is not the most preferred destination of investment despite its potentials for growth and economic success.

Corruption has always been a critical obstacle in exploiting our country's vast potentials. Our Prime Minister has repeatedly warned her officials against it but little has been achieved. In recent times, ludicrous stories of corruption of politicians and bureaucrats are circulating in the media. While some perceive them as baseless or a fabrication to avenge past enmity, others see them as just the tip of the iceberg.

Nevertheless, the general public soaks them up like a little boy reading a thriller. What is thought-provoking is whether the offenders care at all about the media reports, or is corruption a social taboo anymore?

Corruption seems to have spread its tentacles far and wide in our society, sparing none, be it politicians, bureaucrats, businesspeople and ordinary wage-earners. Even our legal system is not immune. It is frustrating to live in a society which tolerates corruption.

At times, it seems, the bigger the corruption, the less likelihood of it having any consequences. People are even starting to joke that it is pointless to steal small amounts. Corruption stifles progress – a country cannot thrive when politics is more lucrative than business.

Although corporate and national politics operate on different scales, they both involve power struggles and alliances. National politics concerns broader issues and public accountability, while corporate politics focuses on company profits and internal dynamics. While both require communication and strategy, the processes differ vastly. National politics involve elections and public debate, while corporate maneuverings occur through committees and informal power structures.

A multi-faceted approach is needed to root out corruption in Bangladesh. Strengthening institutions like an independent judiciary and well-equipped independent anti-corruption agencies can deter offenders. Public awareness and protecting whistleblowers can effectively empower citizens to raise their voice against corruption.

Technology such as e-governance and open data can increase transparency. Addressing root causes like bureaucratic complexities and lack of economic opportunities can reduce incentives for corruption. The crux of it lies in the intent of the people in power.

The fight against corruption demands action, not just words. Let us all, citizens and leaders alike, rise to the challenge and build a nation worthy of its potential.
The author is founder and managing director of BuildCon Consultancies Ltd.​

 

[Saif]

BTRC to open fresh audits into GP, Robi

The decision to carry out the audits comes although the claims of the first audits into the operators haven’t been settled yet.

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BTRC to open fresh audits into GP, Robi

The telecom regulator has decided to carry out information system audits into Grameenphone and Robi Axiata in the years since 2015 and form committees to start the process of appointing auditors.

The Bangladesh Telecommunication Regulatory Commission (BTRC), at a meeting last month, approved the setting up of two committees in order to hire the audit firms.

Two tender evaluation committees for the audit process will also be formed, according to the meeting documents.

The information system audit aims to ensure that the equipment and processes within GP and Robi adhere to the guidelines of the commission. It makes sure compliance with rules and regulations, including the verification of revenue collected by the companies, so that the government receives its due share.

The decision to carry out the audits comes although the claims of the first audits into the operators haven't been settled yet.

The telecom regulator ran separate audits into the two operators from their inception to December 2014 and claimed Tk 12,579 crore from GP and Tk 867 crore from Robi.

The claims include the amounts for unpaid annual spectrum fees, value-added tax, and revenue sharing. However, both operators disputed the sum and claimed that they did not evade any taxes.

The dispute triggered a legal battle between the operators and the BTRC, with the companies filing cases in 2019.

Based on the audit of GP from 1997 to 2014, the BTRC sent a demand notice in April 2019, asking it to clear the payments.

Later, GP filed the case before the district court against the claim. The Supreme Court in November of that year ordered the operator to give Tk 2,000 crore in three months to the commission.

Afterward, the appellate division directed the largest mobile phone operator of the country to deposit Tk 1,000 crore by February 2020 and another Tk 1,000 crore by May 2020. GP complied.

Of the Tk 12,579 crore, the operator hasn't yet cleared more than Tk 6,100 crore slapped as a late fee.

Additionally, it paid over Tk 2,392 crore out of Tk 4,085 crore owed to the National Board of Revenue.

GP did not respond to The Daily Star's request for comments yesterday regarding the BTRC's new audit process.

"We want an amicable solution on the rest of the dues claimed in the audit," Yasir Azman, chief executive officer of GP, told The Daily Star recently.

Out of Tk 867 crore, Robi, the second-largest operator of Bangladesh, paid Tk 138 crore in five instalments by May 2020 to comply with the order of the High Court Division.

According to Robi's annual report for 2022, a substantial part of the BTRC's claim includes the VAT on spectrum fees and VAT rebate/credit cancellation, which are either part of other ongoing litigations or in respect of which the BTRC has no jurisdiction to claim relevant amounts.

"We filed a general petition with the court five years ago, challenging the outcomes of the previous audit. The telecom regulator is yet to respond to the petition. Therefore, we haven't seen any progress on the sub judice matter," Shahed Alam, chief corporate and regulatory officer at Robi Axiata, told The Daily Star.

"We hope the regulator will take necessary steps to resolve pending issues of the previous audit."

The regulator also conducted audits into Banglalink from 1996 to 2019 and asked the operator to pay more than Tk 820 crore last year.

Of the figure, Tk 390 crore has been sought as VAT, tax and fees, and outstanding dues related to revenue-sharing, handset royalty, access frequency and microwave frequency payments, and the licence fees as principal amount. The rest, or Tk 430 crore, was claimed as late fees.

The operator has deposited Tk 335 crore of the principal amount as of now and will pay the rest of the principal amount of Tk 390 crore in instalments, according to an official of the operator.

Banglalink is trying to mutually resolve the BTRC's audit outcome, so it hasn't filed any case.

An official of the BTRC told The Daily Star that the commission has sent a letter to the government on waiving the late fees.

The BTRC also took the initiative to audit other state-owned and private companies in the telecommunication ecosystem.

It has recently demanded payments from state-run Teletalk Bangladesh and Bangladesh Telecommunications Company Limited, asking them to clear dues amounting to a staggering Tk 3,000 crore collectively.​

 

[Saif]

Nearly US$3.15b drains from BD annually

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

thefinancialexpress.com.bd

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

 

[Saif]

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

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

www.thedailystar.net

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

JANATA'S FINANCIAL HEALTH

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

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

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

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

 

[Saif]

TIB calls for halting implementation of bank merger

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

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TIB calls for halting implementation of bank merger

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

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

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

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

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

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

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

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

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

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

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

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

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

 

[Saif]

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

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

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

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

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

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

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

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

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

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

 

[Saif]

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

 

[Saif]

Goods worth Tk 16k imported at Tk 2.63 crore

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

DAMAGE CONTROL?

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

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

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

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

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

Customs documents support his view.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

 

[Saif]

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

Troubled NBL offers cash to journalists in snacks box

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

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

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

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

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

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

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

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

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

 

[Saif]

Cybergangs now selling ‘genuine’ NIDs

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

www.thedailystar.net

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

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

Astonishingly, this is what is going on.

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

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

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

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

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

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

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

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

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

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

Jamal received Tk 3,000 a day from Liton.

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

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

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

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

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

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

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

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

DATA ON SALE

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

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

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

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

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

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

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

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

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

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

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

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

 

[Saif]

‘City tolls’ now an easy way of extortion

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

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

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

To Kashem, it appeared that the men needed help.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

The collectors extort drivers just like robbers, he added.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

 

[Saif]

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

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

en.prothomalo.com

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

 

[Saif]

532 Bangladeshis own real estate in Dubai: report

A six-month-long joint investigation by the Organised Crime and Corruption Reporting Project and the Norwegian outlet E24 uncovered scores of convicted criminals,...

www.newagebd.net

532 Bangladeshis own real estate in Dubai: report
Staff Correspondent 17 May, 2024, 00:45

| UNB/ AP file photo.

A six-month-long joint investigation by the Organised Crime and Corruption Reporting Project and the Norwegian outlet E24 uncovered scores of convicted criminals, fugitives, political figures, and sanctioned individuals, including 532 Bangladeshis, owning real estate in Dubai, United Arab Emirates.

Without providing any further details regarding their identities, the OCCRP report titled 'Dubai Unlocked' shows 532 Bangladeshi nationals owning 641 properties in Dubai, with the total value of their real estate exceeding $225 million.

According to the findings of 2022 data, assessed by economists and reporters from 74 partners in 58 countries, the number of residential properties owned by foreigners put Indians first, at 35,000 properties and 29,700 owners, with the total value of these properties estimated at $17 billion.

The OCCRP said that owners with Pakistani nationality come in second among foreigners, at 17,000 owners of 23,000 residential properties in Dubai.

In a report, the Pakistani daily Dawn said that the Gulf city is far from the only place where criminals and others have successfully stashed their wealth in luxury properties. New York City and London real estate have also been known to attract dirty money.

But experts say Dubai has a lot to offer, and not just in terms of its vast array of high-end skyscrapers and villas. One pull factor, experts say, has been the emirate's inconsistent responses to requests from foreign authorities for help arresting and extraditing fugitives.

The report came at a time when money flights to Dubai and other countries were widely discussed in Bangladesh.

Amid various discussions, in April last year, following a High Court order, the Anti-Corruption Commission initiated an inquiry into the allegation that 459 Bangladeshi nationals bought properties in Dubai illegally.

In May 2022, a US-based non-profit Center for Advanced Defense Studies published a research paper, highlighting Bangladeshis buying housing assets with money that was laundered mainly in Gulf countries.

According to the report, 459 Bangladeshis own a total of 972 residential properties in Dubai at a cost of $315 million.

Of these assets, 64 are located in the elite Dubai Marina area, and 19 in Palm Jumeirah.

Without mentioning names, the report said that at least 100 villas and less than five buildings are said to be owned by Bangladeshis in these locations.

Besides, 4–5 Bangladeshis own properties worth about $44 million there.

The OCCRP report said that Dubai has long maintained an open-door policy for foreign nationals looking to live and do business there.

It said that the emirate offers a combination of extremely favourable tax regimes, free trade zones with little regulation, a liberalised property market, low-cost residence-by-investment schemes, and, during the pandemic, low restrictions on movement.

As a result of these policies as well as a high demand for migrant workers, Dubai has become a city of foreigners: out of its more than three million inhabitants, only 8 per cent are Emiratis.

'While the Dubai Land Department both publishes detailed aggregate statistics on the real estate sector, as well as detailed micro-data on the status characteristics of specific properties, buildings, and lands in the city, it does not publish any information on foreign ownership of property, neither at the individual property level nor in aggregate,' it said.

'However, as we will describe below, we have access to several datasets at the individual property level that we use to estimate the amount of foreign-held property in the city, as well as the breakdown by each nationality, both directly (by adding up the value of properties visible in the data we have access to) and indirectly (by inferring foreign property ownership rates in areas of the city we have less data coverage for),' it added.​

 

[Saif]

Amnesty to black money in EZs, hi-tech park may go

An amnesty provided to black money invested in economic zones and hi-tech parks is unlikely to be continued from the next fiscal year of 2024-25 as per plans of the National Board of Revenue (NBR).

www.thedailystar.net

Amnesty to black money in EZs, hi-tech park may go

Representational image. File photo

An amnesty provided to black money invested in economic zones and hi-tech parks is unlikely to be continued from the next fiscal year of 2024-25 as per plans of the National Board of Revenue (NBR).

Currently the tax authority does not raise questions about the source of investment if any person invests undisclosed wealth in the construction of factories inside economic zones and high-tech parks and pay a 10 percent tax on the invested amount.

The amnesty was available since the first day of July 2019 and is to last till June 30, 2024, said the NBR in an income tax law 2023.

"As the benefit is going to expire next month, we are not considering extending it further," said a senior official of the NBR.

Bangladesh began establishing economic zones under public and private arrangements over a decade ago to encourage investment, create jobs and enable organised industrialisation.

The authorities of the industrial enclaves offered land, utility services and other investment-related services to encourage investment.

Currently, the public and private sectors are operating 11 economic zones.

Around $4.78 billion has been invested in the economic zones as of June 2023, according to Bangladesh Economic Zones Authority.

Besides, 11 hi-tech parks are in operation where Bangladesh Hi-Tech Park Authority (BHTPA) has allotted land and space to 230 firms.

It has given co-working space rent free to 151 startups. The investment in the parks contributed to the creation of 28,000 jobs, said the BHPTA.

Apart from the amnesty's discontinuation, the NBR may bring changes in a provision in the law that enables undeclared income to be legalised when invested in buildings and flats, according to the NBR.

As per the income tax law, any such investment "will be considered as ones which have already gone through the process of their source being explained" with field officials of the tax administration if a specified amount of tax is paid per square metre area of flats or buildings.

The rate of taxes varies depending on the location of the flats or buildings.​

 

[Saif]

Govt, ACC must investigate people Dubai Unlocked speaks of

THE findings of an investigation of the Organised Crime and Corruption Reporting Project and the Norwegian news site E24 that 532 Bangladeshis own real estate in Dubai could be a ground for Bangladesh authorities to carry forward the investigation and act accordingly...

www.newagebd.net

Govt, ACC must investigate people Dubai Unlocked speaks of
18 May, 2024, 00:00

THE findings of an investigation of the Organised Crime and Corruption Reporting Project and the Norwegian news site E24 that 532 Bangladeshis own real estate in Dubai could be a ground for Bangladesh authorities to carry forward the investigation and act accordingly. The report, Dubai Unlocked, the result of six months' investigation based on data of 2022, says that scores of convicted criminals, fugitives, political figures and sanctioned individuals own real estate in Dubai. The people that the investigation has referred to include 532 Bangladeshis having owned 641 property with their value exceeding $225 million and no further details regarding their identity have been furnished. The reality at hand warrants that the government and the Anti-Corruption Commission should immediately launch an investigation of the issue, find the people who own real estate in Dubai, examine the source of their income and establish whether they have siphoned off the money to buy property there. The Organised Crime and Corruption Reporting Project says that while the Dubai Land Development publishes detailed aggregate statistics on the real estate sector and detailed micro-data on the status characteristics of specific property, it does not publish information on foreign ownership of property. But the agency notes that it has access to several datasets at the individual property level as well as the break down by each nationality.

While the government and the Anti-Corruption Commission should launch the investigation, the Anti-Corruption Commission has been heard of doing almost nothing, at least nothing noticeable, after it said in April 2023 that it would investigate the allegations that 459 Bangladeshis bought property in Dubai illegally. The US-based Centre for Advanced Defence Studies in May 2022 published a paper, noting that Bangladeshis bought housing assets mainly in Gulf countries with money laundered there. The paper said that 459 Bangladeshis had owned 972 residential property in Dubai that is valued at $315 million. And of the assets, 64 were in the elite Dubai Marina are and 19 in Palm Jumeirah. Without giving out the names, the paper said that at least 100 villas and less than five buildings are said to have been owned by Bangladeshis on the locations. And, four to five Bangladeshis own property worth about $44 million. After a High Court order of April 2023, the Anti-Corruption Commission said that it would look into the allegations of the Bangladeshis having bought property in Dubai illegally. But after more than a year, nothing has been heard of any Anti-Corruption Commission plan for investigation. Both the reports came to light when illicit financial flows have greatly been in discussion amidst a shortage of the dollar that has been persisting for more than a couple of years.

Both the government and the Anti-Commission Commission must, in such a situation, look into the allegations, levelled by both the May 2022 paper of the Centre for Advanced Defence Studies and the May 2024 Organised Crime and Corruption Reporting Project report. And, there must not be any dithering about this.​

 

[Saif]

Digitalisation needed to check tax evasion: experts

Experts on Sunday said that digitalisation was needed to check tax evasion in the country...

www.newagebd.net

Digitalisation needed to check tax evasion: experts
Staff Correspondent 19 May, 2024, 22:18

Experts on Sunday said that digitalisation was needed to check tax evasion in the country.

They also said that if Bangladesh could not improve its internal resource management, the country would become prone to economic dependence.

They said these during a dialogue titled 'Digitalisation of the Taxation System in Bangladesh: The Next Frontier for Higher Resource Mobilisation' organised by the Centre for Policy Dialogue in partnership with the European Union in the capital Dhaka on the day.

CPD distinguished fellow Mustafizur Rahman, in his key presentation, said that the country had to implement all annual development plans through internal or external loans due to low revenue-GDP ratio.

'We should focus on how we could generate surplus in our revenue budget, which we are currently unable to do', he said.

'As we are graduating from the LDC list, loans are getting costlier', he added.

Mustafizur showed in his presentation that about 20 per cent of revenue expenditure in the financial year 2023-24 was done on servicing interest payments for domestic and foreign borrowings only.

He said that, in Bangladesh, tax elasticity and tax buoyancy had been low and digitalisation could improve the situation.

Digitalisation could help detect tax avoidance and reduce tax evasion, he said.

'Potential increase in tax collection by spending an additional unit of money through various measures, including digitalisation of the taxation system, is the highest in Bangladesh among the developing countries', he further said.

Mustafizur also said that, over the years, the government of Bangladesh, finance ministry and the National Board of Revenue had taken multiple steps to digitalise the tax system but the outcomes remained less than satisfactory.

The CPD recommended embedding technology driven solutions in all of the NBR's activities, capacity building of the NBR and multiple other steps towards the digitalisation of the taxation system.

Debapriya Bhattacharya, a CPD distinguished fellow, said that taxpayers feared that arbitrary use of power in the taxation system might put them in a position to be harassed, which could be solved by digitalisation.

'We are talking about digitalisation in the taxation system, but only revenue earning is getting focused. We have to ensure transparency in the expenditures and proper facility to the taxpayers through digitalisation to encourage them to pay taxes', he said.

Abu Hena Md Rahmatul Muneem, chairman of the NBR, said that the NBR's helplessness was revealed when the budget was announced every year.

'Without noticing the capacity we have, we are given a target for revenue collection. Without building the capacity first, if the target is increased every year, it becomes tough to achieve said target', he said.

State minister for finance Waseqa Ayesha Khan said that the current government was trying to make smart Bangladesh from digital Bangladesh.

'Last year, we announced some exemption from corporate taxes if businesses made bank transactions. But many people objected to that. How can we achieve our target if big business people want to make transactions with cash money?' she added

Fahmida Khatun, executive director of CPD, chaired the session, with other government officials and experts present in the dialogue.​

 

[Saif]

Bribes for licence renewal: Business-friendly environment needs more than words

Discover the reality of creating a business-friendly environment in Bangladesh as businessmen face exorbitant fees and corruption in license renewals.

en.prothomalo.com

Bribes for licence renewal: Business-friendly environment needs more than words
Editorial Desk
Published: 19 May 2024, 17: 03

Policymakers of the government have long been speaking of creating a business-friendly environment in order to expand business and trade as well as increasing investment inside and outside of the country. But the reflection of that cannot be found in reality.

Businessmen in the readymade garments industry have to pay up to six times as much as the government-fixed fees for renewing the license required to do business.

It came up in a research of Center for Policy Dialogue (CPD) that an extra 5,000 to 9,000 taka has to be paid for renewing the trade license of any business in Dhaka.

According to the research, it costs 644 per cent more than the government-fixed fees to renew the boiler license and 261 per cent more to renew the bond required for duty-free import of raw materials.

In addition to this, businessmen have to spend 16 per cent extra on trade license, 114 per cent for fire license and 12 per cent in case of export and import registration license.

It also came up in the research that Tk 5,000 to 9,000 has to be spent additionally compared to the fees fixed for renewing trade license of any business under Dhaka City Corporation.

Hundred per cent of the major companies, 68 per cent of the medium companies and 62 per cent of the small companies believe corruption to be the number one problem. Meanwhile, 59 per cent of the companies said that bribes have to be paid to get government contract and license.

That means government services cannot be availed without bribing. Not just businessmen even the common public are victimised by this.

From driving licences to birth registration certificates, nothing comes free of bribery. For putting an end to harassment, businessmen have been speaking of one-stop service and licence renewal after five years, but neither has been implemented.

Once the one-stop service is launched officials would no longer be able to collect bribe from every other source, that's why it has been suppressed. The same thing has happened in case of license renewal.

If the licence has to be renewed annually, concerned officials extract additional money every single year after all. The scope to do that would go away if the licences have to be renewed every five years.

The mayors of the two city corporations of Dhaka city almost every day give advices to the city dwellers. However, they are not taking any action against the officials who are extracting extra money from businessmen or people seeking other services.

Dhaka South City Corporation mayor Sheikh Fazle Noor Taposh has recently claimed his orghanisation to be the most corruption-free government organisation.

Does charging Tk 5,000-9,000 more than the settled fees is the example of being corruption free? How can the other concerning government agencies engaged in license renewal institutionalise corruption involving bribery?

Among others state minister of commerce, Ahsanul Islam was present at CPD's research presentation event. We'll be waiting to see what steps he takes to stop harassments of the businessmen.

Whereas the local businessmen are falling victim to different types of harassments, why would the foreigners come here with investments? The government is failing to create the environment and infrastructure required for them to come.

There has been a hike in fuel price due to Ukraine war or Israeli aggression on Gaza while, there's a shortage of supply as well. The businessmen have accepted that too. But why do they have to bribe government officials on every step to get their license done and to get them renewed?

If the government really wants to create a business-friendly environment in the country, they have to sweep bribe culture out of the service providing organisations. A business-friendly environment doesn't pop up just from words.​

 

[Saif]

Personal data up for sale online!

Some government employees are selling citizens’ NID card and phone call details through hundreds of Facebook, Telegram, and WhatsApp groups, the National Telecommunication Monitoring Centre has found.

www.thedailystar.net

Personal data up for sale online!
Crooked govt employees selling info from nat'l database to 789 groups on social media

Some government employees are selling citizens' NID card and phone call details through hundreds of Facebook, Telegram, and WhatsApp groups, the National Telecommunication Monitoring Centre has found.

In a letter to the home ministry, the NTMC said private information was being sold through 21 WhatsApp, 48 Telegram, and 720 Facebook groups and pages that have 32 lakh members and followers.

The letter sent on April 28 did not mention how many people's data have been sold.

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

 

[Saif]

An alarming lapse in data security protocols

NTMC's revelation about illicit sale of private data raises concerns

www.thedailystar.net

An alarming lapse in data security protocols
NTMC's revelation about illicit sale of private data raises concerns

VISUAL: STAR

The National Telecommunication Monitoring Centre's (NTMC) recent revelation about the illicit sale of citizens' NID card and phone call details comes as yet another reminder of how susceptible government-stored data is to breaches and exploitations. The fact that government employees themselves have exploited their access to the data—selling it through various social media groups and messaging apps—adds another dimension to this story. For one, it exposes an alarming lapse in the data security protocols. It also means that nothing short of an overhaul of the whole data security infrastructure will be enough to contain this multifaceted threat.

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

 

[Saif]

Corporates may get black money-whitening facility in next budget

Black money may make a comeback as the government considers reinstating black money-whitening facility in the new budget, starting with corporate amnesty, trying to resuscitate sluggish economic activity. It comes out as a first-ever step, officials say, to allow corporate taxpayers for wh

thefinancialexpress.com.bd

Corporates may get black money-whitening facility in next budget
Taxmen to turn their eyes other way amid financial woes
DOULOT AKTER MALA
Published :
May 23, 2024 00:18
Updated :
May 23, 2024 00:18

Black money may make a comeback as the government considers reinstating black money-whitening facility in the new budget, starting with corporate amnesty, trying to resuscitate sluggish economic activity.

It comes out as a first-ever step, officials say, to allow corporate taxpayers for whitening what is commonly known as black money without facing any question from taxmen.

Corporate taxpayers would be able to show their undisclosed income without disclosing source of money by paying 15-percent tax at a flat rate, official sources said.

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

 

[Saif]

Feud over gold stash behind murder

Slain lawmaker Anwarul Azim Anar and key suspect Aktaruzzaman used to run a gold smuggling racket until they fell out over money and Azim kept a stash worth over Tk 100 crore to himself, detectives said.

www.thedailystar.net

Feud over gold stash behind murder
Dismembered remains dumped at different locations, say investigators

File photo of Anwarul Azim Anar

Slain lawmaker Anwarul Azim Anar and key suspect Aktaruzzaman used to run a gold smuggling racket until they fell out over money and Azim kept a stash worth over Tk 100 crore to himself, detectives said.

Aktaruzzaman, known as Shaheen Mia in his hometown Jhenaidah, used to get gold bars smuggled into Bangladesh from Dubai, while Azim, the ruling Awami League lawmaker from Jhenaidah-4, made sure the shipment reached the hands of the right people in India, said the officers, requesting anonymity.

Sometime last year, Azim told his partner that he wanted a bigger cut of the money, according to sources in the Detective Branch and an intelligence agency.

"Azim-Aktaruzzaman partnership hit rock bottom after Azim received two stashes worth more than Tk 100 crore, but did not have them delivered to the designated location."

— An intelligence officer says on condition of anonymity

"Aktaruzzaman snubbed Azim's proposal, and it created a rift between the two," said an intelligence officer.

"The partnership hit rock bottom after Azim received two stashes worth more than Tk 100 crore, but did not deliver them," said the officer involved in the investigation.

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

 

[Saif]

Court orders freezing ex-IGP Benazir’s properties

A Dhaka court today ordered to freeze and attach all moveable and immovable properties of Benazir Ahmed, former inspector general of police, in connection with the allegations of corruption brought against him

www.thedailystar.net

Court orders freezing ex-IGP Benazir's properties

Benazir Ahmed. File photo

A Dhaka court today ordered to freeze and attach all moveable and immovable properties of Benazir Ahmed, former inspector general of police, in connection with the allegations of corruption brought against him.

Of them, 33 bank accounts were frozen and properties of 83 deeds were attached.

Judge Mohammad Ash-Shams Joglul Hossain of Dhaka Metropolitan Senior Special Judge's Court passed the order after ACC Deputy Director Md Hafizul Islam and also the inquiry officer of the matter, submitted an application in this regard, said bench assistant of the court.

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

 

[Saif]

SUVs for bureaucrats amid economic woes?

Government must not waste public money like this

www.thedailystar.net

SUVs for bureaucrats amid economic woes?
Government must not waste public money like this

VISUAL: STAR

Last year, a proposal to buy 261 SUVs—worth about Tk 1.46 crore each—for deputy commissioners (DCs) and upazila nirbahi officers (UNOs) was approved. But after severe criticism against the backdrop of a struggling economy, the government decided to halt the buying process. It is, therefore, quite puzzling to see the revival of that decision, especially when the country's economic condition has worsened. Going ahead with this decision, rather than using facilities that are already available, will be nothing but a waste of public money.

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

 

[Saif]

TIB urges govt to ensure accountability for high-level power abuse

Transparency International Bangladesh on Sunday urged the government to bring the high-level power abuse under accountability following due process and to release a White Paper on corruption...

www.newagebd.net

TIB urges govt to ensure accountability for high-level power abuse
Staff Correspondent 26 May, 2024, 21:48

Transparency International Bangladesh on Sunday urged the government to bring the high-level power abuse under accountability following due process and to release a White Paper on corruption.

The organisation came up with the call in a statement, saying that the recent exposure of high-level abuses of power, corruption, and political criminalisation need to demonstrate the credibility of the government's zero-tolerance stance on corruption, which has become unprecedentedly important.

In the statement, the body mentioned the incidents of killing of a ruling party lawmaker, the punitive United States visa sanctions against a former army chief, and the court order to seize bank accounts and assets of a former police chief.

Referring to the corruption allegations against the former army chief, the police chief, and the killing of the lawmaker, TIB executive director Iftekharuzzaman said, 'If the government and the ruling party only offer evasive explanations out of embarrassment, it will not only be unacceptable to the people but also be suicidal for the government.'

He said, 'The unaccountable actions of former heads of significant state forces such as the army, the RAB, and the police, along with a lawmaker, have instilled doubts and concerns about the government and the governance structure in the people's mind.'

'These concerns need to be credibly addressed through exemplary accountability. Furthermore, the promptness exhibited by relevant institutions, including the ACC, should not be eventually diminished to mere formalities and eyewash,' he added.

TIB also said that if the government and the ruling party wanted to demonstrate the minimum credibility of their promises, they must disclose the existing nature of high level power abuse, and publish a White Paper on corruption across institutions and sectors.​

 

[Saif]

'I want to grab (bank) loan defaulters'

Loan defaulters are going to get caught as the government moves to fix macroeconomic problems and increase foreign-exchange inflow, the finance minister said Sunday, ahead of his first test in authoring budget. "I want to grab the defaulters," Abul Hassan Mahmood Ali told reporters after a

thefinancialexpress.com.bd

'I want to grab (bank) loan defaulters'
Finance minister says
Published :
May 27, 2024 00:03
Updated :
May 27, 2024 00:03

Loan defaulters are going to get caught as the government moves to fix macroeconomic problems and increase foreign-exchange inflow, the finance minister said Sunday, ahead of his first test in authoring budget.

"I want to grab the defaulters," Abul Hassan Mahmood Ali told reporters after a meeting with International Monetary Fund (IMF) executive director Krishnamurthy Venkata Subramanian at his secretariat office in Dhaka.

Asked whether he would be able to take such tough action as the defaulters are very powerful, the finance minister said: "Let's see what happens."

At this stage, he hastened to refer to the actions taken against a former police chief whose assets have been ordered for confiscation.

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

 

[Saif]

Benazir’s family bought 4 apartments in Gulshan in one day

Discover how Benazir's family acquired 4 apartments in Gulshan in a single day amidst corruption allegations and court orders to seize assets.

en.prothomalo.com

Benazir's family bought 4 apartments in Gulshan in one day
Information has been unearthed of another 276 bighas of land in the name of the wife of former Inspector General of Police Benazir Ahmed. The court orders to seize all the assets
Staff CorrespondentDhaka
Published: 27 May 2024, 21: 19

The Anti-Corruption Commission (ACC) in its investigation has got information of more wealth in the name of the family members of former Inspector General of Police (IGP) Benazir Ahmed.

The ACC said another 276 bighas (91 acres) of land is registered in the name of Jeeshan Mirza, wife of Benazir Ahmed. Apart from this, the anti-graft watchdog found four apartments registered in the name of Benazir Ahmed's wife and one of his daughters in the capital's upscale Gulshan area.

The size of the four apartments is 9,192 sqf. The apartments were bought on the same day (5 March 2023) within six months of the retirement of Benazir Ahmed. The price of the four apartments in the upscale area was shown at only Tk 21.9 million.

Besides the land and flats, ACC found that the wife and children of Benazir Ahmed own shares of 19 establishments and three BO (beneficiary owners account for share market business) accounts and Tk 3 million savings certificates.

Following an appeal of the ACC, Ash Shams Jaglul Hossain, a senior special metropolitan judge of Dhaka, Sunday ordered the seizure of the properties of the former IGP, his wife and their children from under 113 deeds, as well as four apartments in the capital's Gulshan.

ACC deputy director Hafizul Islam, also investigation officer, filed a written plea with the court on behalf of the ACC.

Mahmud Hossain Jahangir, public prosecutor of the ACC represented the anti-graft body at the court. He told the court that information of a huge amount of wealth of Benazir and his family has been received as the ACC sent letters to different districts seeking information of his assets.

The ACC prosecutor further said if the assets are not freezed and seized those could be handed over to others.

Following the hearing, the court passed the seizure and freeze order. Earlier on 23 May, the same court ordered to seize ex-IGP Benazir and his family members' 345 bighas (114 acres) of land under 83 deeds and freeze 33 accounts in various banks.

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

 

[Saif]

An IGP’s eye-watering corruption takes the lid off patronage politics

Many of Benazir Ahmed's public statements since assuming high office aligned more with the ruling party's political stance than with the neutral stance expected of a civil servant.

www.thedailystar.net

An IGP's eye-watering corruption takes the lid off patronage politics

Illustration: Biplob Chakroborty

The massive wealth accumulated by a top police official, whose primary task is to maintain law and order, is hard to fathom. The scale and magnitude of the former IGP's wealth acquisition make it clear that it is not possible through petty grafts, but rather requires extortion and corruption at the highest levels. To understand this issue, we must look back at the tenure of the former police chief Benazir Ahmed.

Benazir uniquely served in three of the most coveted roles in the police force: Commissioner of Dhaka Metropolitan Police (DMP), Director General of the Rapid Action Battalion (Rab), and Inspector General of Police (IGP). These positions ideally require extraordinary competence, integrity, and professional excellence.

Did you know that he was awarded the Integrity Award for the year 2020-21 in recognition of the integrity he displayed in his profession? According to a Bangladesh Sangbad Sangstha (BSS) report, on June 28, 2022, Home Minister Asaduzzaman Khan Kamal handed over the award to him in an official ceremony, which included a certificate, a crest and money equivalent to one month's basic salary. Given recent revelations, it raises questions about whether he was rewarded for actual merit or if this reflects deeper issues within the governance system. One is forced to wonder what kind of vetting process was used to verify the integrity of the top cop, as only a few months before this award, on the very day that the US announced its sanctions, Benazir Ahmed had hosted quite an extraordinarily lavish reception marking the wedding of one of his daughters.

Many of Benazir Ahmed's public statements since assuming high office aligned more with the ruling party's political stance than with the neutral stance expected of a civil servant. His rise to these top positions occurred during a politically turbulent period, marked by events like the rise of Hefazat-e Islam, Jamaat-e-Islami's opposition to war crimes trials, the BNP-led boycott of the 2014 election, and the emergence of various Islamist terror outfits. His aggressive policies against both political dissent and terrorism raised suspicions about his motivations, with many observers detecting political ambitions behind his actions.

Kamal Ahmed is an independent journalist.

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

 

[Saif]

We have nothing to announce about former Bangladesh police chief: US

The United States Department of State spokesperson, Matthew Miller, on Tuesday said that the US had nothing to announce whether any US agency had found assets of Bangladesh’s former inspector general of police Benazir Ahmed in the United States of America or in any other country...

www.newagebd.net

We have nothing to announce about former Bangladesh police chief: US
Staff Correspondent 30 May, 2024, 00:23

The United States Department of State spokesperson, Matthew Miller, on Tuesday said that the US had nothing to announce whether any US agency had found assets of Bangladesh's former inspector general of police Benazir Ahmed in the United States of America or in any other country.

He, however, said that they never previewed sanctions or other actions that they might take.

Miller was asked about both the former police chief Benazir and former army chief Aziz Ahmed, who recently came under the US visa restrictions over allegations of corruptions.

'So with respect to the first question, I don't have anything to announce. With respect to the second, I'm aware of the allegations and the media reports that you referenced,' he told the routine press briefing at the US state department in Washington.

Referring to the recent revelation of the immediate past police chief's massive corruption in Bangladesh, the questioner asked if the spokesperson could tell them whether any US agency had found any of his assets in the US or any other country and whether the US had frozen such assets as Benazir was also subject to two US sanctions.

Miller said that they believed corruption saps economic growth, hinders development, destabilises government, and undermines democracy.

'We have made anti-corruption a core national security interest since the outset of this administration, and our detailed implementation plan for this strategy has been articulated at a number of senior levels, but I don't have anything new to announce. And as you know, we never preview sanctions or other actions that we might take,' he told the briefing, responding to the questions.

About a joint investigation by German-based DW and Süddeutsche Zeitung and Sweden-based Netra News revealing that former and current members of Bangladesh's Rapid Action Battalion routinely get deployed as UN peacekeepers despite allegations of gross violation of human rights against the force, Miller said that they were aware of those reports.

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

 

[Bilal9]

More news on Benazir and family current whereabouts.

 

[Saif]

Recruitment in Malaysia: Syndicate siphons over $1b out of Bangladesh

When Malaysia resumed hiring Bangladeshis in August 2022 after a four-year hiatus, governments of the two countries agreed that a worker would have to spend just Tk 78,990 to get a job in the Southeast Asian country and fly there.

www.thedailystar.net

Recruitment in Malaysia: Syndicate siphons over $1b out of Bangladesh
Money sent through hundi over 20 months

When Malaysia resumed hiring Bangladeshis in August 2022 after a four-year hiatus, governments of the two countries agreed that a worker would have to spend just Tk 78,990 to get a job in the Southeast Asian country and fly there.

But in reality, a worker had to spend Tk 5.44 lakh or $5,000, according to a survey published earlier this month by the US-based non-profit Verite.

On March 28, four UN experts wrote to the Bangladesh and Malaysia governments about the situation of Bangladeshi migrants in Malaysia and mentioned that each migrant spent between $4,500 and $6,000.

Several migrant workers who spoke to The Daily Star from Malaysia said they spent over Tk 5 lakh to get there.

On December 19, 2021, Bangladesh and Malaysia signed a memorandum of understanding, according to which, a worker would need to spend no more than Tk 78,990 for the passport, health checkup, registration, welfare, insurance, identity card, clothing, and recruitment agency fees.

Malaysian employers were supposed to pay for the plane ticket, visa, security deposit, insurance, medical test, document attestation by the Bangladesh High Commission in Kuala Lumpur, and the Malaysian recruiting agents.

Industry insiders and researchers say a syndicate of 100 Bangladeshi recruitment agents, who were selected by Malaysian authorities, created a monopoly-like situation, in which a worker had no way of getting to Malaysia without spending hefty sums.

Many believe that the leader of the syndicate is Ruhul Amin Swapan, owner of Catharsis International, in Bangladesh and Datuk Seri Mohd Amin Abdul Nor, founder of IT firm Bestinet, in Malaysia.

The latter is a Bangladesh-born Malaysian citizen whose firm operates the Malaysian government's Foreign Workers Centralised Management System (FWCMS).

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

 

[Saif]

ACC scrutinises graft allegations against ex-army chief Aziz

The Anti-Corruption Commission on Thursday ordered its scrutiny cell to scrutinise corruption allegations submitted against former army chief General Aziz Ahmed.

www.newagebd.net

ACC scrutinises graft allegations against ex-army chief Aziz
Staff Correspondent 31 May, 2024, 00:34

Aziz Ahmed

The Anti-Corruption Commission on Thursday ordered its scrutiny cell to scrutinise corruption allegations submitted against former army chief General Aziz Ahmed.

'We discussed the allegations against former army chief Aziz Ahmed in today's [Thursday] meeting of the commission,' ACC chairman Mohammad Moinuddin Abdullah told New Age.

'After discussing the matter in our meeting, we asked the three-member scrutiny cell of the commission to scrutinise the allegations following rules and regulations and present them before the commission,' he added.

Supreme Court lawyer Salah Uddin Reagan filed a petition with the ACC on Wednesday seeking an inquiry into the alleged corruption of former army chief Aziz.

According to the lawyer's application, the United States sanctions against Aziz on corruption charges and the reports published in national daily newspapers have damaged the image of the Bangladesh Army and Bangladesh nationally and internationally.

Reagan called the ACC's reluctance to launch an investigation against Aziz after such a big complaint unfortunate.

On May 21, the United States Department of State announced that the former chief of the Bangladesh Army, General Aziz Ahmed, and his family members are generally ineligible to enter the US due to his involvement in 'significant corruption'.

The action against Aziz has been taken under Section 7031(c) of the annual Department of State, Foreign Operations, and Related Programmes Appropriations Act, the US State Department stated.

Speaking about the matter a day after the US announcement, foreign minister Hasan Mahmud insisted that Bangladesh was earlier informed about the decision by the US authorities and that he would not make further comment on it since it was a matter of the Bangladesh Army.

'His actions have contributed to the undermining of Bangladesh's democratic institutions and the public's faith in public institutions and processes,' said the US statement, adding that Aziz Ahmed engaged in significant corruption by interfering in public processes while helping his brother evade accountability for criminal activity in Bangladesh.

Aziz also worked closely with his brother to ensure the improper awarding of military contracts and accepted bribes in exchange for government appointments for his personal benefit, according to the statement.

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

 

[Saif]

Amnesty for bringing back smuggled-out money likely

State minister for finance Waseqa Ayesha Khan on Thursday hinted at the reintroduction of the scope for repatriating the smuggled-out money in the...

www.newagebd.net

Amnesty for bringing back smuggled-out money likely
Staff Correspondent 31 May, 2024, 00:41

State minister for finance Waseqa Ayesha Khan on Thursday hinted at the reintroduction of the scope for repatriating the smuggled-out money in the upcoming budget to be announced on June 6.

The state minister dropped the hint while talking to reporters about possible fiscal measures for FY25 at her secretariat office against the backdrop of high inflation and the dollar shortage that had crippled the economy.

It was heard that the scope for repatriating smuggled-out money would be given in the new budget, she said.

'But I cannot say anything about the rate of tax,' she said, adding that the National Board of Revenue would fix the rate for availing of the opportunity.

Despite criticisms, the immediate past finance minister, AHM Mustafa Kamal, announced the scope for repatriating smuggled-out money in FY23.

But no one took the opportunity to legalise cash or cash equivalents, bank deposits, bank notes, bank accounts, convertible securities, and financial instruments held abroad by paying a 7 per cent tax.

The country's first-ever offshore tax amnesty was withdrawn in the outgoing FY24.

For the upcoming FY25, the NBR is likely to give tax amnesty to legalise undisclosed money held by errant taxpayers at the local level.

The state minister said that an analysis of the impacts of climate change would be made in the new national budget.

However, the top focus will be given to tackling inflation, she said.

The majority of people have been pressed hard by inflation, which has remained above 9 per cent since March 2023.

The state minister said that the social safety net programme would be expanded in the new national budget while the subsidised food supply programme would continue.

Answering a question about whether the government was heading towards loan-dependent development, the state minister said they were not doing so.

'Our loan-to-GDP ratio is lower than in many countries,' she said, claiming that the country had never defaulted on loan repayments.​

 

[Saif]

Ex- IGP Benazir withdraws Tk 100cr from FDRs before bank account seizure

The Anti-Corruption Commission found that former inspector general of police Benazir Ahmed and his family members withdrew around Tk 100 crore from...

www.newagebd.net

Ex- IGP Benazir withdraws Tk 100cr from FDRs before bank account seizure
Staff Correspondent 31 May, 2024, 00:35

Benazir Ahmed.

The Anti-Corruption Commission found that former inspector general of police Benazir Ahmed and his family members withdrew around Tk 100 crore from their fixed deposits in different banks before the seizure of their bank accounts.

ACC officials said that they had specific information on the withdrawal of the money by Benazir from bank accounts and Fixed Deposit Receipts. The commission will place all the information before the court in this regard, they said.

When asked, ACC commissioner [investigation] Md Zahurul Haque on Thursday said, 'It is heard that he [Benazir] has withdrawn some money.'

'The ACC inquiry officer will see what was withdrawn from his bank accounts and it can be found only by checking his bank account,' he said.

ACC officials said Benazir started withdrawing the money step by step since the media reports claimed he and his family members amassed illegal wealth.

Earlier on Tuesday, the ACC decided to interrogate Benazir and his family members over their alleged accumulation of illegal wealth.

The former police chief was likely to be interrogated on June 6 at the ACC headquarters in the capital's Segun Bagicha, and his wife, Zeeshan Mirza, and other family members were likely to be interrogated on June 9.

Following a petition filed by the ACC on May 19, a Dhaka senior special judge's court ordered the seizure of all properties listed in 119 documents under the names of Benazir and his family members.

Apart from this, four companies under his family members' names and partial shares in 15 companies, four BO accounts, and four flats in Gulshan area have been instructed for seizure.

On May 23, the same Dhaka court also ordered the freezing of 33 financial accounts of Benazir and his family members and the seizure of 345 bigha of property listed in 83 documents under Benazir and his family members' names in Gopalganj and Cox's Bazar.

The court ordered the seizure of approximately 621 bigha of land in total owned by Benazir and his family members.

On April 18, the ACC at a meeting decided to carry out an inquiry against Benazir for allegedly accumulating illegal wealth after newspapers and electronic media ran reports in this regard.

The reports highlighted the lavish lifestyle of Benazir family and his holding of shares in different companies.

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

 

[Saif]

Corruption has devoured our dreams

If we look at the overall picture of Bangladesh’s economy over the past few years, we will see it is not doing very well, says economist Mustafa Kamal Mujeri. Over the past four or five years the macroeconomic indicators have turned downwards, whether it is the inflation, foreign exchange...

en.prothomalo.com

Corruption has devoured our dreams
Mustafa Kamal Mujeri is the executive director of the Institute for Inclusive Finance and Development (InM). He has served as the lead economist of Bangladesh Bank. During his career he taught at Rajshahi University, was a planning commission expert and served as a UNDP consultant for the government of Cambodia. In an interview with Prothom Alo's Monoj De, he speaks about the state of the macro economy, inflation, the challenges to the budget and the way ahead.

Mustafa Kamal MujeriKHALED

Prothom Alo : Inflation, reserves, the dollar exchange rate – all economic indicators have taken a nose dive. What is the state of the macro economy?

Mustafa Kamal Mujeri: If we look at the overall picture of Bangladesh's economy over the past few years, we will see it is not doing very well. Over the past four or five years the macroeconomic indicators have turned downwards, whether it is the inflation, foreign exchange reserves, the foreign currency exchange rate, the banking sector and so on. Even just a few years ago our growth exceeded 8 per cent. But that has turned downwards now. Given the current growth trend, it is apparent that we have deviated far from the eighth five-year plan roadmap. It is the same with the other indicators. In short, we have moved far away from the path where we wanted to lead the economy in order to meet our targets and fufill our dreams. This deviation has taken place in every area, some more, some less.

Prothom Alo : We are seeing instances of corruption by persons in top positions of important government institutions. Money laundering can't be stopped either. Where is corruption and money laundering leading our economy?

Mustafa Kamal Mujeri: Reports on the corruption of a few persons in high government positions have come to light. But this is not the overall picture of corruption. The overall picture is undoubtedly much worse. I would say with time our corruption has accumulated. Corruption in intrinsically linked with the problems of our economy today, with the struggle we are witnessing. Corruption has devoured our dreams. Even the information we receive about money laundering is not comprehensive or accurate. But given the information we have from various agencies at home and abroad, it is clear that money laundering is a large part of our corruption. It is the wealthy and influential persons of society who are involved in money laundering. Corruption and money laundering are a huge problem for us, a huge challenge.

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

 

[Bilal9]

ACC scrutinises graft allegations against ex-army chief Aziz

The Anti-Corruption Commission on Thursday ordered its scrutiny cell to scrutinise corruption allegations submitted against former army chief General Aziz Ahmed.

www.newagebd.net

ACC scrutinises graft allegations against ex-army chief Aziz
Staff Correspondent 31 May, 2024, 00:34

View attachment 6204
Aziz Ahmed

The Anti-Corruption Commission on Thursday ordered its scrutiny cell to scrutinise corruption allegations submitted against former army chief General Aziz Ahmed.

​

This guy is possibly the next big fish to fall OUT OF FAVOR with Hasina, per USA whims.

This is just personal opinion, but all indicators point that way.

He and his family members are already under sanction by the US.​

 

[Saif]

This guy is possibly the next big fish to fall OUT OF FAVOR with Hasina, per USA whims.

This is just personal opinion, but all indicators point that way.

He and his family members are already under sanction by the US.​

People say that Gen. Aziz made crores of Taka by receiving commissions from various arms deals. He even involved his family members in many big ticket arms deals of Bangladesh army.​

 

[Bilal9]

People say that Gen. Aziz made crores of Taka by receiving commissions from various arms deals. He even involved his family members in many big ticket arms deals of Bangladesh army.​

You are correct. This is my information from top army sources as well.

 

[Saif]

You are correct. This is my information from top army sources as well.

I think Hasina will somehow save Aziz because he knows too much about Hasina's Kala Kartoot.

 

[Saif]

Benazir's Savanna Eco Resort closed

Savanna Eco Resort and Natural Park, owned by former Inspector General of Police (IGP) Benazir Ahmed and his family, has been closed following allegations of illegal asset acquisition

www.thedailystar.net

Benazir's Savanna Eco Resort closed

Photo: Savanna Bangladesh

Savanna Eco Resort, owned by former Inspector General of Police (IGP) Benazir Ahmed and his family, has been closed following allegations of illegal asset acquisition.

The resort's booking manager, Md Sabbir, confirmed this to The Daily Star, stating that the closure was directed by the authorities due to technical issues.

Sabbir assured that the public would be informed via the resort's Facebook page once it reopens.

The shutdown comes amid ongoing investigations into the alleged illegal wealth accumulation by the former IGP and his family.​

 

[Saif]

Tk 1.77 crore graft: Bakhrabad Gas ex-deputy manager, his wife sued

The Anti-Corruption Commission today filed a case against a former deputy manager of Bakhrabad Gas Distribution Company Ltd and his wife on charges of embezzling Tk 1.77 crore

www.thedailystar.net

Tk 1.77 crore graft: Bakhrabad Gas ex-deputy manager, his wife sued

Anti-Corruption Commission Logo

The Anti-Corruption Commission today filed a case against a former deputy manager of Bakhrabad Gas Distribution Company Ltd and his wife on charges of embezzling Tk 1.77 crore.

Deputy Assistant Director of Cumilla Office Mohammad Atiqur Rahman filed the case against Abdul Hai Bhuiyan, 62, and his wife Anjuman Ara Begum, 56, yesterday, Deputy Director Fazlul Haque said.

The accused are residents of Bara Vatua area of Comilla Barura upazila.

According to case statement, the accused who are currently living in West Bagichagaon of the town, could not show any source of acquisition of wealth worth more than TK 1.77 crore.​

 

[Saif]

ACC decision likely today if ex-army chief Aziz to face probe

The Anti-Corruption Commission is likely to take a decision today regarding launching an inquiry into the corruption allegations against former army chief...

www.newagebd.net

ACC decision likely today if ex-army chief Aziz to face probe
Staff Correspondent 04 June, 2024, 00:30

Aziz Ahmed.

The Anti-Corruption Commission is likely to take a decision today regarding launching an inquiry into the corruption allegations against former army chief retired general Aziz Ahmed.

A scheduled meeting of the commission led by its chairman Mohammad Moinuddin Abdullah would be held on Tuesday at the commission headquarters in Dhaka where they may take a decision regarding an inquiry into the allegations against Aziz, said ACC officials on Monday.

Earlier on Thursday, the commission in a meeting discussed the graft complaints brought against Aziz, ordered its scrutiny cell to thoroughly examine the allegations and submit a report before the commission for the next course of action.

After the meeting ACC chairman Moinuddin Abdullah told New Age, 'We discussed the allegations against the former army chief.'

'We also asked the commission's scrutiny cell to scrutinise the allegations following rules and regulations and present a report before the commission,' he added.

ACC officials said on Monday that the three-member scrutiny cell had already completed its scrutiny and prepared a report.

Earlier, Supreme Court lawyer Salah Uddin Reagan filed a petition with the ACC on Wednesday seeking an inquiry into the alleged corruption of former army chief Aziz.

According to the lawyer's application, the United States sanctions against Aziz on corruption charges and the reports published in national dailies damaged the image of the Bangladesh Army and Bangladesh both nationally and internationally.

Reagan called unfortunate the ACC's reluctance to launch an investigation against Aziz even after such massive corruption allegations.

On May 21, the United States Department of State announced that the former chief of the Bangladesh Army, General Aziz Ahmed, and his family members were generally ineligible to enter the US due to his involvement in 'significant corruption'.

Talking to the media, Aziz, in his instant reaction, said that he was surprised at the announcement of such a US action against him on corruption allegations, which he termed baseless.

Aziz was Bangladesh army chief between 2018 and 2021.​

 

[Saif]

Aussie MP seeks review of funding for Bangladesh

An Australian lawmaker on Tuesday urged the country’s government to immediately review its funding arrangements with Bangladesh to ensure...

www.newagebd.net

Aussie MP seeks review of funding for Bangladesh
Staff Correspondent 04 June, 2024, 20:57

Abigail Boyd. | Collected photo.

An Australian lawmaker on Tuesday urged the country's government to immediately review its funding arrangements with Bangladesh to ensure they were being used to support the people of Bangladesh and not filling the pockets of corrupt officials.

Abigail Boyd, member of the Legislative Council and Temporary Chair of Committees, came up with the demand in a notice submitted to the Parliament of New South Wales.

Boyd shared a video of her statement made in parliament on her verified Facebook page.

She brought the issue to the house, referring to recent United States sanctions on former Army chief Aziz Ahmed over his involvement in 'significant corruption'.

In her notice, she said that this House notes that, on May 20, 2024, the US Department of State announced the public designation of former General Aziz Ahmed, previously chief of the Bangladesh Army Staff, for significant corruption, including interfering in public processes, assisting his brother to evade accountability for criminal activity, and accepting bribes in exchange for government appointments.

In addition, she asked the parliament to note that there were many reports of corrupt activity being carried out by Bangladeshi officials, with the chair of the Bangladeshi Anti-Corruption Commission stating in November 2020 that corruption and bribery are rampant in government services.

The Greens member also said that corruption in Bangladesh had undermined its democratic institutions and the public's faith in public institutions and processes, and the Bangladeshi authorities had further undermined democratic institutions and processes by rigging elections and violently silencing or arresting over 8,000 members of the opposition party in order to maintain power, subjecting their citizens to arbitrary arrests, intimidation, surveillance, extortion, and torture, and carrying out over 600 enforced disappearances since 2009, of which 100 individuals are still missing.

She also said that the Australian government gave $116.2 million in developmental aid to Bangladesh in the 2023–24 financial year and supported Bangladeshi students as they pursued graduate school in Australia.

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

 

[Saif]

‘Indulging in Graft’: ACC to make list of those who aided Benazir

An Anti-Corruption Commission (ACC) investigation team is now making a list of police officials, land officials, politicians, and others who aided and abetted former inspector general of police, Benazir Ahmed, in committing corruption.

www.thedailystar.net

'Indulging in Graft': ACC to make list of those who aided Benazir

An Anti-Corruption Commission (ACC) investigation team is now making a list of police officials, land officials, politicians, and others who aided and abetted former inspector general of police, Benazir Ahmed, in committing corruption.

Once the list is made, the ACC will quiz the individuals.

The sub-registrars of Dhaka, Gopalganj, Madaripur, and Gazipur land offices are likely to be among them, as Benazir and his family own properties in those districts.

A high official at the ACC requesting anonymity told The Daily Star, "Benazir committed corruption with the assistance of many individuals, as it would not have been possible to indulge in corruption to such extent alone. Most of his aides are police personnel."

The official said, "Some police officers even co-own some of Benazir's properties, like the Bhawal Resort in Gazipur."

These individuals reaped benefits when Benazir was the Dhaka Metropolitan Police commissioner, director general of Rab, and the IGP.

The ACC investigation team found that Benazir bought many pieces of land at prices much lower than the market value.

A list of sub-registrars who helped Benazir is being prepared, sources said.

ACC Chairman Mohammad Moinuddin Abdullah told The Daily Star yesterday, "Our investigation team is completely independent.

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

 

[Saif]

Withdraw provision to legalise black money: TIB

Transparency International Bangladesh (TIB) today expressed shock and disappointment over the “unethical provision” in the newly announced budget that allows the laundering of black money disguised as undisclosed income

www.thedailystar.net

Withdraw provision to legalise black money: TIB

Transparency International Bangladesh (TIB) today expressed shock and disappointment over the "unethical provision" in the newly announced budget that allows the laundering of black money disguised as undisclosed income.

TIB fears that the facility to legalise black money with just a 15 percent tax will discourage honest and legitimate taxpayers, as no authority will question the money and assets declared under this provision, according to a press release of the organisation.

"This will foster a liberal environment conducive to corruption in the country," it said.

Furthermore, this opportunity undermines the ruling party's election manifesto and its frequently reiterated pledge of zero tolerance against corruption.

"In light of these concerns, TIB is strongly demanding that the government withdraw this provision allowing the laundering of black money," it added.

TIB Executive Director Iftekharuzzaman expressed frustration over the logic behind keeping the provision to whiten black money.

He also expressed disappointment at how the Data Verification System (DVS) has resulted in legal complexities regarding the declaration of undisclosed money, leading to the legitimization of property purchases using such funds, primarily due to taxpayers' lack of awareness.

"Even more troubling is that no authority will have the opportunity to question these transactions," he said.

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

 

[Saif]

Whitening Black Money: ‘Unethical, unjust and unacceptable’

Backtracking on its promise to eliminate black money, the government has once again made room to allow both individuals and companies to whiten money without facing scrutiny and by paying a 15 percent tax, a move that drew sharp criticism from economists and civil society.

www.thedailystar.net

Whitening Black Money: 'Unethical, unjust and unacceptable'
Economists blast the provision

Backtracking on its promise to eliminate black money, the government has once again made room to allow both individuals and companies to whiten money without facing scrutiny and by paying a 15 percent tax, a move that drew sharp criticism from economists and civil society.

The government hopes the initiative will increase the flow of money into the economy despite such measures failing to yield any fruitful benefits in the past.

According to the new provision, no authority can raise any question if a taxpayer pays tax at fixed rates for immovable properties such as flats and land and 15 percent tax on other assets, including cash, irrespective of the existing laws of the country.

The scope to whiten black money will remain in place till June 2025.

Before the last national election, the Awami League's election manifesto promised strong measures against those hoarding undisclosed money as well as those engaged in corruption.

But economists and corruption watchdogs said that successive governments allowing the whitening of black money was akin to "licencing corruption".

"This scope shouldn't be allowed at all," said Prof Mustafizur Rahman, a distinguished fellow at the Centre for Policy Dialogue, a think tank. "It's unacceptable, ethically and financially."

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

 

[Saif]

Tax measures to take toll on honest, relieve errant

Finance minister Abul Hassan Mahmood Ali on Thursday announced a series of measures, including reintroducing scope for legalising undisclosed money by paying tax at a...

www.newagebd.net

Tax measures to take toll on honest, relieve errant
Shakawat Hossain 07 June, 2024, 00:23

Finance minister Abul Hassan Mahmood Ali on Thursday announced a series of measures, including reintroducing scope for legalising undisclosed money by paying tax at a flat 15 per cent rate in the new national budget worth Tk 7.97 lakh crore.

Besides, the finance minister declared an expansion of Value Added Tax and cut income tax rebates to augment higher revenues and keep the budget deficit within a tolerable level as per the dictation of the International Monetary Fund under the $4.7 billion loan programme.

It was the first budget of the 82-year-old diplomat-turned-finance minister, who was under pressure to bring back macroeconomic stability amid a shortage of dollars and high inflation.

However, his measure to withdraw tax waivers from industries like air coolers and refrigerators and the imposition of a higher tax on juices and ice cream, electric bulbs, etc will force manufacturers to pass on the extra cost to consumers already reeling from decade-high inflation.

His expansionary tax measures will increase the living costs of the majority of people, while the affluent section will remain almost unharmed with an unchanged wealth surcharge.

The finance minister identified inflation as the main challenge for FY25.

His announcement of the expansion of the social safety net programme by increasing the number of beneficiaries and the continuation of subsidised food distribution has been welcomed by the economists, as they will continue assisting vulnerable groups amid prolonged economic distress.

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

 

[Saif]

PM defends budgetary proposal for whitening black money

Prime Minister Sheikh Hasina today supported the budgetary provision for legalising black money saying that it should be brought to the legal network first

www.thedailystar.net

PM defends budgetary proposal for whitening black money

Prime Minister Sheikh Hasina. Photo: PID

Prime Minister Sheikh Hasina today supported the budgetary provision for legalising black money saying that it should be brought to the legal network first.

"The money should be allowed to come to the appropriate place (the banking channel) first with payment of a nominal amount of money (tax) and then they will have to pay tax regularly... If you go to catch fish, you need to provide feed," she said.

The premier was addressing a discussion arranged by Awami League at its office in Dhaka's Tejgaon area, marking the historic Six-point Day.

Talking about the scope for whitening black money, the prime minister said many raised questions regarding black money and argued that it would discourage legal tax prayers.

She said it's not right, rather the fact is the prices of everything went up and the owner of one katha land is a millionaire (kotipoti). But no one sells land at the government rate. They sell it at higher prices. So, they keep the surplus money received from the sale of land outside the banking network, she added.

The PM said the last budget during the BNP regime was of Tk 62,000 crore and that during the caretaker government was Tk 68,000 crore whereas her government has been able to place the budget of Tk 797,000 crore this time.

"This budget has focused on some basic demands and attached the highest priority to education, health, agriculture and local industries and social safety to ensure the basic rights of the people," she said.

Talking about the worldwide high inflation, the PM said the people with limited income are suffering due to Inflation. "But we've introduced family cards for the limited-income people so that they can purchase several essential commodities like rice, pulse and edible oil at fair prices. We're providing food to those who are extremely poor," she said.

Besides, the government has been providing financial assistance to the people under some 150 social safety programmes, providing free textbooks to school students, and providing the people with some 30 types of free medicines from the community clinics.

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

 

[Saif]

This budget is for promoting black money: Fakhrul

BNP Secretary General Mirza Fakhrul Islam Alamgir today said the proposed national budget for the fiscal year 2024-25 as black money-friendly, saying it will further widen scope for corruption in the country

www.thedailystar.net

This budget is for promoting black money: Fakhrul

BNP Secretary General Mirza Fakhrul Islam Alamgir. File photo

BNP Secretary General Mirza Fakhrul Islam Alamgir today said the proposed national budget for the fiscal year 2024-25 as black money-friendly, saying it will further widen scope for corruption in the country.

"This budget is for promoting black money. This is also the budget of how black money can be whitened, corruption can be expanded, and money can be made (illegally)," he said.

Speaking at a seminar, the BNP leader also said the budget was not formulated for the welfare of the people or for creating job opportunities.

"There is no need to talk about the budget. You see the cartoon on the front page of The Daily Star, where a huge elephant is sitting on top of many ordinary farmers, workers, hardworking people… This brilliant cartoon has depicted a clear picture of the budget," he observed.

The BNP leader said the government has allocated huge amount of money for unproductive sectors for creating more scopes to plunder public money.

"Sonali Dal," a panel of teachers of Bangladesh Agricultural University, arranged the event at Dhaka Reporters' Unity (DRU), marking the 43rd death anniversary of former president and BNP founder Ziaur Rahman.

Fakhrul slammed the government for increasing the tax on capital machinery in the proposed budget. "What is the meaning of increasing tax on capital machinery? The meaning is that there should be no industry and factory here as machinery cannot be imported."

He said people are going through a very tough time due to a lack of employment and earning sources. "Those who used to do small business and work here in Dhaka are now moving to the villages for a lack of jobs. But they're also facing a terrible situation as there is no work there as well."

"This government is sustaining on lies. All statistics of this regime are false and fabricated. On which statistics will you make a plan? Benazir's (former IGP) corruption is everywhere now... Benazir is everywhere now," the BNP leader said.​

 

[Saif]

Amnesty for black money: what are the proposed tax measures?

By re-launching the initiative, the government seeks to increase the flow of money into the economy, although such measures failed to yield any fruitful benefit in the past.

www.thedailystar.net

Amnesty for black money: what are the proposed tax measures?
By re-launching the initiative, the government seeks to increase the flow of money into the economy, although such measures failed to yield any fruitful benefit in the past.

The government wants to re-introduce the provision allowing individuals and companies to whiten their black money without facing any question from any authority about the source of the wealth.

According to the new provision, a taxpayer needs to pay tax at fixed rates against investment in immovable properties such as flats and land.

In case of other assets, including cash and deposits in banks, a taxpayer will need to pay a 15 percent tax on the amount to legalise his/her income.

By re-launching the initiative, the government seeks to increase the flow of money into the economy, although such measures failed to yield any fruitful benefit in the past.

The unquestioned amnesty to black money will remain effective from July 1 this year to June 30 next year if the lawmakers approve the proposal placed by Finance Minister Abul Hassan Mahmood Ali on June 6 as part of tax measures for the next fiscal year.

But what are the provisions in his proposal?

By paying a 15 percent tax, one can invest his/her undeclared money in financial schemes and instruments, in the stock market or deposits in banks.

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

 

[Saif]

Suspicious transactions, capital flight growing

Suspicious transactions linking to money laundering are growing in the county amid the resource crunch caused by a persistent dollar shortage.

www.newagebd.net

Suspicious transactions, capital flight growing
Shakhawat Hossain 09 June, 2024, 23:57

Suspicious transactions linking to money laundering are growing in the county amid the resource crunch caused by a persistent dollar shortage.

According to a budget document, the Bangladesh Financial Intelligent Unit received 12,046 suspicious transaction reports and suspicious activity reports in the first nine months of the outgoing FY24.

The number was around 10,000 during the same period of FY23 with the BFIU recording overall 14,100 STRs and SARs at the end of FY23.

The BIFU also took measures against 25.9 million cash transaction reports in the first nine month of the outgoing FY24, said the budget document prepared by the Financial Institutions Division over the country's financial sector.

Former Bangladesh Bank governor Salehuddin Ahmed, however, called the government initiatives to check the hundi and capital flight insufficient.

The inflow of remittance did not reflect the growing number of overseas job seekers from the country, he said, adding that hundi diverted remittance elsewhere.

Some 11 lakh Bangladeshi sought overseas jobs in FY23 as the Middle East countries hired workers from Bangladesh in an increased number.

But despite the rise in employment, inward remittance had not increased much.

For the period of July–April in the current financial year FY24, remittance inflow reached $21.3 billion against $19.1 billion earned in the same period of FY23.

The Financial Institutions Division report said the the BFIU suspended 27,860 individual mobile financial service accounts and two MFS providers in the first nine months of the outgoing FY24.

The BFIU also closed down 291 websites, 33 apps and 464 social media platforms for same reasons during the same period.

On May 9, finance minister Abul Hassan Mahmood Ali said that money laundering was increasing due to online gambling, gaming and hundi while responding to a question in the parliament.

Taking advantage of this development in technology, some unscrupulous circles became involved in criminal activities such as online gambling/betting, gaming, forex/cryptocurrency trading and hundi, he said.

As a result, he said that money was being smuggled out of the country leading to the loss of foreign currency.

Remittance significantly contributes to the country's balance of payments, but the slower than expected growth had deepened the current economic crisis begun in April 2022.

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

 

[Saif]

Provision to whiten black money an injustice to honest taxpayers: speakers

Prof Selim Raihan, executive director of SANEM, criticises the tax disparity between honest earners and black money holders

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Provision to whiten black money an injustice to honest taxpayers: speakers

The provision for whitening black money by paying 15 percent tax in the proposed national budget for 2024-25 fiscal year will encourage corruption, and it stands against the values of a just society, said speakers at an event today.

They remarks came at a national budget review programme organised by the Economics department of Dhaka University on the premises.

Prof Selim Raihan, executive director of SANEM, criticised the tax disparity between honest earners and black money holders.

"People with legal incomes have to pay 30 percent or more taxes, while those legalising black money will pay 15 percent. This is an injustice to honest taxpayers," he said.

Raihan questioned the realism of the government's target to reduce inflation to 6.5 percent within the next fiscal year, with a GDP growth target of 6.75.

"The exchange rate needs to be stabilised and the government should further undertake major reform initiatives to address problems in the financial sector, including defaulted loans," he added.

Prof Masuda Yasmin, chairman of DU Economics department, expressed her disappointment with the budget, saying it failed to meet expectations amid the current economic crisis.

"The economy needs stability, even if it means slower growth," she said.

Prof Sayema Haque said the government could have reduced the budget deficit further, warning that borrowing from the domestic sector to meet the deficit could lead to increased inflation.

DU Vice Chancellor Dr ASM Maksud Kamal highlighted the growing waste in various sectors due to a lack of skills and the need for special attention to agricultural production in light of climate change.

"There will be a significant risk to food security in future if the agriculture sector isn't given priority in the budget," he said.

Speakers also talked on issues including social security, large-scale investment, industrialisation, and the health system.

They called for increased allocation and incentives in the SME (small and medium-sized enterprises) sector, proper use of budget allocations, and institutional measures against corruption to ensure proper implementation.

Prof Ferdowsi Nahar, Rumana Haque, Saima Haque, and Syed Naimul Wadood also spoke at the event.​

 

[Saif]

Probe initiated against Aziz’s siblings

An investigation has been initiated into the alleged passport and NID card forgery against former army chief general Aziz Ahmed’s siblings Haris Ahmed and...

www.newagebd.net

Probe initiated against Aziz's siblings
Staff Correspondent 11 June, 2024, 00:27

Aziz Ahmed

An investigation has been initiated into the alleged passport and NID card forgery against former army chief general Aziz Ahmed's siblings Haris Ahmed and Tofael Ahmed.

The Anti-Corruption Commission sent letters to the Election Commission and the Department of Immigration and Passports in the past week to investigate the allegations, said commission chairman Mohammad Moinuddin Abdullah on Monday.

The Election Commission on Sunday formed a committee with three members of its National Identity Card wing to investigate how Haris and Tofael, also known as Joseph, obtained NID cards using false information, chief election commissioner Kazi

Habibul Awal told journalists on Monday.

He said, 'The NID has a technical side. There may be loopholes in this technology, but if only 0.01 per cent people abuse it, efforts should be made to bring them to justice.'

No investigation has, however, been initiated into the alleged forgery by former inspector general of police Benazir Ahmed in obtaining ordinary passport despite being a public servant.

ACC lawyer Khurshid Alam Khan told New Age, 'Now the ACC is conducting an inquiry into the allegations brought against Benazir Ahmed over amassing wealth and money laundering.'

The commission will also take further step if its inquiry finds other anomalies such as irregularities in obtaining passport, he said.

Recent reports suggested that Haris used the alias Mohammad Hasan to obtain an NID card, falsely listing Suleman Sarkar and Rahela Begum as his parents.

Additionally, he changed his photo on his NID card in 2019, with the recommendation for the change coming from his brother Aziz Ahmed when he was the army chief.

Tofael Ahmed, alias Joseph, possessed two NID cards—one under his actual name with parents listed as Abdul Wadud and Renuja Begum, and another under the name Tanvir Ahmed Tanjeel, with different parent names.

The ACC is also scrutinising allegations of corruption against retired general Aziz Ahmed following a petition submitted by a lawyer recently.

This development came after the United States had imposed sanctions on Aziz Ahmed and his immediate family members on May 21, citing his alleged involvement in serious corruption.

Aziz served as the chief of army staff from June 2018 to June 2021 and also led the Border Guard Bangladesh from 2012 to 2016.

Aziz, the eldest among five brothers, had siblings who made headlines for criminal activities of murder, extortion and illegal possession of firearms during the 1990s and 2000s.

Joseph, in particular, was implicated in ten cases related to extortion and illegal firearms possession.

In 2004, Joseph was sentenced to death, while Haris and another brother, Anis, received life imprisonment in a murder case.

The spotlight intensified on Aziz Ahmed when Joseph was granted clemency in the murder case in 2018, followed by similar actions for Haris and Anis in 2019.

An Al-Jazeera documentary 'All the prime minister's men,' aired on February 1, 2021, alleged that Aziz misused his influence to secure contracts for his convicted brothers.

However, both the army headquarters and foreign ministry dismissed these allegations as false and defamatory.

The National Identity Registration Act 2010 stipulates penalties for providing false information to obtain an NID card, including imprisonment for up to one year, a fine of Tk 20,000, or both.

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

 

[Saif]

AL stays in power by forging ties with corrupt officials: Fakhrul

BNP Secretary General Mirza Fakhrul Islam Alamgir today alleged that the Awami League has remained in power by forging an alliance with corrupt bureaucrats and government officials

www.thedailystar.net

AL stays in power by forging ties with corrupt officials: Fakhrul

BNP Secretary General Mirza Fakhrul Islam Alamgir yesterday alleged that the Awami League has remained in power by forging an alliance with corrupt bureaucrats and government officials.

Speaking at a discussion, he also alleged that the current government is obtaining funds from China in the name of mega projects and embezzling huge money as commissions.

"The Awami League is now the party of Benazir and Aziz. Awami League is no longer a political institution as it has become extremely bankrupt...," the BNP leader said.

BNP's Dhaka division unit organised the discussion at Monno City, Gilondo, marking the 43rd death anniversary of party founder Ziaur Rahman

Fakhrul said Bangladesh is now under the grip of not only hegemony but also fascism. "Those who now rule the country have no relation with the people."

He said the government has been arranging unilateral elections in its own style, keeping the voters and major political parties out of the race.

He voiced concern that the country's economy is on the verge of collapse due to widespread corruption and plundering.

The BNP leader said the noted economists of the country at a seminar organised by NOAB (Newspaper Owners' Association of Bangladesh) on Monday warned that the country's economy is on the brink of disaster.

"The government is unwilling to admit this. They always claim that the economy is doing very well. But their corruption continues unabated. They are constantly seeking new ways to engage in further corruption. Through mega projects, they are facilitating mega corruption," Fakhrul observed.

Fakhrul said it is surprising that most of the mega projects are financed by China.

"They [China] give funds to the Bangladesh government which awards tenders to their preferred individuals… one or two government-backed persons get five percent commission for securing the funds and another five percent is given for the distribution of work on the project. Many of us are unaware that the funds brought in from China are subject to commissions," the BNP leader said.

He also alleged that the current regime does not do anything without taking a commission. "Not only that, several new financial institutions have been established here… One such institution is called 'Nagad.'"

Fakhrul said a certain percentage of the commission from every transaction of Nagad is sent abroad to a specific individual. "I don't want to mention the name of anyone, but this money goes to a particular individual abroad. And this is not just a one-off case; there are many more such instances."

He called upon the people from all walks of life, especially the young generation, to be vocal to save the country.​

 

[Saif]

Don’t reward corrupt, negligent public servants

Bangladesh needs an accountable, service-oriented administrative system

www.thedailystar.net

Don't reward corrupt, negligent public servants
Bangladesh needs an accountable, service-oriented administrative system

VISUAL: STAR

We are shocked to learn of the reinstatement of an official at the youth and sports ministry who, only a few months ago, was dismissed on charges of embezzlement. According to a report by this daily, the move has raised questions among the ministry officials themselves. Indeed, such a decision would make any honest employee disappointed, and it also sets a dangerous precedent at a time when the widespread corruption in public sector demands exemplary actions, not exemptions.

The official in question, Farhat Noor, and three others were found guilty of embezzling Tk 11.52 crore during an investigation conducted by a probe body formed by the ministry. Upon finding proof, the ministry decided to terminate the four officials, and the decision was endorsed by the Bangladesh Public Service Commission on February 12. But on June 5, the ministry issued an order through a gazette notification reinstating Noor in his old position, in Moulvibazar. The gazette further mentions that Noor pleaded for withdrawal of his dismissal in an appeal filed with the PMO on March 18.

Another report also caught our attention yesterday. According to Prothom Alo, Dr Fatema Doza, an associate professor at the National Institute of Cardiovascular Diseases (NICVD), has been accused of many irregularities including being absent from work for one and a half years, presenting fake invitation to an overseas seminar, etc. She has even been charged with the abuse of domestic help. Several internal investigations found proof supporting the allegations, and yet, there has been no repercussion as she continues to hold on to her position, enjoying all the benefits that come with it.

How would the responsible government organisations justify their inactions? Why is it that government employees like Noor and Doza get away with their criminal acts with such impunity? Has the charge against Farhat Noor been disproven? As far as we know, there is no indication of that. What drove the ministry to backtrack on its own decision, then? And how is it that Fatema Doza has been able to carry on with her job for years when she has been found guilty of the charges against her? It goes without saying that these circumstances directly contradict the government's own stated policy of zero tolerance for corruption.

These two cases once again show how the public sector is being run without any functional accountability, and exhibit why there is a trust deficit between the public and the government. If there was a strong mechanism in place to ensure accountability in public service, so many government employees would not be so bold to carry out their corruption and irregularities. This state of affairs cannot continue in a democratic system. We urge the government to establish a modern, accountable administrative system where officials paid by the public are held responsible for any breach of contract, and indeed crimes.​

 

[Saif]

ACC finds graft evidence against ex-IGP Benazir

The Anti-Corruption Commission found evidence of corruption against former inspector general of police Benazir Ahmed and his family in the inquiry over his...

www.newagebd.net

ACC finds graft evidence against ex-IGP Benazir
Staff Correspondent 13 June, 2024, 23:48

Benazir Ahmed

The Anti-Corruption Commission found evidence of corruption against former inspector general of police Benazir Ahmed and his family in the inquiry over his amassing illegal wealth.

'There is no legal bar to file a case against Benazir Ahmed based on the findings received till now regarding his wealth,' said ACC lawyer Khurshid Alam Khan on Thursday.

Talking to journalists, the lawyer said, 'I think, there is enough information to file a regular case against him, but now, the ACC will take the decision regarding the filing of the case, it is their jurisdiction.'

The court has already ordered the seizure of the properties and bank accounts of Benazir and his family as there was evidence of offences, he said.

Khurshid also said, 'The information about suspicious transactions, ill-gotten income, and wealth of the former IGP is, I think, "dangerous".'

Earlier, in three phases, the Dhaka Metropolitan Senior Special Judge Court ordered the seizure of a huge amount of movable and immovable assets belonging to Benazir and his family members following ACC petitions.

Among the wealth, the court ordered the seizure of a total of 697 bighas of land in Gopalganj, Madaripur, Cox's Bazar, Bandarban, and Narayanganj, 12 flats in Dhaka, and shares in 21 companies in the name of Benazir and his family.

Apart from this, the court also ordered the freezing of a Tk 30 lakh investment in savings certificates, 33 bank accounts, and three BO accounts.

A three-member inquiry team, led by ACC deputy director Md Hafizul Islam, found the assets during the ongoing inquiry into allegations of Benazir and his family members.

The ACC, based on a media report, decided on April 18 to investigate allegations of amassing illegal wealth by Benazir and his family.

On May 28, the ACC summoned them, but neither Benazir nor his family members appeared before it on June 6 and 9.

Later, the ACC fixed June 23 and 24 for them to come before the commission.

Benazir and the family reportedly left the country on May 4 amid allegations of acquiring illegal wealth and money laundering.

Benazir joined the police force as an assistant superintendent of police in February 1988, and he retired on September 30, 2022.

On December 10, 2021, the United States declared the then IGP Benazir ineligible for entry into the country for 'gross violations of human rights' while serving as RAB director general.​

 

[Saif]

Danger of treating black money softly

'Black money', according to Investopedia,'includes all funds earned through illegal activity and otherwise legal income that is not recorded for tax purposes'. The sources of black money, as defined, include tax evasion as well as corruption, money laundering and illicit trade. So, ideally, in a la

thefinancialexpress.com.bd

Danger of treating black money softly
SYED FATTAHUL ALIM
Published :
Jun 09, 2024 22:02
Updated :
Jun 10, 2024 22:47

'Black money', according to Investopedia,'includes all funds earned through illegal activity and otherwise legal income that is not recorded for tax purposes'. The sources of black money, as defined, include tax evasion as well as corruption, money laundering and illicit trade. So, ideally, in a law-governed society, earning and holding of black money is a punishable offence. But in the real world it is often allowed to exist and, in many cases, even thrive. Bangladesh is no exception. Earning of black money is so widespread in this part of the world that the practice is not even questioned nowadays. So, one is not surprised, though some economists and social activists who are still critical of the so-called unethical practices like corruption, owning ill-gotten money, etc., when the finance minister in his budget for the fiscal year 2024-25 kept the provision of whitening black money without scrutiny through payment of 15 per cent tax. In other words, illegally earned money has again been given the seal of approval.

However, the money-whitening opportunity, according to the proposed budget for FY25, will be available for only one year till June 2025. But the provision of legalising black money has continued year after year in the same manner and there is no guarantee the practice would stop by the next financial year. In fact, this culture of wooing black money in the hope of mainstreaming it is indicative of the power of black money and its owners in society. Interestingly though, despite all the coaxing and cajoling, the holders of black money never responded to the government's offer at the expected level. Successive governments since independence have been offering such amnesty to black money owners. Going by the country's top tax regulator, the National Board of Revenue (NBR), since independence till 2022, Tk455.22 billion could be whitened by such means so far. The revenue that went to the government's coffer is a paltry sum of Tk46.41 billion. The amount was earned over a period of 50 years (between 1972 and 2022)! So, it is not hard to see why and how a section of society is getting richer by the day. Unsurprisingly, the tax authority, or the government for that matter, is getting lukewarm response from the black money holders making it clear that they are not willing to come under the NBR's tax net. This approach of the government's handling them with kid gloves only betrays its weakness, which the corrupt quarters take full advantage of. So, what is the point of showing such generosity to those people who are having a field day by defying law, whereas the honest income earners are paying taxes just out of their honesty and willingness to abide by the law? And this softness towards those earning money illegally and hiding it from the tax authority is only apt to send a wrong signal to society. It is that if you are somehow able to earn a large sum of money illegally, keep it to yourself evading tax, you will be rewarded. But if you are a law-abiding, honest citizen and not hiding your earnings from the tax authority, you are nobody. Worse, if you fail to pay your tax, you will be subject to legal proceedings.

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

 

[Saif]

How far does the gold syndicate’s reach go?

Involvement of law enforcers, public officials must be investigated

www.thedailystar.net

How far does the gold syndicate's reach go?
Involvement of law enforcers, public officials must be investigated

The unexplained death of Jhenaidah MP Anwarul Azim Anar has brought some shocking truths to light, including details of a brazen gold smuggling operation in his constituency. According to a recent investigation by this daily, Anar had invented a "token" system that would allow carriers transporting illegal gold a free pass from law enforcement. In return, the latter would get a "handsome" cut. This daily interviewed a carrier who said there are dozens like him who pick up consignments from various districts and deliver them to the border, where other operatives smuggle them out to India. The border smugglers earn between Tk 1 lakh and Tk 2 lakh per consignment, while carriers receive a fixed monthly salary.

According to local sources, gold smuggling has been taking place through this border area over the last four to five decades. Azim has reportedly been involved in the gold trade since he was a student in 1986, assuming a leading role for the last 10 years. The three-time MP stood accused in 21 cases between 2000 and 2008, including murder, extortion, and smuggling of arms, explosives, drugs and gold (which subsequently got dismissed during the AL regime). We cannot help but wonder how a man of his "notoriety" could hold such an important position, and whether the ruling party was truly unaware of the scale of his involvement in criminal networks.

The government should be as worried as we are about the nexus among criminals, law enforcement and political leaders, and the possibility of complicity of more people within its own ranks in sustaining such criminal networks.

The slain MP may have been one of the kingpins of this smuggling syndicate, but the question still remains: who else is involved in the trade, and how deep does the involvement run? Most importantly, can we expect an independent investigation into the syndicate now, or will the kingpins continue to orchestrate the show from behind the curtains, with the same impunity they have enjoyed till now?

The government should be as worried as we are about the nexus among criminals, law enforcement and political leaders, and the possibility of complicity of more people within its own ranks in sustaining such criminal networks. In order to regain public trust as well as for its own sake, the government must initiate a thorough and credible investigation into the smuggling syndicate, beginning with identifying all those within the law enforcement and administration who have been actively aiding and abetting the process. Exemplary action must be taken against them, no matter their designation. Anar's murder and subsequent investigations have caused great damage to the country's reputation, and the government must respond with urgency and full transparency.​

 

[Saif]

Benazir's corruption and the crisis of accountability

Benazir's case shows that top police and Rab officials can abuse power for personal gains without any accountability.

www.thedailystar.net

Benazir's corruption and the crisis of accountability

VISUAL: STAR

The year was 2018. On August 30, the results of Transparency International Bangladesh's (TIB) "Corruption in Service Sectors: National Household Survey 2017" were released. According to the survey, the country's law enforcement agencies (LEAs) ranked in the highest position in terms of the experience of corruption by surveyed households. Of the households that received services from them, 72.5 percent were victims of different forms of corruption.

The Bangladesh Police Service Association (BPSA) rejected the TIB survey results in a statement issued on September 11, 2018. The statement, sent by the additional deputy commissioner of Dhaka Metropolitan Police, also the office secretary of the Police Service Association, alleged that the TIB's survey report "identified the police as a corrupt institution based on preconceived notions." It was also claimed that, "In case of any unlawful behaviour of the police, proper legal action is taken after investigation."

The story of identifying the LEAs as the "most corrupt sector" in the TIB survey and subsequent rejection by the BPSA came to my mind in the wake of the recent allegations of massive corruption against former police and Rab chief Benazir Ahmed. Documents from the Anti-Corruption Commission (ACC) show that Benazir and his family bought at least 204.5 acres of land between 2009 and 2023. Of these, 112 acres were purchased during his tenure as inspector general of police (IGP) and Rab chief.

Was Benazir Ahmed's purchase of such a vast amount of land while he was head of police and Rab consistent with the legitimate income he was earning? Is it not an illegal act to force people to sell land by intimidation? Where was the process of "legal action" claimed by the BPSA when Benazir was engaging in such unlawful behaviour day after day as a senior officer in the police force? Why was Benazir's corruption exposed only after his retirement, and not when he was in office?

Not only was no action taken against Benazir's massive corruption and abuse of power when he was in office, he was also being given one reward after another. This is not only an internal problem of the LEAs. The entire government, including the ministry of home affairs, is also responsible here.

The Public Security Division of the home ministry honoured him with the Integrity Award 2020-21. But ACC data shows that he and his family bought nearly 87.9 acres of land in 2020 and 2021. The Integrity Award is supposed to be given to someone who meets the standards of scrupulousness and honesty. Where were those standards when Benazir was given the award? Apart from the Integrity Award, Benazir was awarded the highest medal of the police force, Bangladesh Police Medal (BPM), a total of five times between 2011 and 2019. With so many intelligence agencies in the country and so much surveillance, is it at all believable that the authorities, including the LEAs, were not aware of his illegal activities? How dysfunctional could a country's institutional system be that the person who was involved in massive corruption was rewarded time and again, instead of being punished?!

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

 

[Saif]

A disease called Benaziz

There are innumerable Benazirs and Aziz-es all around us, minting money, making mansions, mixing and mingling with multimillionaires around the globe.

en.prothomalo.com

A disease called Benaziz
Ayesha Kabir
Published: 17 Jun 2024, 12: 21

It's chronic, it's infectious, and as in the case of any other dangerous disease, prevention is better than cure. Once the contagion spreads its tenacious tentacles, it is often beyond cure. It squeezes the lifeblood out of all ethics, integrity, honesty or any such values and principles. This is the deadly disease, Benaziz.

Given the avalanche of news reports on the almost "iconic" corruption and crime of Benazir and Aziz, it seems only befitting to dub this contagion with the moniker "Benaziz", like the name-mergers of Hollywood couples -- Bennifer, Brangalina, TomKat and so on.

We are gasping at the amount of wealth and property that the former police chief Benazir Ahmed has amassed. We are shocked at how low the former army chief Aziz Ahmed has stooped to aid and abet his criminal brothers. But are we really all that shocked? Don't we all firmly believe that this is just the tip of the iceberg, that there are innumerable Benazirs and Aziz-es all around us, minting money, making mansions, mixing and mingling with multimillionaires around the globe?

This is not a column about either Benazir or Aziz -- there is a continuous deluge of news about them, and every day a Pandora's Box opening up and spewing out the likes of Anwarul Azim, his friend-cum-killer Akhteruzzaman, other criminals and crime, large and petty, white collar, blue collar, multi-collared and no collar at all! While each and every one of these vermin needs to be caught, tried and punished, it is most important to get to the roots, to uproot and evil once and for all. We sanitised our hands throughout the Covid outbreak, now we need to sanitise our souls.

Moral turpitude

The term 'moral turpitude' gained currency during the Ershad era. He had been seen as the epitome of corruption. Not to condone his misdeeds, but the corruption-practitioners of today must scoff at his "petty larceny". Not only has corruption become all-pervasive, but the sheer figures that appear in the media about the wealth that has been amassed, the capital that has taken flight, the assets that have been accumulated and the liabilities that have been shrugged off, is mind-boggling.

Every Tom, Dick and Harry seems to have a second home in Malaysia, Canada, America and now the hotspot Dubai. (It's the Jodu-Modu who still struggle on the streets back home). And back home too, the properties of the rich are taking on massive proportions of luxury and opulence. The vehicles in car parks of the five-star hotels and the classy cafes and restaurants of the affluent neighbourhoods range from Rolls Royce to Jaguars, Ferraris and you name it.

But the divide between the rich and the poor is growing, it's growing fast and growing wide. In Bangladesh, the wealthiest 10 per cent of the population controls 41 per cent of the nation's total income. The bottom 10 per cent receives a pittance of 1.31 per cent.

This disparity in wealth is deepening and is starkly visible, embarrassingly so. The juxtaposition of capital Dhaka's upscale Gulshan-Baridhara-Banani areas (sardonically referred to as the tristate) and neighbouring Korail slum, the sprawling biggest slum in the city, is a classic cliché. But a sad one. Sad, because the wealth of these ultra-wealthy hardly trickles down to improve the lot of the poor. Their wealth is siphoned to destinations around the world. Sad because all too often this wealth is ill-gotten.

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

 

[Saif]

Deposits of Bangladeshi banks, nationals in Swiss banks hit lowest level ever

It declined 68% year-on-year to 17.71 million Swiss francs in 2023

www.thedailystar.net

Deposits of Bangladeshi banks, nationals in Swiss banks hit lowest level ever
It declined 68% year-on-year to 17.71 million Swiss francs in 2023

Deposits of Bangladeshi nationals and banks in Swiss banks declined by 68 percent year-on-year to 17.71 million Swiss francs (CHF) last year, the lowest ever, reflecting the falling attractiveness of Switzerland among the wealthy people to park money.

The deposits were 55.2 million Swiss francs (CHF) in 2022, according to data by the Swiss National Bank released yesterday.

This is the second year in a row that deposits kept by Bangladeshis have fallen in Swiss banks. But that does not mean that illicit outflow of capital from the country has stopped, said two analysts.

"Of course, illegal money siphoning out of the country has increased and it is taking place. But Swiss banks are not favourite destination anymore. It is not a place to keep identity secret anymore," said Ahsan H Mansur, executive director at the Policy Research Institute of Bangladesh.

"Now, Dubai, and Singapore are favourite destinations as the nearest destinations. Money is siphoned off to and is invested in real estate and business in the USA, and England."

People who have transferred money there have business operations there. They have registered firms in Dubai, Singapore, said Mansur, a former economist at the International Monetary Fund.

Switzerland had once kept the information of depositors confidential. Now it is not doing this anymore. It provides information to the state if any government seeks, he added.

Data from the Swiss National Bank showed that Bangladeshi nationals kept 13.96 million CHF in Swiss banks in 2023, the lowest since 1997.

The amount was 78 percent of the total deposits of 17.71 million CHF or $19.86 million.

The deposits at Swiss banks were Tk 233 crore in Bangladeshi taka. In the case of Bangladeshi nationals, the deposit amount was Tk 184 crore.

Mansur said Bangladeshis living in Switzerland may hold a portion of the deposits. And a portion of reserves of Bangladesh are kept there, he added.

Iftekharuzzaman, executive director of Transparency International Bangladesh, said Switzerland is one of the many destinations for illicit fund transfer.

Switzerland is a conventional destination. But since it joins global efforts against money laundering and corruption, it has lost its attraction, he added.

"Many more destinations for illegal money transfer have come up and they are more attractive," he said citing Malaysia, Singapore, and the Middle Eastern countries.

"Plus, there are offshore destinations to park money. One can buy properties in the UK, the USA and Canada, which is not easy in the case of Switzerland," added Iftekharuzzaman.

"So, the falling deposits in the Swiss kept by Bangladeshi citizens and banks does not provide any relief that illegal capital flight has declined."​

 

[Saif]

Black money whitening provision needs to be reviewed: Momen

Taxpayers have been disappointed with the budgetary provision for whitening black money, former foreign minister AK Abdul Momen told parliament today

www.thedailystar.net

Black money whitening provision needs to be reviewed: Momen

File photo
Taxpayers have been disappointed with the budgetary provision for whitening black money, former foreign minister AK Abdul Momen told parliament today.

"Honest taxpayers have become frustrated with the provision of whitening black money just by paying a 15 percent tax. I feel the provision needs to be reviewed further," he said.

Corruption is now the main barrier to maintaining growth, he said. The government's image is being tarnished because of corruption, he added.

Momen said the projects are not getting implemented in time due to corruption, which ultimately causes a rise in project costs.

"A portion of bureaucrats has become corrupt, which is intensifying harassment of the people. The entire bureaucracy is blamed due to a handful of corrupt bureaucrats," said Momen.

He said this while participating in the general discussion on the proposed national budget for the 2024-2025 fiscal year.

The price hike of daily essentials, alongside the rise in taxes, corruption, and extortion, is a matter of great concern for the country's people, Momen said.​

 

[Saif]

Dollar crisis linked to $7-8b capital flight: ex-minister

Finance minister Abul Hassan Mahmood Ali said on Thursday that they had to follow the World Bank for foreign currencies, while former state minister for...

www.newagebd.net

Dollar crisis linked to $7-8b capital flight: ex-minister
Staff Correspondent 21 June, 2024, 00:34

Finance minister Abul Hassan Mahmood Ali said on Thursday that they had to follow the World Bank for foreign currencies, while former state minister for planning Shamsul Alam blamed capital flights for the country's prolonged shortage of dollars.

They were speaking at a post-budget discussion arranged by the Bangladesh Agricultural Economists Association in the capital, ahead of the passing of the finance bill in parliament on June 29.

The former state minister for planning, while focusing on the prolonged dollar shortage, said that the government should check capital flight to the tune of $7 billion to $8 billion annually.

He said that capital flights had caused the dollar crisis.

The former state minister for planning was critical of the country's banking sector, which was overburdened with bad loans and contributed to the current economic downturn.

Calculating 22 per cent of the overall bank credits as risky, he said that the trend should be reversed with strong reform based on the recommendations of a commission or a strong committee.

He lauded some of the budgetary proposals and suggested the finance minister give more focus to revenue generation, which, according to him, is one of the weakest points.

Due to less-than-expected revenue generation, successive governments have been borrowing from multilateral lenders for foreign funds and meeting the budget deficit.

Highlighting the necessity of foreign funds, the finance minister said in his speech that they had to follow the WB suggestions.

The WB provides us with loans, he said while responding to critics of the economy and the budgetary measures he proposed for FY25 in parliament on June 6.

He said that they would accept the recommendations of the critics if they provide funds.

Asking critics to look at what the WB was saying about the country's economy, the finance minister claimed that the WB had called it alright.

He noted that it was unacceptable that the WB did not understand the economic issues.

The finance minister was also critical of those who said that the country would face bankruptcy like the one its South Asian neighbour Sri Lanka faced in 2022.

He, however, said that the government would consider positive suggestions regarding the national budget before passing it in parliament.

The finance division is keeping feedback, and feasible ones will be considered, he said, adding that the budget has not been passed yet.

State minister of commerce Ahasanul Islam Titu, the representative of the United Nations Food and Agriculture Organisation appointed in Bangladesh Jiaoqun Shi, and Bangladesh Agricultural Economists Association president Sajjadul Hassan, among others, spoke at the seminar.

The state minister for commerce said it should be reviewed to see how much of the agricultural subsidy was implemented.

He suggested that agricultural experts be involved in the marketing channel and said that focus should be given to protecting perishable items.

Sajjadul Hassan said the subsidy on fertilisers should be monitored properly so that marginalised farmers are not deprived of their due share.​