[🇧🇩] Corruption Watch

[Saif]

Another public project gone awfully awry

Lack of progress in hi-tech parks project is unacceptable

www.thedailystar.net

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

VISUAL: STAR

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

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

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

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

 

[Saif]

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

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

www.newagebd.net

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

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

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

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

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

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

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

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

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

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

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

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

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

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

 

[Saif]

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

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

thefinancialexpress.com.bd

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

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

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

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

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

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

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

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

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

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

 

[Saif]

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

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

www.thedailystar.net

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

VISUAL: BIPLOB CHAKROBORTY

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Partha Pratim Bhattacharjee is planning editor at The Daily Star.

 

[Saif]

The rot has gone too deep

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

thefinancialexpress.com.bd

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

 

[Saif]

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

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

en.prothomalo.com

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

Quazi Abu Mahmud Faisal Official photo

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

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

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

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

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

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

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

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

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

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

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

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

Properties of Faisal's mother-sister

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

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

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

Wealth of Faisal and other relatives

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

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

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

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

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

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

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

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

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

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

 

[Saif]

ACC to sue Sadeeq Agro, livestock officials

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

www.newagebd.net

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

 

[Saif]

The nine lives of a corrupt public servant

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

www.thedailystar.net

The nine lives of a corrupt public servant

VISUAL: SHAIKH SULTANA JAHAN BADHON

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

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

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

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

Corruption at pre-recruitment stage

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

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

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

Post-recruitment privileges and exemptions

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

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

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

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

Lack of accountability for failures and inefficiencies

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

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

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

Endless opportunities for corruption

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

Undeserved rewards and honours

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

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

 

[Saif]

Getting out of the abyss of corruption in Bangladesh

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

www.thedailystar.net

Getting out of the abyss of corruption in Bangladesh

VISUAL: OISHIK JAWAD

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

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

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

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

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

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

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

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

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

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

 

[Saif]

A country where loan defaulters are rewarded!

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

www.thedailystar.net

A country where loan defaulters are rewarded!

Cartoon: Biplob Chakroborty

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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