[🇧🇩] 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.​

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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.​

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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.​