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G Bangladesh Defense

Extortion and corruption eat into vitals of society

Neil Ray
Published :
Jul 13, 2025 23:19
Updated :
Jul 13, 2025 23:19

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The killing of a scrap metal trader in old Dhaka has jolted the national conscience. Killings of innocent members of public by muggers, dacoits, anti-social elements including teenage gangs have become so common that the entire country is turning into a death valley. But it is the extortionists who have targeted businesses---from small traders to big merchants ---in order to extract large sums of money. Such killings were there during the previous regimes and there is no let-up, if not shown a rising trend, of extortion-related crimes including killings.

In case of the murder of the scrap metal trader in old Dhaka, the manner of taking the victim's life is what has challenged the collective sense of right and wrong. The brutal treatment of a human being and the disrespect for a deceased body expose the diabolical mind behind such acts. This bizarre spiteful way of deriving pleasure from taking life of one who merely refused to comply with their demand for a monthly rate of Tk200,000 cannot but send shockwaves across all levels of society here. Fittingly, there has been a widespread outcry against the extortion and the appalling crime.

In this context, the statements made by the law adviser and the home adviser are quite intriguing---one says the case will be referred to the Speedy Tribunal Court for early trial and the other claims legal action has been initiated against those involved in the killing. Are these not too little too late? Indeed, the interim government has miserably failed to address the declining law and order situation in the country. Let alone the earlier vandalism and destruction of a number of infrastructure, when organised attacks were unleashed on some sites of historical importance including the museum on Road 27, Dhanmondi, the War of Liberation Museum located in Agargaon and some religious shrines, the government turned a blind eye to such mob violence.

The latest rise in mob culture finds its encouragement from the government's inaction. But there is more to the elements of criminal proliferation. Immediately after the fall of Sheikh Hasina's autocracy, there was a need for restraint on extortion in order to breathe a fresh air into the country's business sector. Indications are clear that both bribery and extortion are still rife in society. What is particularly galling is that a party well poised to take over if an election is held on a level-playing field, has failed to establish its command on leaderships at the grassroots level.

Allegedly, in the case of the latest murder in old Dhaka, accusing fingers have been pointed to this political organisation. Internecine feuds in the party make regular news. Yes, the high command of the Bangladesh Nationalist Party (BNP) has time and again warned its followers down the rank not to get involved in criminal activities. But all such exhortations seem to have fallen on deaf ears. Why? Are the BNP leaders playing to the gallery? It is reported that the party has by this time boosted its organisational activities in order to face the election. No question about such organisational activities. But does such party organisation not encompass the very basics of how party workers would conduct themselves? Did the party get across a stern message that their field-level leaders and followers can no longer follow the discarded political ways and practices of the deposed party that turned into a monster because of the 15-year long reign? It appears there is many a slip between the cup and the lip.

But here was a golden opportunity not only for the BNP but all other parties to mend their political ways in favour of a corruption- and extortion-free country---one that would gradually help reduce discrimination and disparities in society. The poor and marginalised people would have an opportunity to rediscover their rightful place in order to take part in the economic and development activities and share dividends of prosperity accordingly. The anti-trade and anti-entrepreneurship ambience extortion and bribery create should have by now been disposed of.​
 
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TIB slams questionable procurement process of July memorial museum
Staff Correspondent Dhaka
Published: 16 Jul 2025, 22: 44

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Transparency International Bangladesh (TIB) has expressed deep concern over the decision to spend nearly Tk 1.11 billion through direct procurement for the construction and renovation work at Ganabhaban, the former Prime Minister’s official residence, for the purpose of establishing the “July Uprising Memorial Museum.”

The organisation stated that the manner in which existing laws and regulations have been bypassed under the justification of direct procurement for spending public funds is not consistent with the interim government's commitment to transparency and accountability in state affairs, says a press release issued today, Wednesday.

According to media reports, the construction and renovation work required to complete the transformation of the museum by 5 August will be carried out through the direct purchase method, meaning no tender will be invited.

The Advisory Council Committee on Economic Affairs gave its approval in principle for this on Tuesday at a meeting held at the Secretariat.

Describing the procurement process without tender as questionable, TIB Executive Director Iftekharuzzaman said, “The commendable initiative to transform the former Prime Minister’s residence—Ganabhaban—into the ‘July Uprising Memorial Museum,’ meant to commemorate the uprising, honour the martyrs, and portray the oppression by the then Awami League government, is now at risk of being undermined."

"Generally, government procurement through direct purchase is permitted only under emergency situations, unforeseen disasters, for specialised goods or services, or in specific circumstances where rapid delivery is necessary," TIB executive director added.

According to the government's explanation, the decision to award the work through the direct purchase method was made to expedite the completion of the museum's transformation.

Ifthekharuzzaman pointed out the question is: this project was approved back in December 2024, and under procurement policy, there was ample time to issue tenders and follow due procedures for open competition.

"Yet, after nearly seven months, the government has opted for direct purchase just three weeks before the deadline—thereby bypassing sections 76(1) and 76(2) of the Public Procurement Rules," he added.

ITB executive director said, "These sections clearly state that direct procurement cannot be used to avoid open competition or show favoritism toward any particular entity. Moreover, as this method lacks transparency and accountability, its application must be strictly controlled.”

Iftekharuzzman further asserted that the construction process of the July Uprising Memorial Museum does not qualify as a specialised procurement.

In this project, nearly Tk 1.11 crore worth of electrical & mechanical (EM) and public works have been awarded directly to two separate entities, he added.

“The question is: why was the direct purchase method applied for such a routine procurement? On what basis were these two firms awarded the work orders? What was the rationale for their selection? How were the contract values determined? How will ‘value for money’ be ensured in this expenditure?

Without proper answers to these fundamental questions, awarding the contracts in this manner raises valid concerns about collusion and favoritism. Awarding such a large amount of work without an open tender process also calls into question the interim government’s commitment to ensuring the proper and prudent use of public resources.”

The TIB’s Executive Director further stated that while the government speaks of its commitment to combating corruption and achieving state reform, violating such fundamental principles in public procurement is self-defeating and contradictory.

“We demand an impartial investigation and a clear explanation as to why there was a delay despite sufficient time after the decision was made, and why it became necessary to award the contracts without a tender process,” he added.​
 
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Awami League tenure: ACC probing 15yrs of financial irregularities

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The Anti-Corruption Commission (ACC) has launched an investigation into alleged corruption by individuals, financial institutions, industrial groups, and loan defaulters during the Awami League's 15-year tenure, which it claims led to the destruction of the country's financial system.

As part of this move, the commission is examining the role of former top officials of Bangladesh Bank, including three former governors and four former deputy governors, in major irregularities in the financial sector.

In a recent letter signed by ACC Deputy Director Mominul Islam, the commission sought information on various allegations of irregularities in the banking sector over the last 15 years.

"Several teams are working on financial irregularities. Once the investigation is complete, the assigned committee will submit its report. The findings will be disclosed in due time," ACC Director General (Prevention) and spokesperson Md Akhter Hossain told The Daily Star.

According to ACC sources, information has been sought regarding former BB governors Atiur Rahman, Fazle Kabir, and Abdur Rouf Talukder; former deputy governors SK Sur Chowdhury, SM Moniruzzaman, Abu Hena Mohammad Razee Hassan, and Abu Farah Mohammad Nasser; and former heads of the Bangladesh Financial Intelligence Unit Masud Biswas and Kazi Saidur Rahman.

These nine individuals held responsibilities at the central bank at different times during the past 15 years.

The ACC has also requested documents related to the approval of new banks during their tenure, all loan policies issued during that period, information on loan disbursements, money laundering, notices regarding US dollar disbursement from reserves to businesses, and copies of any internal investigation reports by BB concerning these matters.

Additionally, the ACC asked for policies issued since 2009 regarding the regularisation of default loans, and details of companies that benefited from these policies, including: Beximco Group, MR Group, Ratanpur Group, Keya Group, Jamuna Group, Thermax Group, Sikder Group, BBS Group, Abdul Monem Ltd, AnonTex Group, and others.

The commission has sought names of these companies and their owners, permanent and current addresses, loan amounts, and current loan statuses.

The ACC also demanded approval-related notices, documents, and circulars for nine banks approved after the AL came to power in 2009, namely: Meghna Bank, Midland Bank, Madhumati Bank, NRB Bank, NRB Commercial Bank, NRB Global Bank, South Bangla Agriculture and Commerce Bank, Union Bank, and The Farmers Bank, currently named Padma Bank.

In response to a letter from Salman F Rahman, the commission has also asked for the notice and documents related to the 2015 policy on loan restructuring; attested copies of policies issued after 2009 regarding bank inspections; and documents related to the formulation and issuance of those policies.

Furthermore, the ACC has sought attested copies of notices and circulars regarding the acquisition and ownership control of Islami Bank and Social Islami Bank.

If the central bank has conducted any internal investigations on these matters, the commission wants those reports as well.

Contacted, BB spokesperson Arif Hossain Khan said, "Recently, the ACC has issued several letters requesting various information. We are trying to provide all the required data to the best of our ability."​
 
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Will corruption ever leave RAJUK?
Govt must ensure transparency and accountability in this institution

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VISUAL: STAR

We are quite disappointed to see RAJUK continuously failing to deliver its services in a transparent and accountable manner. Over the years, this organisation has earned a bad reputation for subjecting service-seekers to various forms of irregularities and unethical practices. While city dwellers had hoped that things would improve during the interim government's tenure, old practices have reportedly remained unchanged. From allotment letters and plot transfers to building design approvals and land-use clearances, irregularities persist across the board. While RAJUK is entrusted with the responsibility of restoring Dhaka's liveability, there have been no visible steps taken towards fulfilling that mandate. This state of affairs is unacceptable.

According to a report by Banik Barta, service-seekers face the greatest challenge while seeking land-use clearance and design approvals. Apparently, getting building designs approved is nearly impossible without paying hefty bribes. Landowners and developers claim it may take anywhere from Tk 5 lakh to upwards of a crore to get a design approved. To address such irregularities, RAJUK had launched the Electronic Construction Permitting System (ECPS) in 2022 but it remains non-functional, mostly because all processes continue through manual, desk-based dealings. Often, building designs submitted online through RAJUK-approved engineers are rejected without explanation. So applicants must visit RAJUK office in person, where they end up being compelled to pay bribes. RAJUK's inefficiency and irregularities are also reflected in its new Detailed Area Plan (DAP), which has drawn criticisms from experts.

We urge the government to eliminate corruption and bribery from RAJUK to ensure the smooth delivery of services to citizens. Currently, securing even a single service requires submitting numerous documents, many of which are unnecessary. This burdensome practice also must end. RAJUK should streamline all its services to alleviate public suffering.

In 2020, the Transparency International Bangladesh (TIB) recommended some critical reforms to curb corruption and promote accountability within the institution. These include amending outdated laws and regulations, transferring RAJUK's housing and real estate functions to a separate authority, dedicating RAJUK solely to planning and development, decentralising its services, and strengthening oversight, among others. We call on the government to seriously consider these recommendations and take decisive steps to transform RAJUK into a transparent, efficient, and citizen-friendly institution.​
 
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ACC seeks details of ‘Mujib Year’ expenses
Staff Correspondent 22 July, 2025, 00:07

The Anti-Corruption Commission on Monday sent letters to all 64 districts across the country, seeking detailed financial records related to the nationwide observance of ‘Mujib Borsho’ or ‘Mujib Year’ on the occasion of birth centenary of the country’s founding president, Sheikh Mujibur Rahman, and the construction of over 10,000 murals and sculptures during the period.

The Awami League government, which was ousted on August 5, 2024, in a mass uprising, allegedly misappropriated and wasted about Tk 4,000 crore on various events and installations, including the construction of murals and statues across the country, during the event.

The ‘Mujib Borsho’ celebrations took place from March 2020 to March 2022. Sheikh Hasina, daughter of the late Sheikh Mujibur Rahman, was in power then.

ACC director general (prevention) Akhtar Hossain said that the inquiry was initiated following allegations of misappropriation and waste — estimated at about Tk 4,000 crore – from the state treasury during the ‘Mujib Borsha’ celebrations.

The anti-graft agency in the letters sent to the DCs sought how much money had been used to celebrate the ‘Mujib Year’, the name of the ministry which spent the money, and the names of the officials involved in the expenses.

The funds were allegedly spent under projects associated with ousted prime minister Sheikh Hasina, her sister Sheikh Rehana, and others.

Earlier in January, a seven-member ACC team headed by a deputy director launched an inquiry into the allegations.​
 
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Trade-based money laundering drains $16b a year for laxity

FE REPORT
Published :
Jul 22, 2025 23:53
Updated :
Jul 22, 2025 23:53

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Bangladesh loses US$16 billion annually through trade-based money laundering alone for policy leniency and lax regulation of trading operations, reveals an official outfit's study and prescribes preventives.

Despite having strong policy frameworks to help combat trade-based money laundering (TBML), the country remains significantly exposed to illicit financial outflows due to their inadequate enforcement and systemic challenges, says the study report published Tuesday by the Bangladesh Institute of Bank Management (BIBM).

The report, titled 'Enforcement Status of the Standards to Prevent Trade-Based Money Laundering', which was presented at a roundtable at the BIBM office, says approximately 75 per cent of domestic money- laundering cases involve trade channels.

Deputy Governor of Bangladesh Bank and Chairman of the BIBM Executive Committee Nurun Nahar was present at the programme as chief guest with BIBM Director-General S. M. Abdul Hakim in the chair.

Professor (Selection Grade) of BIBM Dr. Shah Md. Ahsan Habib presented the keynote while a good number of top bankers and experts also attended the event.

Over the period of past 15 years from 2009 to 2023, Bangladesh had lost an estimated amount of $16 billion annually through TBML, mostly in the sectors like textiles, consumer goods and petroleum imports.

Such outflow of money is equivalent to 3.4 per cent of the country's GDP, surpassing even the annual public health budget.

While Bangladesh has aligned its policies with global anti-money laundering standards--including risk-based customer due diligence, price-verification protocols, and real-time monitoring tools -- the implementation of the measures across the financial and customs systems remains inconsistent and, in many cases, ineffective.

Based on a combination of secondary research and a primary survey of 37 commercial banks, the BIBM study found all banks having claimed to have some form of sanctions-screening-and trade-monitoring systems.

However, only half of surveyed banks subscribe the global price- verification tools such as Bloomberg or Global Trade Tracker, mainly due to cost constraints.

Similarly, 90 per cent of banks report having vessel-tracking mechanisms but many do not utilise internationally reputed services like Lloyd's or the International Maritime Bureau.

Besides, while customer-risk scoring is applied universally, only 45 per cent of the banks have implemented enhanced due-diligence policies tailored specifically to trade-based clients.

Many banks rely on manual assessments without uniform benchmarks, leading to discrepancies in risk grading and inconsistent application of controls, it says.

The absence of dedicated price-verification units in most public banks and the use of subjective judgment by trade officers further complicate their enforcement.

The report mentions that TBML is not explicitly listed as a predicate offence in the Money Laundering Prevention Act 2012, although the law does provide for the prosecution and confiscation of assets linked to illicit financial flows through trade.

Recent updates to the BFIU's guidelines and the universally recognised national goAML platform have improved the reporting of TBML-linked suspicious transactions, but the overall detection rate still remains low.

A key concern highlighted in the study is a lack of integration and coordination among regulatory bodies, including the Bangladesh Financial Intelligence Unit (BFIU), the National Board of Revenue (NBR), customs authorities, and commercial banks.

"The disjointed systems prevent real-time sharing of trade, shipment, and payment data--an essential component in tracking phantom shipments, circular trades, and mispriced invoices," says the study report.

The BIBM analysis also points out a weak compliance culture within the banking sector.

Many institutions treat TBML controls as a box-ticking exercise rather than a core component of operational risk management, it says, stressing a shift in institutional mindset, where board-level leadership takes ownership of AML responsibilities and invests in staff training, trade analytics, and audit processes.

Global best practices--from countries such as Singapore, Chile, Finland and Sri Lanka--illustrate how integrated trade-and-payment data systems, beneficial ownership transparency, and structured public-private cooperation can strengthen TBML enforcement.

Such examples also demonstrate that visible and proportionate penalties, combined with incentives for clean trade, enhance compliance across financial institutions.

The report adds closing Bangladesh's TBML-enforcement gap is not merely a regulatory obligation but a development necessity.

Without urgent action, the country risks continued revenue loss, distorted trade data, and potentially damaging consequences such as FATF grey-listing, higher correspondent banking costs, and reputational harm in global markets.

Among the key recommendations are establishment of a national Trade Transparency Unit (TTU), the publication of a public beneficial ownership register, expanded use of dynamic price-benchmarking tools, and formalised information-sharing arrangements with regional trading partners.

The study findings indicate that Bangladesh's vulnerability to TBML remains both a governance and competitiveness challenge.

As the country pursues export-led growth and seeks to preserve its foreign-exchange buffers, improved enforcement of anti-TBML standards will be critical to sustaining economic integrity.​
 
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Trade-based money laundering

FE
Published :
Jul 25, 2025 00:10
Updated :
Jul 25, 2025 00:10

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It is hardly surprising that the issue of money laundering continues to resurface, as it remains a stark and persistent reality the country is forced to confront without any foreseeable remedy. For long, there have been concerns raised from various quarters, and over time it seems as though this 'concern' is a cyclic expression of frustration and anger. The issue, because of its enormity and scale, has been receiving media focus for quite a while -- set off by rough estimates about the money flown off the country to so called tax heavens and overseas financial institutions. Lately, a government estimate has revealed that the country loses US$16 billion annually through trade-based money laundering alone primarily due to lax oversight of trading operations. The scale of this outflow is staggering. It accounts for around 3.4 per cent of the country's GDP, surpassing even the national budget for public health. The Bangladesh Institute of Bank Management (BIBM), in a study based on surveys across 37 commercial banks, reports that about 75 per cent of all domestic money laundering cases are linked to trade channels. The sectors most affected include textiles, consumer goods, and petroleum imports.

Despite policy alignment with global anti-money laundering (AML) standards --such as risk-based customer due diligence, price verification protocols, and real-time monitoring -- the actual implementation remains inconsistent. Although the banks surveyed claim to have sanctions-screening and trade-monitoring systems, only 50 per cent use global price verification tools like Bloomberg or Global Trade Tracker, often citing cost as a barrier. Similarly, 90 per cent of banks have vessel-tracking systems, but few rely on established platforms such as Lloyd's or the International Maritime Bureau. While most institutions apply customer risk scoring, only 45 per cent have enhanced due diligence frameworks tailored to trade-specific risks. Moreover, many public banks lack dedicated price verification units, leaving trade officers to rely on subjective judgment -- an approach that severely undermines oversight. The legal framework also poses challenges. Notably, the Money Laundering Prevention Act 2012 does not explicitly list TBML as a predicate offence, although it provides for prosecution and asset seizure linked to illicit trade-related flows. A critical gap lies in the lack of coordination between key regulatory bodies such as the Bangladesh Financial Intelligence Unit (BFIU), National Board of Revenue (NBR), customs authorities, and commercial banks. The absence of real-time data sharing on trade, shipments, and payments creates loopholes that are exploited through phantom shipments, circular trading, and invoice manipulation.

Global best practices provide a way forward. Countries like Singapore, Finland, and Sri Lanka have successfully implemented integrated trade and payment data systems, strengthened beneficial ownership transparency, and structured public-private collaboration. These measures, coupled with proportionate penalties and incentives for clean trade, have significantly improved compliance.

Addressing TBML is not merely a regulatory obligation but a development imperative. Without urgent action, Bangladesh risks continued revenue losses, distorted trade statistics, and damaging consequences such as Financial Action Task Force (FATF) grey-listing, higher correspondent banking costs, and reputational harm in global markets.​
 
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Government halts flats-for-July martyrs project over inflated cost, corruption claims

bdnews24.com
Published :
Jul 28, 2025 00:24
Updated :
Jul 28, 2025 00:24

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The government has turned down a housing project for the families of those killed during the student-led anti-discrimination protests in July last year, amid concerns over inflated costs and allegations of corruption.

On Sunday, at the first Executive Committee of the National Economic Council (ECNEC) meeting of fiscal year 2025–26, the project failed to gain approval.

“It should be properly cost-evaluated before any decision,” said Planning Advisor Wahiduddin Mahmud at a post-meeting press conference.

The project was submitted by the Ministry of Housing and Public Works. It proposed building 804 flats of 1,355 sq ft each on government land in Mirpur, with a budget of Tk 7.61 billion, to be completed between July 2025 and June 2029.

“This was a well-intentioned proposal, but we didn’t approve it because we believe the cost must be assessed more carefully before the tendering process,” Wahiduddin said.

The project had earlier come under scrutiny during a Jun 16 evaluation by the Planning Commission’s Project Evaluation Committee (PEC), which flagged implementation challenges.

Subsequent media reports revealed inflated expenditure estimates and possible irregularities.

Wahiduddin further noted the lack of clarity surrounding multiple aid efforts for the same families.

“When different ministries start offering varied forms of support, overlaps and gaps become difficult to track,” he said. He stressed the need for a comprehensive and coordinated approach, bringing together all housing, stipend, and disability aid schemes for the victims’ families under one umbrella.

“There are also larger questions,” he added. “Why Mirpur? Why only Dhaka? What about families living in rural areas or other cities? The matter of inheritance will also arise when allocating permanent flats. These require deeper planning.”

Ultimately, the Ministry of Liberation War Affairs will be tasked with coordinating these efforts, he confirmed.

DHAKA UNIVERSITY PROJECT

Despite the rejected flats proposal, ECNEC approved 12 projects worth Tk 81.49 billion, including a major initiative for Dhaka University’s infrastructure overhaul.

The Tk 28.4 billion five-year plan for the university includes:

Six academic buildings
Five male and four female dormitories accommodating 7,700 students
Two residential buildings for teachers and officers
A stadium, DUCSU building, and other administrative facilities
Reflecting on his own student and teaching days, Wahiduddin said: “Though income levels have improved, housing conditions in the university have worsened.”

Given the university’s space constraints, some old structures will be demolished to make room for high-rise buildings while preserving heritage sites like Salimullah Muslim Hall and Curzon Hall.

OTHER PROJECTS

Tk 2.78 billion: Revised road construction along Karnafuli river (Kalurghat Bridge to Chaktai Canal), up by Tk 4.69 billion
Tk 6.5 billion: Establishment and reconstruction of 20 fire stations nationwide
Tk 7.57 billion: Upgraded logistics and maintenance facilities for the Coast Guard
Tk 13.43 billion: Rural sanitation and canal excavation in Chattogram, cost reduced by Tk 1.94 billion
Tk 17.91 billion: Railway maintenance and rehabilitation in the eastern zone
Tk 2.34 billion: Mirpur cantonment officers' mess and bachelor quarters, cost up by Tk 754.5 million
Tk 3.95 billion: Women’s income-generating training (second phase)
Tk 1.6 billion: Expansion of museum and infrastructure at Folk and Crafts Foundation
Tk 1 billion: Tuber crop research strengthening
Tk 7.7 billion: Smart pre-paid metering project under BPDB, cost increased by Tk 1.5 billion​
 
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