[🇧🇩] Corruption Watch

[Saif]

The Financial Express | First Financial Daily of Bangladesh

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Reconstituting the ACC

FE

Published :
Jul 04, 2026 00:43
Updated :
Jul 04, 2026 00:43

In a move awaited since long, the incumbent BNP government reportedly formed a search committee to select key members of the new anti-graft body. Already four months have elapsed since the chairman and two commissioners of the seventh Anti-Corruption Commission (ACC) reportedly resigned voluntarily. Ostensibly, their exit was to make way for the newly elected BNP government to select the state's oversight body to combat corruption in line with its political manifesto. But effective measures had been lacking for long under the incumbent government to fill the void created by the resignations, though the ACC Act 2004, requires that it should be done within 30 days of any vacancy.

But this long absence of the top ACC officials has created legal and administrative bottlenecks, preventing the graft-fighting body from approving new cases, initiating investigations, filing charge sheets, or issuing travel bans. Notably, under the ACC Act, critical actions like formally starting a criminal inquiry or freezing properties require direct approval from the commissioners. In consequence, without a commission in place, hundreds of pending case files are remaining in limbo. Foreign governments require formal criminal proceedings in Bangladesh before providing legal assistance to trace and repatriate siphoned-off funds. But the ACC with this void at the top is unable to approve Mutual Legal Assistance Requests (MLARs) thereby stymieing international asset recovery efforts.

The process of forming a search committee to appoint new commissioners has been too slow. Moreover, structural reform efforts have come to a standstill after parliament allowed the Anti-Corruption Commission (Amendment) Ordinance proclaimed by the interim government to lapse. Going into history, the anti-graft body has fallen into similar crises for the fourth time since its establishment in November 2004 by the then-BNP government of prime minister Khaleda Zia replacing the previous anti-graft body, styled, Bureau of Anti-Corruption (BAC). Since then six anti-corruption bodies came and went till the July 24 uprising (when the sixth commission stepped down on October 29, 2024). The commission also experienced a similar state of vacuum for about one and a half months until the constitution of the seventh ACC in December 2024.

The last (the 7th) ACC constituted under the Dr Yunus-led interim government moved, despite its limited mandate, fast to clean some of the rot left by the previous (now-defunct Awami League) government. It took sweeping action against some crony oligarchs, ghost corporate bodies and affiliates of then-ruling party who considered the state exchequer their personal property. Against this backdrop, it is deeply disconcerting that the anti-corruption watchdog has been experiencing such a state of paralysis for so long when there is no political vacuum in the country. Critiquing such crises in the process of creating a constitutional body to fight country's systemic corruption, independent anti-corruption watchdog groups like Transparency International Bangladesh (TIB) have noted that ACC activities have historically struggled to remain free from political influence, with past biases in investigating or withdrawing cases dampening public confidence and necessitating deep institutional overhauls. Unsurprisingly, the present government has meanwhile drawn a lot of flak from various concerned quarters for the laxity. Even the International Anti-Corruption Coordination Centre (IACC) reportedly expressed similar concerns to the government.

Now, the formation of a 5-member search committee chaired by a Supreme Court Appellate Division Justice to recommend qualified candidates as chairman and commissioners for the anti-graft body is, though belated, a commendable one. But it needs to accelerate its pace of work to complete the remaining tasks so the massive backlog of pending anti-graft cases could be duly addressed. According to the gazette notification to this effect, the search committee formed under Section 7 of the ACC Act, 2004, would recommend at least two candidates for each post of chairman and commissioner. The president would recommend the new chairman and commissioner from the list. Hopefully, through reconstitution of the ACC, the present government would thus fulfil one of its 31-point state-reform agenda.​

 

[Saif]

https://www.newagebd.net/post/economy/304992/nbr-warns-taxpayers-against-fraud-extortion-attempts

NBR warns taxpayers against fraud, extortion attempts
Staff Correspondent 05 July, 2026, 11:57

A file photo shows the National Board of Revenue headquarters in the capital. | New Age photo

The National Board of Revenue has urged all taxpayers to remain vigilant against fraudsters attempting to extort money by falsely claiming that their files have been selected for audit.

In a press release issued on Sunday, the NBR said that it had recently observed that organised fraud groups were contacting taxpayers from various mobile phone numbers, claiming that their tax files had been selected for audit.

The fraudsters reportedly promise exemption from audit or threaten legal complications in an attempt to illegally collect money.

In this regard, the NBR asked taxpayers to pay special attention to certain issues.

The NBR said that no official or employee communicated with taxpayers regarding tax audits through personal mobile phone numbers or any unauthorised channels.

If a tax file is selected for audit, the taxpayer will be notified solely through an official written notice, it said.

The revenue agency also said that any outstanding tax or government fee must be paid only into the state treasury through the prescribed government payment system.

‘No tax official or any other individual is authorised to receive tax payments personally or through mobile financial services such as bKash, Rocket or Nagad, or through any personal bank account,’ it added.

The NBR said that taxpayers receiving any suspicious phone call, SMS or email related to tax audits were advised not to be misled.

Instead, it said, they should immediately contact the office of the relevant deputy tax commissioner to verify the authenticity of the communication.

Moreover, if anyone impersonating an NBR official demands money, taxpayers are requested to inform the nearest law enforcement agency immediately and preserve the caller’s phone number as evidence, the revenue authority added.

The NBR reiterated its commitment to providing transparent, hassle-free services to taxpayers and urged the public not to engage in any financial transactions with such fraudsters under any circumstances.​

 

[Bilal9]

Bangladesh Bank offers exit for loan defaulters

The move is aimed at curbing the rising volume of non-performing loans (NPLs) and restoring banks’ lending capacity, the central bank said.

www.thedailystar.net

Bangladesh Bank offers exit for loan defaulters
Interest-free facility will be in force till Dec 31

Md Mehedi Hasan and Ahsan Habib

View attachment 27972
Cartoon: Biplob Chakroborty

Bangladesh Bank has announced a one-time “special exit” facility for defaulting borrowers, allowing banks to waive interest and let them settle bad loans with a single payment.

Loans classified as “bad” and “loss” as of June 30, 2026, will be eligible under the scheme, according to a BB circular issued yesterday.

The move is aimed at curbing the rising volume of non-performing loans (NPLs) and restoring banks’ lending capacity, the central bank said.

The special facility will remain in effect until December 31 this year.

According to BB data, the NPL ratio rose to 32.26 percent of total outstanding loans at the end of March this year, up from 30.6 percent in December last year. Total classified loans climbed by Tk 31,487 crore to Tk 5.89 lakh crore from Tk 5.57 lakh crore.

View attachment 27973

“Through this policy, the central bank has essentially provided commercial banks a way out. Now it is up to the banks to use it prudently. At the same time, the central bank must maintain close oversight.”-----Prof Mustafizur Rahman, distinguished fellow at the CPD.

The central bank said the facility would allow banks to reduce NPLs while improving their capacity to disburse new loans, which it said would support production, investment, and employment generation.

It has asked banks to prioritise short-term agricultural credit and loans to the Cottage, Micro, Small, and Medium Enterprise (CMSME) sector.

Following the BB move, analysts have given mixed opinions, saying the facility may help banks clear balance sheets but could also encourage more defaults.

Syed Mahbubur Rahman, managing director of Mutual Trust Bank, told The Daily Star that this process of cleaning up banks’ balance sheets is not a bad approach. Instead of carrying the burden of bad loans indefinitely, he said, it is better if defaulting borrowers exit after settling liabilities through a one‑time concession.

Mahbubur, also former chairman of the Association of Bankers, Bangladesh, cautioned that care must be taken to prevent misuse of the facility.

Prof Mustafizur Rahman, distinguished fellow at the Centre for Policy Dialogue, said the facility was being offered under exceptional circumstances. Since the policy states that exits should be based on the bank-client relationship, he argued, the decision should ultimately rest with banks.

“In the past, many such decisions were made on political considerations. If similar undue pressure is exerted now, it will not lead to positive outcomes. But if a bank allows an exit based on its relationship with the borrower, it could help clean up balance sheets and provide relief.”

He cautioned that the process must be handled carefully, noting that many borrowers have collateral. In such cases, banks should first recover principal and accrued interest by selling off the collateral.

“Through this policy, the central bank has essentially provided commercial banks a way out. Now it is up to the banks to use it prudently. At the same time, the central bank must maintain close oversight. Moreover, such facilities should not be extended to new loans in the future,” he added.

Meanwhile, Toufic Ahmad Choudhury, former director general of the Bangladesh Institute of Bank Management, criticised the move, saying it was not a sound policy and would likely encourage more defaults.

“There was a general expectation that the new government would take a tougher stance against loan defaulters. Instead, the policies being introduced appear to favour the errant borrowers.”

He warned that delegating authority to waive interest to banks could allow directors to write off dues in ways that serve their own interests. Decisions on rescheduling and waivers, he argued, should remain with the Bangladesh Bank.

He believes that given the already massive volume of NPLs, waiving accumulated interest would raise questions about how banks would pay depositors and cover operating costs.

“Ultimately, such concessions risk creating a new generation of irresponsible borrowers and encouraging future defaults,” Toufic added.

Deen Islam, professor of economics at Dhaka University, agreed that the BB’s special exit policy could provide relief to the banking sector.

In the short run, he noted, the policy may improve liquidity, support credit growth, and help viable businesses retain or create jobs, particularly in SMEs and agriculture.

“However, repeated reliance on such exit facilities could reduce borrowers’ incentives to repay on time if they expect future concessions.”

He said this weakens credit discipline and distorts resource allocation by rewarding default over prudent behaviour.

While the policy has clear short‑term benefits, it must be accompanied by stronger governance, stricter risk management, and improved recovery mechanisms to ensure long‑term stability and sustainable growth, Deen added.​

The govt. does not want to needle loan defaulters too much - because most of their own MPs (BNP in our case) and their friends are big schemers of securing loans without collateral. Gorai Golod. How does a bank official process a loan without collateral? I'm sure they are getting a cut of the money which I know. These people should be jailed - if not, much worse.

Loan defaulters should be treated much, much more harshly and also given long jail sentences and travel ban imposed (house arrest). The toughest treatment for bank loan defaulters can be found in the UAE, where legal consequences can include civil lawsuits, financial penalties, and even travel bans if the debtor is deemed a flight risk. Additionally, banks can pursue the provisional seizure of debtor funds (property collateral included) and impose fines for non-compliance with court orders.