[🇧🇩] Corruption Watch

[🇧🇩] Corruption Watch
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G Bangladesh Defense

How interested is the BNP government in fighting corruption?

Mainul Islam


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Although eight months have passed since BNP formed the government, I have yet to see any strong measures to combat corruption. Bangladesh first ranked at the top of the corruption rankings in an index published in 2001, based on data from the final period of the Awami League government. After the BNP–Jamaat alliance came to power that year, Bangladesh continued to hold the same position from 2002 to 2005. This standing was reflected in the country rankings of Transparency International (TI), the Berlin-based anti-corruption research organisation.

In 2007, when a military-backed caretaker government took power, its strong crackdown on corruption created a stir both at home and abroad. During the caretaker government’s tenure in 2007–08, the Anti-Corruption Commission (ACC) played a highly effective role, temporarily allowing Bangladesh to escape the ignominious distinction of being the world champion in corruption for five consecutive years.

During Sheikh Hasina’s rule from 2009 to 2024, a culture of bank looting, capital plunder, and capital flight took hold in Bangladesh. She rendered the Anti-Corruption Commission completely ineffective

Sadly, after Sheikh Hasina’s government came to power in 2009, deliberate steps were taken to render the Anti-Corruption Commission ineffective, once again weakening the government’s efforts to fight corruption.
After the fall of the authoritarian Hasina government in the mass uprising of 2024, the interim government that took charge formed several reform commissions.

The task of recommending reforms to combat corruption was assigned to a committee led by Dr. Iftekharuzzaman. Since Dr. Iftekharuzzaman had demonstrated his effectiveness over many years as executive director of Transparency International Bangladesh (TIB), we were greatly reassured that the recommendations of his committee would prove highly effective and bold.

However, I was somewhat disappointed with its recommendations. In my view, the committee failed to put forward sufficiently bold proposals to address the problem. It seemed that the committee had not devoted enough time to an in-depth analysis of the problem before formulating its recommendations. Nevertheless, even though the interim government took no initiative to implement those recommendations, I had hoped that the BNP government would move forward with their implementation in a sincere and committed manner.

Corruption is primarily responsible for Bangladesh’s failure to achieve comparable levels of economic development. Bangladesh began its journey as an independent nation after winning the Liberation War in 1971, while Vietnam embarked on its path toward economic development in 1975, after defeating the United States in an extremely bloody war.
In 1974, Vietnam’s per capita GDP was just $65. According to IMF estimates, Vietnam’s per capita nominal GDP reached $4,806 in 2025, a feat being described as a “miracle.” In Bangladesh, the figure stands at $2,635.

In 2024, only 2 per cent of Vietnam’s population lived below the poverty line, compared with 21 per cent of Bangladesh’s population.
The persistence of corruption in Bangladesh is the biggest factor behind the country’s relative economic backwardness and distressing levels of poverty. In 2025, Bangladesh was again identified as the second-most corrupt country in South Asia, after Afghanistan.

During Sheikh Hasina’s rule from 2009 to 2024, a culture of bank looting, capital plunder, and capital flight took hold in Bangladesh. She rendered the Anti-Corruption Commission completely ineffective. Until she was ousted, her 15-and-a-half years of authoritarian rule gave Hasina the opportunity to engage in rampant plunder without restraint.

During Hasina’s tenure, billions and billions of taka were embezzled by inflating the estimated costs of a series of unnecessary or marginally necessary mega-projects to three or four times their actual costs. As a result, the costs of many projects reached what were described as the “highest in the world.” Through “data doctoring,” the Hasina government fabricated a narrative of commendable growth in Bangladesh’s per capita GDP while looting and ravaging the country, with the vast majority of the stolen money being siphoned abroad.

At the heart of this capital plunder were the Sheikh and Hasina families, along with their relatives and close associates. Others included predatory business oligarchs such as S Alam, Salman F Rahman, and Nazrul Islam Mazumder of Nassa Group, as well as thousands of corrupt politicians and government officials.

Following Sheikh Hasina’s fall, a white paper published by the interim government claimed that a total of $234 billion had been looted from Bangladesh and siphoned abroad during her authoritarian rule, spanning the period from 2009 to 5 August 2024.

Over the past two years since Hasina’s ouster, economists have become convinced that even if she had not lost power after being branded an authoritarian ruler, she would still have been unable to save the country’s economy from the inevitable consequences of an “economic meltdown.”
Now, if we focus solely on the scale and severity of corruption under Hasina, the question inevitably arises: What concrete steps has BNP taken and implemented over the past eight months to rid society of corruption?

The general public continues to be plagued by rampant corruption in their daily lives. With BNP leaders and activists engaging in widespread extortion after replacing Awami League, people are once again struggling to cope. Corruption remains just as pervasive as before in every area involving land-related matters. Institutional corruption in the customs, VAT, and income tax departments has not been dented at all. Complaints of corruption at every step are still heard at BRTA offices.

As before, people must pay bribes to obtain services at virtually any government office. The institutionalised system of bribery and corruption in the judiciary remains unchanged. I have not seen any reports in the newspapers indicating that action has been taken over allegations of corruption and irregularities against members of parliament or ministers. The Anti-Corruption Commission (ACC) is still not active in any meaningful sense. Reforms concerning the ACC have stalled.

Yet corruption is the country’s Number One problem. Therefore, failing to make the fight against corruption a top priority is undoubtedly a major mistake on the part of BNP.

* Dr. Moinul Islam is an economist and a retired professor in the Department of Economics at the University of Chittagong.​
 

Bank plunder since 2010 dealt heavy blow to financial sector: Wahiduddin

Staff Correspondent . Dhaka

Economist Wahiduddin Mahmud on Wednesday said bank plunder was more damaging to Bangladesh’s banking sector than loan defaulting, blaming excessive regulatory relaxation and political interference for the crisis.

Speaking at the 11th Annual Banking Conference 2026 organised by the Bangladesh Institute of Bank Management in the capital, Dhaka, the former planning and education adviser to the interim government said the sector had initially been weakened by loan defaulting but had faced a more destructive problem since 2010, when money was taken from banks without adequate scrutiny.

His remarks come as the banking sector is grappling with a huge burden of defaulted loans, capital shortages and provisioning shortfalls, undermining its ability to finance productive economic activities.

‘The banking sector was first ruined by a culture of loan defaulting. We managed to move away from that, but after 2010, a culture of bank plunder emerged. This is even more dangerous, as money is taken out of banks without following any rules,’ Wahiduddin said.

He said earlier reforms had helped some private banks meet international standards, but excessive regulatory relaxation and approval of new banks without adequate safeguards later allowed politically connected groups to gain control of banks and exploit their funds.

He said sponsor-directors of some banks had borrowed amounts equivalent to around 35 per cent of their total deposits, highlighting the risks of excessive owner influence over lending.

He also called for legislation to prevent a single group or family from controlling multiple banks.

Criticising successive governments for using state-owned banks to favour politically connected groups, he said political interference in the financial sector had caused serious economic damage.

Ending such interference required a government decision, as neither Bangladesh Bank nor bank executives could resolve the problem independently, he said.

Wahiduddin urged the authorities to ensure adequate safeguards when rescuing troubled banks, warning that relaxed rules could again be misused.

Each case, he said, should be assessed separately to ensure funds reached genuine businesses and honest entrepreneurs.

He also questioned whether new loans were being used productively and stressed that regulatory reforms must be accompanied by ethical standards among bankers, corporate leaders and industrialists.

Authorities must adapt to evolving money-laundering methods, including those involving artificial intelligence, he added.

Abdul Hai Sarker, chairman of the Bangladesh Association of Banks and of Dhaka Bank, said judicial and enforcement reforms were needed to compel defaulting borrowers to repay their loans.

Association of Bankers, Bangladesh Chairman Mashrur Arefin, also managing director of City Bank, said governance had begun to improve, but private sector credit growth was almost nil and businesses remained reluctant to invest.

Questioning reported economic growth of about 4 per cent, he said actual net growth was doubtful after excluding accrued interest and forced loans.

Banks were also seeing little demand for large letters of credit to import capital machinery for factory expansion, he added.

Bangladesh Bank Deputy Governor Md Kabir Ahmed, World Bank South Asia Regional Director for Bangladesh and Bhutan Jean Pesme, and Policy Research Institute Chairman Zaidi Sattar, who presented the keynote paper, also spoke.​
 
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