[🇧🇩] Everything about Hasina's misrule/Laundered Money etc.

[Saif]

Governor warns all not to purchase S Alam assets

Bangladesh Bank governor Ahsan H Mansur on Wednesday warned people not to purchase any assets linked to S Alam Group and said that the government planned to seize those assets to compensate depositors...

www.newagebd.net

Governor warns all not to purchase S Alam assets
Staff Correspondent 28 August, 2024, 17:20

Ahsan H Mansur | Collected photo

Bangladesh Bank governor Ahsan H Mansur on Wednesday warned people not to purchase any assets linked to S Alam Group and said that the government planned to seize those assets to compensate depositors.

At a press conference at the Bangladesh Bank headquarters, Mansur described the S Alam scam as the largest bank heist in the history, with the group allegedly siphoning off around Tk 2 lakh crore ($16.6 billion) using state mechanism.

‘I am unaware of anyone else globally who has looted banks on this scale and in this manner,’ he said.

‘The assets in S Alam’s name and under anonymous ownership will be sold to compensate depositors. No one should buy any of these assets now,’ Mansur said.

Allegations have it that S Alam Group, under the previous government’s protection, took control over seven banks and withdrew such vast sums, much of which were allegedly laundered.

The central bank recently froze bank accounts of S Alam and his associates, seized shares in six banks, and enforced a 100 per cent margin on all their LCs.

So far, the central bank has restructured the boards of six banks, four of which were directly controlled by S Alam, with the other two under its indirect control.

The group chairman, Mohammed Saiful Alam, and his family, now residing abroad, possess significant foreign assets.

Regarding the bank restructuring, the governor said, ‘The boards of six banks have already been restructured and more will follow soon. These new boards will act as government representatives, but they too will be replaced if they fail to perform at desired level.’

Mansur urged depositors to remain calm and avoid mass withdrawals, which could jeopardise the banks’ liquidity.

‘We don’t want depositors to lose their money, but we won’t print more currency as it would lead to hyperinflation, potentially reaching 100 per cent,’ he said.

Urging people to withdraw only what is be necessary, the governor said that the situation would stabilise in the next 5–6 months.

He added that inflation was being addressed and, with the dollar rate now stable, inflation should decrease within 6–7 months, although recent floods posed some concerns.

He assured that dollars were no longer being sold from reserves, with government demands being met through the interbank dollar market.

He said that a banking commission would be formed in a month and the central bank would be a part of it.

Foreign experts will be brought in and Sri Lanka’s model will also be considered, he said.

Mansur criticised the governance under the former two central bank governors, assuring that such failures would not occur under his leadership.

He also acknowledged the need for reforms within the Bangladesh Bank itself, admitting the central bank’s share of responsibility.

Asked about other criminal entities in the banking sector besides S Alam, Mansur vowed to investigate and take action against all of them as well, declaring, ‘No one will be spared.’​

 

[Saif]

Work underway to assess amount of money laundered, swindled: CAO

The Chief Adviser’s Office (CAO) on Wednesday said work is underway to assess the amount of money laundered abroad or swindled by some corrupt businessmen and influential people in the country. “Audit will begin to determine the money swindled by the corrupt people . . . (but) it can b

thefinancialexpress.com.bd

Work underway to assess amount of money laundered, swindled: CAO
FE Online Desk
Published :
Aug 28, 2024 21:49
Updated :
Aug 28, 2024 21:49

The Chief Adviser’s Office (CAO) on Wednesday said work is underway to assess the amount of money laundered abroad or swindled by some corrupt businessmen and influential people in the country.

“Audit will begin to determine the money swindled by the corrupt people . . . (but) it can be assumed that the amount could be over Tk 100 billion,” the CAO office said in a statement.

It said initiatives were taken by now to bring reforms in the banks and financial institutions involved in such corruption and money laundering while the interim government now reconstituted the governing boards of Islami Bank, Social Islami Bank, National Bank, United Commercial Bank, Global Islami Bank and Union Bank, reports BSS.

“Reforms in other banks and financial institutions will start as well. The actual information of the money laundered will be collected through new managements and audit will begin to determine the money swindled by the corrupt people,” the statement read.

It said the new management of the banks started works to seize the local swindlers’ assets and bring the laundered money back home with support from Bangladesh Bank’s Financial Intelligence Unit (BFIU), police’s Criminal Investigation Department (CID) and the Anti-Corruption Commission (ACC).

According to the statement, the authorities concerned already sought cooperation from foreign organizations in returning the laundered money to the country.

“The government will soon form a banking commission to unearth the true picture of each bank through investigations and formulate an implementable roadmap to reform banks within six months,” it said.

The aim of the Bangladesh Bank and the government is to build a strong banking sector which would be capable of following all the international standards.

The statement, however, said the task would require international technical assistance and funding.

Bangladesh Bank and the government have taken initiatives to restructure the banks by seizing the assets of embezzlers and bringing their laundered money home.

The restructuring of banks and structural reforms in the financial sector are a time-consuming matter but the government is committed to turning the country’s financial sector into an international standard one, the statement said.​

 

[Saif]

People's fortune doesn't reflect dev project's expenditures: adviser

Muhammad Fouzul Kabir Khan, adviser to the Ministry of Road Transport and Bridges, today said the expenditures of country's development projects doesn't reflect on people's fortune

www.thedailystar.net

People's fortune doesn't reflect dev project's expenditures: adviser

Muhammad Fouzul Kabir Khan, adviser to the Ministry of Road Transport and Bridges, yesterday said people's fortune doesn't reflect expenditures of country's development projects.

While inspecting the Padma Bridge Rail Link Project, Fouzul, who is also an adviser to the Ministry of Railways, made the remarks to reporters at the Mawa Railway Station in Louhajang, Munshiganj, this evening, reports our local correspondent.

He further said, "There is no correlation between development expenditure and the benefits to the people. The reason for the public's frustration is that while it is claimed that the country's GDP is increasing, people are not experiencing the benefits."

He questioned, "How much benefit people will get from the Padma Bridge Rail Link Project? In how many days will the money spent be recovered? I will discuss these with the planning adviser."

"The money for the Padma Bridge project comes from the Chinese Exim Bank, and it must be repaid with interest," he added.

Fouzul Kabir said in future, planning would be done in such a way that development expenditures are more closely aligned with the fortunes of the people.

"The difference between this government and the previous one is that the previous government did not answer questions. Now, we have to address these issues," he said referring to the ministry's secretary.

He continued, "You will see how to maximize income from these projects through their best use. Otherwise, we will not benefit from these white elephant projects."

During this time, senior officials from the ministry were present with the adviser.​

 

[Saif]

CID opens investigation against S Alam, associates for 'laundering' Tk 1130b

An investigation has be launched against S Alam Group owner Saiful Alam (S Alam) and his associates into the allegation of laundering Tk 1.13 trillion (113,245 crore) abroad.

en.prothomalo.com

CID opens investigation against S Alam, associates for 'laundering' Tk 1130b
Staff Correspondent Dhaka
Published: 31 Aug 2024, 20: 32

An investigation has been launched against S Alam Group owner Saiful Alam (S Alam) and his associates into the allegation of laundering Tk 1130 billion abroad.

The Criminal Investigation Department (CID) of police has started the investigation.

The CID disclosed this in a press release sent to the media outlets on Saturday.

The press release said that there are allegations of organised crimes, frauds, scams and running Hundi activities against S Alam Group owner S Alam and his associates.

The Financial Crimes Unit of the CID has launched the probe on suspicion of S Alam and his associates being involved with laundering Tk 1130 billion abroad.

The CID says according to the news published in media, the suspects including S Alam himself have surrendered Bangladeshi citizenship and then through frauds and forgery collected permission for permanent residency (PR) in Bangladesh again within just a single day.

They have built assets through their own companies as well as through people and companies of their interests in Singapore, Malaysia, Cyprus and European countries by siphoning off money out of Bangladesh.

According to CID’s information S Alam and his associates have established a company named Canali Logistics Private Limited in Singapore with subscribed capital of USD 22.34 million (USD 2.23 crore) from the money laundered by S Alam.

They also took loans worth Tk 950 billion (Tk 95,000 crore) from six banks in the name of importing and exporting goods as well as investment abroad through fraud, and defaulted it.

Apart from this, it has been alleged that S Alam has siphoned off Tk 180 billion (Tk 18,000 crore) abroad through offshore banking by opening a company that exists only on papers.

CID says that they have committed money laundering crimes through various people of their interest including S Alam, his wife Farzana Parveen as well as their sons Ahsanul Alam and Ashraful Alam.​

 

[Saif]

Govt to form task force to recover money taken abroad illegally

The interim government will form a task force to recover money illegally taken out of Bangladesh, said Finance and Commerce Adviser Dr Salehuddin Ahmed yesterday.

www.thedailystar.net

Govt to form task force to recover money taken abroad illegally

Dr Salehuddin Ahmed

The interim government will form a task force to recover money illegally taken out of Bangladesh, said Finance and Commerce Adviser Dr Salehuddin Ahmed yesterday.

He made the comment while speaking to journalists after a meeting with a delegation of buying houses at his Bangladesh Secretariat office.

Earlier, Bangladesh Bank and other related authorities had informed of planning to take initiatives to bring back such money.

"We are speaking to the World Bank, the United States and the United Kingdom to bring back laundered money," Bangladesh Bank Governor Ahsan H Mansur said in a recent interview with The Daily Star.

Money from Bangladesh had also been illegally taken to Dubai and Singapore, he added.

When asked whether reforms have started to materialise since he took office, Salehuddin said, "Of course, there have been visible changes as many things are evident.

"Action has been taken against default loans, banks with issues are being reorganised, and the liquidity problem was addressed by the (central bank) governor," he said.

Following Mansur's appointment as governor on August 14, Bangladesh Bank reconstituted the boards of a number of banks.

They include Islami Bank Bangladesh, Social Islami Bank, Global Islami Bank, Union Bank, National Bank, First Security Islami Bank, Bangladesh Commerce Bank, Al Arafah Islami Bank, United Commercial Bank, Exim Bank and IFIC Bank.

Most of these lenders were controlled by S Alam Group, a Chattogram-based conglomerate.

Regarding trade and commerce, Dr Salehuddin Ahmed said, "We have reduced the duty on potatoes and onions, and instructions have been given to ensure their supply."

The National Board of Revenue (NBR) in a statement yesterday announced that it had reduced duties on the import of onions and potatoes to boost supply and curb rising prices of these essential items.

The tariff on onion import was reduced to 5 percent and on potato import to 15 percent. It will remain in effect till November 30.

"The NBR expects that the prices of both items will reach more tolerable levels following the reduction in import duties," said the revenue authority.

Dr Salehuddin Ahmed also informed that monitoring of kitchen markets, supply chains and prices would be strengthened.

On whether the interim government has been able to reduce the prices of goods, the finance adviser said, "No, the price of goods is not decreasing due to many reasons. The price has increased, it cannot be dragged down quickly."

He, however, assured that the prices would come down within a few months. Even if the prices of imported goods increase, the interim government will devise a way to ensure that consumers remain unaffected, he said.​

 

[Saif]

S Alam group withdraws Tk 90,000cr from IBBL

The controversial S Alam Group has withdrawn over Tk 90,000 crore loans from Islami Bank Bangladesh alone, accounting for more than 50 per cent of the shariah-based bank’s total loan...

www.newagebd.net

S Alam group withdraws Tk 90,000cr from IBBL
Staff Correspondent 05 September, 2024, 17:21

| Collected photo.

The controversial S Alam Group has withdrawn over Tk 90,000 crore loans from Islami Bank Bangladesh alone, accounting for more than 50 per cent of the shariah-based bank’s total loan portfolio, according to newly appointed chairman Md Obayed Ullah Al Masud.

He disclosed this shocking figure during a press briefing on Thursday, following a meeting with Bangladesh Bank governor Ahsan H Mansur. Other board members of the bank were also present.

By the end of August, Islami Bank’s total loans stood at nearly Tk 1.80 lakh crore, according to bank officials.

Masud stated, ‘The group secured over 50 per cent of the bank’s total loans, both in their name and through anonymous accounts, while the exact figure is still being determined.’

He added that it would take approximately a week to finalise the loan data. Three audit firms have been appointed to investigate all kinds of irregularities that occurred at the bank.

S Alam Group, under the patronage of the ousted Awami League-led government, seized full or partial control of eight banks, central bank officials said.

The group has been accused of rampant irregularities, particularly in recruitment and loan disbursement, they said.

Bank insiders allege that S Alam withdrew close to Tk 2 lakh crore from the banking sector, primarily from the eight banks under its control, with much of the amount funnelled through anonymous channels, they said.

These banks are First Security Islami Bank, Social Islami Bank, Union Bank, Global Islami Bank, Islami Bank Bangladesh, Al-Arafah Islami Bank, National Bank, and Bangladesh Commerce Bank.

The central bank has now reconstituted all eight banks and appointed independent directors to oversee their operations.

New Islami Bank chairman said that the S Alam Group allegedly inflated the value of their assets to secure massive loans, and the bank is now re-evaluating these assets.

The collateral offered was inadequate to cover the debts, therefore, the bank made a formal request to the Ministry of Law to track down other assets owned by the group.

On August 22, Bangladesh Bank freed Islami Bank from S Alam’s control, reconstituting the board and appointing Masud, former managing director of Rupali Bank, as the new chairman.

S Alam Group, reportedly with the backing of a state agency, forcibly took over the bank in 2017, side-lining its founding shareholders and directors.

Bangladesh Bank, under the leadership of former governor Abdur Rouf Talukder, provided all kinds of possible liquidity support to these banks despite knowing that these banks continued allowing the S Alam Group to withdraw money as anonymous loans.

This occurred even though the banks’ current accounts remained negative, leaving them incapable of making any transactions.

After exhausting all legal avenues, Bangladesh Bank resorted to unethical and illegal means to provide these banks with additional liquidity.

Despite the banks having no funds in their current accounts, the central bank printed money to keep them afloat, according to Bank Bank officials.


As criticism mounted from various corners, Bangladesh Bank was forced to halt this unsustainable practice and began searching for alternative methods to support the struggling banks.

At last, the central bank provided total $1.1 billion equivalent in financial support to Islami Bank Bangladesh since January based on a fake dollar purchase quotation.

On July 3, Bangladesh Bank falsely reported a $550 million purchase from Islami Bank, even though no actual dollars were transferred. In this fabricated transaction, Islami Bank received Tk 6,490 crore at a rate of Tk 118 per dollar, the officials said.

Islami Bank only returned $100 million, leaving $450 million unpaid. After the fall of Sheikh Hasina, Bangladesh Bank hurriedly adjusted the remaining amount in the bank’s current account which had already been negative.

This review underscored the severity of financial mismanagement and exposed the deep-rooted collusion between the central bank and a private institution wielding enormous power through political connections.

In the press briefing, Masud expressed hope that the bank would return to positive growth by the end of the year.

Addressing concerns about customer difficulties in withdrawing deposits, he reassured that the recent influx of deposits has exceeded withdrawals, leading to a net positive balance.

When questioned about punitive actions against officials who abetted S Alam, Masud clarified that while lower-level employees would not be removed immediately to avoid a destabilisation risk, removal of senior officials was already underway.

He promised that all those involved would face legal consequences with no exceptions.

There will be no more restrictions on the business operations and opening Letter of Credits (LCs) in Islami Bank from now on, he said.

Masud also unveiled a recovery roadmap for the bank. The first phase, running through December 31, focuses on identifying and addressing critical issues.

The second phase, from 2025 to 2026, aims at full recovery, while the 2027–2029 period is designated for progress and growth, according to the bank’s new chairman.​

 

[Saif]

CID to probe Bashundhara Group chair, MD over alleged money laundering

The Criminal Investigation Department on Thursday said that the agency launched an investigation against Basundhara Group chairman Ahmed Akbar Sobhan and managing director...

www.newagebd.net

CID to probe Bashundhara Group chair, MD over alleged money laundering
Staff Correspondent 05 September, 2024, 18:34

From left, Bashundhara Group chairman Ahmed Akbar Sobhan, managing director Sayem Sobhan Anvir. | BSS file photo

The Criminal Investigation Department on Thursday said that the agency launched an investigation against Basundhara Group chairman Ahmed Akbar Sobhan and managing director Sayem Sobhan Anvir for their alleged involvement in money laundering.

Superintendent of CID media wing Azad Rahman in a press release said that the CID had decided to investigate the allegations of embezzlement, laundering of thousands of crores of taka through fraudulence, forgery, tax evasion, VAT evasion, under-invoicing and over-invoicing against different organisations related to Bashundhara Group.

Bashundhara Group had allegedly bought land at Tk 20-25 lakh per bigha by cheating the land owners. But it borrowed more than TK 42,000 crore from bankshowing the price of per katha land at Tk 3 crore.

The company allegedly was implementing projects by filling up public and government properties like canals and rivers without the approval of RAJUK, the press release said.

It has been accused of illegally occupying a total of 1, 016 acres of land including 800 acres of government properties in Bashundhara residential area and 216 acres of Bhawal Raj Estate.

Besides, there are allegations of grabbing vast land by East West Properties Limited in different blocks of Bashundhara Residential Area, which is estimated to be worth more than Tk 1.5 lakh crore.

Ahmed Akbar Sobhan and his on Sayem Sobhan Anvir were involved in laundering money to Dubai, Singapore, Cyprus, London, Malaysia and other countries, the press release said.

Bashundhara Group›s Singapore office is being looked after by Ahmed Akbar’s elder son Sadat Sobhan Tanveer, who allegedly took thousands of crores of taka loan from different banks by showing one project after another, but never repaid the loans.

Meanwhile, Bashundhara Oil & Gas (Keraniganj, Dhaka) had been accused of importing bitumen worth approximately Tk 2,000 crores from abroad with the help of trade-based money laundering and later supplying the imported bitumen to different parts of Bangladesh through a monopoly business under the control of a powerful syndicate controlling the price.

The CID said that Sayem Sobhan Anvir allegedly controlled the syndicate of gold smuggling in Bangladesh.​

 

[Saif]

Hasina's anti-corruption drive was a farce

Before the fall of the autocrat Hasina's government, there was a flurry of sensational news in the media about the corruption of former IGP Benazir Ahmed, former army chief Aziz Ahmed and the NBR director Matiur Rahman. But the steps taken by Hasina were nothing but a farce, making a fool out of...

en.prothomalo.com

Hasina's anti-corruption drive was a farce
Mainul Islam
Updated: 09 Sep 2024, 17: 27

Before the fall of the autocrat Hasina's government, there was a flurry of sensational news in the media about the corruption of former IGP Benazir Ahmed, former army chief Aziz Ahmed and the NBR director Matiur Rahman. But the steps taken by Hasina were nothing but a farce, making a fool out of the people. Hasina institutionalised corruption by entering corruption in the very pores of the economy.

The former inspector general of police (IGP) Benazir Ahmed came to limelight in 2009 as a favourite of Sheikh Hasina, one who enjoyed her full patronage. He was from Gopalganj. And he actively devoted himself to meeting all objectives of Hasina -- political and non-political, legal and illegal.

Benazir Ahmed's career graph shot up in no time, from Dhaka Metropolitan Police commissioner to director general of RAB and then IGP. His most despicable offence was during the 2018 election, orchestrating the stuffing of ballot boxes in most constituencies on the night before the election, with the direct participation of the police and civil administration.

The Hasina government took no action whatsoever against these thousand or so money launderers who brought the country to the brink of economic collapse by siphoning off thousands and thousands of crore of taka overseas

As he was instrumental in carrying out huge illegal activities of the Hasina government, while he was in service neither Hasina nor Anti-Corruption Commission or any other authority uttered a word about this unrestrained corruption and his amassing massive wealth.

It was only after he was no longer useful to the government that various details of his corruption and misappropriations were supplied to the media and published with much fanfare. But the media also exposed that it was only after Benazir and his family had made a safe exit overseas that these stories hit the headlines, a mere eyewash.

It was the same in the case of the former army chief General Aziz. Those who watched the Al-Jazeera documentary, "All the Prime Minister's Men" are aware of how General Aziz used his clout during Hasina's rule to get a presidential pardon for one of his brother's would was convicted for murder.

The Al Jazeera documentary revealed many more stories of Aziz's corruption. It was Aziz who was the army chief during the 2018 election rigging. Ever since the Sheikh Hasina government ascended to power back in 2009, Hasina had an extremely indulgent attitude towards corruption.
Hasina's government kept the country's banking sector in the throes of embezzlement. Of the total Tk 18 lakh crore loans taken from the banking system, at least Tk 5.5 lakh crore became defaulted and most of this was siphoned out of the country. (A recent report of The Business Standard claims that the default loans exceed 7 lakh crore).

Yet the Hasina government was totally oblivious about trying and punishing these kingpins of corruption, the few hundred who embezzled banks funds through deliberate default. (In 1998 President Justice Shahabuddin Ahmed had recommended a tribunal be set up for the trial of the top 10 loan defaulters of all banks.)

Quite to the contrary, the biggest loan defaulter of the country, Salman F Rahman, was appointed as an advisor to the prime minister. One of the main collaborators of the autocrat Hasina, Salman Rahman was nabbed on 13 August while trying to escape by river, in disguise. This pitiful predicament of the country's biggest bank embezzler and biggest loan defaulter Salman Rahman created a huge stir among the people.

He would go around with a white beard, white hair and white panjabi, dressed almost like as ascetic, for which the people would ironically call him 'Darbesh' (dervish). He would dress in this 'saintly' manner, sending a message out quite opposite to his constant devious misdeeds. And Hasina had kept him for a long time as her private investment and industries advisor.

Over the past 52 years, with government patronage, Salman Rahman became a synonym for money laundering. The Business Standard on 15 August 2024 reported that over the past 52 years, by means of loans and embezzlement, he misappropriated Tk 36,867 crore from seven banks. From Janata Bank alone he took loans exceeding Tk 23,000 crore. He reportedly unlawfully took loans totalling Tk 11,000 crore from IFIC Bank which he himself owned. Very little of this loan has returned to the bank or will ever be returned in the future.

The Hasina government took no action whatsoever against these thousand or so money launderers who brought the country to the brink of economic collapse by siphoning off thousands and thousands of crore of taka overseas. The country's foreign exchange reserves dwindled by USD 30 billion over the past three years, but the Hasina government remained unperturbed.

The Hasina government was not sincere at all about preventing corruption, halting the growth of non-performing loans or preventing capital flight. "Zero tolerance" towards corruption was mere rhetoric. Capital flight was fueled by corruption and unrestrained default loans. Embezzlers and money launderers are the top enemies of the country.

I strongly state that after restoring law and order in the country, the priority of the interim government will be to take all-out action against corruption and capital flight. I recall the success of the strong anti-corruption drive by the 2007-08 military backed caretaker government. The anti-corruption commission led by retired Lt Gen Hasan Mashhud Chowdhury managed to give the corrupt politicians, businessmen and civil servants a good shakedown, according to the next ACC chairman Golam Rahman.

Golam Rahman said that when she came to power in 2009, Hasina did not ratify the ACC ordinance drawn up by the caretaker government and simply made it a toothless tiger. General Hasan Mashhud resigned in despair.

I recommend that we revert to that ACC ordinance speedily. Also, a bold person must be appointed as the chairman of ACC, someone who can take stern measures against corruption. There are several persons in our administration who have won renown for their bold steps against corruption and who have won the respect and love of the people.

• Moinul Islam is an economist and former professor at the economics department of Chittagong University.
• This column appeared in the print and online edition of Prothom Alo and has been rewritten for the English edition by Ayesha Kabir

 

[Saif]

Spyware over scholarship: How Bangladesh's priorities shifted under Hasina

While national security is undoubtedly important, one must question whether the scales have tipped dangerously in favor of watching minds at the expense of nurturing them.

www.thedailystar.net

Spyware over scholarship: How Bangladesh's priorities shifted under Hasina

VISUAL: STAR

In an era where Bangladesh desperately needs to foster critical thinking and innovation, a look at the spending priorities of the ousted Awami League government during its 15 years of rule paints a troubling picture. This analysis exposes the stark contrast between the government's lavish expenditure on spyware versus its paltry investment in academic research between 2009 and 2024. While national security is undoubtedly important, one must question whether the scales have tipped dangerously in favor of watching minds at the expense of nurturing them.

The numbers reported by various media and rights platforms over the years speak for themselves, revealing a government more interested in monitoring citizens than nurturing their intellect. For example, spyware spending skyrocketed from a mere $3 million in 2012 to an eye-watering $25 million in 2024—a staggering 733 percent increase. In stark contrast, academic research funding crawled from $50 million in 2010 to just $90 million in 2024—a comparatively anemic 80 percent growth.

This disparity becomes even more alarming when we dig deeper. Reportedly, a shocking 70 percent of so-called "academic research" funds over the past 15 years were squandered on construction and procurement in a trickle-down embezzlement model, keeping bureaucrats, pseudo-intellectuals, and other interest groups aligned with the interests of the regime that consequently leveraged managing elections, political upheavals and dissenters. This cronyism left actual empirical research across STEM, social sciences, and humanities with a budget so thin that it was practically transparent, so to speak. Is it any wonder that our scholarly output is so abysmal?

Meanwhile, the government's appetite for surveillance seemed to be insatiable. The period from 2015 to 2020 saw a particularly aggressive push for spyware acquisition: in 2016, $10 million was allocated for surveillance systems; in 2018, $15 million was poured into digital monitoring; in 2022, a whopping $20 million was budgeted for spyware and related technologies; and in 2024, the budget was projected to reach $25 million.

But even these (official) figures may just be the tip of the iceberg. Anonymous industry sources suggest a staggering $53 million in unreported spyware expenditure between 2019-2024 alone. This clandestine spending allegedly funded projects with Orwellian overtones (see Table), including i) Audio interception project (tapping 120,000 calls simultaneously); ii) National information portal (connecting 42 government databases to efficiently track down individuals); iii) Content blocking and filtering project; iv) Data retention system (updating all data every 15 minutes); and v) a nefarious spyware dubbed "Hello Pakhi" was covertly commissioned at the cost of approximately $2.2 million. This invasive tool, designed to brazenly infiltrate private communications on popular messaging platforms like WhatsApp, among others, represents a flagrant violation of citizens' privacy rights.

The Hacking Team, as an aftermath, pitched mined data to the Rapid Action Battalion (RAB), a unit described by Human Rights Watch as a "death squad" involved in torture and extrajudicial killings. Arguably, RAB enjoyed its own autonomous budget and its personnel, especially top-ranking officials, had an obligation to show expenditure on suppressing dissent within a given fiscal year. Equally alarming is the duplicitous manner in which these exorbitant expenses were concealed from public scrutiny.

Anonymous sources involved in data traffic have exposed the state's underhanded tactics, revealing that these costs were deliberately obfuscated within seemingly innocuous budget items. The government disguised these surveillance expenditures as mundane office events, routine supplies, construction materials, and basic technological equipment for various ministries and security agencies. It can be argued that the state concealed its cost for operating the torture cells, notably Aynaghar, in a similar fashion.

This was the hallmark of the former authoritarian government which was obsessed with control. So, the pressing questions for Bangladesh 2.0 will be: How to locate and remove these surveillance apparatuses? How to identify and bring to justice those who breached privacy and aided the old regime in its surveillance operations? And how to enact safeguards to ensure such intrusive surveillance is not reinstated to suppress the masses again?

Now, let's turn our focus to the Awami League government's lukewarm approach to academic research over the last decade. While there have been modest budgetary increases, they pale in comparison to the surveillance spending spree—i) 2016: $65 million for research and development; ii) 2018: $70 million; iii) 2022: $80 million; and iv) 2024: projected $90 million. The question that must be asked is, what tangible results have these investments yielded? Beyond new buildings and computers, Bangladesh's investment on research and knowledge generation remains worryingly inadequate and ineffective.

The above analysis lays bare a government that evidently favoured control over creativity, and surveillance over innovation. The long-term consequences of this misguided prioritisation could be severe, potentially stunting the nation's intellectual growth and competitiveness for generations to come. It's high time for a critical re-evaluation of our priorities.

Dr Mustahid Husain teaches at the Department of Anthropology, University of Toronto.​

 

[Saif]

Probe starts on how Tk 25cr vanished from Monirul’s office

The Police Headquarters has formed a three-member committee to investigate the allegation of looting Tk 25 crore from the room of the former Special Branch (SB) of Police chief Monirul Islam.

www.thedailystar.net

Probe starts on how Tk 25cr vanished from Monirul’s office

The Police Headquarters has formed a three-member committee to investigate the allegation of looting Tk 25 crore from the room of the former Special Branch (SB) of Police chief Monirul Islam.

The Deputy Inspector General (DIG) of the Special Security and Protection Battalion Golam Kibria has been made the head of the committee.

There is no deadline to submit the report, but the committee has been asked to submit it as soon as, according to police sources.

Confirming the development, Moazzem Hossain, DIG (special affairs) of the SB, also a member of the committee, told The Daily Star last night, "We have started our investigation to find out what happened in the room of the former SB chief."

Asked about any suspects or findings, Moazzem refused to disclose details.

"We are trying to conduct an impartial investigation to find out what happened."

Sources alleged that Monirul, also the former additional inspector general of police, brought Tk 25 crore from the Sheikh Hasina government on August 3 and kept it in his room to spend on suppressing the Anti-discrimination Student Movement.

But before the money could be spent, Hasina's government fell on August 5.

Monirul did not go to the office since then.

But some SB officials knew that there was Tk 25 crore in his room and a number of them moved the money, sources alleged.

The PHQ formed the committee to investigate the incident following media reports about the incident.

Sources said intelligence agencies used to receive such money for which they did not have to provide expenditure details.

A police officer said Monirul was one of the most influential officers during the last regime. On August 13, the home ministry in a circular sent him into forced retirement. He has 11 cases filed against him.​

 

[Saif]

Past govt fuelled inflation by printing Tk 60,000cr: Yunus

People are grappling with high inflation because of the fresh injection of Tk 60,000 crore into the market by Sheikh Hasina’s government, Prof Muhammad Yunus, chief adviser to the interim government, said yesterday.

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Past govt fuelled inflation by printing Tk 60,000cr: Yunus

People are grappling with high inflation because of the fresh injection of Tk 60,000 crore into the market by Sheikh Hasina's government, Prof Muhammad Yunus, chief adviser to the interim government, said yesterday.

"One of the main goals of the interim government is to contain the unprecedented inflation," he said in a televised speech to the nation.

The chief adviser's comments came after inflation eased in August but remained at over 10 percent, reflecting that higher prices of goods and services are continuing to eat away at the purchasing power of consumers.

The inflation rate in Bangladesh has hovered above 9 percent since March 2023.

Last month, the Consumer Price Index (CPI), which measures changes in the prices paid by consumers over time, stood at 10.49 percent, according to data released by the Bangladesh Bureau of Statistics (BBS).

Yunus, who was sworn in after the Awami League government was toppled by a mass uprising on August 5, said the past 'fascist' government printed additional currency and released it into the market with the intention of 'looting'.

He added that the Bangladesh Bank had already hiked the policy rate to 9 percent to combat inflation.

"Distribution of essential commodities at fair prices through open market sales and food-friendly programmes are ongoing to cushion common people from inflation," he said.

The government has allocated Tk 5,800 crore to import rice and wheat. It has also allocated Tk 8,900 crore for domestic procurement of grains.

It also allocated Tk 7,360 crore in the current fiscal year to provide food subsidies to poor and low-income people under three programmes.

He said the central bank has made the exchange rate market-based to curb the volatility.

Yunus further said his government has cancelled the unethical provision to legalise black money. The previous government offered a unique amnesty that allowed anyone to whiten illegal gains without scrutiny by paying a 15 percent tax on assets, including cash, securities, deposits, financial schemes and instruments.

However, the interim government did not cancel the amnesty to whiten black money in case of investment in real estate -- flats, buildings and land -- on payment of a specific amount of tax depending on the size and location of the properties.

Yunus added that the government has also sought budgetary support from various development partners in order to bolster foreign exchange reserves.

It has sought an additional $3 billion from the International Monetary Fund, $1 billion from the World Bank, and $1 billion from the Japan International Cooperation Agency.

"Discussions with Russia are ongoing regarding advance payments for the construction of the Rooppur Nuclear Power Plant and clearing the dues," he said.

Yunus also said his government has taken the initiative to rationally cut operating and development spending to contain pressure on state coffers.

He added that extravagant projects were taken under the 'authoritarian' Hasina government.

"We have already started the process of reviewing all ongoing and proposed development projects. Depending on the stage of implementation, we will consider cutting spending. If necessary, we will cancel those."

Yunus, who won the Nobel Peace Prize in 2006, said the interim government would put an end to looting in the name of mega-projects and planned to increase allocations for the health and education sectors.

He said the government requested both Russia and China to reduce the interest rates of loans and extend the maturity period.

Moreover, the government has directed relevant agencies to publish actual data of economic indicators.

"We have taken steps to recover looted and laundered money," he said, adding that the government is going to form a banking commission to restore discipline to the financial sector.

"The boards of various banks have been restructured. Huge changes have taken place in the banking sector within a month. You must have noticed that."​

 

[Saif]

Laundered money can be retrieved even if the process is complex

As I said before, on 5 August one phase of the student-people’s uprising had ended. An end was brought to the autocratic rule. An unprecedented opportunity arose to run the country in a democratic manner. The building of a new Bangladesh, that is, state reforms, as envisaged by the leaders of...

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Interview: Iftekharuzzaman
Laundered money can be retrieved even if the process is complex

Dr Iftekharuzzaman is the executive director of the anti-corruption organisation Transparency International Bangladesh (TIB). As part of the process for state reform, the interim government recently formed six commissions. Iftekharuzzaman has been given charge of the anti-corruption reform commission. In an interview with Prothom Alo’s Sohrab Hassan, he talks about the prospects of a corruption-free and democratic society.

Prothom Alo : Recently you said at a seminar that the objectives of the movement carried out by the Students against Discrimination have not been fulfilled as yet. Do you see some shortfalls in this regard?

Iftekharuzzaman As I said before, on 5 August one phase of the student-people’s uprising had ended. An end was brought to the autocratic rule. An unprecedented opportunity arose to run the country in a democratic manner. The building of a new Bangladesh, that is, state reforms, as envisaged by the leaders of the students’ movement, is essential and involves a matter of time. After the 1971 liberation war we had started our journey anew, but those dreams of ours were not fulfilled.

Many people from outside would ask me why there was no mass uprising against all the human rights violations that were being carried out, the corruption, the misrule. They would use Sri Lanka as an example. In the Sri Lanka movement a handful of people gave their lives. But not a single one of them was shot dead by the police. But we apprehended that if such a situation arose in Bangladesh, the police would shoot the protestors like birds. And that is exactly what happened. We cannot let these sacrifices of hundreds of people who gave their lives go in vain.

In our political culture, those in power cling on to power by whatever means. To that end, they render the state institutions ineffective. The students are talking about changing or reforming that system. The objective of state reforms must essentially be to take lessons from the essence of the movement against discrimination and free the country from the curse of power politics, to establish welfare-oriented politics. And it is the political parties that must take this basic responsibility.

Prothom Alo : 8 September marked one month of the interim government led by Dr Muhammad Yunus in power. What changes have you seen in this span of time?

Iftekharuzzaman One month is too short a period to assess the success or failure of any government, and particularly so for an interim government. Even so, we can see quite a few positive steps that they have taken. Firstly, the initiative taken to rehabilitate the families of those killed and injured in the July-August revolution and forming the July Biplob Smriti Foundation. The government has also taken initiative to bring to trial those responsible for the killings. We said that the investigations should be carried out under the supervision of the United Nations. The government has acquiesced. The government is trying to improve the law and order situation, though it is still not normal as yet.

After the change of power, there were many instances of mob justice. There were forced resignations. This is unwarranted. State reforms mean reforms in the system. The government has made quite a few announcements regarding a crackdown on corruption. Measures are being taken against those who have siphoned money overseas. The provision to whiten black money has been abolished, though it is not clear how complete that has been. These are certainly positive steps. The people have great expectations from the government. It will take time to meet these expectations. After all, multifaceted misrule has been institutionalised.

Prothom Alo : TIB works with corruption. Who do you think are more responsible for the massive proportions that corruption has taken on in Bangladesh -- the bureaucracy, businesspersons or politicians? Political leadership may have changed with the change of government, but the civil servants and businesspersons are as before.

Iftekharuzzaman Massive corruption has been carried out by the three categories you have mentioned. This is done with collusion among the three. But as politicians run the country, they have the greater liability. The bureaucrats and businessmen resort to corruption with political patronage and protection. With the change in power, legal action is being taken against the ministers and leaders of the former government. That does not mean that corruption has come to a halt or that it will come to a halt any time soon. We see that already extortion and forced occupation has started in various places. Those who think they have come to power or will be coming to power, are the ones involved in this. These are not good signs.

Those who think that this laundered money cannot be brought back, are very mistaken. But a long-winded and complex process must be followed if these funds are to be retrieved

Prothom Alo : How can corruption be uprooted from society?

Iftekharuzzaman It doesn't take rocket science to end corruption. We can apply the experience of other countries. Corruption hasn't happened simply over the past 15 years. Corruption has been institutionalised by all the governments. We saw Bangladesh becoming the champion of corruption both during the Awami League government and the BNP government. Measures must be taken against everyone involved in corruption.

The institutions like the Anti-Corruption Commission (ACC) and the National Board of Revenue (NBR) that work with corruption but be freed from politicisation and their capacity must be increased. These institutions must be made accountable. It doesn't make a difference whether someone is in the government or not.

ACC has filed cases against over a hundred leaders and ministers of the last government. We had submitted details of their corruption to them earlier. But when they were in power, ACC took no action against them. ACC's work culture is that they won't do anything against those in power. In the meantime, top criminals are being released from jail. I have no idea how this is being done. That is why we are stressing on institutional efficiency and integrity.

Prothom Alo : How far has ACC's activities changed after the change in government? On one hand cases are being lodged against Awami League leaders and ministers, and on the other hand the cases against BNP leaders are being withdrawn. Why can't ACC file lawsuits against those in power?

Iftekharuzzaman The change is now that they are displaying a flurry of activity. If the allegations brought about against the Awami League leaders and ministers are tenable, why were these not taken up all these days? ACC has had this propensity from the very beginning. They do not take note of the corruption of those in power. They only wake up when someone goes out of power. Actually ACC is held hostage by bureaucracy and have become a non-functional organisation. That is why we are calling for a restructuring of ACC.

Prothom Alo : Capital flight is one of the most talked-about issues in Bangladesh. Five institutions, including TIB, have sought assistance from various countries regarding the repatriation of funds that have been siphoned overseas. Have you received any response?

Iftekharuzzaman Bangladesh is now in the forefront of countries that siphon money overseas. Massive sums of money are being illegally trafficked out of the country. Those who think that this laundered money cannot be brought back, are very mistaken. But a long-winded and complex process must be followed if these funds are to be retrieved. We have good laws against money laundering. Other than a fine triple the amount of the laundered money, there is also prison sentence.

The problem is that those who siphon money abroad are immensely powerful people. We have written to the countries where the money has been smuggled to, requesting them to free the financial assets so that the money launderers cannot withdraw their funds. Previously Switzerland was the main destination for laundered money, but now the UK, US, Canada, Malaysia, Singapore and the United Arab Emirates have been added to the list.

We have sought cooperation from these countries and are following the matter up. We expect good results. But it is ACC and BFIU as well as other concerned agencies that have the main role to play.

Prothom Alo : The owner of S Alam Group and his entire family have relinquished their Bangladeshi citizenship. Will that be an obstacle in bringing back the money he has sent out of the country?

Iftekharuzzaman I do not think this is a problem at all. It does not matter of which country he is a citizen. What matters is whether he has illegally transferred money out of Bangladesh or not. Even if he has given up Bangladeshi citizenship, he will be tried if he has committed any crime. That applies to all other fugitive criminals. S Alam relinquishing his citizenship or Benazir Ahmed remaining a fugitive cannot be an obstacle to carrying out justice. Five organsations must work in coordination to bring back the laundered money. These are ACC, CID, NBR, Bangladesh Financial Intelligence Unit (BFIU) and the attorney general's office.

Prothom Alo : On behalf of TIB you have submitted certain recommendations for state reforms. For example, the same person cannot be prime minister for more than two terms. The same person cannot hold more than one top office. Then you have recommended an amendment of Article 70 of the constitution. Will the political parties agree to these proposals?

Iftekharuzzaman Some parties have already said that there are supportable recommendations. The interim government's view has been positive too.

But the main responsibility lies with the political parties. The interim government will create a legal and institutional framework. It is the political parties that will implement this, particularly those that ascend to power. In our recommendations we talk of political parties changing their culture. That has not been highlighted much. Most parties practice power-centric politics, politics centered on personal interests. They must break away from this.

We have said that the political parties must have a moral code of conduct. Leadership at all levels in a political party must be elected by means of open votes. Dynastic politics must come to an end. Autocratic leadership within the parties must be challenged. We have also spoken of proportional votes. This will put an end to the ruckus over candidates within the political parties.

Under the last authoritarian government there were multifarious instances of human rights violations. The demand for human rights was made into an offence

Prothom Alo : The anti-corruption reform commission is one of the six commissions created by the interim government for state reforms. You have been placed at the head of this commission. What are your plans in this regard?

Iftekharuzzaman We will formulate the plans in discussion with all the members once the commission is completely constituted. But importance must be placed on ensuring that the appointment of the ACC chairman and commissioner is kept free of politicisation. Also, ways must be devised to free ACC from the grip of bureaucracy. Importance will be given to reforming the laws and regulations that are an impediment to the ACC act and ACC's ability to function independently. Certain new laws must also be drawn up, such as resolution of conflicts of interest, ownership transparency law, compliance to common reporting standards, etc.

Ways must be devised to free these institutions that are vested with the duty of controlling corruption including money laundering, of all party influence and also to increase their capacity. Above all, there is no way that the matter of reforming ACC can be seen as anything separate from the intensive reforms to be brought to politics and bureaucracy. After all, even if it is possible to establish an ideal ACC, unless there are fundamental changes in politics and bureaucracy, it would be meaningless to expect that ACC will be able to fulfill its mandate.

Prothom Alo : The Awami League government has curbed that right by means of the Digital Security Act (DSA), the Cyber Security Act (CSA) and various other laws. These laws remain in place even with the change of government. In Khulna a case has been filed against a student under this law. What are your comments on this?

I would say that under the last authoritarian government there were multifarious instances of human rights violations. The demand for human rights was made into an offence. That was done to extend the government's term in power. They used these laws to snatch away people's freedom of speech, to repress the political opposition and more. This was used even more during the anti-government movement.

When the interim government came to power it said that they would review these repressive laws and bring about necessary amendments. I want to have confidence in this. We are not surprised at what happened in Khulna. The recent movement has created unprecedented opportunities, but certain apprehensions too.

Prothom Alo : Thank you.

Thank you too.​

 

[Saif]

S Alam seeks govt support to recover from business losses

Chattogram-based business conglomerate S Alam Group has requested that the government provide financial, social and legal support for recovering the business it lost due to the freezing of its different bank accounts.

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S Alam seeks govt support to recover from business losses

Chattogram-based business conglomerate S Alam Group has requested that the government provide financial, social and legal support for recovering the business it lost due to the freezing of its different bank accounts.

The business conglomerate made the request through a letter sent to the governor of Bangladesh Bank and the head of the Bangladesh Financial Intelligence Unit (BFIU) on September 12.

A copy of the letter, signed by Mohammed Delwar Hossain, general manager for accounts and finance at the S Alam Group, was also reportedly sent to the adviser to the finance ministry.

In the letter, the business conglomerate said different companies under the S Alam Group, owned by Mohammed Saiful Alam, have been maintaining accounts with banks and had sufficient funds to ensure business operations.

The group alleged that Islami Bank Bangladesh initially stopped providing services to the group's companies on August 8.

Gradually, other banks, including First Security Islami Bank PLC, Global Islami Bank PLC and Union Bank PLC, followed suit without providing prior notice.

"Those lenders have declined to send letters on the service suspensions and we believe that it is an arbitrary, discriminatory act on their part as well as a violation of the client-bank relationship," it said.

The letter said that after being contacted, the banks informed that the accounts were frozen as per verbal instructions from the BFIU.

Due to this, their companies are now facing difficulties and incurring huge losses.

The letter added that those companies were failing to pay salaries and wages timely, which may lead to labour unrest in many industrial areas.

Furthermore, the companies have been unable to pay utility bills, which could lead to line and service disconnections and consequently halt production in manufacturing units.

Moreover, the companies have been unable to deposit taxes and sales proceeds, transfer and receive funds from trade receivables, or pay for expenses, including for bank liabilities and foreign letters of credit (LCs), it said.

Contractual obligations with foreign and local suppliers and clients could not be honoured on time and interest is being charged for delayed payments, it said.

LCs relating to industrial raw materials for food and allied products have been cancelled by different scheduled banks, for which the country may face a crisis of food and other materials within a short time, warned the letter.

Non-payment of bank liabilities may lead to loan classification at any time, it said, adding that most employees were leaving.

A senior official of the BFIU confirmed to The Daily Star that they received the letter.

Husne Ara Shikha, executive director and spokesperson of Bangladesh Bank, confirmed that the central bank had received a letter after being contacted by The Daily Star.

The BFIU did not instruct banks to freeze or suspend the accounts of businesses or institutions of the group, she said, adding that it had instructed banks to freeze personal accounts related to the group.​

 

[Saif]

Al Jazeera investigation reveals former land minister Saifuzzaman's global property empire

Al Jazeera's Investigative Unit went undercover to reveal how a former government minister from Bangladesh built a half billion-dollar property empire on a modest official salary

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Al Jazeera investigation reveals former land minister Saifuzzaman's global property empire

Former Land Minister Saifuzzaman Chowdhury

Al Jazeera's Investigative Unit went undercover to reveal how a former government minister from Bangladesh built a half billion-dollar property empire on a modest official salary.

Strict currency laws restrict citizens from taking more than $12,000 a year out of Bangladesh, and tough government rules ban ministers from holding directorships or profiting from private businesses.

Al Jazeera reveals that Saifuzzaman Chowdhury, then a minister of land and a close ally of the now deposed Prime Minister Sheikh Hasina, bought over 360 luxury properties in Britain alone worth $250m.

His appetite for real estate spread to Dubai, New York, Singapore and Malaysia.

The politician boasted of his powerful connections.

"My father was very close to the Prime Minister (Sheikh Hasina), actually, and I am also... She is my boss... She knows I have a business here (in Britain)."

His property buying gained pace in 2017 when he set up UK companies but accelerated in 2019 when he became a government minister.

Sheikh Hasina is in exile in India following her government's brutal crackdown on student protests in July, and many of her ministers, including Chowdhury, have fled the country. Bangladesh authorities are now investigating claims that he laundered millions of dollars in the UK; they have frozen his bank accounts and taken control of his family-owned bank, UCBL, to protect depositors' money.

Posing as property investors, Al Jazeera journalists met the minister last year in his $14m London home where he bragged about spending thousands of dollars on hand-made crocodile shoes and tailored Italian suits from top London stores.

The politician gave undercover reporters a tour of his London house featuring a cinema, gym, private elevator and secure underground parking for his new Rolls-Royce.

Chowdhury told Al Jazeera that his properties were purchased with funds earned by his legitimate businesses in the UK, the UAE and America, and that he is the victim of a political witch-hunt.​

 

[Saif]

Banks to freeze accounts of Orion chair, five others

The Bangladesh Financial Intelligence Unit (BFIU) has instructed banks to freeze accounts owned by Orion Group Chairman Obaidul Karim and its Managing Director Salman Obaidul Karim.

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Banks to freeze accounts of Orion chair, five others

The Bangladesh Financial Intelligence Unit (BFIU) has instructed banks to freeze accounts owned by Orion Group Chairman Obaidul Karim and its Managing Director Salman Obaidul Karim.

Additionally, the bank accounts of Arzuda Karim and Zareen Karim, directors of Orion Group, as well as Mehadi Hasan and Rezaul Karim, relatives of the chairman with ties to the conglomerate, will be frozen.

The anti-money laundering agency recently sent a letter to the banks in this regard, directing lenders to keep those accounts frozen for the next 30 days. The BFIU also instructed banks to block them from locker and credit card facilities for 30 days.

The banks then asked the BFIU to provide updated information on the six individuals to find out if they are using any bank accounts under other names.

Orion Group, founded by Obaidul Karim, is one of the largest conglomerates in Bangladesh, with business interests in the pharmaceutical, chemical, infrastructure development, agribusiness, hospitality, textile and aviation sectors alongside many others.​