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

[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.​

 

[Saif]

S Alam sons: They used fake pay orders even to legalise black money

Ashraful Alam and Asadul Alam Mahir, two sons of controversial businessman Mohammed Saiful Alam, deprived the state of Tk 75 crore in taxes by legalising Tk 500 crore in undisclosed income, documents obtained by The Daily Star have revealed.

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S Alam sons: They used fake pay orders even to legalise black money

S Alam Sons Ashraful Alam and Asadul Alam Mahir

Ashraful Alam and Asadul Alam Mahir, two sons of controversial businessman Mohammed Saiful Alam, deprived the state of Tk 75 crore in taxes by legalising Tk 500 crore in undisclosed income, documents obtained by The Daily Star have revealed.

They even brazenly resorted to irregularities and exploited a bank controlled by S Alam Group, of which Saiful is the chairman, according to letters from tax officials to their higher authorities and the two brothers.

Ashraful and Asadul first used two pay orders, each worth Tk 25 crore, in a failed bid to whiten the black money within the fiscal year 2020-21, the documents show.

Their second attempt to make the payment again months after the expiry of the facility that fiscal year succeeded, which means the first two pay orders were erroneous.

Tax officials, however, gave them a clean chit, and the opportunity to whiten the black money after the deadline.

The Awami League government allowed legalising income from unknown sources by paying a 10 percent tax from July 1, 2020, to June 30, 2021.

A total of 2,311 taxpayers used the facility to whiten Tk 1,663 crore of black money in cash and bank deposits that financial year, according to the National Board of Revenue (NBR).

Tax officials said that if the maximum tax rate of 25 percent was taken into account at the individual level, the tax officials could have collected at least Tk 125 crore of income tax against the Tk 500 crore of undisclosed income of Ashraful and Asadul.

S Alam's two sons got the opportunity to legalise the black money in the tax file by paying only Tk 50 crore.

According to their tax returns, Ashraful and Asadul showed their net assets at Tk 250.15 crore and Tk 250.21 respectively in tax year FY21.

Ashraful's tin certificate mentions his status as "Bangladeshi without NID" while Asadul's as "Foreigner (non-Bangladeshi)".

S Alam, his wife Farzana Parveen and their three sons Ahsanul Alam, Ashraful and Asadul renounced their Bangladeshi citizenship on October 10, 2022, vernacular daily the Samakal reported last month.

The Bangla newspaper also said the family got approval for permanent residency in Bangladesh as foreign nationals on the same day.

Most of the family members had already been identifying themselves as foreigners or non-Bangladeshis in the tax files a year before they were granted permanent residency in Bangladesh as foreign citizens in October 2022, tax officials said.

The officials working under the circle, where the family submitted the returns, did not raise any questions on these issues.

Chattogram Tax Zone-1 Commissioner Md Samsul Arefin told The Daily Star on September 4 that he had no idea what happened before he joined in February.

"But recently I kept these two files in my custody for safety. After reading these two files, it seems that all sorts of procedures have been followed.

"But it is mysterious that two pay orders were not cashed within five to six months in a circle. It cannot be said if there was any irregularity without re-examining the entire matter," he added.

The 10 percent tax under the Income Tax Ordinance of 1984, which allowed individuals to legalise undisclosed income without facing any question, is only payable by pay order or by automated challan.

Ashraful and Asadul first applied for the facility with two pay orders on June 29, 2021, a day before the expiry of the facility.

The pay orders from the Khatunganj branch of Fast Security Islami Bank Limited (FSIBL) bounced after being submitted to Sonali Bank on July 1 for encashment and no money was deposited to the state coffer.

Tax officials then tried to contact FSIB and the two brothers several times but there was no response, officials said.

However, after nearly four months, Ashraful and Asadul submitted two new pay orders on October 18, 2021, to the same branch of the bank. That money was encashed on December 28, 2021.

Although the law had no opportunity to whiten black money after June 30, 2021, Assistant Tax Inspector Aminul Islam accepted and encashed these two new pay orders.

To justify the late collection, Joint Commissioner AKM Shamsuzzaman and Inspector Lokman Ahmed helped the two brothers make the first two pay orders appear correct by concealing the dates of the last two pay orders.

Shamsuzzaman issued a notice against the duo under section 120 of the Income Tax Ordinance 1984 as to why they delayed the payment of the taxes on June 27, 2022.

Three months after the issuance of the notice, Shamsuzzaman on September 29, 2022, suspended the notice based on an inspection report by Inspector Lokman.

Lokman submitted the report on July 3, 2022, stating that the first two pay orders were correct. He attached a statement from FSIBL's Khatunganj branch Manager Mohammad Helal Uddin to back his claim.

However, Lokman did not mention the date of the four pay orders submitted in two rounds.

FSIBL branch Manager Helal told The Daily Star on September 8, "We have informed the tax officials about the two pay orders that they wanted to know."

However, he did not give any answer when asked about the time when the money was deposited in these two pay orders.

Tax officials said that this happened because the matter was settled between the two parties.

Regarding the delay in receiving the pay orders, Assistant Tax Inspector Aminul who accepted the last two pay orders, confirmed to The Daily Star on September 10 that the money from the first two pay orders was not deposited after submission.

"Then we informed them (the two brothers) and they took some time and later gave two more pay orders," he said.

"Later, the joint commissioner issued a notice under section 120 of the Tax Ordinance since the money was not deposited within the stipulated time. I heard that the issue has also been settled," Aminul said.

He also claimed that he did not personally benefit from these incidents.

Joint Commissioner Shamsuzzaman hung up the phone, saying it was a "wrong number" when contacted for comments, although the tax officials' directory and other tax officials confirmed that it was Shamsuzzaman's number.

Inspector Lokman declined to comment.

Md Riazul Islam, Syed Mohammad Abu Daud, and Md Iqbal Bahar had served as commissioners in the tax zone in that time.

Riazul has been living abroad with his family since his retirement in 2022.

Contacted, Daud and Bahar said they were not informed about the matter by the circle, let alone receive any financial benefit from it.

"I was in charge of this tax zone both during the cashing of two pay orders from the circle office and later the issuance of the section 120 notices from the ranch office of the zone," Daud said.

He said he did not provide any advice to the relevant officials about such illegal activities nor did he benefit financially.

"I am surprised that even after the pay orders bounced, the matter was not reported to me as a commissioner," added the official, currently serving as a member of the NBR's International Tax Division.

Ashraful and Asadul did not receive calls for comments.​

 

[Saif]

Govt seeks UK assistance to investigate overseas assets of Hasina, allies

The interim government of Bangladesh has sought assistance from the United Kingdom to investigate the overseas wealth of allies of former prime minister Sheikh Hasina, as the new administration intensifies its crackdown on members of her ousted regime, according to a report by The Financial...

www.newagebd.net

Govt seeks UK assistance to investigate overseas assets of Hasina, allies
Staff Correspondent 19 September, 2024, 00:00

The interim government of Bangladesh has sought assistance from the United Kingdom to investigate the overseas wealth of allies of former prime minister Sheikh Hasina, as the new administration intensifies its crackdown on members of her ousted regime, according to a report by The Financial Times on Wednesday.

Ahsan H Mansur, Bangladesh’s new central bank governor, stated that the administration was probing whether Hasina’s government siphoned around Tk 2 trillion (£13 billion) from the banking system to foreign accounts. Mansur said that he had sought help from the UK and other countries, including the US, Singapore, and the UAE, to track these funds.

The British daily newspaper reported that Bangladeshi officials, in particular, were investigating a UK property portfolio worth £150 million, owned by former land minister Saifuzzaman Chowdhury.

The Financial Times found that the bulk of these properties were acquired between 2019 and 2022, coinciding with Saifuzzaman’s tenure as a land minister.

The properties include Emerson Bainbridge House in Fitzrovia, central London, 61 properties in Tower Hamlets, east London, and a Co-op supermarket site in Bristol.

The exact financing for these UK property purchases remained unclear, though charges registered at Companies House suggest the use of mortgage debt.

Earlier this year, Transparency International UK flagged Saifuzzaman’s British real estate portfolio as an example of ‘unexplained wealth’ that warranted further investigation, the report said.

Mansur praised the UK government’s cooperation, mentioning that British officials had offered technical support during discussions.

On the alleged laundering of nearly $17 billion, roughly Tk 2 trillion, Mansur remarked, ‘a heist of this scale could not have occurred without the prime minister’s knowledge.’ He, however, noted that the investigation was still in its early stages.

The inquiry came as Bangladesh’s interim leader, Nobel laureate Muhammad Yunus, prioritises recovering misappropriated funds.

Sheikh Hasina, who resigned as prime minister and fled to India on August 5 amid a student-led mass uprising, was under scrutiny for alleged corruption during her nearly two-decade rule.

The wealth of her allies, including Saifuzzaman, was under investigation.

Saifuzzaman denied any wrongdoing and claimed that his wealth was the result of legitimate business activities, according to the report.

The UK government, in line with its long-standing policy, declined to comment on whether any formal requests for legal assistance had been made by Bangladeshi authorities, the report said.​

 

[Saif]

Bangladesh's foreign debts soar by $80b in 15yrs

Bangladesh’s external debts skyrocketed to a staggering $103.78 billion by June 2024, a colossal leap from just $23.5 billion in 2009 when the Awami League-led government came to power...

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Bangladesh's foreign debts soar by $80b in 15yrs
Mostafizur Rahman 18 September, 2024, 22:37

Bangladesh’s external debts skyrocketed to a staggering $103.78 billion by June 2024, a colossal leap from just $23.5 billion in 2009 when the Awami League-led government came to power.

This represents a staggering 341 per cent increase over the past 15 years, amounting to over $80 billion in new foreign loans.

Such an astronomical rise in external debts not only signals deepening financial mismanagement but also exposes the country’s alarming overdependence on foreign loans to finance its so-called development ambitions.

In Bangladeshi currency, these debts now stand at nearly Tk 12.45 lakh crore, a devastating burden compounded by a rapidly devaluing local currency.

The shocking data has come to the fore after Sheikh Hasina resigned as prime minister and fled to India on August 5 amid a student-led mass uprising.

Experts warn that such an unprecedented surge in foreign debts is a glaring sign of mismanagement.

By comparison, the exchange rate in July 2021 was Tk 84.80, underscoring the rapid depreciation of the taka in recent years.

The weakening currency exacerbates the debt crisis, as more takas are now required to service the dollar-denominated loans, further straining the national economy, experts said.

The most dramatic increase occurred between June 2020 and June 2023, when foreign debts skyrocketed by 51 per cent, rising from $65.27 billion to $98.93 billion in just three years — an alarming $33.6 billion increase in such a short period.

The accumulation of debts, driven by questionable fiscal policies and widespread inefficiency, has sent per capita debt soaring to $604 by June 2024 from $283 in June 2017, and ordinary citizens now bear the brunt of this financial misadventure, experts said.

The country›s external debt-to-GDP ratio hit 22.6 per cent by June 2024.

Bangladesh usually receives foreign loans from multilateral institutions such as the World Bank, the International Monetary Fund, the Asian Development Bank, the Islamic Development Bank, and major overseas commercial banks.

Of the $103.78 billion in external debts, $83.21 billion was borrowed by the public sector, with $71 billion borrowed directly by the government and the rest by government institutions.

The private sector›s short-term foreign loans also remained substantial, rising to $20.57 billion in June 2024, according to Bangladesh Bank data.

Meanwhile, buyers’ credit — an arrangement in which companies use foreign loans to finance imports — has also increased, with figures rising to $5.76 billion in June from $5.69 billion in March.

Experts have raised concerns about the sustainability of this debt load.

As external liabilities continue to mount, a growing portion of Bangladesh›s revenue must be allocated to service its debts, leaving fewer resources for critical social services, infrastructure, and development initiatives.

The crisis was compounded by allegations of massive corruptions and inefficiency in managing foreign loans during the Awami League regime.

Many of the large-scale development projects financed through foreign borrowing were marred by accusations of over-invoicing, project delays, and kickbacks to government officials and contractors.

Project returns continued to fall short, failing to justify the enormous cost.

Experts stressed the need for Bangladesh to carefully manage and prioritise its resources to ensure sustainable economic development, reducing excessive dependence on foreign borrowing.

The country’s foreign exchange reserves, already under immense pressure, plummeted to a dismal $20 billion as of mid-September, according to IMF guidelines.​

 

[Saif]

Bangladesh in search of Tk 2tn laundered during Sheikh Hasina regime

A heist of this order could not have taken place without the knowledge of the prime minister, says the BB governor

en.prothomalo.com

Bangladesh in search of Tk 2tn laundered during Sheikh Hasina regime
Prothom Alo English Desk
Updated: 18 Sep 2024, 22: 23

Bangladesh Bank governor Ahsan H Mansur Prothom Alo

The governor of Bangladesh Bank, Ahsan H Mansur, has reportedly sought help from authorities in the United Kingdom to recover money laundered to the country by members of the Sheikh Hasina government.

According to a report in the London-based broadsheet Financial Times, the governor had a meeting with the British high commissioner in Dhaka at his office, and the latter offered significant technical support in this regard.

The new administration in Bangladesh is investigating if the Sheikh Hasina regime diverted at least Tk 2 trillion abroad, particularly to the UK, the US, Singapore, and the UAE, from the country's banking system.

“We will seek help from the UK government to the extent these assets can be recovered,” the governor told the Financial Times.

He specifically mentioned that they aim to identify the source of funds used to purchase a UK property portfolio worth £150 million, owned by a former minister in Sheikh Hasina’s cabinet.

The governor also expressed suspicion that the top leadership in Bangladesh might have been aware of the issue, as “a heist of this order could not have taken place without the knowledge of the prime minister.”

In a press conference on 5 September, Ahsan H Mansur made similar remarks about money laundering and announced that the process to bring back the laundered money had been initiated.

He stated, “The corrupt people mainly laundered money to Dubai, Singapore and the US. We have already communicated with the US to bring back their foreign assets.”

The governor particularly highlighted money laundering to the UK, noting that a family of smugglers owns 500 to 600 homes in the country. “We will try to acquire their local assets and then we will bring back their foreign assets.”

Before the last parliamentary election in Bangladesh, anti-corruption watchdog Transparency International Bangladesh (TIB) revealed that a particular minister had more than Tk 23 billion in investments and business ventures overseas.

This minister was later identified as former land minister Saifuzzaman Chowdhury. It was discovered that he had opened companies in the name of his wife, Rukhmila Zaman, and daughter, Zeba Zaman.

According to a Prothom Alo report on 13 August, former minister Saifuzzaman Chowdhury and his wife Rukhmila Zaman Chowdhury had amassed substantial wealth and property in the United States and Dubai too.

They have huge sums of money deposited in foreign banks. Neither Saifuzzaman nor any member of his family have taken permission from Bangladesh Bank to take money abroad, giving rise to questions about this huge wealth amassed overseas.​

 

[Saif]

Singapore seeks asset details of S Alam Group in Bangladesh

Singapore’s Financial Intelligence Unit has urged the Bangladesh Financial Intelligence Unit to provide details on the local and foreign assets of S Alam Group and its owners.

www.newagebd.net

Singapore seeks asset details of S Alam Group in Bangladesh
Staff Correspondent 20 September, 2024, 00:23

Singapore’s Financial Intelligence Unit has urged the Bangladesh Financial Intelligence Unit to provide details on the local and foreign assets of S Alam Group and its owners.

Bangladesh Bank spokesperson and executive director Husne Ara Shikha said on Thursday that BFIU received a letter from FIU of Singapore about the issue.

BFIU officials said that they had been preparing the details on the controversial group and would send the information to the FIU of Singapore.

The BFIU, responsible for combating money laundering, terrorist financing, and the financing of weapons of mass destruction, is tasked with exchanging intelligence on illicit financial activities with foreign counterparts, they said.

Media reported that S Alam Group had amassed nearly $1 billion in suspicious assets in Singapore alone, despite having no significant business operations there, raising serious concerns about the legality of these properties.

S Alam group, under the patronage of the ousted Awami League-led government, allegedly withdrew around Tk 2 lakh crore from Bangladesh’s banking system and a large amount of these loans were allegedly laundered to foreign locations including Singapore and the UAE, BB officials said.

The group exploited its influence to seize control of eight banks, namely 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 group allegedly engaged in rampant irregularities in recruitment and loan disbursement while controlling the banks.

After Sheikh Hasina’s fall on August 5, these banks were freed from S Alam’s grip.

S Alam Group owner Saiful Alam and his family members had reportedly obtained citizenship in Singapore and Cyprus.

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

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

Though the banks had no funds in their current accounts, the central bank then printed money to keep them afloat, according to Bangladesh 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, based on a fake dollar purchase quotation, provided a total of $1.1 billion equivalent in financial support to Islami Bank Bangladesh between January and July.

The interim government, Bangladesh Bank, BFIU, and the Bangladesh Securities and Exchange Commission have recently taken some strict measures against the group.​

 

[Saif]

S Alam made that 10m taka housemaid's husband a bank officer

S Alam Group gave direct appointment to the husband of S Alam's house help having Tk 10 million in bank, in the post of senior principal officer (SPO) at the Islami Bank violating rules.

en.prothomalo.com

S Alam made that 10m taka housemaid's husband a bank officer
Staff Correspondent
Dhaka
Published: 20 Sep 2024, 19: 19

The National Board of Revenue (NBR) discovered that at least Tk 10 million (Tk 1 crore) was deposited in the bank account of Marjina Akhter, house help of controversial businessman Saiful Alam.

Now it has been found that the S Alam Group, owned by Saiful Alam gave direct appointment to Saddam Hossain, Marjina's husband, as senior principal officer (SPO) at Islami Bank. It has been alleged that the bank’s recruitment rules were violated while making this appointment last May.

Following his appointment, Saddam Hossain was first posted in Chattogram south zone of the bank. After the fall of Awami League government on 5 August, he was posted in Chawkbazar branch of the bank in Chattogram. He is known in the bank as "S Alam’s man". Though he didn’t regularly attend office after his appointment, he’s attending office now, according to sources in Islami Bank.

Marjina Akhter worked as a house help in Saiful Alam’s Chattogram home for about a decade. The NBR investigation team probing the allegation of tax evasion against S Alam family members found traces of more than Tk 10 million (Tk 1 crore) deposited in 22 fixed deposits in Marjina Akhter’s name.

As reported by sources from the Islami Bank, generally youths with educational qualification of post-graduation join the bank at officer ranks. It takes up to 10 years for some people to become SPO. Yet, Saddam Hossain was given direct appointment in the post of SPO.
The board of Islami Bank with S Alam’s son Ahsanul Haque as the chairman was dismissed after the new governor of Bangladesh Bank Ahsan H Mansur took charge. After taking control of the Islami Bank in 2017 on Awami League government’s political decision, S Alam Group appointed around 10,000 employees in the bank.

Old employees of the bank

Raising questions about the certificates of many of their educational qualifications, old employees of the bank have demanded that they be terminated. The new chairman of the Islami Bank, Obayed Ullah Al Masud, stated that S Alam Group alone under their own name or anonymously has taken out around Tk 880 billion (Tk 88,000 crore) from Islami Bank.

In continuation of recruiting new employees, Saddam Hossain was given direct appointment as SPO in Islami Bank on 13 May without any job examination. His basic salary was estimated to be Tk 55,000. However, including all he receives a salary and allowance worth more than Tk 100,000 (Tk 1 lakh).

An official from the human resources department of Islami Bank stated that deputy managing director Akiz Uddin was the head of the human resources department when Saddam Hossain was appointed. He is the personal officer of Saiful Alam. At the time of Saddam Hossain’s recruitment, no other document but the CV was submitted in the bank.

Yet Akiz Uddin gave him appointment. Besides, there’s no provision for direct recruitment to the post of SPO in Islami Bank. However this person recruited did not even have any prior experience in banking.

According to the documents submitted in the bank, Saddam Hossain’s house is in South Bagbere of Munshirhat in Dhobaura upazila of Mymensigh. He is 31 years and 8 months. He completed his SSC in 2007 and HSC in 2010. He then completed his graduation in botany from the National University in 2014 and post-graduation in the same subject in 2019.

As reported by sources from the Islami Bank, generally youths with educational qualification of post-graduation join the bank at officer ranks, after three years of which they are promoted to the post of senior officers. Afterwards, they are promoted to the posts of principal officer (PO) and senior principal officer (SPO). It takes up to 10 years for some people to become SPO. Yet, Saddam Hossain was given direct appointment in the post of SPO.

After the fall of Awami League government, Akiz Uddin left Islami Bank. Reportedly he has left the country as well. Bangladesh Financial Intelligence Unit (BFIU) has suspended transaction in his bank account.

Besides, the organisation has seized Tk 1 billion (Tk 100 crore) from the bank accounts of four organisations having links with Akiz Uddin. Following appointment the branch Saddam Hossain was posted at first, South Zone is the regulatory branch of all the branches in that region.

An officer from that branch told Prothom Alo that Saddam Hossain, known as "S Alam’s man" had nothing to do and he didn’t even come to the office regularly. Everyone was scared of him.

Meanwhile, Saddam Hossain and his wife Marjina Akhter have also been accused of occupying a government pond and public roads in Dhobaura upazila of Mymensingh using S Alam’s power. The local administration is investigating these complaints. The local administration has recovered some land already.

Upazila nirbahi officer (UNO) in Dhobaura upazila of Mymensingh, Nishat Sharmin told Prothom Alo that some plots of land have already been recovered. The allegations that have been submitted against them are under investigation now. The whole picture will be revealed once the investigation has ended.

No statement could be collected from Saddam Hossain about the allegations of getting appointment in the bank through violation of rules and the occupation of government land. An investigative team from NBR tax zone-15 is probing the allegations of tax evasion against the S Alam family. That investigation is still underway.

It has been found that several accounts were opened in Islami Bank and First Security Islami Bank using the national identity card of Maarjina Akhter.

Documents showed that till this 27 August Tk 18.4 million (Tk 1.84 crore) has been transacted through Marjina Akhter’s account in the First Security Islami Bank branch located at Prabartak Mor intersection in Chattogram city. However, the investigators said that there is no money left to withdraw in that account anymore.

Both the Islami Bank and the First Security Islami Bank were owned and controlled by the S Alam Group. Saiful Alam himself was the chairman of First Security Islami Bank. After the fall of Awami League government, both the banks were freed from the grip of S Alam Group.

Former prime minister Sheikh Hasina left the country in the face of the student-people mass uprising on 5 August. S Alam Group is one of the major business groups that have benefited the most during the regime of Sheikh Hasina’s government.

There have been allegations of various crimes including money laundering and taking control of banks against Saiful Alam and his family members in the last one decade. There are allegations against S Alam of embezzling Tk 2,000 billion (Tk 2 lakh crore) from the banking sector.​

 

[Saif]

How can a minister gather such wealth?

Revelations about former land minister deserve critical reflection.

www.thedailystar.net

How can a minister gather such wealth?
Revelations about former land minister deserve critical reflection

VISUAL: STAR

It is astounding how the former minister of land, Saifuzzaman Chowdhury, managed to build a half-billion-dollar property empire spanning the UK, the US, Dubai, Malaysia, and Singapore despite being on a modest government salary. According to an Al Jazeera report, Chowdhury holds properties and other assets worth around $675 million across these countries. How he was able to invest millions of dollars abroad, despite our laws limiting individuals to only transferring $12,000 per year out of the country, is another mystery that needs solving.

The report further revealed that between 2016 and 2021, Chowdhury purchased 265 properties in the UK, including acquisitions from major developers. In 2021, he bought a luxury apartment worth a whopping $15.8 million. In the UK alone, Chowdhury allegedly owns 360 properties valued at $252 million. Additionally, in Dubai, he owns real estate worth over $195 million, and in the US, he holds around $20 million in stocks and owns nine properties. However, Chowdhury failed to disclose this information in his tax returns in Bangladesh or in the affidavit he submitted to the Election Commission.

While amassing such wealth, the former minister allegedly set up a network across multiple countries to conceal his assets. Although Chowdhury told Al Jazeera that his wealth was derived from legitimate business, if that were indeed the case, why did he resort to such deceptive means to hide it? Moreover, as a sitting minister, he was prohibited from earning money from private businesses. So, how did he accumulate such vast wealth?

Chowdhury himself claimed that the former Prime Minister Sheikh Hasina was aware of his property-buying spree in the UK. This raises serious concerns about the extent of corruption within the Awami League government at the height of its power when Bangladesh was struggling economically. It is alarming that our governance structures—ranging from the Anti-Corruption Commission to other regulatory bodies—were unable to prevent what appears to be significant wealth accumulation through illegal means and money laundering.

It is, however, good to know that the interim government has suspended Chowdhury's bank transactions, and that he is under investigation for corruption. However, given that he is currently on the run, we strongly urge the authorities to locate him, thoroughly investigate his financial activities, and coordinate with the authorities in other countries—whose laws he also appears to have broken—to bring him to justice.​

 

[Saif]

Hasanat Abdullah: The ‘invincible' Awami 'godfather’ of land-grabbing
M Jashim Uddin &
Jahurul Islam
Barishal
Updated: 21 Sep 2024, 17: 31

Abul Hasanat Abdullah is the president of Barishal district Awami League. However, his influence went beyond the district as he grew into a key authoritarian figure in the party politics in the entire Barishal division. He built up a powerful stronghold with his followers. He is also accused of influencing party nominations in local government polls and controlling local party units, cutting big commissions from development projects and land grabbing. His properties grew manifold over the last 16 years.

The locals, victims, leaders and local Awami League activists and leaders say Hasanat Abdullah emerged as the ‘godfather of Barishal’ during the Awami-League-reign with everyone else just subjects of his empire. No government work in the area would start without paying him. The locals and media didn’t dare open up against him. Rather, his followers would present him as the guardian of the AL’s politics in Barishal as he was a cousin of former prime minister Sheikh Hasina.

Abaul Hasanat Abdullah became the general secretary of Barishal district Awami League in late 80s. He held the post for a long time. He took over as the president on 27 December 2012. He became a member of the parliament (MP) twice in 1991 and 1996. He was defeated in the general election of 2001. He didn’t contest the parliamentary election in 2008. After that, he became MP from his constituency for three consecutive times in 2014, 2018 and 2024.

Abul Hasanat served as the chief whip of the parliament from 1996-2001. However, his selection as the chief whip raised questions regarding his eligibility for the post in the political realm. He was also the convener of the ‘Hill Tracts Accord Implementation and Monitoring Committee’ (same as the rank of a full minister). There are allegations that Abul Hasanat Abdullah failed to leave any mark of efficiency in pulling off this duty too.

Invincible in land grabbing

The highly influential figure has been accused of grabbing lands sometimes by exerting influence, sometimes by paying a minimal price by intimidating and sometimes by force over the last 16 years of AL-rule. A number of people from the minority communities lost their lands to him, however, they did not dare to file any case against him.

According to the Gaurnadi upazila land office, Hasanat Abdullah has 64 decimals land on daag number – JL 55,709 in Char Gadhatoli mouza, 30 decimal on daag number – JL 50,544 and 70 decimal on daag number - JL 50,619, JL 50,622, JL 50,624 and daag number – JL 50,618 in Bijaypur mouza and 54.72 decimal lands on daag number – JL 54,263, JL 54,259, JL 54,260, JL 54,263, JL 54,264 in Dakshin Palardi mouza, registered on his name. All the lands were recorded in his name after the Awami League came to power in 2009.

Rickshaw garage mechanic Nur Mohammad of Dakshin Palardi village in the upazila alleged Hasanat Abdullah, after becoming a lawmaker in 2014, took over a one-acre—48-decimal plot of land along the Dhaka-Barishal highway in the Dakshin Palardi mouza and erected a boundary wall surrounding it. Several people, including Nur Mohammad had land there. Later, upazila AL cultural affairs secretary Abul Hossain Molla tried to force them to register the land on Hasanat’s name.

The highly influential figure has been accused of grabbing lands sometimes by exerting influence, sometimes by paying a minimal price by intimidating and sometimes by force over the last 16 years of AL-rule. A number of people from the minority communities lost their lands to him, however, they did not dare to file any case against him
Nur Mohammad said, “As me and my three sisters denied selling our lands, they intimidated us. At one point, Abul Molla picked me up from my home. Later, I had to register the land in his name considering the safety and security of my family. The market value of the land is around Tk 150 million. But I only got Tk 1.6 million. I had nothing to do against such a powerful person. I only prayed to God for justice.”

Hasanat is also accused of forcefully occupying the lands owned by the minority communities. Speaking to Prothom Alo, Arun Das, 72, owner of the age-old ‘The Lakshman Circus’, said Hasanat Abdullah had his eyes set on the land of their under-construction 'Leela Cinema Hall' in Dakshin Palradi mauza next to the Dhaka-Barisal highway. The AL lawmaker started forcing him to register the land in his name.

However, he refused. Afterwards, local AL leader Abul Hossain Molla and another person named Selim Hawladar proposed to purchase the land. But he refused again. Enraged, Abdullah stopped his circus show using the administration. It was a massive financial blow for them.

Unable to pay the performers and bear the food cost for the animals in the circus, he was compelled to sell the 34-decimal-land worth around Tk 150 million at only 3.6 million taka at one point.

Arun Das said, “This is not all. After this, Hasanat Abdullah forced me again to register my large pond on a 96 decimal land in his name. Later, Gaurnadi upazila Chhatra League (BCL) general secretary threatened to kill me as I refused to register the land. After that I stopped going there in fear of my life.”

Hasanat Abdullah didn’t even spare the people from his own party. There were several allegations against him of taking over the land owned by local party leaders and activists.

Jubo League’s municipal unit member Firoz Hawladar of Dakshin Palardi village said Abul Hasnat forced them to register the 56 decimals of land of their homestead in his name. As he refused to sell the land, Hasanat tried to evict them by intimidation using his associates. At one point, he built a boundary wall surrounding that 56-decimal-land.

Firoz said, “We have been confined within four walls in our own homestead for the last few years. However, we were determined not to sell our homestead no matter what it cost us.”

His followers would present him as the guardian of AL’s politics in Barishal as he was a cousin of former prime minister Sheikh Hasina
Hasanat is also accused of forcefully occupying some 70 decimals of land in total from two other Hindu families in Uttar Bijaypur. In one of these cases, the AL lawmaker paid only Tk 1 million for 10-decimal-land having a market price of Tk 10 million. He grabbed 60 decimals of land from the other family in fear.

Abul Hasan from the Bijaynagar area of Gaurnadi said his grandfather owns a 28-decimal-land in the Bijoypur mouza. Hasanat registered the land in the name of the Begum Homoeopathic College, named after his mother, in 2019.

Abul Hasan said, “We are helpless before his power. We had to remain silent despite such injustice.”

There is also an allegation against Hasanat of illegally grabbing a 30-decimal-land in the name of Gaurnadi Muktijoddha Smrity Pathagar (library). Some six traders at the Gaurnadi Super Market said a little portion of the land of the Gaurnadi Muktijoddha Smrity Pathagar was within the area of their business establishments.

Hasanat first recorded the land in his name and then claimed the ownership of the land in 2015. And then he claimed money from those traders saying he would record the land in their names. Later, they negotiated under AL leader Abul Hossain Molla’s negotiation and paid Tk 7 million to Hasanat. However, the former MP didn’t record the land in their names even after taking the money.

The former AL lawmaker also has allegations against him of selling lands to the government after forcefully registering it in his name from the locals.

Speaking to Prothom Alo regarding this, Kazi Zaman, assistant headmaster at the Chandshi Chandra Secondary School in Gaurnadi, said Hasanat forcefully recorded a 10-decimal-land in Chargadhatali mouza in the name of Muktijoddha Complex by picking up his father. His father had a cardiac arrest after this and eventually died on 22 January 2015 due to heart complications.

Kazi Zaman said, “Later, I learnt Hasanat pocketed a large sum from the government as compensation for the acquisition of the land. That's not all. He occupied another 64-decimal-land of ours in the same mouza by putting up a boundary wall around the land using the administration and his power.”

This correspondent tried to reach Awami League leader Abul Hossain Molla and BCL leader Lutfar Rahman over the phone for their comment on the allegations. But there was no response.

Power centering the family

A few people very close to Hasanat had gained the status of ‘elite class’ in local politics over the last 16 years. However, most of them were newcomers.

Several local Awami League leaders and activists told Prothom Alo he put his family members in big posts of the party to take control of the politics and grew powerful.

Following the death of the then city AL president and mayor Shawkat Hossain in 2014, Hasanat Abdullah gained total control in city politics. Almost all members of the 71-member city AL unit, formed in October 2015, were peers and associates of Hasanat. His son Serniabat Sadique Abdullah became the joint general secretary of the committee. Sadique was not involved in politics before that. Later, Sadique became the Barishal City Corporation (BCC) mayor and the general secretary of Barishal city Awami League. He made his wife, the late Sahan Ara Abdullah, the vice-president of district AL. His youngest son Ashique Abdullah was a member of the same committee.

Hasanat is also accused of forcefully occupying some 70 decimals of land in total from two other Hindu families in Uttar Bijaypur. In one of these cases, the AL lawmaker paid only Tk 1 million for 10-decimal-land having a market price of Tk 10 million. He grabbed 60 decimals of land from the other family.
The local leaders further say in the last few years most of the committees in the six districts and 42 upazilas in Barishal division were finalised by Hasanat. He also played the key role in nominating the party candidate for the local government elections. He intervened less only in Jhalokathi and Bhola.

Former general secretary of the city Awami League Mir Amin Uddin told Prothom Alo, “Hasanat Abdullah patronised some 10-12 godfathers across the division and there is no such corruption and misdeeds which he committed without using them. He cornered the potential leaderships through torture, insults and embarrassments.”

Repressing the opponents

Hasanat Abdullah, five time lawmaker from the Barishal-1 constituency, didn’t give any space to the opponents during elections.

In 2018, former MP Zahir Uddin Swapan was the BNP-nominated candidate from this constituency. There are allegations that the BNP candidate couldn’t even launch his election campaign due to extreme repression from the then ruling party candidate. There was no heavyweight candidate against him in the 12th national election in 2024. As a result, he was declared the winning candidate by a huge margin both times.

Hasanat is also accused of exerting influence at the field level to make his son Sadique Abdullah the city mayor. Sadique Abdullah secured the AL nomination in the mayoral election of 2018 under the influence of his father. Former mayor and Khaleda Zia’s advisor Mojibor Rahman was the BNP-nominated mayoral candidate that time. There were three more candidates. However, Sadique established absolute supremacy in publicity campaigns at field level applying force.

Bangladesh Samajtantrik Dal (BSD) candidate Monisha Chakrabarty and BNP candidate Mujibor Rahman were assaulted on the election day. All candidates, except the one from the ruling party, boycotted the poll within 12:00 pm. According to the official polls result, Sadique Abdullah won the polls bagging 111,956 votes while his nearest rival, Mojibor Rahman got only 13,776 votes.

This is not all. After this, Hasanat Abdullah forced me again to register my large pond on a 96 decimal land in his name. Later, Gaurnadi upazila Chhatra League (BCL) general secretary threatened to kill me as I refused to register the land. After that I stopped going there in fear of my life
Arun Das, owner of The Lakshman Circus
The AL leaders are saying after securing the mayoral post, Sadique Abdullah became the general secretary of Barishal city Awami League. After that, he took absolute control over everything related to the Barishal city.

Speaking to Prothom Alo, former BNP lawmaker Zahir Uddin Swapan said, “The repression from the ruling party in my constituency was unbearable. Our party activists could not even participate in social events like janaza or weddings.”

“Both my houses in the city and in my village were attacked several times. I was not even allowed to attend religious occasions like Eid in my area. My party and the leaders have been very cautious about taking lessons from the fall of the Hasina-government in the face of the mass uprising of the students and people and we will continue to do so.”

Commission from development projects

Sources in the relevant departments implementing the development projects in Gaurnadi and Agoiljhara, say development projects worth Tk 55 billion have been implemented in the two upazilas during the last 16 years of AL-rule.

However, in a rally ahead of the 12th national polls, Hasanat claimed the development works in his constituency worth Tk 100 billion. There are complaints that the former lawmaker used to cut a 10-12 per cent commission from the allocation for these development projects each through his associates.

Speaking to several contractors and AL leaders and activists, it has been learned that Hasanat had to be paid 10 per cent of the total allocation as soon as the tender for any project was called.

Gaurnadi municipality mayor and upazila AL general secretary Harisur Rahman and Agoiljhara upazila AL general secretary Abu Saleh Md Liton used to collect the money on behalf of Hasanat.

Apart from this, the candidates had to pay a certain amount through these two associates of Hasanat Abdullah to secure party nominations for different local government polls – upazila election, union parishad election and mayoral elections.

Gaurnadi contractor and former municipal mayor Md Alauddin Bhuiyan said it was not possible to get any contract without paying a 10 per cent commission to Hasanat. In addition to that was the four per cent commission for Hasnat’s associate Harisur.

Gaurnadi municipal AL unit joint general secretary Ahad Mia too alleged that Hasanat Abdullah used to take a 10 per cent commission through Harisur Rahman. “I got the contract by paying him. Besides, Harisur also took a 2 per cent commission from me.”

Hasanat Abdullah is also accused of not implementing development projects after withdrawing money from the allocations.

Gaurnadi upazila Awami League joint general secretary and Mahilara union parishad chairman Saikat Guha said Hasanat used to get 25 per cent commission from the projects under the Food Friendly Programmes (FFP).

Many projects financed by the Asian Development Bank didn’t see light. However, all the money from the allocations has been withdrawn showing the implementation on paper.

It has been learnt from several sources that Hasanat Abdullah left the country for India a few days ahead of the mass uprising that toppled the Awami League government on 5 August. Several other local AL leaders also went into hiding. Their phones were found switched off.

Abnormal growth of properties

Analysing the election affidavits submitted by Hasanat Abdullah during the last three parliamentary polls, his annual income increased 16 times to Tk 44.13 million over the span of 10 years. His movable assets increased 13 times to Tk 334.7 million.

Of the immovable assets, the size of cropland he owned lessened to 17 acres and size of his non-agro land increased a little to 41.49 per cent.

Apart from the old house, he declared owning residential and commercial buildings in the capital’s Kalabagan area in his affidavit.​

 

[Saif]

অন্তত ৪ লাখ কোটি টাকা পাচার হয়েছে: বাংলাদেশ ব্যাংক গভর্নর

 

[Saif]

SS Power Plant: S Alam nexus laundered $815m through two LCs

SS Power opened the LCs to import capital machinery for its Chattogram-based 1320MW coal-based plant, but even a single item did not enter Bangladesh against these LCs. And yet the money crossed the border as monitoring by the authorities took back seat.

www.thedailystar.net

SS Power Plant: S Alam nexus laundered $815m through two LCs

Two LCs, 184 fake invoices, and the money was gone.

This is how SS Power Limited, a concern of S Alam Group, laundered $815.78 million (around Tk 10,000 crore) from Bangladesh between 2019 and 2023, draining the country's hard-earned dollars.

SS Power opened the LCs to import capital machinery for its Chattogram-based 1320MW coal-based plant, but even a single item did not enter Bangladesh against these LCs. And yet the money crossed the border as monitoring by the authorities took back seat.

Both LCs were opened at state-run Rupali Bank, and the Bangladesh Bank transferred the amount to SS Power's Chinese partner SEPCO based on documents, including fake invoices, furnished by Rupali Bank, an investigation by The Daily Star has found.

Large-scale capital flight has been reported in Bangladesh media over the last 15 years, but this is for the first time that a newspaper has followed the paper trails and gathered documentary evidence of money laundering using LCs as a cover.

The documents SS Power used to siphon off the money include invoices related to previous imports by other companies, invalid invoices bearing future dates of 2025, unrelated Import Permissions (IPs) and even EXPORT – not import – documents.

SS Power's Chief Financial Officer Ebadath Hossain Bhuiyan denied that any money has gone out of Bangladesh against these two LCs.

"These import payments were made through loans from our Chinese partner [SEPCO]," he told The Daily Star by phone on September 23, and advised us to talk to the Rupali Bank authorities.

Abu Naser Mohammad Masud, General Manager of Rupali Bank's Motijheel branch, confirmed that no loan money was involved in making the payments. "The total value of the two LCs was $914 million. Of this, payments worth $815.78 million were cleared from Bangladesh," he told this newspaper at his office on Tuesday.

$815 MILLION OUT, NOTHING IN

In 2016, now-deposed prime minister Sheikh Hasina and Chinese President Xi Jinping jointly inaugurated the 1320MW power plant in the port city's Banshkhali. Beijing provided $2.6 billion (75%) of the fund in loan to build the plant, a joint venture by S Alam's SS Power and SEPCO. The plant started partial production in 2023, according to media reports.

The two LCs in question were opened under duty-free benefits to import vital machinery such as boiler structure, generator, transformer, steel structure and reheater systems for this project. But documents show the LCs were used instead as a cover to steal dollars from Bangladesh and stash them in some other countries.

The first LC (LC no. 0000026319150005) worth $121.95 million was opened on January 29, 2019, at Rupali Bank's local branch in Motijheel, Dhaka.

The first invoice (873670) claiming $371,873 against this LC was recorded on the BB server on May 27, 2019, and the last invoice (230261) claiming another $576,569 on February 3, 2023. In between, $120,498,430 more were transferred to the account of SEPCO Electric Power Construction Corporation, the Chinese partner of SS Power, documents from Bangladesh Bank and National Board of Revenue show.

 

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The second LC (0000026321150038), dated May 30, 2021, also involved imports of capital machinery worth $792.40 million. This LC was also opened at the same Rupali Bank branch.

 

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Between June 15, 2021, and December 30, 2022, $698.33 million were taken out of the country against this LC using fake Bills of Entry.

Nearly $99.58 million of the $914 million value of the two LCs remains unspent, documents show.

SEPCO did not respond to our email seeking comments. The phone numbers of the company's two representatives in Bangladesh were found switched off over the last three days.

One hundred eighty-four fake invoices – 59 for the first LC and 125 for the second LC – were uploaded on the BB server to launder the $815.78 million.​

 

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The Daily Star verified each of these invoices with the NBR server, and found they were not related to the two LCs opened by SS power for the import of capital machinery.

"There is no import data on our server against these two LCs," Mohammad Fyzur Rahman, who was Chattogram Custom House Commissioner until recently, told The Daily Star last month. [He is currently a commissioner at Customs Excise and VAT Commissionerate, Dhaka (North)].

RUPALI'S ROLE
So how did the money fly out of Bangladesh? The answer lies with Rupali Bank.

When any import and export data are uploaded on the NBR server, the data get posted on the Bangladesh Bank server automatically. In this case, however, NBR did not upload any import data because there was no import. Still, all these 184 invoices made their way into the BB server.

"Usually, customs officials upload import data on the NBR server. However, the banks concerned can also upload this data after collecting the information from the importer," said an official at the Foreign Exchange Operation Department of Bangladesh Bank.

In this case, the details of these invoices were uploaded by the respective branch of Rupali Bank, he said on condition of anonymity because he is not authorised to speak to the media.

"This cannot be done without the involvement of some top officials of the bank concerned," he said.

As a standard practice, the central bank clears LC payments upon confirmation from the importer's bank that the import process has been completed and the import value has been deposited in the bank in local currency. This can be done online.

Documents show that the information required for the central bank to clear the dollar payment in favour of the Chinese company were uploaded on Bangladesh Bank server by Rupali Bank. This includes the 184 fake invoices.​

 

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NBR data show 88 of the 184 invoices are linked to 50 companies unrelated to SS Power and SEPCO joint venture. The LC numbers, import dates and the exporting companies recorded on the NBR server against these fake invoices also do not match with the corresponding data uploaded on the BB server.

At least one of these invoices even bears a future date – November 29, 2025 – and at least 30 are related to EXPORTS – not import – by different companies that have no links with SS Power.​

The remaining 96 invoices do relate to SS Power, but these products were imported using at least seven different Import Permissions (IPs) and have no connections with these two LCs.

Usually, the commerce ministry issues IPs for imports against foreign loan agreements or back-to-back LCs.

The Daily Star has copies of two of these seven IPs, granted under four conditions.​

"No foreign currency can be spent from Bangladesh end for this particular import," reads the first condition.

This means that even if these 96 invoices against the seven IPs were genuine – and they were not – SS Power violated the IP conditions.

The Daily Star shared its findings and some related documents with Bangladesh Bank Executive Director and Spokesperson Husne Ara Shikha.

"We will verify the information and speak with the relevant authorities, including the bank concerned. We cannot make any comment before this," she said.​