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[🇧🇩] Everything about Hasina's misrule/Laundered Money etc.
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Unmasking Awami League’s nationalism hypocrisy
13 October, 2024, 00:00

The fault lines of Bengali nationalism, as shaped, branded and exploited by the Awami League, reflect its evolution from a unifying force into a tool for political control writes Tanbir Uddin Arman.

IN HIS incisive essay ‘Notes on Nationalism’, British novelist and poet George Orwell astutely remarked that nationalism often manifests as power hunger tempered by self-deception. This observation finds a striking parallel in the Awami League’s narrow, distorted narrative of Bengali nationalism. The party’s appropriation of Bengali nationalism — particularly its monopolisation of the Liberation War history and the ‘Spirit of 1971’ — functioned as both a veil and a weapon, shrouding its political interests in the guise of nationalism. It was a cunning manoeuvre, where self-deception entwines with political manipulation while sidelining the broader, more inclusive values of nationalism and secularism. Time and again, leaders of the party invoked the essence of Bengali nationalism and the ‘Spirit of 1971’, painting themselves as the sole guardians of Bangladesh’s independence and identity. Beneath this façade lies a troubling narrative of exclusion and division.

The Awami League created a peculiar version of nationalism that was used to fortify its grip on power and delegitimise its political opponents, portraying them as anti-national forces. This tactic aligns with Orwell’s notion of nationalism as a mechanism for self-justified power. The party tactfully equated loyalty to it with loyalty to the nation itself. By branding its opponents as traitors to the country’s independence, the Awami League used nationalism as a cover for authoritarian practices. Crackdowns on freedom of speech, the use of draconian laws like the Digital Security Act to silence critics, and the persecution of political rivals were all justified by accusing opponents and critics of working against the ‘Spirit of 1971.’

This suppression of opposition in the name of nationalism reflects a deeper form of self-deception, where the Awami League conflated its political benefits with national interest. During elections and political crises, the party was often seen framing votes for opposition parties as threats to the nation’s sovereignty. They did it on purpose to imply that only the party can protect the spirit of independence. This manipulation of nationalist sentiment consolidated power while suppressing dissent.

Orwell’s phrase ‘tempered by self-deception’ highlights how nationalism can blind its adherents to the true nature of their actions, as they believe they are acting in the interest of the nation while actually pursuing self-serving goals. The Awami League’s distortion of Bengali nationalism reflects this self-deception in several ways. The party presented itself as the champion of secularism, democracy, and Bengali nationalism, but it selectively abandoned or compromised these principles for political expediency. They claimed to uphold secularism, a core element of Bengali nationalism, but they frequently allied with Islamist groups like Hefazat-e-Islam to shore up political support. The removal of the Lady Justice statue from the Supreme Court premises in 2017, influenced by Islamist pressure, also revealed a self-deception within the party — publicly championing secular nationalism while privately compromising with religious groups for political gains.

The fault lines of Bengali nationalism, as shaped, branded and exploited by the Awami League, reflect its evolution from a unifying force into a tool for political control. Historically, Bengali nationalism, under the country’s founding president, Sheikh Mujibur Rahman, emerged as a powerful mobilising force against West Pakistan’s political, economic and cultural dominance. It emphasised linguistic pride, particularly the recognition of Bangla as a national language, which was central to the 1952 Language Movement. The struggle culminated in the Bangladesh Liberation War of 1971, with Sheikh Mujib’s charismatic leadership garnering massive support from the populace. Post-independence, however, the establishment of BAKSAL (Bangladesh Krishak Sramik Awami League) — a one-party system — by the Mujib government in 1975 alienated many political elites and the public, undermining the pluralistic aspirations of Bengali nationalism. This shift marked the first major fault line of Bengali nationalism.

After Sheikh Mujib’s assassination, his daughter, Sheikh Hasina, reasserted the Awami League’s claim over Bengali nationalism. Hasina and her party, the Awami League, adopted a narrower interpretation of Bengali nationalism centred around the branding of the legacy of Sheikh Mujib while suppressing alternative nationalist voices, including those from the Bangladesh Nationalist Party and the leftist movements. Celebrations such as ‘Mujib Year’ and the mushrooming of Sheikh Mujib’s statues symbolised a personality cult that stifled political pluralism. Critics repeatedly warned that this monolithic view of history and nationalism would promote a selective, exclusionary version of national identity.

Hasina applied Bengali nationalism as a tool to justify her party’s authoritarian measures. The controversial national elections in 2014, 2018 and 2024 were marred by widespread allegations of vote rigging and violence against opposition parties. Yet, the Awami League framed these actions as necessary to protect the ideals of the liberation war. This resulted in a deep democratic deficit. Furthermore, Hasina and her regime aggressively controlled the historical narrative of Bangladesh’s liberation, often discrediting the contributions of other leaders, including the BNP’s founder, president Ziaur Rahman. The war crimes trials, initially aimed at accountability, were widely criticised as a politically motivated mission to eliminate rivals rather than genuine pursuits of justice.

The use and distortion of nationalism for political ends is a strategy employed by many political parties across the world. In India, prime minister Narendra Modi’s BJP has been accused of distorting nationalism by equating Indian identity with Hindu identity. The party is often criticised for invoking ‘Hindutva’ (Hindu nationalism) as a way to galvanise support from the majority Hindu population. Modi’s speeches, too, tie India’s pride and heritage to a Hindu-centric identity, which helps him consolidate political support by stoking a nationalist sentiment. This version of nationalism marginalises India’s Muslim, Sikh and other minority communities and is used as a political tool to justify exclusionary policies, such as the controversial Citizenship Amendment Act (CAA). The Awami League also manipulated anti-Pakistan sentiment to secure political favour from Pakistan’s rival India. Hasina’s government utilised these sentiments to deflect from domestic criticism, branding a narrow definition of national identity.

Another glaring flaw in the Awami League’s interpretation of Bengali nationalism is its exclusionary stance towards ethnic groups such as the Chakmas, Garos, Marmas and Santals, who do not identify with the dominant Bengali cultural identity. This state-sponsored, narrow version of nationalism marginalised the non-Bengali communities, sidelining their concerns. This resulted in social tensions and a fractured sense of national identity. By promoting a monolithic identity, the Awami League overlooked the country’s rich ethnic, cultural and linguistic diversity. Moreover, the Hasina regime made little progress in addressing the long-standing grievances of non-Bengali communities, particularly in the Chittagong Hill Tracts. The failure to fully implement the 1997 CHT Peace Accord underscores ongoing tensions in the region. Despite promises, meaningful steps towards reconciliation and development in the CHT had been lacking during Hasina’s era, leaving the indigenous populations feeling increasingly relegated. This failure to accommodate diverse identities significantly weakened the national identity, which in turn posed threats to the country’s sovereignty and territorial integrity.

For the Awami League, Bengali nationalism was less about cultural pride and more about consolidating political dominance, both domestically and internationally. By closely linking Bangladesh’s national identity to the Bengali ethnic group, the party entrenched its own political narrative, technically positioning the country as an ally that India could count on to advance its regional interests. This approach led to a troubling reality, where Bangladesh’s foreign policy, under Hasina, heavily tilted towards India, with significant concessions made on such pressing issues as water sharing, trade imbalances and border tensions. These compromises often came at the cost of Bangladesh’s sovereignty, with the Hasina regime prioritising the preservation of political and cultural ties with India over safeguarding national interest.

As we move past the Hasina era, it is essential to dispel the myths of the Awami League’s version of Bengali nationalism that had long been used to manipulate public sentiment for political gain. Instead, we must embrace a renewed sense of Bangladeshi nationalism, one infused with patriotism. Inclusive and free from the geopolitical ambitions of others, Bangladeshi nationalism should unite the nation and prioritise our sovereignty. This forward-looking identity, rooted in the ideals of our liberation war, will enable us to navigate modern challenges while fostering progress, national unity and global respect. Furthermore, nationalism in today’s modern world must go beyond ethnocentric identities and linguistic divides, focusing instead on the collective progress of the entire nation for the betterment of humanity. Mahatma Gandhi’s insightful words resonate deeply with this idea: ‘My nationalism is as broad as my swadeshi; I want India’s rise so that the whole world may benefit.’ Gandhi’s vision of nationalism was not confined to narrow political interests but was inclusive and sought India’s prosperity while contributing to global welfare. This broader, more inclusive approach to nationalism is what the modern era demands.

Tanbir Uddin Arman is a political analyst and researcher.​
 

Dhaka, Washington discuss recovering stolen assets
Published :
Oct 13, 2024 17:04
Updated :
Oct 13, 2024 18:07

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Flags of Bangladesh and United States are seen cross-pinned in this photo symbolising friendship between the two nations — Collected


Bangladesh and the Unites States (US) have discussed strengthening collaboration to counter corruption, tackle money laundering and recover stolen assets.

The discussion took place at a meeting between Bangladesh foreign secretary Md Jashim Uddin and US Acting Coordinator for Global Anti-Corruption Shelby Smith-Wilson in Washington, according to a message received in Dhaka on Sunday, BSS reprots.

The talks also covered technical support for reforms, Mutual Legal Assistance (MLA) treaty and enhancing experience and expertise sharing across critical sectors.

Particular attention was given to procurement systems, law enforcement, the judiciary, and media engagement reflecting a shared commitment to transparency and good governance.

The Foreign Secretary visited New York before his tour to Washington and is scheduled to leave Washington on October 14.​
 

How Western nations can help Bangladesh reclaim stolen assets

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FILE VISUAL: SALMAN SAKIB SHAHRYAR

On August 5, Sheikh Hasina, who ruled Bangladesh for 20 years in total, resigned and fled the country after a student-led mass uprising that emerged out of protests over the controversial government job quota system. During her tenure, the achievements that the country enjoyed have been overshadowed by her increasingly authoritarian governance, characterised by rampant corruption, nepotism, and staggering capital flight.

Several reports from credible national and international sources have revealed how many ministers, high-ranking officials, law enforcement leaders, and politically-connected businessmen syphoned off vast amounts of money. According to a report by Bonik Barta, an estimated $150 billion, equivalent to around Tk 17.6 lakh crore, was illegally transferred abroad during Hasina's tenure. This staggering figure is drawn from findings by US-based think tank Global Financial Integrity (GFI). Much of this illicit capital flowed via inflated government project costs and fraudulent loans from banks. The stolen funds were funnelled into foreign bank accounts or used to purchase real estate in countries like the UK, Canada, Singapore, Malaysia, the UAE, and the US.

One striking example is former Land Minister Saifuzzaman Chowdhury, who amassed a property empire valued at approximately $675 million across the UK, US, Dubai, Malaysia, and Singapore. This vast looting operation epitomises the scale of corruption that characterised Hasina's government.

What is equally striking is the role that Western and other wealthy nations have played—knowingly or unknowingly—in enabling Bangladesh's political elite to stash their ill-gotten gains. For years, these countries have attracted investments from corrupt individuals, often turning a blind eye to the origins of their wealth. The financial systems in these nations provide anonymity and confidentiality. Through the use of shell companies, trusts and offshore accounts, corrupt individuals are able to obscure their identities and move vast sums to these countries with little scrutiny.

Moreover, many financial institutions in these countries fail to conduct due diligence, particularly when dealing with wealthy clients from developing nations. Profits are often prioritised over compliance, allowing dubious transactions to proceed unchecked. This negligence perpetuates global corruption as stolen wealth flows freely into Western economies with minimal oversight.

The complicity of these financial systems highlights a broader issue of accountability. While countries like Bangladesh are frequently criticised for weak governance and corruption, financial institutions in the West play a significant role in facilitating the laundering of illicit funds. By providing safe havens for stolen wealth, these nations not only undermine justice but also deprive developing countries of much-needed resources. These countries must recognise their responsibility in this fight and take meaningful steps to prevent their financial systems from being used as tools for money laundering and illicit wealth accumulation. In doing so, they can help countries like Bangladesh reclaim stolen resources, invest in their future, and improve the well-being of their citizens.

Bangladesh was already facing a series of economic challenges before Sheikh Hasina's departure, including high inflation, slowing remittance and export earnings, dwindling foreign exchange reserves, and high external debt burden. At the end of 2023, the external debt stood at $100.6 billion. According to the Economic Relations Division (ERD), in FY24, foreign loan repayments, including interest and principal amount, was approximately $3.36 billion. This repayment burden is expected to rise to $5.38 billion by 2027. The mounting external debt is placing enormous pressure on the country's already stressed forex reserves.

Given the economic crisis, recovering stolen assets must be a top priority. The international community can play a vital role in these efforts. Cooperation in tracking down and repatriating illicit funds will be critical in helping Bangladesh rebuild and regain control of its economic future.

While stolen asset recovery is undoubtedly complex, it is both feasible and necessary. There are several international laws and conventions that can be used to facilitate the recovery of laundered funds. The United Nations Convention against Corruption (UNCAC) and the Financial Action Task Force (FATF) set global standards for anti-money laundering policies and asset recovery efforts. Additionally, the UN Office on Drugs and Crime (UNODC) and the World Bank's Stolen Asset Recovery Initiative (StAR) support international efforts to recover stolen assets. However, these frameworks rely heavily on the cooperation of international financial institutions, Western governments, and global anti-corruption watchdogs.

Chief Adviser Prof Muhammad Yunus has initiated efforts to recover Bangladesh's stolen wealth by seeking cooperation from Switzerland and technical assistance from the World Bank. With his global influence and strong ties to Western leaders, Yunus is well-positioned to lead the mission to reclaim the billions syphoned off during the Hasina regime.

Recovering these assets would have a transformative impact on Bangladesh's socioeconomic landscape. Billions could be reinvested into critical sectors such as healthcare, education, infrastructure, and social welfare. Moreover, successful asset recovery would not only provide financial relief but also help restore public confidence in government institutions. Holding corrupt individuals accountable would strengthen the rule of law, promote a culture of integrity and transparency, and build greater trust in the country's leadership. While Bangladesh's path to economic recovery is challenging, with Prof Yunus at the helm, backed by his international network and leadership, the recovery of stolen wealth seems within reach.

Abu Afsarul Haider is an entrepreneur.​
 

UK assets of ex-land minister under NBR scanner

The Central Intelligence Cell (CIC) of the National Board of Revenue (NBR) is looking into allegations of tax evasion and illegal transfer of money abroad, including to the United Kingdom, by former land minister Saifuzzaman Chowdhury.

In this regard, the CIC sent a letter to the NBR's International Taxation Wing last week, requesting the Ministry of Foreign Affairs to take up the matter with authorities in the UK, a top official of the CIC said yesterday.

The CIC's move comes following media reports on Chowdhury's foreign assets.

In the past, The Daily Star and Bloomberg have run separate reports on Chowdhury's assets in the UK. Most recently, Al Jazeera reported that Chowdhury has assets worth over $500 million in the UK.

The international taxation division has already taken the initiative to write to the foreign affairs ministry based on the CIC's request.

"It may take one week for us to present it to the foreign ministry," a top official of the NBR said.

As a citizen of Bangladesh, the ex-minister is supposed to pay taxes on income earned both in Bangladesh and overseas, an NBR official says

As a citizen of Bangladesh, the ex-minister is supposed to pay taxes on income earned both in Bangladesh and overseas, he said.

Asked about further steps by the NBR, the official said: "We will mostly focus on tax evasion as per the income tax law as we are simply the tax authority.

"We aren't the proper authority to bring back siphoned money. But we will cooperate with other government agencies to this end," he added.

"At first, we will verify his ownership of the properties in the UK. Then we will check how the money was sent from Bangladesh. If there is any money laundering issue, we must file a case on it."

Besides, some other agencies such as the Bangladesh Financial Intelligence Unit (BFIU) and the Anti-Corruption Commission (ACC) will act if needed.

Al Jazeera's Investigative Unit went undercover to reveal how the former minister built a real estate empire worth around half a billion dollars, which he claims to have funded through his businesses.

Strict currency laws restrict citizens from taking more than $12,000 a year out of Bangladesh.

Al Jazeera revealed that Chowdhury, a close ally of the recently deposed Prime Minister Sheikh Hasina, bought over 360 luxury properties in Britain worth $250 million.

Saifuzzaman's property buying spree gained pace in 2017 when he set up companies in the UK, but it accelerated even further in 2019 when he became a minister under the Sheikh Hasina-led Awami League government.

In December last year, The Daily Star published a report about Chowdhury's portfolio of at least 260 properties in the UK, for which he paid at least £134.76 million or Tk 1,888 crore, according to the newspaper's calculation from company filings publicly available on UK government websites.

The three-time Awami League lawmaker also has at least 537 mortgages against properties in the UK. A vast majority of these are in London.

However, his tax returns, submitted along with his affidavit to the Election Commission, state that he has no foreign income, according to The Daily Star report.​
 

Confiscate immovable assets of ex-land minister, wife: court

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Former Land Minister Saifuzzaman Chowdhury

A Dhaka court has ordered the authorities concerned to confiscate the immovable foreign assets owned by former land minister Saifuzzaman Chowdhury and his wife Rukhmila Zaman.

Judge Mohammed Ash-Shams Joglul Hossain of the Metropolitan Senior Special Judge's Court in Dhaka on Wednesday passed the order after the Anti-Corruption Commission (ACC) submitted an application in this regard, said an ACC official working at the court yesterday.

ACC Public Prosecutor Mahmud Hossain Jahangir moved the petition on behalf of the anti-graft watchdog, he said.

On October 7, the same court issued a travel ban on the couple in connection with corruption allegations.​
 

Bringing back laundered money is govt’s priority: Salehuddin
BSS
Published :
Oct 20, 2024 18:28
Updated :
Oct 20, 2024 18:29

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Adviser to the Ministries of Finance and Commerce Dr Salehuddin Ahmed on Sunday said the present government’s priority is to bring back the money laundered abroad.

“We have formed a taskforce to bring back money that has been illegally taken abroad. We started work on bringing back the money,” he told reporters after the Adviser’s Council Committee on Government Procurement (ACCGP) meeting at the Bangladesh Secretariat.

Responding to another question on commodity prices, the adviser said that vegetables are seasonal products and assured that prices of vegetables would come down soon.

“We’re doing everything for stabilising the market. The Trading Corporation of Bangladesh (TCB) and other agencies are providing efforts to ensure the supply of daily commodities,” he added.

He informed me that the government has started selling agricultural products at affordable prices under the Open Market Sale (OMS) programme in different areas of the city to stabilise the market.

TCB, the Department of Agricultural Marketing and some other private agencies are selling daily commodities at fair prices, he added.

Salehuddin also informed that the government will further increase the volume of sales under TCB.​
 

Govt to appoint law firm to bring back laundered money
Says BB governor

Bangladesh will appoint legal firms to bring back the laundered money from abroad, said Bangladesh Bank Governor Ahsan H Mansur.

While the development partners and the global community are cooperating in this regard, there is a legal process, he told journalists yesterday at the World Bank headquarters in Washington DC.

"We are trying to follow the process. We will appoint private legal firms in this regard," said Mansur, who is in the US capital for the World Bank-International Monetary Fund annual meetings.

Bangladesh has yet to decide which firm or firms will be appointed.

"We will take policy support from the WB and the US government in which criteria we will work together and which type of firms we will appoint."

On October 26, Bangladesh had a discussion with the development partners including the WB and Asian Development Bank in this regard, Mansur added.

The government will take financial and technical support from different development partners, said Salehuddin Ahmed, the finance adviser to the interim government.

"We got positive responses from all of them," he said, without disclosing the value of the assistance.

However, nothing has been finalised yet.

"We have to first ensure how repayments will be done before taking any kind of support as a loan. They also have some queries in this regard. A mission will go to Bangladesh for negotiation and the final decision will be made then," he said.

The development partners want to provide support beyond Bangladesh's absorbing capacity, said Lutfey Siddiqui, the chief adviser's special envoy on international affairs.

Meanwhile, Mansur said banks' assets will be evaluated by international auditors.

"The evaluation will give a clear picture of banks' capital adequacy shortfall and the extent of recapitalisation needed."

The assessment will start in November.

In a sideline meeting, the IMF set Sri Lanka as a model for countries aspiring to recover quickly from an economic crisis.

Asked if Bangladesh will follow the same path, Ahmed said Sri Lanka got around a year for their reforms and economic recovery and Bangladesh has passed only two months.

"Bangladesh will do better than Sri Lanka," he added.​
 

Sheikh clan’s lust for duty-free cars

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With an almost decimated opposition and farcical elections, a party nomination from the ruling Awami League was as good as a seat in the parliament.

As such, MP nominations necessitated furnishing hefty sums and lavish gifts. For MP aspirants from the southern districts, it was an unwritten rule that one of the gifts would be the duty-free car that the MPs are allowed to import for personal use.

Those cars would end up in the garages of party royals, who happen to be members of deposed prime minister Sheikh Hasina's extended family.

This circle of predatory royals comprised five brothers: Sheikh Helal Uddin (Sheikh Helal), Sheikh Salah Uddin (Sheikh Jewel), Sheikh Sohel Uddin (Sheikh Sohel), Sheikh Jalal Uddin (Sheikh Rubel) and Sheikh Belal Uddin (Sheikh Babu).

Of them, Sheikh Jewel was the MP of Khulna-2 and Sheikh Helal of Bagerhat-1.

Sheikh Sharhan Naser Tonmoy (Sheikh Tonmoy), the son of Sheikh Helal, was added to this close circle after being elected MP from a Bagerhat constituency in 2018.

In practice, the five brothers did not have much sway over the party decisions.

What they had was the identity that they were Hasina's paternal cousins bearing the weighty Sheikh name -- enough for them to lord over the southwestern parts of the country, especially Jashore, Khulna, Bagerhat, Satkhira and Jhenaidah.

They were key to securing party tickets and hence used this influence to extract as many favours as possible from MP hopefuls, including the benefits afforded to MPs.

Besides, the locals had a strong belief that the royal family had a specific quota at their disposal and wielded significant influence when it came to recruitment to government jobs, transfer and tenders of development works of those districts, The Daily Star has learnt from local AL leaders.

This trend developed over a decade as every AL nomination seeker for three to four districts of the southwestern parts was under the impression that without satisfying that 'royal family' party nomination is next to impossible for them, they said.

For some nomination seekers who were not prominent themselves, showering the royals with gifts was the custom and handing over the duty-free car was the unspoken rule.

Some of the MPs did not even see their brand-new sports utility vehicles but had to pay for registration, fitness certificates and taxes.

"I just signed the form. I never even saw my car. But I paid all the taxes for the years," a former MP of a Khulna constituency told The Daily Star wishing anonymity as they have not abandoned the hopes of becoming a lawmaker someday.

He does not know where the vehicle is at present and if it is still intact.

"I don't know whether it has been burned in the tumult since August 5. Now, I am really not sure if I should even pay the taxes for the SUV," he added.

But with the royals hiding safely in India and away from public outrage, one hapless MP is at a loss over what to do with the taxes and payments since they don't even know whether those cars are still running in the first place.

His predecessor from the same constituency, who was an MP from 2014–2018, was luckier.

He had used his duty-free SUV for just a day before he had to hand it over to the royal and sign a post-dated deed of sale as MPs are allowed to sell their vehicles within five years of import, according to local sources.

The former lawmaker, who had previously held a top position in AL's student wing, had pledged to give his duty-free SUV but could not get enough time to import a car and duly wet the royal beaks.

According to parliament members, the extended Sheikh clan typically started communications with the potential MP aspirants from Jashore, Khulna, Bagerhat, Satkhira and Jhenaidah well before the elections.

Aspirants also sought the support of the royals to lock in the nomination.

The former MPs said the royal family members were powerful and it was not difficult for them to find who Hasina had picked for each constituency.

In reality, the royals had little influence within the party but pretended to have substantial sway in the decision-making process about the nominations.

But they would pounce on the chosen MPs for gifts that included their duty-free cars as soon as Hasina, also the AL president, had made her decision.

Sometimes, there were miscalculations.

For instance, before the January election, one royal communicated with the wrong aspirant since their names were rather similar.

One was Sheikh Rashedul Islam and the other was Rashiduzzaman Morol for Khulna 6 constituency.

"They had mistaken one name for another," two AL leaders of that district told the Daily Star while recounting the anecdote.

One of the Sheikh family members had settled with Rashedul Islam as his possibility was higher than Rashiduzzaman, according to sources.

But Hasina gave her nod to Rashiduzzaman, which was revealed on November 26.

This left Rashedul in a spot of mortification as he was sure of his candidacy given the lavish gifts he furnished to the royal.

The royal though quickly swooped in on the AL nominee and claimed his token 'gift'.

The winning MP duly obliged and made his commitment to satisfy the royal family much before the election, according to a close associate of the immediate past MP.

The former MP, however, could not get enough time to import his vehicle.

The Daily Star could not reach the royals for comment.​
 

AL-linked tycoons siphoned off $17b
S Alam, allies took $10b from banks, BB Governor Ahsan Mansur tells the Financial Times

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Ahsan H Mansur

Bangladesh Bank Governor Ahsan H Mansur has accused tycoons linked to the toppled Sheikh Hasina regime of working with members of the country's powerful military intelligence agency to siphon $17 billion out of the banking sector during her rule.

In an interview with the Financial Times, Mansur — who was appointed Bangladesh Bank governor after Hasina fled the country in August — said the Directorate General of Forces Intelligence had helped force takeovers of leading banks.

Mansur said an estimated Tk 2 trillion ($16.7 billion) had been spirited out of Bangladesh after the bank takeovers, using methods such as loans made to their new shareholders and inflated import invoices.

"This is the biggest, highest robbing of banks by any international standards," he said. "It didn't happen on that scale anywhere, and it was state-sponsored and it couldn't have happened without intelligence people putting guns [to former bank CEOs'] heads."

The governor said Mohammed Saiful Alam, founder and chair of industrial conglomerate S Alam, and his associates had "siphoned off" at least $10 billion "as a minimum" from the banking system after taking control of banks with the help of the DGFI. "Every day they were granting loans to themselves," he said.

In a statement issued by law firm Quinn Emanuel Urquhart & Sullivan on behalf of Saiful Alam, the S Alam Group said there was "no truth" to Mansur's allegations.

"The co-ordinated campaign of the interim government against the S Alam Group and several other leading businesses in Bangladesh has failed to respect even basic principles of due process," it said.

"It has already undermined investor confidence and contributed to the deterioration of law and order," the statement said. "Given the Group's record and contributions, we find the accusations by the governor . . . surprising and unjustified."

The Inter Services Public Relations Directorate, which handles media inquiries for Bangladesh's armed forces, did not respond to a request for comment and the DGFI could not be reached for comment.

Hasina was in power for a total of two decades in Bangladesh, a country of 170 million people and the world's second-largest garments exporter, but her rule was marred by allegations of vote rigging, the jailing and torture of opponents, and widespread corruption.

The interim government headed by Nobel laureate Muhammad Yunus that took power after her flight has repeatedly vowed to recover funds it claims were misappropriated by members of the regime and their associates.

Mansur, a former IMF official who told the FT last month that he had sought the help of the UK to probe the overseas wealth of allies of Hasina, said board members of leading banks had been targeted under her rule.

The board members were "hijacked from their houses" by intelligence officials, taken to other locations such as hotels, and told "at gunpoint" to sell all their shares in the banks to S Alam and to resign their directorships. "At one bank after another they did it," he said.

One former bank CEO told the FT he had been forced to resign the position as part of a forcible takeover. Mohammad Abdul Mannan, formerly CEO of Islami Bank Bangladesh, one of the country's largest lenders, said he came under pressure from "people associated with the then-government" from 2013.

This included pressure to recruit board members suggested by the Prime Minister's Office and a search by "people related to government agencies" of a hotel room used by one of the bank's foreign directors.

Mannan said that in January 2017 he was diverted on his way to a board meeting and taken to see a senior defence official, then kept for a full working day to force him to resign.

"They prepared bank letters on fake stationery," said Mannan, who was appointed chair of First Security Islami Bank by the central bank in September. "I had to sign a resignation letter."

S Alam diversified into banking over the past decade. The group's website says it has "significant investment" in seven banks, including Islami Bank Bangladesh and First Security Islami Bank.

Mansur said Bangladesh aimed to recover stolen funds after completing an audit of about a dozen mostly bankrupt banks taken over during Hasina's time in government. "We want to use that audit as evidence in the court of law internationally and domestically," the governor said.

Bangladesh's interim government moved to block sales of shares in the banks after the Hasina regime collapsed. Mansur said authorities now planned to sell stakes in the banks to "good quality national or international strategic investors" in order to recapitalise them. The central bank also planned to set up an asset management firm to manage or dispose of the banks' distressed assets.

He said Bangladesh would also seek to recover money taken out of the country by hiring international law firms to try to attach assets held by the banks' shareholders in Dubai, Singapore, the UK or elsewhere.​
 

Breaking market syndicates
SYED FATTAHUL ALIM
Published :
Oct 28, 2024 21:51
Updated :
Oct 28, 2024 21:51

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The report that members of the Anti-Discrimination Students Movement, in short, Movement, in Khulna will sell essential commodities from non-profit sales centres raises our spirits. That is for the simple reason that it is the same students who took to the streets in August 2018 demanding road safety. Again, the nation saw them controlling road traffic last August after the police fled their duty stations en masse after the fall of the past regime. The students are like a guardian angel beside the people whenever they (people) are in a crisis. So, it is hardly surprising that they are now trying to protect hapless consumers from the onslaught of skyrocketing essentials prices. What they will be able to achieve with their modest effort is not the point at issue here. The fact that the students are concerned about the public's suffering caused by high price of essential commodities is what matters.

The Khulna students have reportedly planned to run sales outlets at different corners of the city and its surrounding areas where essentials including vegetables will be available at cheaper rates than in the kitchen markets. The students behind this move believe that through these fair price shops the syndicates responsible for keeping the essentials market artificially volatile can be broken. Experts on markets and their dynamics may question the sustainability of the not-for-profit sales centres. Of course, cooperation of the government bodies like the Directorate of National Consumer Rights Protection (DNCRP) to strictly monitor the essentials markets across the country will be essential in this regard. In fact, the DNCCRP has been with the Movement from the outset of the latter's launching the market monitoring drive since early August following the political changeover.

The Movement leaders also planned to form teams in collaboration with the DNCRP and consumers in the kitchen markets of the capital city as well as at the upazila levels for monitoring markets and fighting syndicates. Members of the public including traders were supportive of the Movement's effort. Meanwhile, about three months have passed. The essentials market has remained as volatile as ever. Even so, the Movement's latest move to open non-profit sales centres for essential commodities in Khulna is a testament to their indomitable spirit that has not diminished even in the face of overwhelming odds. And what the Movement is capable of has been amply demonstrated on August 5. However, with the passage of time, the tempo of any movement gradually dies down. So, to avoid ending up in that manner, it is important that the Movement keeps its revolutionary spirit alive by increasing contact with the common people through its engagement in their day-to-day struggles. From that point of view, the opening of non-profit shops to sell essential commodities is definitely a step in the right direction. Also, at a recent conference organised by a consumer rights body, the labour adviser, Asif Mahmud Shojib, who is a former leader of the Anti-Discrimination Student Movement, suggested that the youths may collect essential commodities directly from their producers, that is, farmers and sell those to the consumers. This is undoubtedly a novel idea of marketing the agricultural products without the intervention of middlemen. It is common knowledge that starting from the farmers in the countryside, the agricultural goods change hands (of middlemen) multiple times before those finally reach the kitchen markets in the cities. In the process, the prices of the agricultural commodities go up multiple times. If the idea as suggested by the labour and employment adviser could be put into practice, it would also create entrepreneurs out of thousands of unemployed youths of the country.

That apart, it can also be looked upon as part of an experiment to understand the non-market forces that constantly drive up the essentials prices. So far, the conventional approaches to resolve the stubborn issue failed to produce results. Then why not try the new ideas being put forward by the students to break the so-called essentials market syndicates?​
 

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