Bangladesh reports $238 billion laundered from the country in last 15 years

The interim government’s white paper drafting committee, which was formed to review Bangladesh’s economic status, stated in a press conference on Monday that in the last 15 years, a “crook system” was created in the country from the spoon of capitalism, in which everyone, including political, military, and civilian officials, including the judiciary, took part.

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Dhaka, Bangladesh

According to the white paper, $234 billion has been unlawfully laundered from Bangladesh through 28 different kinds of corruption during the previous 15 years.

In answer to a query regarding who was more corrupt, the leader of the white paper committee, Dr. Debapriya Bhattacharya, stated that the committee’s hearings on the topic had led to the conclusion that ‘the major pillar of the thieving system was bureaucrats, both military and civilian’.

When asked who perpetrated these corruptions, he said, “Our goal is not to capture criminals, but to explain the crime. The goal is to learn about the stealing process, not the individual or the institution. If anybody has any information regarding the individual or institution, they should contact the ACC, or the Central Bank’s Intelligence Unit.

Although the white paper contains eye-catching data alleging infinite corruption, smuggling, and theft under the previous Awami League government’s tenure, the committee claims to have no evidence of this. However, they think that the banking, infrastructure, energy, and information technology sectors will be at the top of the list of industries with the highest levels of corruption.

Earlier, on Sunday, the White Paper Preparation Committee presented its final report to Advisor Professor Muhammad Yunus. At the time, they stated that the information they had received on corruption, plundering, and financial fraud during the Sheikh Hasina government’s reign was concerning.

This committee has published a white paper of around 400 pages based on information gathered on numerous economic concerns such as corruption, irregularities, and theft.

Following the fall of the administration on August 5, on August 28, a 12-member white paper preparation committee led by Dr. Debapriya Bhattacharya was created to assess the country’s overall economic situation. The committee is officially known as the ‘White Paper Preparation Committee on the Existing Economic Condition of Bangladesh’.

According to the white paper presented at the Planning Commission’s news conference today, an average of $16 billion was embezzled and illegally laundered per year under Sheikh Hasina’s administration.

According to the printed transcript of today’s news briefing, serious corruption occurred in megaprojects. In 15 years, project expenses have risen by an average of 70%, and projects have taken more than five years to complete on average.

Of the $60 billion committed in development projects via the Annual Development Program (ADP), around $14 to $24 billion (Tk 1.61 to 2.80 lakh crore) has been lost owing to various forms of corruption, including political extortion, bribery, and budget overruns.

It claims that political interference has exacerbated the banking crisis. The bad loans made in the country’s banking industry over the previous 15 years might have funded 14 metrorails or 24 Padma bridges.

According to the white paper, frequent loan defaults and significant frauds have harmed the financial sector’s stability and redirected resources away from productivity.

Furthermore, about Tk 13.5 lakh crore has been moved in the immigration business during the previous decade via hundi transactions. This money has primarily gone abroad to purchase visas through recruitment firms. According to the white paper, this sum is four times the cost of constructing the Motijheel-Uttara metro rail route.

Because to syndicates and unethical recruitment techniques, real migrant workers have incurred losses, and the country has lost remittances.

According to the white paper, false allocations in the social security sector endanger millions of individuals. The white report also charges corruption in the climate fund.

Meanwhile, the chief advisor’s press office said that “committee member Mostafizur Rahman stated that they reviewed seven important projects out of 29 projects and discovered that each cost more than 10,000 crore taka. The overall cost of the 29 big projects is $87 billion, or 7,80,000 crore taka.”

The seven projects assessed had an estimated starting cost of 1,14,000 crore taka. The project cost was raised to 1,95,000 crore taka by including more components, displaying higher land values, and manipulating procurement. Mr. Rahman further stated that the project’s cost had been raised by around 70% without doing a cost-benefit analysis.

Another committee member, Professor AK Enamul Haque, stated that more than Tk 7 lakh crore has been spent on the Annual Development Programme (ADP) in the previous 15 years, with bureaucrats looting 40% of it.

Mohammad Abu Yusuf, a committee member, stated that the former regime’s tax exemption represented 6% of the country’s entire GDP. If this had been cut in half, the school budget could have been quadrupled and the health budget tripled, he claimed.

Another committee member, M. Tamim, stated that $30 billion has been invested in electricity generation, and if 10% is considered illicit activities, the sum will be at least $3 billion.

On Monday, questions were addressed during the press conference regarding the foundation for these allegations and who is participating in the corruption, smuggling, or unlawful activities, but no responses were provided.

The press conference also raised the question of whether the former Awami League government or its individuals are being safeguarded without mentioning anyone’s name.

A journalist inquired whether there will be a white paper for this white paper in the future. Debapriya Bhattacharya responded to these queries and remarks, saying, “Our job is not to catch thieves, but to describe theft.”

“We’ve witnessed how the country has shifted from crony capitalism to a theft culture. A system of theft exists when everyone, including the legislative, judiciary, and executive, is involved. Three groups of collaborators have been formed: politicians, bureaucrats, and businesspeople. Essentially, three contentious elections have resulted in this deadly tree,” said Mr. Bhattacharya.

He stated that if there is a complaint against a person or entity, one should contact the ACC, or the Central Bank’s Intelligence Department.

M. Tamim, a member of the white paper writing group, stated, “There is no evidence of theft on paper.” However, based on evidence, we estimate that three billion dollars were transacted in the electricity industry through various projects.”

According to Professor M. Tamim, immunity has opened the doors to corruption in the electricity industry during the last fifteen years, and the way to corruption has been built by policy.

Dr. Mostafizur Rahman stated that the money laundered via corruption will fall on the shoulders of the country’s citizens and future generations. “It is extremely difficult to detect money laundering. Still, we tried,” he stated.

According to Zahid Hossain, Bangladesh was formerly thought to be on the verge of sliding into the middle-income trap, but the fact is that it has already done so. According to him, the only way out of this is through overall economic stability, policy changes, and the establishment of responsible institutions.

Dr. Debapriya Bhattacharya stated that if law and order conditions are not improved and prices are not regulated, reform operations would be jeopardized in the long run.

Although queries were asked regarding the statistics from the Awami League era at the press briefing, Dr. Debapriya Bhattacharya stated that there is no possibility of returning to the LDC list in 2026.

Based on this, journalists inquired as to the justification for supporting LDC graduation if the data is questionable or false.

In response, Mr. Bhattacharya stated, “After reviewing the facts, we discovered that Bangladesh has satisfied all of the criteria for LDC graduation. Therefore, there is no need to postpone the graduation.

“Rather, if we do not do LDC, what will they say that we have ended the golden family that we left behind,” he remarked, referring to the Awami League.

Then a journalist inquired as to why one falsehood was being covered up with another. Debapriya Bhattacharya said that just a small number of individuals who gain from duty-free exports want them to continue indefinitely. “We’ve seen their involvement over the previous 15 years. There is still significant lobbying.”

It is vital to emphasize that the export industry, particularly the garment sector, is projected to experience challenges if it leaves the LDC. Because, as an LDC, Bangladesh enjoys duty-free trade benefits from the World Trade Organization (WTO), which would be lost following the LDC transition.

In the UN’s 2024 triennial review, Bangladesh cleared all three metrics—per capita income, human resources, climate, and economic fragility—and graduated from the LDC category.

The UN previously declared that Bangladesh’s graduation from the LDC category is scheduled for November 24, 2026.

Debapriya Bhattacharya stated that facts about the government’s economic management should be made public.

“The next six months are really essential. Prior to the budget, the government must submit its plans to the public. He stated that information on economic changes, currency value, and inflation should be made available to the people.

He suggested providing a medium-term strategy for the following six months to help investors understand the economy’s characteristics.

“There should be at least a two-year strategy. “This medium-term plan must be quick,” he stated.

Source: BBC Bangla

Bangladesh reports $238 billion laundered from the country in last 15 years

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