Embezzlement, corruption marked AL rule: white paper report

A newly published white paper by the interim government has cast a scathing light on the state of Bangladesh's economy under the 16-year rule of the deposed Awami League government.

The 400-page report compiled by the committee led by Debapriya Bhattacharya says that a false development narrative was propped up during the party's tenure through inflated data, widespread corruption, embezzlement, and the consolidation of wealth in the hands of a select few.

A summary of the report titled "White Paper on State of the Bangladesh Economy: Dissection of a Development Narrative" was handed over to Chief Advisor Muhammad Yunus on Sunday.

On Monday, the committee members arrived at the NEC conference room in Sher-e-Bangla Nagar to answer questions from the media about the report. The report finds that 40 percent of the budget set aside for developmental projects in Bangladesh was embezzled in the past 16 years. An average of Tk 16 billion has been siphoned off from Bangladesh annually through theft and embezzlement, they said.

According to Debapriya, 10 percent of the country's people are now enjoying 85 percent of the wealth.

He also states that the report reveals instances of looting, and corruption in every sector.

"Our job is not to catch thieves. We have just described the theft," he said.

The interim government's White Paper Committee organised 18 meetings, 21 policy consultations, 15 technical committee meetings and three public hearings during this period to examine the overall situation of the country's economy.

During the press conference, it was stated that the committee did not receive any allowance for carrying out these works, nor did they receive any honorarium for the meetings.

The members of the committee were selected by Debapriya following the instructions of the chief advisor.

The committee believes that conducting such research work could have cost Tk 250 million per the existing market rate.

The members also highlighted that their study went beyond traditional research methods. Both domestic and foreign experts were brought in for consultations for the study.

Debapriya said: "The entire structure turned from crony capitalism to a kleptocracy. The source of this was the 2018 elections. The place of transparency in the subsequent elections was destroyed. The accountability of the local government was destroyed. The United Nations still thinks that Bangladesh's economy is sufficient to get out of the list of the least developed countries. There is no obstacle on the way forward to becoming a developing country."

During the press conference, AK Enamul Haque stated that nearly 40 percent of the total expenditure on the country's development projects has been embezzled or looted.

Dhaka University Prof Abu Eusuf criticised the National Board of Revenue, or NBR, for failing to manage its Taxpayer Identification Number, or TIN, database effectively.

"There are 10 million TIN holders in the country. But taxes are collected from 2 to 2.2 million people. If 10 million TIN holders were brought under the tax umbrella, our tax GDP rate would be at international standards. If the tax exemption rate of 6 percent being given annually were reduced to half, the education budget could be doubled with the additional money," said Eusuf.

Prof Tasneem Arefa Siddiqui highlighted widespread money laundering facilitated by the country's immigration system while speaking at the press conference.

According to the report, $1.3 trillion has been funnelled abroad through illegal money transfer networks, commonly known as hundis, under the guise of recruiting workers for overseas jobs.

Imran Matin, another member of the committee, said: "All the so-called progress for the poor is not meaningful. This is because if those above the poverty line cannot work for two days, the number below the poverty line will double."

According to Professor Md Tamim, the Quick Enhancement of Electricity and Energy Supply (Special Provision) Act opened the floodgates for corruption.

The white paper also scrutinised Bangladesh's ambitious mega projects, which have been lauded by the previous government as symbols of progress.
Mustafizur Rahman said: "During the implementation of these projects, the money was laundered by increasing the cost several times, according to the words of the contractors. It is quite difficult to calculate the amount of money laundered. However, I have calculated the amount by adopting an international method."

Debapriya urged the interim government to provide detailed accounts of its recent economic measures and lay out a roadmap for the next six months. Key priorities include addressing inflation, stabilising currency values, and managing interest rates.

"Although the current government is here for a limited term, the impact of its decisions can be far-reaching. This government must come forward with a medium-term plan in sectors such as investment and employment, quality of education, and healthcare. It can even be a two-year plan," said the panel head.