A damning White Paper on the state of Bangladesh’s economy reveals that an average of $16 billion was illicitly siphoned out of the country every year during Sheikh Hasina’s 15-year tenure as Prime Minister of Bangladesh. The report, titled ‘Dissection of a Development Narrative’, was prepared by a 12-member expert committee led by economist Dr. Debapriya Bhattacharya and submitted to Chief Adviser Professor Muhammad Yunus on Sunday.
The findings expose widespread corruption, cronyism, and systematic mismanagement, which have left the country in financial turmoil. The report, described as a “historic document” by Prof Yunus, provides an alarming picture of an economy plundered under what it calls “corrupt autocracy.”
Mega Projects: The Heart of the Plunder
The White Paper scrutinized 29 mega projects with a total expenditure of Tk 7,80,000 crore ($87 billion). An analysis of seven major projects revealed that initial costs of Tk 1,14,000 crore were inflated by 70%, ballooning to Tk 1,95,000 crore through manipulated land prices, procurement scams, and other dubious practices.
Committee member Prof Mustafizur Rahman noted that these inflated expenses were often approved without proper cost-benefit analysis, highlighting severe gaps in accountability.
Annual Development Programme: A Haven for Bureaucratic Looting
Over Tk 7,00,000 crore ($70 billion) was allocated to the Annual Development Programme (ADP) during Hasina’s tenure. The committee estimates that 40% of these funds were misappropriated by bureaucrats, further deepening public distrust in the government.
“This systematic looting within the ADP framework exemplifies the scale of corruption that prevailed,” said Prof AK Enamul Haque, another committee member.
Power Sector and Tax Exemptions Under Scrutiny
Bangladesh’s power sector also emerged as a hotspot for corruption. Investments totaling $30 billion were funneled into power generation projects. Assuming a conservative 10% kickback rate, $3 billion was lost to corruption.
Meanwhile, tax exemptions during Hasina’s administration amounted to 6% of the nation’s GDP. Committee member Prof Mohammad Abu Eusuf explained that halving these exemptions could have doubled the education budget and tripled health spending, underscoring the opportunity cost of such decisions.
Call for Accountability and Reform
Chief Adviser Prof Yunus emphasized the importance of holding perpetrators accountable, stating that the report should serve as a roadmap for reform. “This historic document reveals the economy we inherited after the mass uprising. The nation must know what was taken from them,” he said.
Dr. Bhattacharya called for special prosecutions to address money laundering, a demand echoed by Finance Adviser Dr Salehuddin Ahmed. According to the Bangladesh Bank Governor, real default loans in the banking sector could exceed 30%, further indicating the fragility of the financial system.
International Collaboration to Recover Stolen Assets
The government has initiated discussions with the FBI and other international agencies to recover the siphoned funds. A series of meetings are set to begin on December 10 to trace and reclaim stolen assets.
A Path Forward
The White Paper examines six critical areas, including public expenditure, tax policy, deficit financing, and external balances. It also reviews sectoral challenges in education, health, energy, and banking.
Prof Yunus urged that the findings be incorporated into national curricula, calling it a valuable tool for educating future generations about the consequences of unchecked corruption.
As the report awaits public release, it serves as a stark reminder of the economic devastation caused by cronyism and mismanagement. Bangladesh now faces the daunting task of rebuilding trust and restoring stability to its economy.
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