Dr Debapriya Bhattacharya, distinguished fellow at the Centre for Policy Dialogue (CPD) and head of the white paper preparation committee, said on Monday that during the previous Awami League (AL) government, the country witnessed the transformation from crony capitalism to a system of thieves.
Debapriya identified four most corrupt sectors, with the banking sector at number one, infrastructure stood at second place; energy third and information technology fourth.
At a press conference, Debapriya, also highlighted the key features of the report and the government's potential future actions, the eminent economist urged the government to make a public statement on its various operations and initiatives across different sectors.
The White Paper has been prepared through an inclusive and consultative process, departing from the conventional research methodology, and this committee finds evidence of corruption in at least 28 different ways by using the narrative of development as a shield during Sheikh Hasina's government.
He said: “During the previous Awami League government, the country was transformed from 'crony capitalism' to a system of thieves. Everyone, including the legislature and the executive, has become part of the theft. This is a system of thieves. For this, politicians, businessmen, and bureaucrats, serving or retired, became collaborators. The source of this system of thieves is the 2018 national elections.”
Regarding who played the biggest role in turning the system, Debapriya said: “The white paper committee held meetings with people from different classes and professions. Initially, it seemed that politicians and businessmen played a greater role. In the final discussion, it emerged that bureaucrats, serving or not, aided the process of turning the system into a system of thieves.”
Dr Debapriya also stressed that before the next national budget, the government must clearly outline initiatives for economic reform and demonstrate greater accountability.
“While it appears unlikely that this government will remain in power for five years, it is essential to have a roadmap for at least the next two years,” he said.
Dr Debapriya said that ensuring economic and political stability is crucial for initiating long-term reform activities.
Regarding LDC graduation, Debapriya said: “Bangladesh is not a country that deserves to be in LDC in terms of capacity and size.”
Another member of the committee and former chief economist of the World Bank's Dhaka office Zahid Hussain, said: “For so long, we thought that we were in danger of falling into the trap of a middle-income country. Now we are saying that we have fallen into that trap. Development has been shown through statistics for so long. In reality, that has not happened. We have fallen into the trap of a middle-income country due to accounting errors.”
Committee member and CPD Honorary Fellow Mustafizur Rahman said the damage from the money that was embezzled through mega projects has been left on the shoulders of the future generations.
Bangladesh University of Engineering and Technology (BUET) Professor M Tamim said that there is no evidence of theft in the power and energy sectors on paper. $33 billion was invested in the power sector during the previous government's tenure. Out of this, 10% or $3 billion changed hands.
Committee members AK Enamul Haque, Abu Yusuf, Tasneem Siddiqui, Imran Matin, among others, also spoke at the press conference.
28 forms of corruption
The report stated that the hallmark of the economic legacy left to the current government had been wide-ranging and deep-rooted manifestations of corruption, particularly concerning the management of public resources.
The committee identified dominant channels of corruption, which include:
- Banking loan scams: Fraudulent practices in illusory bank loans, misappropriation of loans, etc.
- Bank takeover: Forced takeover of ownership of banks with the help of state machinery.
- Illicit financial outflows: Ill-gotten wealth laundered out of the country in large volumes.
- Politically motivated unviable projects: Resources are wasted on unviable projects, prolonging timelines and inflation costs.
- Inflated project costs: Systematic cost overestimation to siphon funds.
- Project cost escalation post-approval: Costs are artificially escalated after project approval to divert funds.
- Non-competitive tender processes: Cronyism and favouritism dominate procurement, excluding qualified bidders.
- Unnecessary/poorly designed projects: Resources are wasted due to weak feasibility studies, prolonging timelines and inflating costs.
- Nepotism in appointments: Project management, particularly Project Directors, is often appointed based on political connections rather than merit.
- Illegal land/asset acquisitions: Land and assets are seized or acquired through illegitimate means.
- Misappropriation of land acquisition funds: Politically weak landowners are coerced into unfair deals, and funds allocated for land acquisition are misused.
- Awarding overpriced contracts: Contracts are often granted to politically connected contractors at inflated prices and given without competitive bidding.
- Abuse of project resources: Misuse of vehicles, travel budgets, and other project resources for personal or political gain.
- Bribery as standard management practice: Bribes are routinely exchanged to expedite processes or secure favours.
- Misallocation of public funds: Funds intended for development are diverted to serve political and/or personal objectives by the leaders.
- Tax exemptions for elites: Tax policies disproportionately benefit influential groups.
- Distorted supply chains: Manipulated supply chains lead to unfair pricing and market inefficiencies.
- Sharing insider information: Policy decisions are leaked to select groups for financial gain.
- Collusive corruption: Collaboration between public officials and private actors for mutual benefits.
- Extortion-based corruption: Coercion is used to extract bribes or enforce unfair deals.
- Monopolistic corruption: Market conditions are manipulated to favour specific individuals or entities.
- Pre-emptive information sharing: Early access to critical information is exploited for undue advantage.
- Information concealment: Withholding important information to mislead stakeholders.
- Corruption by inaction: Deliberate delays are used to create opportunities for rent[1]seeking.
- Corruption for career advancement: Bribes and connections are leveraged to secure promotions or influential positions.
- Commission-sharing: High-level officials demand a share of commissions for approvals.
- Corruption for political favour. Resources and decisions are manipulated to secure political allegiance or favour.
- Legislative manipulation: Laws and policies are tailored to serve vested interests.
