In a swift turn of events, a US court on Friday suspended arrest warrants for Bangladesh Finance Adviser Salehuddin Ahmed and Bangladesh Bank Governor Ahsan H Mansur.
The warrants, initially issued just a day prior, were in response to an appeal filed by Smith Cogeneration (Bangladesh), seeking to collect a $31.9 million penalty from the Bangladesh government.
On Thursday, US District Judge Carl J Nichols had instructed the US Marshals Service to ensure both Ahmed and Mansur appeared in court to provide statements related to the case.
However, by Friday, the court had temporarily halted the warrants.
Senior Secretary Mushfiqul Fazal Ansarey of Bangladesh’s Ministry of Foreign Affairs shared the update on his Facebook account on Saturday, clarifying the details of the case.
Ansarey said Smith Cogeneration initiated a lawsuit in US court after a power purchase agreement signed with the Bangladesh government in 1997 was terminated by the Awami League government in 1999.
The agreement had granted Smith Cogeneration permission to construct a barge-mounted power plant in northern Bangladesh.
How Bangladesh repaid $1.5bn in foreign debts without tapping into reservesNearly 25 years later, the Washington DC Circuit Court issued a ruling in the long-standing dispute, though the decision was jurisdictionally complex and ultimately suspended by the court on Friday.
While the issue remains unresolved, Ansarey said that Bangladesh’s interim government—formed after a violent revolution—cannot bear responsibility for the actions of a previous exploitative regime.
He also emphasized the need to investigate those who may have concealed details of the case from the current administration.
The US-based outlet Law360 initially reported the issuance of the warrants, highlighting an ongoing legal and diplomatic challenge for Bangladesh’s financial leadership.
