Economic White Paper: Highlights corruption yet stops short of naming offenders
Kamruzzaman Bablu :
After three months of extensive work, the White Paper Preparation Committee submitted its report to the Chief Adviser of the interim government, Dr. Muhammad Yunus, on Sunday. The report revealed that a staggering $234 billion (approximately Tk 28 trillion) was siphoned abroad during the tenure of the ousted Sheikh Hasina government.
While the report identified corrupt politicians, businessmen, financial players, middlemen, and bureaucrats as responsible for the illicit transfers, it did not name specific individuals or provide details on how the siphoned funds might be recovered. According to the report, an average of Tk 1.80 trillion was laundered annually.
The interim government formed the 12-member White Paper Preparation Committee on 28 August to analyse the country’s economic situation, highlight corruption and irregularities, and track illicit financial outflows. The committee, led by eminent economist Dr. Debapriya Bhattacharya, based its findings on Global Financial Integrity Reports (GFIRs) and certain assumptions.
Dr. Selim Raihan, Professor of Economics at Dhaka University and Executive Director of SANEM, told The New Nation:
“We aimed to capture the broad spectrum of financial corruption under the previous government. It was a daunting task due to the sheer scale of irregularities. Hence, the report highlights the groups involved rather than specific individuals.”
Dr. Raihan expressed hope that the government would soon uncover the identities of those directly involved in siphoning the country’s wealth.
The report revealed that the average illicit outflow accounted for 3.4 per cent of Bangladesh’s current GDP, equivalent to about one-fifth of the country’s export earnings and remittance inflows in the 2023-24 fiscal year. On average, these outflows were more than twice the net inflows of foreign aid and foreign direct investment (FDI) over the same period.
The report further noted that Bangladesh’s Annual Development Programme (ADP) had spent Tk 7 lakh crore over the past 15 years. Shockingly, 40 per cent of this amount-equivalent to nearly Tk 2.8 lakh crore-was allegedly embezzled by bureaucrats.
Mustafizur Rahman, a committee member, highlighted cost escalations in major development projects. Out of 29 projects analysed, seven were examined in detail. Initially budgeted at Tk 1,14,000 crore, these projects’ costs soared to Tk 1,95,000 crore-an increase of nearly 70 per cent. The report attributed this rise to inflated land prices, manipulated procurement processes, and the inclusion of unnecessary components.
Another committee member, M. Tamim, reported that $30 billion had been spent on power generation projects, with at least 10 per cent siphoned off as kickbacks-amounting to $3 billion.
The White Paper described illicit financial outflows as a “malignant tumour” devouring a significant portion of Bangladesh’s economy. It emphasised that addressing these irregularities is crucial to safeguarding the nation’s economic stability.
The report marks a critical first step in uncovering the extent of corruption. However, it leaves open questions about how the siphoned funds will be recovered and whether those responsible will be held accountable.