Reza Mahmud :
Enormous opportunities for securing foreign loans to implement key development projects in Bangladesh have been thwarted due to alleged corrupt practices by senior officials within the autocratic Hasina regime.
Sources close to the projects revealed that the implementation of highly advantageous Austrian soft loans for Bangladesh has been delayed, reportedly due to the corrupt activities of at least two officials – one Secretary and an Additional Secretary – within the Economic Relations Division (ERD) during 2022 and 2023 linked to Awami League (AL) politics.
The sources noted that several visits by an Austrian trade delegation had led to proposals for financing soft loans aimed at supporting various small and medium-scale projects in Bangladesh.
These loans offered exceptionally favourable terms: a 20 per cent grant, a 9-year grace period, and a 27-year repayment term. The interest rates were zero, with a minimal service charge of 0.5 per cent over the 27-year period.
The loans were intended to support Bangladesh’s development, particularly in key sectors such as vocational and technical training, hospital modernisation, digitalisation of the BTV centre, ICT capacity building, and medical waste management.
These projects were part of an international cooperation initiative aimed at fostering long-term growth.
A reputable Austrian company, which has implemented similar projects worldwide, had already signed a contract with the Ministry of Manpower for the modernisation of the Keraniganj Technical Training Centre.
The success of this project could have paved the way for similar initiatives in Pabna, Rangpur, Jessore, and Mymensingh, potentially upgrading training facilities and creating new employment opportunities for Bangladeshis both domestically and abroad.
In addition, Austria had proposed funding for the modernisation of the BTV archive, a project designed to preserve historic and significant documentaries and films.
Each of the proposed projects was to be funded with five million Euros, or approximately Tk 50 crore.
Secura Bangladesh Limited, appointed to carry out the work with the funds, had received approval from the Planning Ministry. However, the loan was ultimately blocked by the ERD.
During a meeting at the ERD, the Additional Secretary allegedly dismissed the Austrian delegation, stating, “Who told you to come to Bangladesh? We have enough foreign currency and don’t need your assistance to implement such projects.”
This statement reportedly led the Austrian officials to withdraw their proposals in frustration.
Shameem Ahsan Khan, Managing Director of Secura Bangladesh Limited, expressed disappointment over the lost opportunity, attributing the setback to corrupt officials.
“An imperative opportunity has been lost due to the actions of these officials.
The interim government should make every effort to regain the funding, especially since the Austrian Ambassador to Dhaka recently met with Chief Adviser Professor Muhammad Yunus, urging the need to maintain close relations with Bangladesh,” Khan told The New Nation.
Muhammad Fakhrul Islam, former Joint Secretary General of the Bangladesh Association of International Recruiting Agencies (BAIRA), also weighed in, saying, “It is high time to create skilled manpower, as European countries are in urgent need of it.
The government should identify the dishonest officials responsible for blocking the Austrian funds and take stern action against them.”
Professor Mahbub Ullah also called for swift action, stating, “The government should take effective steps to regain the funding and enhance these vital projects. The training centres must also be sustainable to ensure they continue to function well after the funding period ends.”
Sources indicated that the two senior ERD officials began obstructing the loan agreement once they realised they would not personally benefit from the deal.
This decision to reject the loan not only jeopardised important projects but also raised concerns about the accountability of government officials responsible for managing foreign loans and grants.
The actions of these officials have reportedly tarnished Bangladesh’s international reputation and hindered the country’s ability to secure future financial support from global partners.
Both the Ministry of Manpower and the Austrian company have expressed frustration, noting that all necessary steps had been taken to ensure the success of the projects.
If left unaddressed, this failure could have long-term consequences, diminishing Bangladesh’s ability to attract future foreign investment and loans, which are crucial for the country’s development.
