Report on:

Major corruptions of the Bangladesh Awami League in the last Five Years regime".
(From 2009-2013)

Table of Content Content: Page:

Executive summery .4 Introduction... 5 Incidence One: Padma Bridge Corruption 6 o The Bridge ...6 o Funding for the Bridge 8 o World Bank ceased funding alleging corruption in high-ups . ...8 o The official response from government ..10 o Involvement of Syed Abul Hossain .10 o SNC -Lavalins involvement in corruption .12 Incidence Two: Hallmark stings and obsession of government: 14 o Beginning of the story . ..14 o Involvement of Bank stuffs: 15 o Role of Finance Ministry ... 16 o Involvement of the Prime ministers adviser ....17 o Stuffs suspended and Charge sheet filed..18 o Recovery of money. . 19 o Impact on the banking sector. 20 Incidence Three: Share market scandal. 21 o Why so many investors? ... 21 o History of stock market crash ... 22

o STOCK MARKET CRASH OF BANGLADESH IN 2010-11: ..24 o Root of BUBBLE 25 o Probe committee . 28 Incidence Four: Corruption in Railway Ministry .30 o Resignation of Minister ....30 o Reappearance of the fraudulent in the cabinet .31 o Like father like son ... 32 Incidence Five: Income climb of MPs.. 33 o Income escalation of MPs of Awami League government 33 o General growth of income status 34 o Individual income growth ..34 Incidence Six: Rana Plaza: an example of failed governance: .40 o Who is this Sohel Rana? 41 Incidence Seven: Corruption sweeping in Universities: .43 o Case # 1: BUET in Crisis...43 o Background breach of VC S M Nazrul Islam 44 o Commencement of strike in BUET 44 o Counter action from VC.45 o Students reaction.46 o Case #2:Jahangirnagar University: another example of Partisan Autocracy..47 o Allegations and Accusations against VC Shariff ..47 o Resigning of Dr. Anwar Hossain ...48 Conclusion ..49

Executive summery

Incitements for historical changes in Indian sub-continent have been corruption and misappropriation of ruling class over the ruled. Immoral attitude within high-ups of then Sultans permitted the invasion of East-Indian Company and it was the same British rulers who had to step down against demonstration of agitating mass against them. Then again in 1971, people of Bangladesh stood up against corrupt and pervert Pakistani rulers for justice and transparency. But yet after more than 40 years of independence, justice and fairness is still a delusion for the people. In the following segments of this report, some of the major corruptions of ruling Awami League government have been exposed given the size and gravity of loss that the whole country has gone through. Incidences like, Grameen Bank fiasco, Chhatra league barbarism, rental power plant robbery, Hajjchartered aircraft-Biman corruption, high prices of essentials have been vastly red-hot issues over the last few years in political arena. However, only the Padma Bridge scandal, Railway scam, piling of personal income by MPs, embezzlement of bank money by Hallmark, Rana Plaza collaps and corruption within administrative body of reputed Universities are covered in this report.

Introduction:

The business of the government is to keep the government out of business-that is, unless business needs government aid- Will Rogers

The overall performance of the 14 party alliance government perfectly synchronizes with the above quotation of Will Rogers. In developing countries like Bangladesh, centralization of public sector becomes source of coercion and helm of corruption. As a result, the concept of good governance is compromised with good enough governance by policy thinkers.

The grand alliance government made mistakes in every step it took since it came to power. It did not learn from the two years long regime of Mainuddin and Fakhruddin. It did not learn from its own mistakes either which it made after coming to power. Elections of December 2009 raised high expectations, as strong stance against corruption was one of the five key electoral pledges of the ruling alliance led by the Bangladesh Awami League. The Right to Information Act was passed, which was subsequently followed by the Whistleblower Protection Act, adopted in June 2011. However, the parliament soon became a monopolized territory of the ruling alliance as the opposition started boycotting it on grounds that could be easily addressed by government given the political will.

Political corruption is widespread in Bangladesh: citizens perceive political parties (62%) and the Parliament (40%) as some of the most corrupt institutions of their country

(Transparency International). In recent Corruption Perception Index (CPI) released globally by Transparency International, Bangladesh ranked 16th from the bottom. This year Bangladesh has been ranked 136th among 177 countries. According to executive director Dr Iftekharuzzaman of Transparency International Bangladesh (TIB), the stock market, Padma bridge project, Hall Mark, Destiny, railway and Rana Plaza collapse significantly overshadowed Bangladeshs profile this year in CPI. Dr Iftekharuzzaman further added that, making the Anti-Corruption Commission toothless, ineffective parliament, parliamentary committees dominated by interest groups, whitening of black money and governments failure to effectively fight corruption added to this poor profile.

Incidence One: Padma Bridge Corruption

One of the five top strategic features of the government's election manifesto was a very uncompromising stance against corruption. After the cancellation of funding by World Bank, the challenge that the government faces today is deeply regrettable, embarrassing and disappointing. An enormous amount of ink has been spilled over the Padma Bridge controversy. It not only deprives a large number of populations from comfortable transportation, but also dispels image as well as access for funding from other donors. Corruption that spilled into all the roots of government in last five years popped up in international arena through Padma Bridge scandal by high-up government officials. Implementation of Padma Bridge was a top priority election pledge of the present 14 party alliance Government. The fiasco even at the very starting point the implementation of the project meant a lot to the legitimacy of present governments image both nationally and internationally for good governance.1

http://www.ebangladesh.com/2012/07/12/curious-case-of-padma-bridge-financing/

The Bridge:

The Padma Bridge 2 is a multipurpose road-rail bridge across the Padma River to be constructed in Bangladesh. When completed it will be the largest bridge in Bangladesh and the first fixed river crossing for road traffic. It will connect Louhajong, Munshiganj to Shariatpur and Madaripur, linking the south-west of the country, to northern and eastern regions. The project covers three districts Munshiganj (Mawa Point/North bank), Shariatpur and Madaripur (Janjira/South bank). The total area of land to be acquired and required for its components is 918 hectares. The project will include 6.15 km long and 18.10 m wide bridge,15.1 km of approach roads, toll plazas and service areas.

Details of the proposed project: The proposed Padma Multipurpose Bridge Project is to entail3: Construction of approach roads and a 6.15 km long two level bridge across the Padma River (USD 1,626.2 million). Construction of 13.5km of river training works to ensure the stability of the Padmas banks (USD 799.9 million).

2 3

http://en.wikipedia.org/wiki/Padma_Bridge

World Bank. 2011. Project Appraisal Document on a Proposed Credit in the Amount of SDR 779.3 Million to the Peoples Republic of Bangladesh for a Padma Multipurpose Bridge Project. Report No. 56512-BD. World Bank.

Implementation of social action and environmental management plans, such as resettling affected populations (USD 291.9 million).

Other technical assistance, monitoring, evaluating, and capacity building activities (USD 98 million).

Anticipated benefits: The expected benefits of the bridge as laid out in the World Banks Project Appraisal Document are substantial: The primary beneficiaries of the bridge would be the 30 million residents of the countrys southwest. The region is currently dependent on ferry services to connect to Dhaka and ferry docks are at times left inoperable. The Padma Bridge would not only offer a means for vehicles to cross the river, but it would also include a railway and a conduit for telecommunications, electricity, and natural gas transmission. The bridge would have regional trade benefits as well, reducing the distance required to travel between Dhaka and Kolkata. Construction of the bridge could also raise the profile of the south- wests Mongla port, which operates at a fraction of its potential capacity. This could benefit the countrys northwest and provide an alternative port for Dhaka.

Funding for the Bridge:

On 3rd December 2010, the Communications minister Syed Abul Hossain disclosed the funding regarding the Padma Bridge. He said that, the funds for the much-desired Padma Bridge have been arranged and its construction will be completed before the end of the tenure (25th October 2013) of the current government4.

The total cost of the project is estimated to be USD 2.915 billion. USD 1.2 billion of this amount was to come from the World Bank (WB), USD 1.155 billion from other lending agencies (Asian Development Bank, Islamic Development Bank, and Japan International Cooperation Agency), and USDD 560 million from the Bangladesh government. The World Banks share would come from its International Development Association (IDA), which provides credits rather than loans at no interest with only a .75% service charge. The Bangladesh government would not have to begin payment for 10 years, and it would have 40 years to pay off the loan. In short, the terms were highly favorable.

World Bank ceased funding alleging corruption in high-ups:

However unluckily today, after three months of deceased term of then 14 party government, there lays cloud of vagueness over the completion of Padma bridge project. With corruption and mismanagement, initiated by then communication minister and backed by the government, donors have refused to risk the funding on such a large-scale

http://www.independent-bangladesh.com/2010120312125/country/funds-for-padma-bridgearranged.html
4

10

project. Specially with heretofore adverse image of Bangladesh in Corruption Perception Index of Transparency International Bangladesh (16th highest corrupt in 2013). Refused with funds from outside, government had decided to construct the bridge through internal find rising that will be completed within fiscal year 2015-16.5 Most of it will be covered by cutting off funds from ADP (Annual Development Program) that will definitely hamper the execution of other essential projects.

It all commenced when on June 29 in 2012, the WB ceased its funding for the bridge. After the World Bank raised graft allegations in September 2011, all work of the bridge project stopped, and in June next year, the WB cancelled its $1.2 billion financing for the project saying it had proof of a corruption conspiracy involving Bangladeshi officials, executives of a Canadian firm and some individuals. The World Bank had credible evidence corroborated by a variety of sources which points to a high-level corruption conspiracy among Bangladeshi government officials, SNC Lavalin executives, and private individuals in connection with the Padma Multipurpose Bridge Project.

In their statement they said; Because we recognize the importance of the bridg e for the development of Bangladesh and the Region, we nonetheless proposed to proceed with an alternative, turnkey-style implementation approach to the project provided the Government took serious actions against the high level corruption we had unearthed.

The World Bank provided evidence from two investigations to the Prime Minister, as well as the Minister of Finance and the Chairman of the Anti -Corruption Commission of
5

http://archive.thedailystar.net/newDesign/news-details.php?nid=241334

11

Bangladesh (ACC) in September 2011 and April 2012. They urged the authorities of Bangladesh to investigate this matter fully and, where justified, prosecute those responsible for corruption.

Although GOB reshuffled its cabinet, it didnt take action concerning the corruption conspiracy. The government only took notice when World Bank cancelled the loan agreement in June 2012. Then in September 2012, the WB revived the loan on four conditions. To be willing to go forward with the alternative turnkey-style approach, The World Bank sought the following actions:

1. 2.

Place all public officials suspected of corruption on leave. Appoint a special investigations team within the ACC to investigate the allegations.

3. 4.

Agree to provide a WB panel with full access to the investigation. Provide financiers greater oversight of the project procurement process.

The Bangladesh government did order the necessary investigations and consented to greater oversight, but it did not suspend the alleged officials nor agree to provide the WB panel with access to the ACC investigation. After months of negotiations, unable to reach agreement on two of the four measures during a last mission to find a way forward, the World Bank was left with no option other than to cancel our support for the Bridge on June 29, 2012. It stated: The World Bank cannot, should not, and will not turn a blind eye to evidence

12

of corruption.

We have both an ethical obligation and a fiduciary

responsibility to our shareholders and IDA donor countries. It is our responsibility to make sure IDA resources are used for their intended purposes and that we only finance a project when we have adequate assurances that we can do so in a clean and transparent way. In light of the inadequate response by the Government of Bangladesh, the World Bank has decided to cancel its $1.2 billion IDA credit in support of the Padma Multipurpose Bridge project, effective immediately. (The World Bank, 2012)6

The official response from government: The Bangladesh governments consistent position has been that there were no corruption in the project at all and asked the WB should provide proof of corruption if it has it. On several occasions the Prime Minister has stated that there simply could be no corruption because the WB had not yet provided any funds. The notion that corruption could not occur before the WB disbursed funds is simply inconsistent with the allegations that have been leveled. The governmental response has been frustrating to many, and citizens have been left with insufficient information to evaluate the veracity of either sides statements. The WB submitted two reports alleging corruption to the government of Bangladesh, but the World Bank has no jurisdiction to conduct criminal investigations and its governing legislation does not permit it to make the reports public. The government, for its part, has refused to release the reports although it has the discretion to do so.

http://www.worldbank.org/en/news/press-release/2012/06/29/world-bank-statement-padmabridge

13

Talking to journalists at his secretariat office, Finance Minister AMA Muhith said no corruption had taken place in the Padma bridge project. It is a case of corruption conspiracy. Only the BNP believed that corruption took place in the bridge project, said the finance minister. Asked whether he was absolutely sure that there was no corruption in the project, Muhith confidently said no graft took place in the project. The conspiracy of corruption is not corruption, he said.7 Involvement of Syed Abul Hossain:

Over the pressure of WB, the ACC submitted initial report while omitting the name of Communication Minister Ayed Abul Hossain. ACC sued seven8 people on Padma Bridge corruption allegation case on December 17, 2012 at Banani Police Station. Syed Abul Hossain and former state minister for foreign affairs Abul Hasan Chowdhury were not formally charged. However, the Commission said their involvement will be more thoroughly investigated. On January 9 , ACC was given proof of Abul Hossains involvement. But in a letter written to World Bank on January 21, the commission said there still was not enough evidence to formally charge Abul Hossain. 9 The World Banks external panel, which visited the ACC for the second time (their first visit to Dhaka was in October 2012) from December 2 to 5 in 2012, left Dhaka unhappy over the omission of Syed Abul Hossains name as a top corruption suspect in the project.
7 8

http://archive.thedailystar.net/beta2/news/no-big-name-except-abul/

The seven include former Bridges Division secretary Mosharraf Hossain Bhuiyan and Lavalin officials Ramesh, Mohammad Ismail and Kevin Wales. The rest are Kazi Mohammad Ferdous, exsecretary of tender evaluation committee for the bridge construction; Executive Engineer of Roads and Highway Department Reaz Ahmed Zaber and Lavalins local agent Mohammad Mostofa. (The Bangladesh Chronicle, December 9, 2012) http://www.clickittefaq.com/more-stories/padma-bridge-corruption-abul-hossains-commission4-percent/
9

14

In its final report 10 in 2013, the World Banks external panel has mentioned only the name of ex-communications minister Syed Abul Hossain as a high-profile corruption suspect in the Padma bridge project. The panel expressed dissatisfaction at Abuls exclusion from the First Information Report filed by the Anti-Corruption Commission, and said the ACC was not probing the Padma bridge corruption allegations in a free and fair manner.

According to World Bank allegations, former communications minister Abul Hossain was supposed to receive 4 percent of the fees as bribe for awarding the supervision job of the Padma bridge project to the desired firm 11 . Anti-Corruption Commission (ACC) did not name him as a suspect even though his name was mentioned in the list of bribes in Ramesh Sahas diary (Lavalin official).

A high ACC official who opposed Abul Hossains inclusion told The Daily Star that it was true Ramesh mentioned 4 percent against the ex-ministers name. But the Lavalin official did not put any date and this indicates the bribe was not given yet. 12 Ramesh might have decided to offer the bribe to Abul. But the ex-minister might not have been aware of it and in that sense the ACC cannot blame him, the official added. More recent attention has been on the Prime Ministers Economic Advisor Moshiur Rahman, who was also named in the investigation. Even if he was not directly involved

10 11

http://archive.thedailystar.net/beta2/news/padma-bridge-possible-with-govt-fund/

http://www.clickittefaq.com/more-stories/padma-bridge-corruption-abul-hossains-commission4-percent/
12

http://www.bangladeshchronicle.net/index.php/2012/12/4pc-was-for-abul/

15

in corruption, Moshiur Rahman had been designated as the Integrity Advisor for the project. This position was in many ways central to the projects anti-corruption strategy and the means by which the Prime Minister was to take direct responsibility for ensuring the project was free of corruption. SNC -Lavalins involvement in corruption: In September 2011, Canadas national police forces anti corruption division raided Canadian based SNC-Lavalins offices in September 2011. In April 2012 two SNCLavalin executives were charged under Canadas Corruption of Foreign Public Officials Act for allegedly attempting to bribe Bangladeshi officials in their bid for the consultancy contract for the Padma Bridge. Three employees of SNC-Lavalin have already been charged under Canadas foreign bribery act, including a former senior executive, Kevin Wallace. Two other former SNC Ramesh Shah and Mohammed Ismail have also been charged.

In Canada, where SNC Lavalins headquarters are located, after executing numerous search warrants and a year-long investigation based on a referral from the World Bank, the Crown Prosecution Services brought corruption charges against two former SNC executives in connection with the Padma Bridge Project. The World Bank on Apr 17 last year banned the SNC-Lavalin Inc for 10 years because of its misconduct in relation to the Padma bridge project. Over a 100 affiliates of the company had also been blacklisted in what was said to be the longest debarment period ever agreed to in a World Bank settlement.

16

Bangladesh is one of the numerous countries where SNC is facing allegations of bribery. The companys former chief executive, Pierre Duhaime, has been accused of multiple fraud and corruption-related crimes by Quebecs anti-corruption task force in connection with payments that SNC allegedly made to secure the $1.3-billion contract for a new Montreal hospital.

Riadh Ben Aissa, a former executive vice-president in charge of SNCs international construction, also faces charges in connection with the hospital payments. He is currently detained in Switzerland, where authorities are probing how he used that countrys secretive banking system to funnel an estimated $160-million to Saadi Gadhafi, the son of the late Libyan dictator.

Despite its strong anti-World Bank rhetoric, faced with undesirable alternatives, the Bangladesh government seems to have recognized that it needs the WB to complete the project. Backtracking, the government has sought to address the remaining concerns of the Bank in hopes that the project will move forward. Syed Abul Hossain formally resigned from the cabinet in July, and, after further WB pressure, his resignation was officially accepted in late August. Additional officials, such as Bridges Secretary Mosharraf Hossain, were also sent on leave. The World Bank was in discussion with the Government for nearly a year, seeking a serious commitment to address evidence of corruption under the project. Unfortunately, the Government took no such action for nearly nine months, leading many to call for the

17

early cancellation of the loan. Given the tremendous economic and social benefits of the bridge for the people of Bangladesh, the World Bank was not willing to let it go without a struggle to save the project.

But, the World Bank has a few precedents in its history of reinstating a cancelled loan in other countries. Conversely, there is little scope to revisit the decision in the current circumstances, as the Government is unable to agree to two measures deemed important in the conduct of a full and fair investigation into evidence of corruption.

18

Incidence Two: Hallmark stings and obsession of government:

The Hallmark Group, owned by Tanvir Mahmud, came to the spotlight when an investigation by the Bangladesh Bank found the Ruposhi Bangla Hotel branch of Sonali Bank responsible for illegally disbursing loans to the Hallmark Group and five other companies between 2010 and May 2012. The commission investigators said that the Hallmark Group in liaison with bank officials opened 2.3 LCs a minute, as usually it needs minimum 1.3 to 2 hours for creating a new LC. The kingpin of the countrys biggest banking scam, Hallmark Group, has embezzled around Tk 1,492 crore from Ruposhi Bangla Hotel branch of Sonali Bank by creating 804 letters of credit (LC) in a single day, according to Anti-Corruption Commission probe findings.13 Nepotism or favoritism of any responsible authority is considered corruption. The stuffs of Sonali Bank with association of one of influential bureaucrats from government held the capital market into a huge liquidity crisis through this scam. The amount embezzled by the six entities is equivalent to almost 15 percent of the total estimated cost of the $2.9 billion Padma bridge project.14 Beginning of the story:

13 14

http://progressbangladesh.com/hallmark-scam-tk-1492-crore-embezzled-in-a-day/ http://www.amarbdnews.com/english/court-orders-hall-marks-250-accounts-frozen/

19

In May 2012, a report from the Bangladesh Bank revealed that the Ruposhi Bangla Hotel Branch of the state-owned Sonali Bank, Bangladeshs largest commercial bank, illegally distributed Tk 36.48 billion (US$460 million) in loans between 2010 and 201215. The largest share, of Tk 26.86 billion (US$340 million), went to the now infamous Hallmark Group. While the focus has understandably been on Hallmark, other companies also participated in the fraud, including: T and Brothers, Tk 6.10 billlion DN Sports, Tk 330 million Paragon Group, Tk 1.47 billion Khanjahan Ali, Tk 50 million Nakshi Knit, Tk 660 million This is considered to be the countrys largest banking scandal. It surpassed previous fraud cases, such as a Tk 6.2 billion Letter of Credit fraud in Chittagong in 2007, a Tk 5.96 billion fraudulent withdrawal from Oriental Bank in 2006, and a Tk 3 billion forgery scandal in 2002. It is alleged that the scandal resulted from complicity between officials of Hallmark and Sonali Bank, in particular between Tanvir Mahmud, Managing Director of Hallmark Group, and Azuzur Rahman, Manager of Sonali Banks Ruposhi Bangla branch. The

15

http://www.ulab.edu.bd/CES/documents/Hallmark_Sonali_Jan_13(sm).pdf

20

alleged scam exploited the Letter of Credit (LC) system of financing trade. 16 Hallmark is accused of establishing fictitious companies, such as Anwara Spinning Mills, Max Spinning Mills, Star Spinning Mills, which were shown as recipients of the LCs. These companies submitted contrived paperwork reporting deliveries of fabric to Hallmark, which were then paid for by the LCs from Sonali Banks Ruposhi Bangla branch. Because the fictitious companies and Hallmark had their accounts at the Ruposhi Bangla branch, on paper it looked like the branchs assets and liabilities were balanced out. Involvement of Bank stuffs: Most experts and analysts have established that for a fraud of this scale to occur, the banks top management must have been involved in conspiracy.17 Early media reports based on the account of a Sonali Bank whistleblower alleged Sonali Banks Deputy Managing Director made extensive efforts to block audits of the Ruposhi Bangla branch, and eventually transferred the persistent auditors to a branch outside Dhaka.18 A probe by a parliamentary committee noted that the Ruposhi Bangla branch was certified as a low-risk branch by the inspection and audit team of the bank despite violations of financial rules between 2007 and 2011.19 In fact, an audit wing report went

16

Md. Fazlur Rahman and Tamanna Khan. 2012. A Question of Public Trust. The Star. Vol. 11(37): Sept. 21.
17

Fahmida Khatun. 2012. State of Governance in the Banking Sector: Dealing with Recent Shocks. Center for Policy Dialogue: Nov. 5.
18 19

Inam Ahmed and Arun Devnath. 2012. The enemy within. The Daily Star: Sept. 4. Daily Sun. 2012. SB board blamed for Hallmark Scam. Daily Sun: Dec. 17.

21

further this as to stress that the accused manager of the branch was managing the branch efficiently with his extraordinary talent and sufficient banking knowledge. Members of the banks board of directors claim to have had no knowledge of the malfeasance. External bankers and experts have also regarded this claim with some skepticism 20 . The board had formed an Audit Committee and an Asset Liability Management Committee specifically for these reasons. Yet, the board failed to notice several loopholes, including: The loans to Hallmark exceeded by a large margin the cap that limits how much Sonali Bank can lend to any single client21. Hallmark lacked the collateral to justify such large loans. The Ruposhi Bangla branch exceeded its loan quota by almost 500%22. Role of Finance Ministry: State-owned banks are additionally overseen by the Ministry of Finance, which appoints the banks board of directors and bank leadership. Not only did the ministry fail t o provide proper oversight, it rejected calls from Bangladesh Bank to reconstitute Sonali Banks board following the detection of irregularities. Furthermore, the Finance Minister initially attempted to dismiss the scandal as an inconsequential amount of money, a

Rahman and Khan, A Question of Public Trust; Md. Noor Solaiman Jewel. 2013. Sonali Bank vs Hall Mark Group: An Analysis. Financial Express: Jan. 6.
20 21 22

Nasiruddin Ahmed. 2013. Hallmark-Sonali Bank Loan Scam Financial Express: January 14. Daily Sun. SB board blamed for Hallmark Scam

22

statement that he later retracted following considerable public criticism. Reaction from Finance minister: The gaffe-prone Finance Minister not just termed it as the best bank, but also tried to justify the scandals that emptied the bank that once enjoyed huge excess liquidity. Defending Sonali Banks numerous scandals that could be dug out from any branch o f the bank, Finance Minister AMA Muhit said that there is fraudulency at every bank in the world. As if fraudulence and forgery are something that as usual, most common and justifiable too. Abul Maal Abdul Muhith had offered apology in Parliament amid heavy criticism over his remarks; everywhere in the world embezzlement and theft take place in the banking sector, he said, replying to a reporters query after a meeting with Sonali Banks Board of Directors at the Secretariat.23 Bangladeshi finance minister has violently reacted at medias role in exposing this huge financial scam. Expressing anger, the finance minister said, banking crisis, which is not a crisis at all. It is a matter of TK. 3000 crore [30 billion] or 4000 crore [40 billion]. Nonsense! But you (media) are harming the banking sector by publicizing it.24 Later he drew fire from ruling MPs and had apologetically said in Parliament, There has been a misunderstanding over my statement. My statement may encourage corruption. I did not mean to encourage the scammers by any means. So, I regret having made the

23 24

http://bdnews24.com/economy/2013/11/06/muhith-defends-hall-mark-scam-again

http://www.banglanews.com/2012/10/13/how-to-rob-a-a-government-controlled-bank-ahallmark-group-story/

23

speech and am withdrawing it," he said. 25

Criticising the 79-year-old Finance Minister, ruling Awami League MP Sheikh Fazlul Karim Selim had said, "I realise that he has become old. I request that he does not make such statements. The less he speaks the better."26

Involvement of the Prime ministers adviser: It may be mentioned here that, Prime Ministers advisor Syed Modasser Ali has been accused of collaborating with Hall Mark Group in siphoning such large sum of money from the state owned bank. A front-ranking Daily published report stating the advisor bought a piece of land at Dhakas Uttara residential area with the money he received from Hall Mark Group.27 The Anti-Corruption Commission (ACC) has information that Syed Modasser Ali allegedly influenced Sonali Bank authorities into granting a huge amount of loan to the controversial Hallmark Group illegally, said ACC sources.28 During the daylong grilling, a few of the Sonali Bank officials told the investigators that they had seen Modasser Ali visiting the Ruposhi Bangla Hotel branch of the bank frequently, said the sources. The bank officials said they thought the adviser might have played a role in influencing the bank authorities into granting loans to Hallmark and five other business organizations as
25 26 27

http://bdnews24.com/economy/2013/11/06/muhith-defends-hall-mark-scam-again Ibid.

http://www.banglanews.com/2012/10/13/how-to-rob-a-a-government-controlled-bank-ahallmark-group-story/
28

http://archive.thedailystar.net/newDesign/news-details.php?nid=247643

24

he used to enquire about the development of the loan process. Contacted later, Modasser Ali, health and social welfare adviser to PM, denied the allegation. He said, I go there (Ruposhi Bangla Hotel branch of Sonali Bank) as my pension account is with this branch.He also said one of his relatives worked there and the branch manager was from his home district Gopalganj. I happen to know the owner of Hallmark Group and attended some programs of the organization but I had no idea about the loan, he added.29 Usually the law in every land states; innocent until proven guilty. It is very difficult to prove guilty of person(s) who themselves create or change the law (ruling party). Stuffs suspended and Charge sheet filed: Bangladesh Bank on August 26 directed Sonali Bank to suspend 31 of its officials, including two deputy-managing directors, on charges of their involvement in the anomalies. Sonali Bank Ltd later suspended 17 of its officials. The officials have been held responsible for scandalous distribution of loans to the textile company Hallmark Group and some other firms, according to an investigation by the central bank. The stateowned bank has also written to the finance ministry to take action against three top officials. The suspended officials are senior officers of Ruposhi Bangla Hotel branch Ujjal Kishore Dhar, Tushar Kanti Dhar, Jasmine Nahar, Mihir Chandra Mazumder, junior officer Wakiluddin Ahmed and officer Saidur Rahman, deputy general manager of international

29

ibid.

25

trade department Sheikh Altaf Hossain, assistant general managers Shafiz Uddin Ahmed and Ijaz Ahmed, senior executive officer Mukhlesur Rahman, executive officer Sohrab Hossain, assistant general managers of the general manager's office Golam Nabi Malik and Ashraf Ali Patwari, senior executive officer Wahed Uddin Ahmed and deputy general manager of inspection and audit department Nessar Ahmed Chowdhury, executive officer Ekramul Mandal and branch inspector Kamrul Hossain Khan.30 On October 4 in 2012, Anti-Corruption Commission (ACC) filed 11 cases against 27 people including Azizur Rahman, the ex-manager of the alleged bank branch 31 . On

October 7, RAB arrested Hallmarks Managing Director Tanvir Mahmud. Subsequently the firms General Manager Tusher Ahmed, Azizur Rahman of Sonali Bank and Mahmuds wife and group Chairperson Jesmine Islam were connected with the scam32. During interrogation, Mahmud has made a confessional statement and given names of people who assisted him in the scam. He also stated that Azizur Rahman was his key partner in crime. As of late, they are in custody of ACC and RAB for interrogation and the case is still under investigation. According to the news report, Tanvir Mahmud told journalists that he had assets worth 20 times higher than the amount borrowed from the state-run commercial bank. Perhaps it is from that perspective columnist Rubana Huq wrote, Ten years from today, Tanvir Mahmud will walk free and become a hero. Hallmarks have happened in our history for the last 30 years and Hallmarks will continue. All it would take to get him back on track

30 31 32

http://archive.thedailystar.net/newDesign/news-details.php?nid=247834 http://unbconnect.com/acc-grilling/ http://www.dhakacourier.com.bd/?p=8576

26

is a few hundred crores of illegal money to a few corrupt politicians, banks, and other high officials and a few charity and cultural events.33 Later, the primary investigation has been led by the Anti-Corruption Commission, which filed another 26 cases against 35 officials (including some of the same individuals) in December 2012.14 ACC deputy director, also probe officer Meer Joynul Abedin Shibli, filed the charge sheet with Ramna Thana.34 A Dhaka court ordered authorities to freeze 250 accounts of much talked Hall-Mark group.35 Recovery of money: One major concern is recovery of the lost money, which, to put the amount in perspective, is equivalent to 17% of the governments education budget. According to the findings of a parliamentary committee probe, of the Tk 26.86 billion loaned to Hallmark, only about Tk 4 billion was actually invested and the remaining amount could not be traced. (This is the case despite early claims by Tanvir Mahmud that he had assets to cover the amount borrowed twenty times over.) Pradip Kumar Dutta, CEO and MD of the Sonali Bank said that they have already realized Tk 1,170 crore loan amount from fraudulent Hall-Mark Group. But he fears that it could be impossible to collect the remaining Tk 2,500 crore.36 Impact on the banking sector:

33 34 35 36

ibid. http://www.newagebd.com/detail.php?date=2013-10-07&nid=68360 http://www.amarbdnews.com/english/court-orders-hall-marks-250-accounts-frozen/ http://primenews.com.bd/details/18427

27

This incident has clearly undermined the publics trust in banks and trust between banks. Non-performing loans in the banking system as of September 2012 were already at a high 8.75% of total outstanding loans, and interest rates were up to 19% 37 . Government borrowing had already created a liquidity crisis, with state-owned commercial banks only distributing 37% of their targets to small and medium sized enterprises38. Immediately after the scam was unearthed in 2012, the bank faced liquidity crisis that forced it to pay penalty of about Tk 800 million to the Bangladesh Bank every day as it could not maintain deposit of cash reserve ratio (CRR) with the Bangladesh Bank even after borrowing Tk 40-50 billion each day. Due to mounting classified loans of Tk 4,000 crore and slow credit flow, Sonali Bank's profit fell down to Tk 3.81 billion and income to Tk 600 million as on June 30, 2013.39Capital deficit of the bank increased to Tk 5,200 crore during same time of last year while provision shortfall increased to Tk 576 crore. The number of losing branches of the bank dropped to 53 from 60 during the period. The cost of public corruption took its toll again. Over 200 workers of the scandalhit Hallmark Group were injured during a clash with police in Hemayetpur, Savar on October 23 in 2012. Local sources said a large number of workers of different units of the Hallmark Group started demonstrating in front of the Groups office in the morning demanding immediate payment of their arrear wages for the last month and bonus for

37 38 39

Syful Islam. 2012. Small businesses pay price in Bangladeshs biggest loan scam. Trust Law: Oct. 2. Ibid. http://primenews.com.bd/details/18427

28

Eid-ul-Azha.40 Usually, banks collect money from depositors and provide loan to business entities and other borrowers. After this huge Sonali Bank scam common people might lose their trust in the banks. They will not find it secure to keep their money in the banks. Many of them may even be tempted to withdraw their deposits in fear of a collapse of the banking sector like the share market collapse. If common people shy away from the banks this may cause shortfall of money in our banking sector as well as other financial sectors like investment, trade and commerce. If people withdraw money from banks then entrepreneurs would not get money from banks to invest in productive sectors. Since banks are very important institutions in financial intermediation in economic activities, the lack of trust in banks has a pervasive effect on the whole economy.

40

http://www.dhakacourier.com.bd/?p=8576

29

Incidence Three: Share market scandal

Stock market is one of the most important financial institutions of any economy as well as Bangladesh. It opens door for companies to raise huge amount of capital from a lot of individual investors inside & outside of a country. It is said that stock market is an intermediary institution to adjust a gap between surplus units and deficit units of an economy. In last decade or so, for millions of middle class educated people in Bangladesh investing in stocks is more popular than investing in any other investment sectors. For an investor, stocks are more liquid than any other investment sources as it gives ability to sell and buy ownership anytime without any hassle. But unfortunately, Some 3.3 million small investors were robbed of their last penny through book building, split, priority share, placement and direct listing. Money has been laundered in dollars. Similar kind of crash occurred during the first tenure of Awami League government in 1996. But this time, the number of victims mounted so high that instigated trouble not only to individual investors but also to the smoothness of the economy. Irregularity at monitoring and favoritism to selected individuals with different monetary policies dispelled dreams of millions of investors. Many were forced to wake

30

up at the middle of their dream and many were forced to quit dreaming at all at the cost of satisfying high ambition of chosen few companies and individuals who not only took away investment, but also replaced it with nightmare to small investors. Investigation committee was set up and it came with 60 big names of corrupted individuals and companies. Resembling 1996, it was also the same government who kept those big names untouched and let the market crushed with millions of dreams barred.

Why so many investors?

Since 2007, share prices of Bangladesh stock market have been increasing steadily over the past four years and it outperformed almost all the world s markets. For instance, it performed as 2nd best (see figure 1) in the world after Sri Lanka in 2010 gaining nearly 83%. The financial year 2008-09 is known for the global financial and economic crisis. Many developed and developing countries fall into recession. However, it could not affect Bangladesh economy greatly. So, the stock market of the country did not see any significant changes or fall. As CPD (2011) reported, financial year 2008-09 was a volatile year but during this year Bangladesh economy benefited from low prices of importable and was able to avoid negative pressure on its export of goods and services.

31

Figure 141 2010 country Stock market performance. The consecutive outstanding performance of Bangladesh stock market in recent years before the crash lured millions of investors to the stock market to invest their little savings. Before the stock market crash the market had become a route of easy money for too many new individual investors. That is why millions of fresh investors invest their small saving in the market during this period. For these fresh investors investing in this market provided a way to avoid working a job. Even some BO account holders worked as intermediaries of friends, relatives to invest their money in the stock market Finally, the stock market crashed and taught these investors that investing money in the stock market involves risk too. But the lesson that investors are taught wreaked havoc on the lives of millions of innocent investors. The crash wiped out billions of taka from the market where fresh, illiterate investors were the main victims. History of stock market crash: It may negatively seem coincidence that whenever the Awami League came to rule, stock
41

Source: www.bespokeinvest.com

32

market collapsed. It happened in 199642 and repeated again in 2010-11. The scenario of stock market crash in 1996 and crash in 2010-11 are totally different. The number of BO account holders was only 300,000 and most of them were very new in the market. During the crash of 1996 paper shares used to be sold in front of DSE and it was not easy for investors to identify fake and original shares. The market was enough developed to gain confidence of investors. There was no automated trading sys- tem, surveillance was not enough strong and no circuit breakers as well as international protections.43 From 1991 to the end of 1995 DGEN price index gained by 139.3% and reached to 834 point. But in 1996 the market experienced dramatic change and pushed the price index up by 337%. DGEN Index recorded high growth from July and stood at 3648.7 points or by 280.5% on 5th November 1996. Besides, Chittagong Stock Exchange experienced the same change and grew by 258%. Chittagong stock exchange index increased from 409 to 1157 points in 1996 within one-year time. During the Bull Run period new records were posted almost every day in both bourses for example market capitalization achieved to $2 billion which is equal to 20% of total GDP. As market became overheated government took step by selling state owned institutions and Taka 2 billion will be given to ICB for buying shares and support the market. But the steps taken by the government did not work. (Hossain, 2011)44 Finally abnormal rise of share prices started to fall and Bangladesh stock market

42http://www.economist.com/blogs/banyan/2011/01/stockmarket_riots_bangladesh 43 44

Hossain M. K., 2011. SECURITIES AND EXCHANGE COMMISSION ANNUAL REPORT 2010-11.

Hossain M T., 2011. Stock market crashes of 1996 and 2011. [Internet], Available from: <http://www.hawker.com.bd/news_details.php?news_id=143942&news_category_id=1 4&val_lan=>

33

experienced its first crash of the history in 1996. The index lost over 233 points on Nov 6, 1996. After the bubble burst DGEN index dropped to its lowest point and stood at 957 in April 1997. It stood at around the same point where it was 10 months before and DSE General Price index lost almost 70 percent from its highest point of November 1996. Then index continued to decrease for next 7 years until April 2004. During this long time period DGEN Index seldom crossed 1000 point of the index45.

Figure 246: DSE general index (DGEN) Graph Finally on 26th December 1996 SEC formed a probe committee to investigate and find out manipulators behind the stock market debacle. The committee published a report on March 27, 1997 stating a number of companies, investors and brokers who were in the
45 46

http://www.thedailystar.net/forum/2010/april/bull.htm Dhaka Stock Exchange

34

market manipulation. SEC obtained warrants of arrest against 32 people in 7 brokerage firms, 8 listed companies and filed 15 share-scam cases in the court47. It took too long for the government and market regulators to restore the market conditions. The stock market crash of 1996 destroyed confidence of investors.

STOCK MARKET CRASH OF BANGLADESH IN 2010-11 The 2010-11 Bangladesh share market scam48 is an ongoing stock market turmoil in the two Bangladeshi stock exchanges, DSE (Dhaka Stock Exchange) and

CSE(Chittagong Stock Exchange). Millions of small investors have lost all their investments due to the stock market crash49.

According to CPD (2011)50, the total number of BO Account holders on 20th December 2010 reached to 3.21 million though the number was 1.25 million in December 2009. Most of these new investors dont have enough knowledge about the stock market but invest their most or all savings in the market. 238 brokerage houses opened 590 branches at 32 districts. As CPD (2011) found, internet-based trading operation, opening branches of brokerage houses across the country, easy access to the market information, arranging a countrywide 'share mela (fair)' are the factors for increasing investors. But supplies of new securities through IPOs were not enough to chase huge capital of too many investors

47 48 49

http://www.thedailystar.net/law/2006/10/01/fmr.htm http://en.wikipedia.org/wiki/2011_Bangladesh_share_market_scam

Chowdhury, Syed Tashfin (12 October 2011). "Bangladesh starts market rescue fund". Asia Times Online.
50http://www.cpd.org.bd/downloads/IRBD%20FY11_First%20Reading.pdf

35

in the market. The stock market was in turbulence throughout much of 2009, with the long bullish trend starting to turn grim. The bullish trend was initiated by the end of the two-year political crisis and re-emergence of democracy when Awami League won the December 2008 polls. The market was heavily aided by the entrance of Grameenphone into the capital market, when the index rose by 22% over a single day on 16 November 200951. Share prices continued to fluctuate, reaching the annual high in mid-2009 before plummeting by the end of 2009, with retail investors threatening a hunger strike52. Root of BUBBLE: To grow Bangladesh`s economy by 7-8% per year Bangladesh Bank adopted accommodative monetary policy during the high inflation periods to support investment. Bangladesh Bank has pegged Taka against dollar to support exports. As Taka has been undervalued it has made excess growth in money supply. Last couple of years broad money made excess liquidity and the main motive behind it was Bangladesh Bank`s exchange rate policy. A big portion of this excess liquidity had gone to the stock market but there were very few shares in the market. The policy that was adopted by Bangladesh Bank to grow economy by increased exports & investment eventually misguided and ended up blowing the mother of all bubbles. Then government again fuelled the bubble after permitting whitening of black money through tax breaks and schemes 53. Timeline of

Sarwar A Chowdhury; Gazi Towhid Ahmed (16 October 2011). "A struggle to fix flaws in index". The Daily Star.
51 52

"Retail investors go on hunger strike tomorrow". The Daily Star. 28 December 2009. http://dpwriters.wordpress.com/2011/02/04/share-market-bubble-the-big-picture/

53

36

historical fall of the crash has been divided into two sections which are December 2010 and January 2011. It has been stated that 5th December 2010 as the last glorious day of the year for the investors of Bangladesh stock market54. On this day DSE General Index (DGEN) gained its all-time highest 8, 918.51 point & broke all old records of DSE turnover by Taka 32.50 billion. On the other hand, 19th December was a historical day of the financial year 2010-11 in Bangladesh stock market. On this day DSE witnessed its biggest one-day fall in 55 years history until the date with losing 551.76 points or 6.71 percent. The losing index was even higher than 284.78 points or 3.32 percent of 12th December. Prices started to nosedive in an hour after the trading started and about 200 points were wiped off. In the middle of the session it recovered little bit and ended up the session at 7654 point. Investors took to the streets with protests. Random objects like wood and papers were set on fire in front of the DSE office in Motijheel55. They chanted slogans against the top bosses of the premier bourse and market regulators, and demanded resignation of the central bank governor.

54

http://www.e-dirts.com/2010/small-investors%E2%80%99-anger-may-turn-into- big-issue/ http://archive.thedailystar.net/newDesign/news-details.php?nid=166662

55

37

8900,00 8700,00 8500,00 8300,00 8100,00 7900,00 7700,00 7500,00 DGEN

Figure 3: DSE daily DGEN index of December 2010

25500 25000

Figure 2: DSE daily DGEN index of December, 2010

rd 24500 prices again started to fall from 3 January 2011 as investor had the information of Share

ongoing liquidity crisis of financial & non-financial institutions that limiting margin loan.
23500 23000 The down slope of index is noticeable from January 2nd to 10th. As Chairman of CASPI probe

24000

committee Mr. Ibrahim Khaled (2011)56 mentioned, Due to trigger sale of shares from 22000
nd 221500 to 5th January, market experienced its biggest decline in share prices and market

22500

crash from 6th to 10th January. On 9th January DSE General (DGEN) Index declined by 600 points and all indices
Figure 3: CSE daily CASPI index of December, 2010

21000

declined nearly 7.75 percent. On 10th January Dhaka Stock Exchange General (DGEN) Index lost by 660 points or 9 percent & Chittagong Stock Exchange Selective (CSE) Index declined by 914 points or 6.8 percent within 50 minutes of trading. CSE All Share Price Index (CASPI) stood at 19212.34 33 losing by 1,396.21point, which is 6.77 percent.
56

Khaled K. I., 2011. Investigation report of Probe Committee.

38

CSE Selective Categories Index (CSCX) lost 914 points or 6.87 percent and CSE -30 Index also lost 1490.83 or 8.28 percent.

CASPI
24000,00 23000,00 22000,00 21000,00 20000,00 19000,00 18000,00 CASPI

Figure 5: CSE daily CASPI index of January, 2011

Figure 4: CSE daily CASPI index of January 2011

It had broken all previous records of decreasing index. After that Security & Exchange Commissions called for an emergency meeting with BB and stop trading at both Dhaka & Chittagong Stock Exchanges. Investors 2011, came out the street withfell processions and by 1,800 Within December 2010 and January theinDGEN index from 8,500 demonstrated against free fall of Share index in both bourses as well as suspension of points, a total 21% fall, with masterminds of the crash making about BDT 50 billion ($ trading. Investors from different parts of the country such as, Chittagong, Comilla, 667 million) out of the scam. Narsingdi, Narayanganj and Jessore brought out processions and clashed with law enforces in some places as well. The market fell by 5% on 12 June, before taking a 4% plunge on 11 October, sending the Following two days consecutive historical fall of share prices the government, Central market into further turmoil. The fall finally triggered small investors to go on a fast-untoBank & SEC took instant actions to stabilize the market and bring the confidence death on 16 October forming Bangladesh Capital Market Investors' Council. among million of small after investors. The the government created pressure on Bangladesh Bank & SEC politicians to improve the market their condition. As a result, recovery was initiated with stood at Opposition declared solidarity with the protesters. The market Institutional buyer for instance merchant banks, state owned banks & non-financial inaround 5,500 index points in October 2011 from 8,900 only a year ago. Protests stitutions. On 11 th January market recovered 15.6 percent of General index by the end of the session and made a record in Bangladesh stock market history of gain. (Chowdhury, 2011)

39

continued

throughout

the

successive months.

Source: The Daily Star. 12 October 2011

Probe committee: A probe committee was formed to investigate the stock market crash on 24 January 2011,with former Bangladesh Bank Governor Ibrahim Khaled heading the four-man high-powered committee. The committee provided their findings (320-page report) after three months, on 7 April. It identified an array of chicanery performed by some 60 influential individuals that resulted in the recent market crash57. The committee interviewed all members of both the DSE and CSE, and consulted journalists and analysts before presenting their report. The committee found various irregularities, including the existence of omnibus accounts that allowed some market players to make exorbitant profits at the expense of the retail
57

http://archive.thedailystar.net/newDesign/news-details.php?nid=181073

40

investors. Among the 60 identified primarily included chairman of Beximco and the mastermind of the 1996 market crash Salman F Rahman, former DSE president Rakibur Rahman, SEC chairman Ziaul Khandaker, SEC member Mansur Alam and others. There have been allegations that the two influenced the SEC and lobbied for the appointment of Ziaul Haque Khandaker as SEC chairman and reappointment of Mansur Alam as SEC member. Salman lobbied the Bangladesh Bank governor to soften the central bank's stance on BD-Thai Aluminium that had been involved in money laundering, said the report. The report ended with recommendations to reform the SEC drastically and asked the government to publish the names of the influential players and to remain cognizant in countering their influences. The probe committee report resulted in the dismissal of SEC chairman Ziaul along with other SEC members accused. However, the Finance Minister AMA Muhith stated that the State would neither disclose the names of the accused officially nor take punitive measures without further investigation, although no dates for fresh probes have been declared. The military backed interim government in 2007 arrested about 200 businessmen and industrialists and Salman was one of them. But when the Awami League led alliance came into power, all charges against Salman and his brother was dropped by the courts. 58

58

http://bangladesh-abc.hubpages.com/hub/Who-is-Salman-F-Rahman

41

Incidence Four: Corruption in Railway Ministry:

Taka 7 million ($86,000) bribery scandal was busted in an incident on April 9, 2012, when the driver of ministers assistant personal secretary revolted and brought the vehicle inside the headquarters of Border Guards Bangladesh, where the members of the paramilitary forces unearthed the rocking case of the bribery. The assistant personal secretary (APS) and the senior officials were en-route to the ministers residence to deliver the bribe money packed in a jute sack. Suranjits APS Omar Faruq Talukder was detained by the Border Guard Bangladesh personnel in a car carrying Faruq and two top railway officials. These three persons were released on the ministers intervention. However, the vehicles driver Ali Azam was not be seen anywhere since then59. His family could not also say about his whereabouts. Suranjit Sen Gupta, who enjoyed the status of a veteran parliamentarian, had finally landed into the status of a corrupt political jackal in the eyes of the people at home and abroad. Extremely corrupt minister in charge of the railway ministry in Bangladesh, brief-less lawyer Suranjit Sen Gupta was finally axed from the post of the railway

59

http://www.thebangladeshchronicle.com/2012/04/where-is-ali-azam-asks-rafiqul-islam-miah/

42

minister following the huge bribery scandal. But restated in the cabinet without any portfolio.

Resignation of Minister: On April 15, 2012, Suranjit Sen Gupta was summoned at the official residence of the Prime Minister, where he was asked to give explanations of the incident of April 9, 2012 night. Suranjit tried to defend himself with numerous stories, similar to those of what he told the media since the scandal broke, while the Prime Minister did not buy such lies of the railway minister and asked him to quit the post. Later he announced his resignation following allegations that he took cash bribes from applicants seeking jobs on the staterun railway.60 Sources in the railway said Rail Sramik League (Awami League railway workers union wing), ministers, lawmakers, ruling party leaders and a section of corrupt railway officials were taking bribes from job seekers. The railway ministry started recruitment of 7,500 people.61 The veteran politician told a news conference that, "I am stepping down even though I was not involved in the incident. A lot of people think if I stay at the helm of the ministry, the investigation could be influenced,". The three officials had allegedly stored the cash in the minibus - told local newspapers that they were going to Mr Sengupta's house with the money.

Reappearance of the fraudulent in the cabinet:

60 61

http://www.bbc.co.uk/news/world-asia-17731121 Daily Amar Desh - 13th April, 2012

43

Government of Bangladesh Awami League had surely given birth to the biggest joke in countrys politics by restoring the ministerial position of extremely corrupt minister in charge of the railway ministry in Bangladesh. Though Suranjit Sen Gupta was forced to resign from the railway ministry, in an unprecedented manner, he was reinstalled in the cabinet within 24-hours as minister without portfolio62.

The mysterious bounce-back of Suranjit to the cabinet has generated more curiosity in countrys political arena than it did when the minister was caught red-handed on the bribe scandal. It is rumored that two of the very influential political figures in India made calls to Bangladesh government and expressed their annoyance over forcing Suranjit Sen Gupta towards resignation63.

They even reminded the government that prior to the general election in 2008, current Prime Ministers son, Sajib Wajed Joy wrote in an article that Bangladesh Awami League aspires in putting a Hindu leader into the post of countrys Prime Minister, if voted into power. One of the callers from India even said that, ousting Suranjit Sen Gupta would simply prove that Bangladesh Awami League made such publicity with the motive of getting sympathy of the minority voters64. Being hapless with such harsh comments, the government had no option but to bring Suranjit back into the cabinet.

62 63 64

http://www.thebangladeshchronicle.com/2012/04/suranjit-made-minister-again/ http://www.thebangladeshchronicle.com/2012/04/the-funny-resignation-game-in-bangladesh/ Ibid.

44

In this case, there is no room or space of any doubt that the head of the government in Bangladesh, by playing the role of savior of a corrupt minister has surely put itself into the role of an abettor of crime and corruption, which in no definition can be either applauded or accepted either by sensible communities in Bangladesh or the world.65 Like father like son: His corruption as well as corruption of his son and inner-circle cadres of him was already within the radars of various intelligence agencies. The only son of the minister, Soumen Sengupta, who served in a telecommunication company for TK 50 thousand monthly salary established a telecommunication company of his own, when his father became the railway minister 66 . It was later reported in Bangladeshi and international media that Soumen Sengupta turned into a neo-millionaire within the span of three odd months. Soumen Sen Gupta paid TK. 50 million cash as license fees for obtaining a telecom gait wait license from the Bangladesh Telecommunication Regulatory Commission [BTRC]. Neither Suranjit nor his son could give any satisfactory reply as to how Soumen suddenly turned into a multi-millionaire, months after his father became the railway minister.

Suranjits decision to submit his resignation was wise. Nonetheless, Prime ministers decision to reinstate him was dumb and unacceptable. And of all politicians, Sheikh Hasina ought to have known it better. If she truly cares about Bangladesh, she should rescind her decision and allow the ACC to conduct its investigation unhindered now, and not later after the party is voted out of power.

65 66

http://www.globalpolitician.com/print.asp?id=7397 http://bdinn.com/articles/bangladesh-ruling-elites-indulged-into-crime/

45

Crime and corruption always go hand in hand. Bangladesh, like many of the developing countries, has her share of such vices that never seem to go away. According to the rules set up by the government, the Anti Corruption Commission (ACC) cannot investigate a minister, unless permitted by the President67. Now with the reinstatement of Suranjit as a minister, that door of an impartial inquiry into his alleged bribery/corruption by the ACC is shut harshly. And that is unfortunate for a country that is trying to shed off its old image as a corrupt country. Government should take warning what Rabindranath Tagore had said years ago:

Those who perpetrate injustice and those who tolerate the same, Let both burn into ashes, My Lord, in Your ever wrathful flame ?

http://www.thebangladeshchronicle.com/2012/04/bangladeshs-railway-gate-corruption-theprime-minister-should-rescind-her-decision-to-reinstate-a-corrupt-minister/
67

46

Incidence Five: Income climb of MPs

Corruption by ruling party isnt something new in South Asian political history. For centuries, rulers have exemplified serious and heinous actions of corruption and mismanagement of wealth they were supposed to safeguard. In the Laws of Manu around two thousands years ago or even The Kautilya Arthashastra, there are loads of examples of such corruption piece. In one essay, Kautilya says 68:

Just as it is impossible not to taste hone or poison that one may find at the tip of ones tongue, so it is impossible for one dealing with government funds not to taste, at least a little bit of the kings wealth.so it is impossible to find out where government servents in charge of undertaking misappropriate money (The Kautilya Arthashastra, page 91)

Details of politicians' personal wealth came out at the end of last year, of those running for Parliament in elections set for Jan. 5 had to declare their assets to the country's Election Commission69. The fact that some of them have become wealthy has outraged many in this poor South Asian country, where the per capita annual income is around $1,00070. Just after being elected as MPs and minister, their wealth has increased many times. Many people showed the amount of his wifes assets is more than him. They have

68 69 70

Kangle, R.P., The Kautilya Arthashastra (Bombay: University of Bombay, 1972), p.91. http://123.49.39.5/asset2013/ http://www.thedailystar.net/law-against-errant-mps-4353

47

hid the information of actual amount of property provided in the affidavit. Rather than discouraging such practice, the Finance minister of 14 party government AMA Muhit says; History suggests that the ruling classes used to fatten their purses.71 This is a naked example of how politicians have turned politics into a profit-making process, said Iftekharuzzaman, executive director of Transparency International Bangladesh.

Income escalation of MPs of Awami League government7273: Resigning of former Communication minister Syed Abul Hossain and bribe scandal of Railway Minister Suranjit Sengupta hinted the corruption status that had been huge during last five year regime of Awami Leage leading 14 party government. This has become more evident with the declarations of wealth, submitted by the candidates themselves for 10th national election. It reveals that the personal fortunes of many leaders of the Awami League have climbed, sometimes more than a hundredfold, when compared with similar declarations submitted ahead of the last elections in 2008. "The affidavits and tax statements [submitted to the election commission] show that at least 48 candidates who have served in important positions have seen a 582% rise in income on average," said Badiul Alam Majumdar, the general secretary of Sushasoner Jonno Nagorik.74 In the following part, unusual income rise of some of the members of 14 party alliances is portrayed:

71 72 73

http://www.newagebd.com/detail.php?date=2013-12-25&nid=78010#.Ut45sRb87oA http://shujan.org/2013/12/31/ / http://bdinn.com/news/anomalous-property-of-ruling-party-men/ http://online.wsj.com/news/articles/SB10001424052702304483804579284472425219860

74

48

General growth of income status75: During the last election on 5th of January 2014, the numbers of candidates were 541. While 154 seats being previously declared (having only one candidate), rest of the 146 seats had 387 candidates for 10th national election. Personal information submitted to Election Commission unveiled overall income rising tendency during last five-year tenure. At least 48 candidates who have served in important positions have seen a 582% rise in income on average. Income of the ministers rose 243 %, for deputy ministers 464 %, for deputy leader of National Parliament, Chief Whip and Whip 3071 %. Besides, Prime Minister and Deputy Speakers income increased 136% and 4435% respectively. According to percentage account, income of Noor-E-Alam Chowdhury grow 32985%, Abdul Mannan Khan 8422%, Mahbubur Rahman 8007%, deputy speaker of Bangladesh Shawkat Ali 4435 %, Hasan Mahmud 2036% and Md Afsarul Amin 2480%. Individual income growth: Individual income account for some MPs and ministers of previous term (also running for this term) is given below: Abdul Mannan Khan: Former state minister for housing and public works Abdul Mannan Khan, who had reported having assets worth only Tk 10 lakh in 2008, reported assets worth Tk 11 crore in the statement he submitted to the EC this time round.
75

http://issuu.com/dhakatribune/docs/131227214318-f46e3d922b254d58b2791dfde95edfe3

49

Hasan Mahmuds wife:

Environment minister Hasan Mahmuds wifes income worth Tk 19 lakh annually in 2008, has shot up to Tk 2 crore in 2013. Former state minister for LGRD Jahangir Kabir Nanak reported a rise in his asset value from Tk one crore to Tk 8.25 crore.

Mohiuddin Khan Alamgir:

Mohiuddin Khan Alamgir, a former home minister, declared a cash balance of more than 30 million takas. He had 500,000 takas in 2008, according to his earlier wealth statement. Mahbubur Rahman: Mahbubur Rahman, former minister for water resources, declared that he now owns 2,865 acres of land, up from 20 acres in 2008. Mujibul-Haque-Chunnu:

Mujibul-Haque-Chunnu MP of Kishoregonj-3 and presidium member of Jatiyo Party (JP) Mojibul Haque Chunnus income have increased 8 times. His income was not mentioned in the affidavit of 2008 parliament election. A bus as the source of income and TK 1 lakh 4 thousand from Saving Certificate (Shonchoypatra) were showed in his yearly income information. His yearly income increased to TK 1 crore 8 lakh in 2013. He earned TK 96 lakh every year from his business. TK 8 lakh has been earned from his profession. But he

50

did not mention his salary as MP in the affidavit. His chattel was TK 44 lakh in 2008. His wife possessed TK 19 lakh. He showed 5 KATHA land at Tongi in his wifes name as a fixed asset. The value of this property is TK 4 lakh 47 thousands. Possessed a portion of the ancestral home has mentioned. His chattel was increase to TK 1 crore 45 lakh in 2013. Among this TK 37 lakh is in cash. His wifes chattel was increased 4 times turned into Tk 79 lakh and fixed assets increased to TK 82 lakh. Non-agricultural land worth TK 4 lakh 47 thousands in the name of his wife showed in his property details.

MP Kamal Ahmed Mojumdar:

Detail information of immovable property of MP Kamal Ahmed Mojumdar (Dhaka-15) has not been given in the 10th National Assembly elections affidavit. In 2008 his fixed asset was TK 3 crore 94 lakh 25 thousand 476. His wife had TK 4 lakh 50 thousand. Besides, he mentioned about a tea garden, rubber plantation and fish farm. His annual income is TK 1 crore 21 lakh 94 thousand 830 in 2013. He didnt mention his honorarium which he got as a MP. In addition, TK 14 lakh has been shown as income from other sources. In 2008, his income was around TK 59 lakh 35 thousand. His family members income was TK 16 thousand 825. He and his wifes chattel was TK 1 crore 77 lakh 98 thousand 827. In 2013, his chattel stands in TK 5 crore 89 lakh 35 thousand 144 lakh. 22 different cases have found against him.

Minister Raziuddin Ahmed Raju:

51

Former Labour and Employment Minister Raziuddin Ahmed Rajus wife has more property than him. According to the election commission affidavit in 2013, his annual income is TK 17 lakh 22 thousand 300 which he got as honorarium. Without it no income was shown in his affidavit.

According to the affidavit, Raziuddin Ahmed has movable assets of TK 57 million 87 thousand 983 in cash oh himsef. His wife has TK 48 lakh 33 thousand 953 in cash. He and his wife have TK 50 thousand and TK 20 lakh savings in the bank respectively. Razu has jeep cars valued at TK 91 lakh 60 thousand. He and his wife has TK 60 thousand of gold. His electronic equipment value is TK 1.5 lakh. His own furniture value is TK 1 lakh 20 thousand and wife has TK 20 thousand. Raju has a shotgun and revolver. In Narshingdi, Raypur he has 3.5 bigha farmland as collective ownership. By the name of Raziuddin Ahmeds wife has multiple houses and land. Although one land in Dhanmondi has been mentiontioned in the affidavit and its price is TK 19 lakh 16 thousand 667. Besides, a six storeyed building (one-third) in Gulshan and another three storeyed building in Eliphant road has been shown in the name of his wife. Gulshan house prices have been mentioned TK 58 lakh 95 thousand. But truly the price of this land and buliding is much more. In the affidavit he also mentioned that he has a two storeyed building with collective ownership on 14 katha land in Banani. Though there is no information about price.

Golam Faruk Khandaker Prince:

52

The value of immovable property of AL leader Golam Faruk Khandaker Prince MP (Pabna-5) is currently TK 84 lakh. There was no information of his immovable property in the affidavit of 2008. TK 9 lakh 6 thousand comes from business and TK 10 thousand 260 from share business. But he did not mention the amount of honorarium obtain as the Member of Parliament. The worth of his chattel was approximately TK 31 lakh in 2008. It has become doubled turned into TK 64 lakh in 2013.

Dr. Dipu Moni: Dr. Dipu Moni is the former foreign minister. She was foreign minister throughout the full 9th parliament term. Fortunate Dipu Moni possessed the foreign ministry after being elected as MP first time in her life. She has traveled to various countries around the world. Many people think that she has scored a world record for foreign trips. The property worth TK 5 lakh increased to TK 84 lakh 2 thousands and 151 within five years of this most widely discussed former minister. Her husbands assets increased TK 8 lakh 80 thousands in this period in association with a luxurious car, 10 KATHA land worth TK 30 lakh in her own name including gold worth TK 8 lakh and many others worth.

She is again Awami League (AL) party candidate from Chadpur -2. Chadpur district all candidates including she enlisted to the unopposed 154 candidates in the Tenth National Assembly election. Although five years ago professional annual income of Dr. Dipu Moni was three lakh, this time she received yearly TK 17 lakh 20 thousands just as the payoff allowance from the ministry.

53

Of movable assets, TK 1 lakh 50 thousand cash under her own name and TK 4 lakh in the name of her husband. Five years ago this amount was TK 2 lakh 70 thousand in her own name and TK 8 lakh 75 thousand under her husband. Although in previous they did not have money, five years later now she has TK 15 lakh 97 thousand 288 in the Bank and financial institutions in her own name and according to the tax return record of 20122013 session her husband has TK 5 lakh 30 thousand. In the savings certificate, she has TK 22 lakh 54 thousand 863 in her own name and the furniture worth has become doubled turned into TK 1 lakh.

Furthermore her husband has TK 8 lakh 75 thousand mentioned as miscellaneous. During the tenure of these five years tangible assets comprise of 10 KATHA non agricultural land worth TK 33 lakh has been added under her own name. Pervious non agricultural land worth TK 40 lakh 50 thousand has been cited as not applicable mentioning two flat of same price in replace.

Aslamul Haque: Class eight passed Dhaka-16 AL party MP Aslamul Haque has become the owner of hundred crore worth. Own name as well as his wife has owned assets worth hundreds of crore by doing the business of land developments, real-estates, chemicals import, consumer products and trading.

According to the affidavit of 2008 parliament election, MP Aslams total taxable income was TK 2 lakh 83 thousand 500. Of those he paid tax TK 11 thousand 850. Mirpur MP

54

Aslams present worth has multiplied several times. According to the sources of annual income, Aslams yearly income TK 2 lakh 83 thousand 500 and his wife earns TK 2 lakh 15 thousand 700 as an annual basis. But his wifes profession was not mentioned. Besides he has possessed plentiful of tangible wealth.

In 2008, MP Aslam had only cash TK 15 thousand 700. Now he has cash TK 2 crores 13 lakh 19 thousands 039. In addition to this, his wife has cash TK 57 lakh 82 thousands 9. His Bank savings amount was about TK 8 lakh in 2008. At present, though he has TK 24 thousands 43 in Bank, his wifes Bank saving is TK 34 lakh 85 thousands 506.

His chattel record shows that he has TK 85 lakh 27 thousands 500 in terms of Bond, Debenture and Shares of stock exchange listed and unlisted companies. Moreover, his wife has shares worth TK 11 lakh 40 thousands. His fixed deposit amount is TK 12 lakh 61 thousands 500 invested in different type of saving certificate including postal savings certificate. Additionally his wife has TK 54 lakh 63 thousand 429 in the same investment sector. In the transport business, TK 87 lakh is on his own name and TK 14 lakh 50 thousands under his wifes name. Both of them possess totally 83 ounce gold whose worth was not mentioned.

In addition, he earned TK 7 lakh 25 thousands 873 and his wife earned about TK 9 lakh from other miscellaneous sectors. He has become the owner of land worth of several crores in five years. In 2008, he has 2 BIGHA and his wife has 3 BIGHA land. Currently MP Aslam possesses 14 thousands 178 decimal land and his wife is the owner of 390

55

decimal lands.

Furthermore, MP Aslam earns annually TK 1 crore 53 lakh form house rent. In this affidavit of property details, he did not point out about 52 BIGHA land at Gabtoli which was mentioned in 2008.

Mamataj Begam: Likewise singer Momtaz Begum is AL MP in the ninth parliament reserved seat for female. Class ten passed Mumtaz has built immense wealth. She uses Land Cruiser. Now she is going to be elected MP form Manaikganj-2.

Mentioned singing as a profession. In the affidavit of 2008, she showed TK 26 lakh 85 thousand 43 earned from business and TK 40 thousand from agricultural sector. At present her income has increased several times. Her present car price is more than her annual income. She also uses Toyota Land Cruiser worth TK 65 lakh 6 thousand 250. In the same way, she earns TK 70 thousands from agricultural sector and TK 10 lakh 84 thousand 953 from the business. But she did not mention which type of business she has.

Her Bank savings have also increased. At this time she has Bank saving TK 30 lakh whereas this value was about only TK 50 thousand in 2008 and now she has 35 ounce gold ornaments. She did not point out about agricultural land worth TK 23 lakh 46 thousand 735 which was mentioned in 2008.

56

Presently she earns TK 3 lakh 30 thousand from her profession which was not mentioned in 2008. In addition to this, she received yearly TK 34 lakh 41 thousands 881 just as the MP payoff allowance.

Members of Parliament get a salary of 27,500 takas ($350) a month and an annual allowance of 300,000 takas for transportation and other expenses. But regrettably, the performance that they demonstrate after the end of each term, seem incredible for only to themselves but frustrating for the whole nation. For MPs of last AWL regime (14 party government), properties anomalously turned into multiple times within five years. Amount of growth of some peoples property is incredible. Its like we are letting the fox guard the hen house, consciously or subconsciously. It reminds us the quote of Will Rogers: We should never blame the government for not doing something, It is when they do something is when they become dangerous - (The Wit and Wisdom of Will Rogers: p.93)

57

Incidence Six: Rana Plaza: an example of failed governance

On 24 April 2013, Rana Plaza, an eight-story commercial building,

collapsed in Savar, a sub-district in the Greater Dhaka Area, the capital of Bangladesh. The search for the dead ended on 13 May with the death toll of 1,13276. Approximately 2,515 injured people were rescued from the building alive. t is considered to be the deadliest garment-factory accident in history, as well as the deadliest accidental structural failure in modern human history.77 The building contained clothing factories, a bank, apartments, and several other shops. The shops and the bank on the lower floors immediately closed after cracks were discovered in the building. Warnings to avoid using the building after cracks appeared the day before had been ignored. Garment workers were ordered to return the following day and the building collapsed during the morning rush-hour.

The building, Rana Plaza, was owned by Sohel Rana, allegedly a leading member of the local Jubo League, the youth wing of the ruling Awami League political party. 78 It housed a number of separate garment factories employing around 5,000 people, several

76 77 78

http://archive.thedailystar.net/beta2/news/rana-plaza-collapse-a-governance-failure/ "Bangladesh building collapse death toll passes 500". BBC News. 3 May 2013. http://bdinn.com/news/sohel-rana-the-man-behind-the-savar-tragedy/

58

shops, and a bank. The factories manufactured apparel for brands including Benetton, Bonmarch, the Children's Place, El Corte Ingls, Joe Fresh, Mango, Matalan,Primark, and Walmart.79

As of mid-September 2013, compensations to families of disaster victims were still under discussion, with many families struggling to survive after having lost a major wage earner 80 . Families who had received the $200 compensation from Primark were only those who were able to provide DNA evidence of their relative's death in the collapse, something which proved extremely difficult.
81

Of the 29 brands identified as having

sourced products from the Rana Plaza factories, only 9 attended meetings held in November 2013 to agree a proposal on compensation to the victims. 82

The Rana Plaza collapse was an outcome of the governance failure in the society. It is bad politics, injustice to workers, global competitive pressure and unfair working conditions that led to the deadliest factory accident that claimed 1,132 lives, said Prof Rehman Sobhan, chairman of Centre for Policy Dialogue. 83

Who is this Sohel Rana?

79 80 81 82

http://en.wikipedia.org/wiki/2013_Savar_building_collapse http://www.bbc.co.uk/news/world-asia-24042776 http://www.bbc.co.uk/news/magazine-24080579

http://www.dhakatribune.com/business/2013/nov/17/buyers-compensation-rana-plazavictims-far-reality
83

http://archive.thedailystar.net/beta2/news/rana-plaza-collapse-a-governance-failure/

59

The people of Savar knew Sohel Rana as the person who became the Jubo league Leader (Awami youth Wing) of Savar all of a sudden. He was the son of Khaleq Kolu. Hes father was from the Singay Upozila of Joymondop village in Manikganj District. Only two decades ago his penniless father Khaleq Kolu left his home land in search of a better life in Namapara, Savar. He started a little business of making mustard oil by crushing mustard seeds himself and later selling them to make enough money to feed the family. Rana use to help his father with making the mustard oil. Rana left school in year 8 and grew up to be a very despicable young man by joining the local terrorist group. Overnight Rana accumulated a huge mountain of black money from an unseen power. He became well known as the illegal occupier of peoples lands. Multi storey buildings started to grow one after another in his name. The 9 Story Rana Plaza, 9 Story Rana Tower and a 5 Storey Residence building for himself were among a few of his assets.84

He was the Ex Secretary of Chatrolegaue (Awami student wing) in Savar before his current position as the Jubo league convenor for the city of Savar. He is very closly associated with the Savar Awami League MP, Talukdar Tawheed Jong Murad, who has helped him to accumulate all this wealth.

The land where Rana plaza was illegally built, was originally owned by a hindu man by the name of Naryanchondro. He was later referred to as pagla since he became mad as a result of being thrown out of his lands. Even though no formal complaint was made against Rana (as they were threatened with death), hes name was mentioned in three

84

http://bdinn.com/news/sohel-rana-the-man-behind-the-savar-tragedy/

60

separate incidents of murder in Savar.85 The basement of Rana Plaza was also used for various other purposes. It was used as a storage for drugs and Wine containers imported from India bought through the Indian border in Jessore.

He was arrested by RAB (Rapid action Battalion force) on the 29th of April with a huge possession of alcohol in Benapol, Jessore near the Indian borders as he was fleeing to India. Hes arrest was made based on a simple building construction code act which gives a maximum sentence of 5 years imprisonment and a fine of Tk 50,000 only.

85

Ibid.

61

Incidence Seven: Corruption sweeping in Universities:

Some of the countrys prestigious higher educational institutions have become hubs of unrest, bringing uncertainty to the academic lives of nearly a million students. Politicization of top university posts is a major cause of the upheaval while administrative failure and corruption also play significant roles, according to analysts.

The list of troubled campuses includes public universities, colleges and polytechnics, all of which are reeling from serial unrest and instability. Critics say such unrest, in most cases, is created by the people at the helm of the institutions. The ruling party-backed students organizations are also contributing to the situation by engaging in violence and intimidation.

Overall, as many as 20 public universities, 35 colleges under the National University and 8 polytechnic institutes are reportedly facing crisis for which most of their teachers and students blame the political appointees and the ruling partys student wing, Bangladesh Chhatra League.86

At present, instability reigns in Bangladesh University of Engineering and Technology (BUET), Jahangirnagar University, Dhaka University, National University, Rajshahi University, Pabna University of Science and Technology, Government MC College in Sylhet and Dhaka University of Engineering and Technology, among others. Two of the

86

http://www.dhakacourier.com.bd/?p=7776

62

most critical events during last regime of 14 party alliance government in Universities are exposed below:

Case # 1: BUET in Crisis:

Throughout the latter part of 2012 the crisis at Bangladesh University of Engineering and Technology (BUET) persisted, as agitating students remain firm on their demand for removal of the vice-chancellor.

They earlier leveled 16 allegations against the vice-chancellor and the pro-vicechancellor. An internal investigation committee found irregularities in the

administration. Another committee, set up by the syndicate later, did not corroborate the findings of the previous committee. Rejecting the latest committee set up on May 3, the teachers resumed the strike and had rallied for 28 days. The strike was called off on May 5 on an assurance of the prime minister.87 But still now the VC has not yet been removed from his post, that many believe as his gift of loyalty to current ruling government.

87

http://newagebd.com/detail.php?date=2012-07-14&nid=17038#.UuDAQBb84b0

63

Background breach of VC S M Nazrul Islam:

It was not new for the current VC to manipulate the University with Partisan attitude. When Bangladesh University of Engineering and Technology (BUET) VC Dr. S M Nazrul Islam was the VC of Khulna University (KU), he appointed 70 persons including his close relatives in the university administration by enforcing his power. They are still seated on those important posts of the university. They have made the university as their plundering field. Earlier BUET VC said about this, he has not done any corruption in BUET or KU. Still now, he resolves the way of different problems solution of KU. It is informed that, for the recent occurrence of land selling of KU, the chief of property department Ali Akbar has been terminated from his post. He was then the PS of the BUET VC. Sources also informed that, the officials appointed by him are related with the land selling occurrence, they have formed a group in this matter. BUET VC is trying to ensure their safety by enforcing his power88 Commencement of strike in BUET:

On April 7 in 2012, BUET Teachers' Association launched an agitation, including work abstention, bringing 16 allegations of corruption against the VC and pro-VC. The
88

http://www.eduicon.com/News/Details/?News_ID=521

64

teachers and students of BUET (Bangladesh University of Engineering & Technology) are in an all out movement to oust VC and Pro-VC Students from mid-July. 89 The employees and Alumni also joined the movement. On 11 July 2012, 24 senior teachers including 16 chairman of Departments, 5 deans of Faculties and 3 Directors of Institutions have resigned from their posts in protest against the irregularities of VC and Pro-VC90. Some of the teachers who resigned told The Daily Star that they had done so for the sake of the students' and the institution's future. "There is no atmosphere to work under the incumbent administration. The vice-chancellor has been involved in controversial activities one after another since he assumed office," said Prof Shakil Akhtar, chairman of the department of Urban Rural Planning. According to the teachers, the university authorities' appointment of Habibur Rahman, a professor of the civil engineering department, to the post of pro-VC was based solely on his political affiliation.The university authorities violated the BUET custom of maintaining seniority regarding promotions and appointments, claimed the teachers' association, adding that the VC had begun a massive restructuring of the university administration since he took over on August 31, 2010. They claimed that Deputy Registrar Kamal Ahmed had been appointed to the post of interim registrar through violating university convention. They also charged that the administration had changed

89

http://archive.thedailystar.net/newDesign/news-details.php?nid=248401 http://archive.thedailystar.net/newDesign/news-details.php?nid=241773

90

65

the scores of two students.91 Counter action from VC:

Some 195 demonstrators were sued for their alleged involvement in capturing and vandalizing offices of VC and pro-VC of Bangladesh University of Engineering and Technology (Buet) and looting documents. BUET chief security official Golam Kuudus Khan filed the two cases accusing them with Shahbag Thana on Sunday (2nd September 2012) night.92 However, Prof Nazrul Islam, the embattled vice-chancellor of Bangladesh University of Engineering and Technology (BUET), threatened to outsource and hire teachers from outside to run academic activities of the institution. His comments came one day after one day after the agitating teachers threatened to resign en masse if their demand is not met.93 If the teachers, who are demonstrating against me unnecessarily, resign, the university authorities will have no option but to hire or outsource teachers from outside, mainly from private universities, he said. He also mentioned two other options two bring in teachersfirst by calling back the teachers who are currently on education leave and

91 92

http://archive.thedailystar.net/newDesign/news-details.php?nid=241773

http://www.daily-sun.com/index.php?view=details&archiev=yes&arch_date=03-092012&type=2-cases-filed-against-agitating-Buet-teachers-students-on-charge-of-ransacking-VCoffice&pub_no=250&cat_id=4&menu_id=0&news_type_id=3&index=17 http://www.theindependentbd.com/online-edition/121379-if-necessary-we-will-outsourceteachers-buet-vc.html
93

66

secondly the teachers who are on deputation in different government works. The agitating teachers took the decision of resigning en masse hours after Education Minister Nurul Islam Nahid held a meeting with BUETs 25 deans, institute and department heads, former students and vice-chancellors at the ministry's conference room and it ended without a solution. Students reaction: Around 1,000 students of the institution holding banners expressed their solidarity with the agitating teachers. Parading the campus streets, they gathered in front of the administrative building and held a rally there. The banners read: We want corruptionfree BUET, We want corrupt VC and pro-VC removed, Take our classes, please, Weve not take admission to BUET to face such a situation and Sparkle in our sleepless eyes, confidence in our soul/ We are BUETIANS/ We bet well reach our goal. A number of BUET alumni, including the Bangladesh Paribesh Bachao Andalon joint secretary, Iqbal Habib, former REHAB president Tanvir Probal and the first vicepresident of BUETs hall for female students Sayida Sultana visited the campus on Friday and expressed their solidarity with the demand of the teachers. BUET is our pride. It is the best university in the country and has the best ranking among our universities. Since the teachers, students and staff of the university started agitation demanding resignations of the VC and his deputy, academic activities totally came to a halt and the university faced an unexpected closure. After 44 days of break the university opened on August 25 in 2012, but no classes have been held since. The announcement of

67

the closure of the university came at a time when the teachers' association had given an ultimatum for the VC and pro-VC to resign. The crisis BUET is deepening and if it is not solved in time, it will be an embarrassment for the Government also.

Case #2: Jahangirnagar University: another example of Partisan Autocracy

The overall situation at Jahangirnagar University (JU) is yet to be normal even though nearly two months have elapsed since the resignation of former Vice- chancellor Sharif Enamul Kabir in the face of a five-month-long teachers-student movement. JU is also facing instability as a section of teachers are opposing the appointment of an outsider to the post of VC. Dr. Anwar Hossain, a professor of Dhaka University, was made VC of JU on May 17 in 2012. President Zillur Rahman finally appointed Prof Anwar Hossain as

the vice-chancellor of Jahangirnagar University for four years from an elected threemember panel.94 Allegations and Accusations against VC Shariff Apart from indiscriminately chopping down trees over the last three years, Prof Shariff leased out the university lakes, compromising the beauty of the campus, teachers and students had alleged.

94

http://campusnews.com.bd/dhaka/juniv/954

68

During his tenure, he appointed over 196 teachers, many of whom were less qualified and selected on political considerations. The authorities under his administration also allowed the admission of 78 ward-quota-admission seekers who even failed to get the pass marks in the 2011-12 session.95 Teachers and students started demanding his removal after the murder of Zubair Ahmed, a student of the English department, by some BCL activists on Jan 9. It is alleged that those involved in the murder received Prof Shariff's blessings on many occasions. On 10 March in 2012, a large number of teachers and students of the university joined in force to gear up the movement. Under the banner of Shikkhak Samaj, agitating teachers enforced a strike in the university while students launched a fast-unto-death on April 24 demanding the ouster of Prof Shariff.
96

On May 4, teachers postponed their

demonstration on assurances from Prime Minister Sheikh Hasina that she would look into the matter. However, Former VC Shariff Enamul Kabir was somehow rewarded by the Govt., when he was appointed as the Member of Public Service Commission by the President, right after the appointment of the New VC at Jahangirnagar University. Many people consider this as a prize of loyalty for him!

95 96

http://www.amardeshonline.com/pages/details/2012/06/18/150198

http://bangla.bdnews.com/news/11623

69

Resigning of Dr. Anwar Hossain:

Removal of Shariff Enamul Kabir (previous VC) did not improve overall corruption situation and favoritism

practice within administrative circle of VC. The overall situation at

Jahangirnagar University (JU) went anomalous since the resignation of former Vice- chancellor Sharif Enamul Kabir in the face of five-month-long teachersstudent movement.

Due to the teachers movement of the JU teachers, Prof Anwar Hossain resigned from his post on January 12, 2014. Sources alleged that, Prof Anwar Hossain was a non-

academic person such way his Vice Chancellorship has fallen the university into a deep crisis. Md Anwar Hossain- a professor of the department of Microbiology & Molecular Biology of Dhaka University was appointed as the JU VC on May 17, 201297

University teachers along with a section of students and staff had been staging demonstrations since April 27, 2012 demanding resignation of Anwar Hossain, accusing him of not taking punitive action against university unit Chhatra League general secretary Razib Ahmed Russell for assaulting lecturer Nurul Haque, also a syndicate member, on April 6.
97

http://www.bdchronicle.com/detail/news/32/3744

70

He had been carrying out his duties from his Uttara residence since December 16 last year as the agitating teachers forced him to leave the campus. Jahangirnagar University Teachers Association, General Teachers Forum and Teachers-Students-OfficersEmployees Unity Forum observed strike and work abstention demanding his resignation. They also staged sit-in in front of the vice- chancellors house day after day and finally declared him persona non grata on the campus. Following a petition filed by four teachers and a student, the High Court on July 24 in 2013 asked the authorities concerned to immediately take necessary steps for the continuation of day-to-day functions of the university. Even though the association called off its agitation on July 30, General Teachers Forum continued with the movement brining various allegations against the vice-chancellor. Later, the government had formed an inquiry commission which submitted its report on October 1 last year.

Its strange how students have actually stayed calm and gone through the repeated injustice. In a South Asian country that is still dominated by the conventional doctorengineer-lawyer career bracket, having these nearly crippling down has left millions uncertain and frustrated. To what gains they deserve this is another debate, and frankly, not one that can ever resolve the futile, power-hungry and ridiculous decisions of our political players. While the government has finally removed the Pro Vice Chancellor of BUET from his position98, protests are still going on. The Vice Chancellor has still not been removed, leaving teachers and students as agitated as they were before. In JU, there is still confusion of selecting new VC , given the vices that last two VCs have validated.

98

http://archive.thedailystar.net/newDesign/news-details.php?nid=249104

71

How can anything operate if the next generation of leaders spends most of their time fighting for their basic rights and offering logic to administrations and governments? To what degree must we tolerate corruption when the security and sanctity of young people are at stake? How can student bodies function at the violent dominance of political youth wings?

Conclusion:

Corruption and oppression went hand in hand in last Awami League regime. Oppression in the political field with extra judicial killing of anti government protesters and forced disappearances are fuelled by the economic corruption in other sectors. Ruthless leaders piled up wealth at the cost of bankrupt investors and small business holders. If properly investigated, corruption can be found at every sectors of the Awami League government. It is now a matter of time when mass movement to be routed against this despotic government for the sack of justice and fairness.

72