MOHAMMAD MOINUDDIN
By Staff Reporter
Bangladesh’s long period of governance under the Awami League government has been the subject of extensive discussion and allegations concerning the economy, development projects, the banking sector, public expenditure, tax policies and money laundering. Following the political transition in 2024, an economic white paper committee reviewed nearly 15 years of economic management under the former government and published a comprehensive assessment of various issues.
The white paper highlighted concerns about public financial management, development projects, the banking sector, illicit financial flows, tax concessions and administrative decision-making. However, the allegations and findings presented in the report should not automatically be treated as crimes proven in court. The committee’s assessment was based on information, documents, statistics and economic analysis. Any final determination of criminal liability involving individuals or institutions must follow the appropriate legal investigation and judicial process.
According to the white paper committee’s assessment, Bangladesh experienced average illicit financial outflows of approximately $16 billion annually between 2009 and 2023. The report indicated that the estimated amount was, in some cases, greater than the combined value of foreign assistance and foreign direct investment.
However, illicit financial flows should not be equated exclusively with the embezzlement of public funds. Such estimates may also include trade misinvoicing, the overvaluation or undervaluation of goods, tax evasion and other forms of financial irregularities.
The white paper also raised concerns about the rising costs of government development projects. According to the committee’s observations, project expenses increased significantly in some cases because additional components were introduced after approval or because the original scope of work was changed. The report also highlighted allegations of inadequate transparency in certain tendering and project implementation processes.
When the cost of a development project rises excessively, the government may be able to complete less work with the same amount of public money. This can increase fiscal pressure and potentially contribute to a higher debt burden in the future. If projects fail to meet appropriate quality standards, additional expenditure may also be required for maintenance and repairs.
The banking sector was another major area of concern examined in the white paper. The report discussed various problems, including irregularities in loan disbursement, preferential treatment for influential individuals, political interference and large volumes of defaulted loans. These issues have raised concerns about the financial strength of banking institutions and public confidence in the banking system.
Weaknesses in the banking sector can affect more than financial institutions themselves. Depositors, entrepreneurs, investors and the wider economy may also suffer the consequences. When substantial loans remain unpaid, banks can face financial pressure, potentially affecting overall financial stability.
The role of political influence in public administration also received attention in the white paper. Dr. Debapriya Bhattacharya, who led the process associated with the economic white paper committee, expressed concerns in various statements about the professionalism and independence of public institutions and the administration. His observations highlighted concerns that political pressure during the previous government’s tenure may have weakened the decision-making capacity of certain sections of the administration.
The report also discussed allegations that political connections may have influenced the allocation of tax benefits. Questions were raised about whether certain business groups had received special tax concessions or exemptions. The possibility that political considerations may have influenced benefits granted through various statutory regulatory orders issued by the National Board of Revenue was also discussed.
However, tax exemptions or special benefits granted in accordance with applicable laws and regulations should not automatically be classified as corruption. Such allegations become more serious when evidence indicates that individuals or businesses received unfair advantages outside established rules through political influence. A transparent and consistent tax system is important for ensuring fairness, strengthening public revenue and maintaining confidence among taxpayers.
The white paper committee also questioned some economic statistics and growth figures published during the former government’s tenure. According to the committee’s observations, certain economic indicators and forecasts may have presented a more optimistic picture than the underlying economic conditions justified. However, determining whether any statistics were deliberately altered or misrepresented requires a separate examination of relevant documents, data sources and calculation methods. Differences in estimates or projections alone are not sufficient to establish deliberate manipulation.
The white paper also discussed risks of irregularities in the power, energy and major infrastructure sectors. Inadequate oversight of project cost assessments, tendering procedures, contract implementation and the influence of interested parties can increase the risk of public fund wastage. Large infrastructure projects often involve substantial public expenditure and long-term financial commitments. Transparent procurement, competitive bidding and independent audits can help reduce the risks of excessive costs and conflicts of interest.
Questions were also raised about transparency and implementation procedures in certain government information technology projects. When technology projects are financed with public funds, competitive procurement, impartial evaluation and proper assessment of project outcomes are essential. Without these safeguards, it can be difficult to determine whether public money is being spent effectively.
Corruption can have far-reaching economic consequences. The misuse or waste of public funds may reduce the resources available for education, healthcare, transport, social protection and other essential public services. It can also increase the cost of doing business and weaken fair competition. Businesses that receive preferential treatment may gain advantages over competitors, discouraging investment and undermining confidence in the market.
International development organisations have frequently emphasised the importance of transparency and accountability in public institutions. Stronger public procurement systems, improved financial management, sound investment planning and effective oversight of state institutions are important measures for reducing corruption risks.
Bangladesh’s Anti-Corruption Commission (ACC) plays an important role in investigating allegations of corruption, money laundering and the acquisition of illicit wealth. The commission has conducted inquiries and pursued legal cases involving allegations of financial misconduct and corruption. Nevertheless, an investigation or the filing of a case against an individual does not establish guilt. Criminal liability must be determined through the appropriate judicial process, based on admissible evidence and applicable law.
Following the fall of Sheikh Hasina’s government on August 5, 2024, initiatives were undertaken to review and reform various sectors of the state. Renewed assessments began focusing on the economy, banking, public expenditure and financial management. As part of this process, the economic white paper committee collected and analysed information about the former government’s economic management over an extended period.
After the political transition, initiatives were also taken to investigate allegations against various individuals and institutions and, in some cases, pursue legal proceedings. However, political statements and public allegations must be assessed separately from investigative findings, documentary evidence and judicial decisions. An allegation, an ongoing investigation and a crime proven in court are three distinct matters.
Controlling corruption requires more than investigations and punishment. Structural reforms in public administration and financial management are also necessary. Key priorities include realistic cost assessments before approving development projects, transparent tendering procedures, independent project monitoring, stricter oversight of bank lending, equal treatment under tax laws and stronger accountability across government institutions.
Making public information more accessible would also allow journalists, researchers and ordinary citizens to monitor how state resources are used. Greater access to reliable information could help identify irregularities, reduce waste and strengthen public trust in government institutions. Effective reforms must also ensure that oversight bodies operate independently and that allegations are investigated impartially, regardless of the political or economic influence of the individuals concerned.
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The white paper on Bangladesh’s economy has generated important discussions about weaknesses in economic management and public institutions during the Awami League government’s long tenure. Issues such as illicit financial flows, banking irregularities, rising development project costs, tax concessions and political influence over administration received significant attention in the report.
However, the allegations documented in the white paper, cases under investigation and offences proven in court must not be treated as equivalent. Independent investigations, impartial judicial proceedings and evidence-based decisions are necessary to establish the facts and determine legal responsibility.
Regardless of which political party governs Bangladesh in the future, ensuring transparency, accountability and the rule of law in the management of public money and state resources will remain essential to sustainable economic development and public confidence.
