$16b laundered annually during Hasina’s regime: White Paper

A damning White Paper released Sunday has revealed that an average of $16 billion was illicitly siphoned off from Bangladesh each year during Sheikh Hasina's tenure, which the report describes as a period of "corrupt autocracy." 

The findings depict a nation left ravaged by systemic plunder when Hasina fled following a mass uprising.

The investigative report, titled Dissection of a Development Narrative, was submitted to Chief Adviser Professor Muhammad Yunus at his Tejgaon office by a committee led by economist Dr Debapriya Bhattacharya, a distinguished fellow of the Centre for Policy Dialogue.

Prof Yunus praised the report as a "historic document," emphasising its significance for understanding the state of the economy inherited after the July-August mass protests. “This should be published and included in our college and university curricula,” he said, adding, “Our blood curdles to know how openly the economy was looted. And most of us lacked the courage to confront it.”

The Chief Adviser also criticized multilateral agencies for remaining silent during the rampant corruption, calling it a collective failure of accountability.

Startling findings on economic mismanagement

The 400-page, 30-chapter report examines the depth of corruption under Hasina's government, exposing how crony capitalism fostered oligarchs who manipulated policies for personal gain.

Key highlights from the report:

Mega projects with inflated costs:

Of 29 large-scale projects worth Tk 7,80,000 crore ($87 billion), the committee reviewed seven with an initial cost of Tk 1,14,000 crore.

The costs were later inflated by 70%, reaching Tk 1,95,000 crore, through manipulated land prices and procurement practices.

Annual Development Programme (ADP) corruption:

Over Tk 7,00,000 crore was spent on the ADP in 15 years, with 40% allegedly plundered by bureaucrats.

Tax exemptions and public services:

Tax exemptions amounted to 6% of the country’s GDP. Reducing these by half could have doubled the education budget and tripled the health budget.

Corruption in power projects:

$30 billion was invested in power generation. Assuming a 10% kickback, at least $3 billion was lost to corruption.

Call for accountability

Dr Bhattacharya underscored the independence of the committee’s work and noted the pervasive influence of cronyism in policymaking. “The problem runs deeper than we initially thought,” he said.

Committee member Mustafizur Rahman advocated for special prosecutions to hold those involved in money laundering accountable. Prof. AK Enamul Haque highlighted the systematic looting within the ADP framework, while Mohammad Abu Eusuf pointed out the enormous cost of tax exemptions.

Next steps

Finance Adviser Salehuddin Ahmed, Bangladesh Bank Governor Ahsan H Mansur, Principal Secretary Sirajuddin Sathi, and Senior Secretary Lamiya Morshed were present at the report’s handover.

The government is expected to publish the findings for public review, with Prof Yunus emphasizing the need to use the document as a roadmap for accountability and reform. “The nation deserves to know the full extent of what was taken from them,” he said.

The White Paper represents a pivotal step in addressing the corruption that plagued the nation and sets the stage for long-overdue reforms and recovery efforts.