A newly released white paper presented to Bangladesh's caretaker government has revealed alarming allegations about the financial misconduct during the tenure of the ousted Prime Minister Sheikh Hasina. According to the report, an extraordinary $234 billion was siphoned off from the country over the course of Hasina’s rule, spanning from 2009 to 2023. The paper claims that much of this money was laundered through and routed to various international tax havens, including India, the UAE, the UK, Canada, the US, Hong Kong, Malaysia, Singapore, and others. The revelations come at a time when Bangladesh is grappling with political instability, as the government of Muhammad Yunus assumes power after a turbulent period marked by widespread protests and unrest.
The white paper, officially titled "White Paper on the State of Bangladesh's Economy," was presented to Yunus on December 2. Yunus, the leader of the new caretaker government, expressed that the document would serve to illustrate the dire economic situation left in the wake of Hasina’s government. According to Yunus, the findings of the report would clearly show the "tattered economy" the new government inherited following the mass uprising in July and August. This period of upheaval ultimately led to Hasina's departure from Bangladesh, leaving the country in a state of chaos and political uncertainty.
The report underscores the scale of the financial mismanagement under Hasina’s leadership, particularly with regard to the laundering of $234 billion. The money was allegedly funneled through various countries and jurisdictions, many of which are known for their banking secrecy and lax financial regulations. The laundering occurred over a 14-year period and reportedly involved a combination of government officials, businessmen, and criminal elements operating both within Bangladesh and abroad. The white paper claims that these illicit financial flows were used to fund a variety of illegal activities, including political extortion, bribery, and corruption tied to inflated budgets for development projects.
A particularly shocking aspect of the white paper’s findings is the claim that up to $24 billion of the $60 billion invested in Bangladesh’s Annual Development Programme (ADP) and other development initiatives during Hasina's time in power were lost to political graft. This loss was attributed to a combination of inflated project costs, bribery, and corrupt practices that allowed political elites to profit from development contracts meant to benefit the public. The high cost of infrastructure projects in Bangladesh, coupled with low-quality results, further highlights the systemic nature of this corruption. According to the white paper, infrastructure projects in Bangladesh were considerably more expensive compared to similar projects in neighboring India, yet the quality of the infrastructure was far inferior.
The economic mismanagement was not confined to the development sector. The white paper also pointed to severe problems within the country's banking sector, which has been hit particularly hard by corruption and mismanagement. The document revealed that 10 banks in Bangladesh were "technically bankrupt and illiquid," a situation that has exacerbated the country’s economic instability. Among the troubled banks, two are state-owned, and the remaining eight are a mix of private commercial banks and shariah-based financial institutions. The report indicated that these banks have suffered from a combination of loan defaults, financial scams, and poor management practices that have left them vulnerable to collapse.
One of the most damning sections of the white paper focuses on the impact of corruption on the banking sector, specifically citing a number of high-profile financial scandals that have plagued state-owned banks over the past decade. These scandals, which include mismanagement and financial fraud, have not only eroded public trust in the banking system but also left the country’s financial institutions teetering on the brink of insolvency. According to the white paper, these banks were plagued by systemic weaknesses, and many of them lacked sufficient liquidity to meet their obligations.
The committee responsible for preparing the white paper was established on August 28 and tasked with giving an honest and comprehensive assessment of Bangladesh's economic state under Hasina’s government. This was in response to mounting accusations of rampant corruption, crony capitalism, and financial mismanagement that had been leveled against the ruling Awami League. Led by renowned economist Debapriya Bhattacharya, the committee conducted an in-depth review of various sectors, including the banking system, infrastructure development, and financial irregularities, which have contributed to the ongoing economic crisis.
The political landscape in Bangladesh has shifted dramatically following Hasina’s departure. On August 5, Hasina fled the country amidst widespread protests, many of which were triggered by a student-led anti-quota movement that quickly morphed into a larger, more political uprising. The protests, which saw hundreds of deaths, culminated in calls for Hasina's resignation, leading to a breakdown in governance. Since then, the country has descended into further chaos, marked by targeted violence against minorities, particularly the Hindu community. The mass protests, fueled by frustration over years of alleged corruption and political repression, led to the eventual collapse of Hasina’s government.
Hasina is reportedly now residing in a safehouse in New Delhi, as Bangladesh continues to grapple with its political instability. In the aftermath of her departure, Bangladesh has found itself under the military-backed rule of Yunus, who has attempted to restore order and stability. However, the political situation remains volatile, with students—who have now gained experience in organizing street protests—acting as paramilitary forces. As the Yunus-led government struggles to control the situation, the country’s economic challenges, compounded by the findings of the white paper, continue to worsen.
Despite the corruption and mismanagement under Hasina’s government, it cannot be denied that Bangladesh made significant economic progress during her tenure. The country experienced substantial growth, particularly in the garment industry, which has become a major driver of exports and employment. Millions of people were lifted out of poverty, and Bangladesh enjoyed a period of relative economic stability. However, the white paper casts a long shadow over the achievements of the past decade, as it paints a picture of a country rife with corruption at the highest levels of government.
As the Yunus-led government seeks to rebuild Bangladesh’s economy, it faces an uphill battle. The revelations in the white paper highlight deep-rooted systemic issues that will take years to address, and the ongoing political unrest makes the situation even more precarious. The country’s future economic recovery will depend not only on addressing corruption and improving governance but also on the restoration of political stability and public trust in the government. For now, Bangladesh’s path forward remains uncertain, as the government navigates the complex challenges posed by corruption, mismanagement, and a deeply divided political landscape.
