Why the White Paper failed to make an impact

The interim government has set up several reform committees. One such committee, formed to review the economy left behind by the ‘autocrat’, recently published a white paper. During a press conference, the committee provided an explanation of the data and findings in the white paper. From the statements of the committee’s head, Debapriya Bhattacharya, it becomes clear that during the previous government's tenure, "crony capitalism" led to the creation of "corrupt systems", involving politicians, military and civilian bureaucrats, and the judiciary. The white paper claims that in the last 15 years, $234 billion was illegally siphoned out of Bangladesh through 28 different methods of corruption. However, the white paper did not attempt to identify the corrupt individuals, as it states its job is not to catch the thieves but to describe the methods of theft. Thus, the white paper only attempted to investigate the process of theft. According to Debapriya Bhattacharya, identifying the individuals or institutions involved in corruption would require appealing to the Anti-Corruption Commission (ACC) or the Intelligence Unit of the central bank.

The white paper also states that, during the last 15 years, secretaries wielded more power than ministers. Ministers lacked the knowledge and experience to manage their ministries effectively, making them heavily dependent on bureaucrats. However, it’s important to note that not all bureaucrats or ministers were corrupt. But the honest ones were so powerless that they lacked the ability to judge right from wrong. As a result, bureaucrats' corrupt funds helped build Canada’s ‘Begumpara’. Corruption was so widespread that even the prime minister’s peon became a billionaire with assets worth 400 crore Taka. This was not surprising, as the power of the peon was greater than that of any minister in any ministry. Bureaucrats and ministers were busy depicting Prime Minister Sheikh Hasina as a superhuman figure. Due to the lack of respect for any minister or bureaucrat by the Prime Minister, even the peon of her residence became a mini dictator.

The committee has presented a useless white paper to the interim government. Almost everything stated in the white paper has already been discussed in the media and talk shows over the past 15 years. During the 'fascist' regime of Sheikh Hasina, the media was never mute in reporting on corruption. In the past 15 years, inflation, corruption in various projects, money laundering, and the turmoil in the banking and financial sectors have constantly created headlines in newspapers. The issue of Canada's 'Begumpara' was also mentioned by Sheikh Hasina's foreign minister, and he noted the prominent role bureaucrats have played in money laundering. Under Sheikh Hasina's rule, the casino scandal was exposed, and the media has raised its voice against the corruption of Benazir and Matiur.

On the other hand, the terms "crony capitalism" and "corrupt systems" used by the committee have not introduced any new ideas. Even during the British era, there was the nuisance of crony corrupt individuals. In the book Miyajan Darogaar Ekrarnama by an unknown author, there are detailed accounts of bribes for government jobs, nepotism, police oppression, changing cases in exchange for financial favors, submitting false reports, and giving wrong judgments for bribes during the British era. These crimes have only increased from the British era to the Pakistani era, and from Pakistan to Bangladesh. They still occur today, but now, due to the fear of being labeled with the Awami League's 'tag', there is a chilling silence among everyone.

In a country where voters choose candidates based on party symbols rather than evaluating their qualifications, "sycophants" will inevitably be created. Bureaucrats and ministers are corrupt because they are "yes-minister." The main reason for Sheikh Hasina's downfall is also the flattery of journalists. Even during the interim government, every institution and organization is filled with new sycophants. Their behavior suggests that if the Awami League is removed, all crimes will end, and that there are no criminals, corrupt individuals, or money launderers anywhere else but within the Awami League. However, history shows that the situation is the same for all political parties—“the dog wags the tail, not the tail wags the dog.” Therefore, the mindset that anyone opposing the Awami League is an angel must be abandoned, and the practice of forgiving past sins must stop. Otherwise, Bangladesh will see a new ‘Sahibpara’ abroad.

The white paper claims that money was laundered through 28 different methods. These methods were known to all governments, but they lacked the power to stop them. Businesspeople siphoned off money by over-invoicing and under-invoicing in imports and exports. No other group appears to have smuggled as much money as these businesspeople. If the National Board of Revenue had been more honest, the over-invoicing and under-invoicing could have been somewhat reduced, though it couldn't have been completely stopped. Even the so-called honest people of the country smuggle money through hundi. Most of the plots and flats allotted to expatriate Bangladeshis by the government have been sold, and all the proceeds have already been laundered abroad. Furthermore, those who hold foreign citizenship are selling all their ancestral property and smuggling the money abroad. Every patient uses hundi to cover their medical expenses abroad. Students studying abroad also pay their extra expenses through hundi money. This money may not necessarily be connected to corruption; it is simply money being laundered illegally. Thus, not all money laundered is corrupt money. The money laundered by businessmen through over-invoicing and under-invoicing is also legitimate money; it is just sent through illegal channels.

The white paper claims that $234 billion was smuggled abroad in the past 15 years, a huge amount. However, this figure is based on assumptions and estimates. It seems unnecessary to put in the effort equivalent to 25 crore Taka to create a white paper based on assumptions. Decisions cannot be made by evaluating things based on conjecture or assumptions. These baseless data and information will not even be useful for investigations by the Anti-Corruption Commission (ACC) or the Financial Intelligence Unit (FIU). Also, why focus only on the past 15 years? Wasn’t money laundering happening before that? It was happening in abundance. Those who made Malaysia their "second home" started their money laundering activities 15 years ago. During the army-backed Fakhruddin government, corrupt individuals fled and took refuge in Malaysia’s "second home" program.

The white paper states that the story of corruption is not supported by any evidence. Therefore, the white paper is nothing more than a fairytale. The committee believes that the most corruption occurred in the banking, infrastructure, energy, and information technology sectors. The white paper also mentions that major corruption took place in the mega-projects. But why did top economists have to go through such effort to dig up these old tales? Before the interim government took office, the media was already reporting on where corruption had occurred. The BNP repeatedly claimed that there was mega-corruption in the mega-projects. The misuse of funds behind the extension of project timelines and budgets was often discussed during Sheikh Hasina’s tenure. Corruption was more prevalent in power and infrastructure because these sectors had higher expenditures—this did not require special research by experts. It wasn’t corruption in these sectors; rather, it was the public’s perception of looting. The ones who looted do not engage in politics; they are the "sycophants" mentioned in the white paper. Most of them have changed sides and continue to serve the interim government in the same capacity. Are bureaucrats and the media not engaging in sycophancy now? They are. Many believe that some of this sycophancy is driven by fear, and the rest is habitual. Nowadays, if you’re not a "sycophant," you risk losing your position or job. According to the white paper, the corruption, plundering, and financial manipulations during Sheikh Hasina’s rule are alarming. However, the assumption-based white paper has unfortunately failed to create any real alarm.

Current Governor Ahsan H. Mansur has mentioned that $17 billion has been laundered abroad from the banking sector. However, the explanation of how this amount was determined is not found anywhere. While there may be no need to debate the exact amount, it is essential to take action against those who facilitated the money smuggling. No loan is granted from a bank without a specific purpose, and the banks closely monitor whether the loan is being used for the intended purpose. There is also inspection by Bangladesh Bank. Why was this money laundering not detected earlier by Bangladesh Bank’s inspections or the audits of scheduled banks? Has there been an explanation for this? Those involved in corruption, who facilitated money laundering, may have been sycophants of the ruling Awami government, but they were not all members of the Awami League. Therefore, simply removing Awami League supporters from the administration will not make the country free of corruption. Corrupt individuals who oppose the Awami League must also be identified. Due to the excessive rhetoric of the interim government, many factories have already shut down, and it’s doubtful whether some banks can be revived after prolonged delays in burying them. Blaming only the autocrat for these failures will not provide an escape; the interim government must also bear some responsibility.

The white paper, a 400-page document, also contains contradictory statements. Twelve prominent economists were involved in its preparation. If more time had been taken to uncover the depths of corruption rather than rushing the report, the country would have benefitted. The public has no interest in learning about the process of corruption; they want the eradication of both corruption and corrupt individuals. This task must be carried out by the interim government. A political government cannot free the country of corruption, as no political party admits that their leaders may be corrupt. Therefore, when a party comes to power, all corruption cases are labeled as politically motivated and dismissed. Unfortunately, the interim government is doing the same thing.

The white paper also contains some silly statements. In the past, governments used to say that the losses caused by opposition party strikes could have funded 20 or 40 Padma Bridges. Similarly, the white paper claims that the non-performing loans in the banking sector over the last 15 years could have financed 14 metro rails or 24 Padma Bridges. A similar statement has been made about Kazi Nazrul Islam, suggesting that if his voice had not been silenced, he would have surpassed Rabindranath Tagore in literary achievements and received the Nobel Prize instead of Tagore. However, the unfortunate reality is that, after writing the iconic "Bidrohi" poem in 1922, Kazi Nazrul Islam did not write another poem of that caliber during the 20 years before his speech was impaired in 1942. Therefore, there is no precedent in history, and still, there is no evidence, that if corruption hadn't taken place, such major infrastructure projects would have been built.

Despite the looting in the last 15 years, the white paper struggles to explain how Bangladesh met all the criteria for graduation from LDC status. According to the committee, Bangladesh passed the criteria for per capita income, human resources, climate resilience, and economic vulnerability, and thus there is no reason to delay its graduation. According to the white paper, how can Bangladesh qualify for economic vulnerability when 40 per cent of the development budget has been stolen? In reality, the white paper fails to deny one fundamental truth of Sheikh Hasina's tenure—that unprecedented development occurred during her administration. It acknowledges that development has taken place, and that is why the committee deems Bangladesh's graduation as a developing nation as legitimate.

In the end, the white paper, despite all the grand statements, ends up praising the achievements during the last 15 years. Therefore, it would be better not to spend money for printing this white paper.

Zeauddin Ahmed: Columnist and former Executive Director, Bangladesh Bank.