Guyana Journal, June 2007
Memo to the Head of the Caretaker Government of Bangladesh
Meeting Millennium Goals in the Midst of Corruption
April 1st 2007
PREFACE
A memo is written addressing the interim government chief or Head of the Caretaker Government, Dr. Fakhruddin Ahmed, recommending Bangladesh to follow UN reform on corruption. The letter incorporates the benefit of signing UN charter on corruption; how Dr. Ahmed could sell this reform to the international community and make it more acceptable politically and constitutionally to the people of the country. In a nutshell, the basic issue of this letter deals with how UN supports the emergency rule in Bangladesh and how the UN has identified this State of Emergency different from any other. In light of this situation, the letter further advances the reform suggestions toward achieving the Millennium Development Goals (MDGs) to have private funding to accelerate the process of development. My suggestion here is to not only to identify the resources ‘stolen’ by the corrupt politicians who are being imprisoned by the present Caretaker Government, it is also best to devote those back into the economy because it was initially the country’s wealth that they plundered.
From
Walid Bin Saifullah
To
The Honorable Chair
Fakruddin Ahmed
Government
of Bangladesh
Congratulation to you on the magnanimous changes that the country had initiated under your esteemed leadership. Needless to say that the experience faced by Bangladesh at this present time is unique and one cannot make comparisons with any other past or existing political situation.
I must confess that when the President of Bangladesh, Iajuddin Ahmed, declared an army-backed state of emergency on January 11th 2007 and cancelled the election due on January 22nd,1 I was expecting international rebuke and reaction. However, since neither he nor the foreign governments quietly cheering him on, used the word “coup”, it came as a pacifier of sorts to calm down the otherwise volatile reaction of the international community. The state of emergency declared by the army, in the tradition of “guardian coups” from Fiji to Thailand, has stepped in with the usual list of apparently noble goals. Their backing will enable your government to ensure credible elections, clean up the country's extremely politicized civil service, fight corruption, fix the country's power crisis and keep food prices in check—and then return to the barracks.
Let me take this opportunity to express my appreciation of your technocratic administration which has so far sent out the right signals. The UN is always supportive of any prevailing drive against corruption—in which Bangladesh regularly nears the top of world league tables—and would certainly support your efforts. A start has been made in separating the judiciary from the executive, and the proof of which can be seen as the national-security chief, the top civil servant in the power ministry and the attorney-general have all been ousted.
At the outset, when the previous Caretaker Government (CG) had taken power, both the European Union and the UN withdrew their support for the election. The UN also warned the army against partisan intervention in politics, adding that this might jeopardize its worthwhile role in UN peacekeeping operations. This threat helped sever an alliance between the army and the current CG, as the necessary backing was there for them to go ahead with their seemingly ambitious plans. However, the success attained from achieving the CG’s current agenda will reap many folds for the people of Bangladesh.
It is understandable that it will take time to fix a voters’ list that has been bloated with millions of extra names – to issue voter identity cards, to set up a new independent election commission, and to purge the bureaucracy. It seems unachievable before the July monsoon, which pushes polls back to the final quarter of 2007.2 In light of this delay, it can be stated that the CG is using this interim appropriately in curtailing corruption with the imprisonment of many political and business leaders.
Your initiative to empower the Bangladesh Bank (BB) and the National Board of Revenue (NBR) has helped to net 'big fishes' following the initiative to curb financial corruption in the country. The teaming up of the two bodies of the government to detect the financial malpractices committed by the influential persons under the indulgence of the past political governments has already earned international recognition. The NBR has already initiated a process to reconcile the wealth statements of 300 members of the last parliament with their tax returns. The reports of some TK 40.00 billion worth of black money being injected into the formal economy since the country's independence after the black money holders were given opportunities on at least six occasions in the last 35 years has raised concerns that need to be dealt with immediately.
Senior officers in the army say they have drafted a list of 420 top-level targets, including much of the last parliament. Under the emergency laws, detainees can in effect be held indefinitely. Another draconian measure, to make forfeit the property of any suspect who evades arrest for 72 hours, awaits the president's signature.3 This is also a matter of concern for the UN as there are rumors of human rights violations. Some 40,000 low level gangsters and political thugs have since been detained—though that is only a third more than in an average month in Bangladesh. No tanks have lumbered onto Dhaka's choked streets. No local politician or foreign government has kicked up a fuss. However, the international focus is on Bangladesh and the UN would not want such violations affect the effective anti-corruption drive that is currently sweeping through the country. Then again, besides such rampant arrests, there are reports of the CG initiating thousands of illegal slum dwellings bulldozed, but then eased off on the advice that hammering poor Bangladeshis, about 40% of the population,4 would not make it popular. One might have already noticed how quickly the CG had to go one step back after going two steps forward with his well-intentioned drive to clear the footpaths and roadsides of the unauthorized hawkers and illegal traders.5 They must have noticed the backlash for demolishing some of the city slums, rendering thousands of dwellers homeless and shelterless, although everyone knows that these slums are considered safe havens for criminals and anti-social elements. Certain human rights violations have taken place and the CG must keep checks and balances on that for continued UN and international support.
On another issue of equal relevance, under unique emergency conditions the interim CG has to keep in mind the UN Millennium Development Goals (MDG). It is widely known and information has been disseminated through various UN bodies and even the World Bank that Bangladesh has the capability to meet most of the Millennium Development Goals (MDGs), including difficult ones like maternal mortality and child malnutrition, provided that it improves the accountability and transparency of public services.
Bangladesh had already made significant progress in attaining the MDGs, a set of the United Nations (UN) devised targets to cut world poverty in half by 2015, most notably by increasing gender parity in education and cutting infant mortality rates. Greater accountability and transparency6 also means citizens are aware of the level of services they are entitled to and are able to give regular feedback to service providers. By involving local communities and local government institutions in the process, a system of checks and balances can be established to ensure that the quality of services in areas such as health and education are up to standard. The present CG is in the right state to judge transparency of issues and seems accountable to its people, and so, the UN reform that is proposed is to assemble the resources discovered and captured in the anti-corruption drive and utilize it for the attainment of the MDGs.
Besides persecution and having the corrupt political leaders and businessmen serve time in jail, use their illegally attained wealth and resources and structure a mechanism in which there will be an increased private donation for development. Charitable donations by small or large donors, the former being illustrated by UNICEF collections such as “Change for Good” and the latter being illustrated by the Gates and Turner Foundations, have proved to be useful.
Despite the fact that the CG has launched a massive drive against all sorts of illegal activities including corruption, hoarding, smuggling, adulteration, extortion and business syndicate from the day it came to power, it made practically no impact on the market in controlling the price spiral of essential commodities. Increase in prices of fuel oil and electricity is in the offing, and is bound to affect the already high price index of commodities and services, making the life of the common people more miserable. It is these commodities that make or break the common man and thus the issue must be taken up by the CG.
The UN organization stationed in Bangladesh and the World Bank are now encouraged due to the government’s steps to implement the issues that the previous government kept pending. The measures drew support from the people of Bangladesh and the things are getting right from the people’s perspective. The World Bank linked conditions with the proposed credit that included adjusting fuel oil price with the international price, corporatization of the nationalized commercial banks and revenue sector reform to increase revenue collection.7
The all-pervasive corruption is now believed to be one of the biggest factors holding back the progress of the country. There is a strong ground for this assumption. In recent years corruption has increased both vertically and horizontally and new areas of governance are becoming tainted. The Transparency International's (TI's) rating and ranking may not be cent per cent authentic but the common man going about his daily rounds knows only too well how complete is the stranglehold of corruption and misrule.
As the Chief Adviser (CA) of the CG, an ambitious agenda of sweeping reforms of the state's institutions has been laid down in front of you. In view of the deep frustration of, and strong criticism by, the people and development partners over the Anti-Corruption Commission's (ACC)8 failure to function, the CG resolved to address the commission's legal, institutional and administrative flaws to make it functional. It is up to the present CG to enable the ACC to take action against the corrupt ministers and lawmakers of the previous governments. The ACC has the foundation of a jubilant public support group. As of now, it is busy preparing lists of corrupt persons. The first list of 100 corrupt individuals has already been published. It includes the son of the immediate prime minister; former ministers, MPs and bureaucrats, etc. The assumed respectability and arrogance of influential corrupt persons has been challenged down to earth. The country should not expect the anti-corruption drive to achieve wonders in a single go, because it would be less than pragmatic to think that its substantially corroded officialdom would suddenly be inspired by honesty and fear of God. There is a need to exhort and encourage proper leadership in all organs of the state, and different sectors of national life, in order to obviate the myopic reliance on the ACC only to fight the major ills of the society. It would also be wrong to assume that catching the big fish only would be salutary, because in believing so the people would be fixing a permissible limit to corrupt practices.
Thus, the UN reform to utilize the funds identified as corrupt and illegal earning of various ministers and their families must be channeled back into the economy from which it was actually ‘stolen’. The National Board of Revenue has asked all the scheduled banks to freeze the bank accounts of 54 listed high-profile corruption suspects and their close relations like spouses and children. The directives were given as per the clause 4 of section 117 of the Income Tax Ordinance 19849 that empowers the revenue board to restrict operations of any individual’s bank accounts as or when required. According to revenue officials, each of these people, whose assets and sources of income are now put under the Anti-Corruption Commission’s scanner, on an average, maintains 25 accounts with as many as 15 banks either in their own names or using spouses and children as dummies. The anti-graft watchdog on February 18 started issuing a notice asking the top 50 corrupt suspects, including top-ranking ministers and political figures, to submit their wealth statements within 72 hours of receiving the notice. Two top bureaucrats are also on the list. It is quite an achievement that you have empowered and strengthened the ACC, but whilst the identification of those at fault is done by this body, the CG requires the assistance of the civil society to implement this UN reform. Thus, another challenge is raised.
The overall responsibility for implementing development projects and helping improve the quality of life and living of people depends on the members of the civil administration.10 They work under the political authorities which adopt policies and undertake development programs. The civil service officials are expected to work carefully for providing inputs needed for making appropriate policy decisions on day-to-day administration as well as development issues. That being said, the efficiency and effectiveness of civil service personnel are of great significance. The UN and the World Bank has from time to time urged the government to introduce reforms in the civil service. Necessary reforms to develop a merit-based efficient and effective civil service have become the need of the hour to ensure the implementation of development programs for the achievement of social and economic development goals of the country.
On the whole, the UN appears impressed with the dedication and commitment the CG has made under your able leadership. One proof of which is the arrest of Tarique Rahman,11 the man who was allegedly at the center of the rampant corruption unleashed in the last five years of the BNP-Jamaat regime and who from BNP's political office Hawa Bhaban controlled everything from the civil administration to the political arena, was arrested in the early hours of 8th March 2007 from the cantonment residence of his mother, former prime minister Khaleda Zia.
Notes
1 The coup that dare not speak its name – Bangladesh - 20 January 2007. The Economist
2 Central bank, NBR join hands to net 'big fishes' - Shakhawat Hossain – FE - 2/12/2007
3 Everybody but the politicians is happy – Bangladesh - 10 February 2007. The Economist
4 Everybody but the politicians is happy – Bangladesh - 10 February 2007. The Economist
5 Dr Fakhruddin Ahmed's 40 days in office. Daily Star, February 21, 2007
6 To meet MDGs goal: WB asks Bangladesh to improve transparency. New Nation. February 16, 2007
7 Bangladesh’s anti-crime drive encourages WB $200m DSC IV depends on addressing pending issues: Patel. United News of Bangladesh . Mumbai. New Age. February 21, 2007
8 Fighting corruption on all fronts. The Financial Express, 3/1/2007
9 NBR asks banks to freeze accounts of 50 corruption suspects. The New Age, March 1, 2007
10 Civil service reform – editorial. New Nation, March 3, 2007
11Tarique held at midnight, Ex-health minister Mosharraf, Ctg Mayor Mohiuddin, Jamaat's ex-MP Tahir, Janakantha editor Masud also held; raid on Sudha Sadan. Star Report, March 8, 2007
This paper was done during a fellowship (spring 2007) with the United Nations Associations of the National Capital Area (UNA-NCA) under the direction of Bob Berg, Director of UNA-NCA, Washington DC. Earlier in Bangladesh,Walid Bin Saifullah was affiliated with the Grameen Bank working in the Nobel laureate Prof. Yunus’s micro credit program as an intern. Currently, he is a graduate student and Research Coordinator, University of the District of Columbia, Washington DC. The Writer
Main
Writings