$14b lost to capital flight a year during AL years

Bangladesh has lost around $14 billion a year on average to capital flight during the Awami League’s 15-year tenure, according to the draft report of the committee preparing a white paper on the economy.
The actual amount of capital flight could not be determined due to time constraints, The Daily Star has learnt from members of the 12-member committee. However, a separate chapter has been prepared on the topic using scientific methodology, government documents and global reports.
The committee, which was formed on August 28, was given three months to prepare the report to inform on the true state of the economy, battered from years of mismanagement and data obfuscation.
“We have incorporated the ways money laundering takes place and how it could be stopped,” said one of the committee members asking not to be named.
Earlier on November 2, Transparency International Bangladesh said $12 to $15 billion was siphoned out of the country in a year over the last 15 years.
Bangladesh lost approximately $8.27 billion on average between 2009 and 2018 only from mis-invoicing of values of import-export goods by traders to evade taxes, according to the US-based research organisation Global Financial Integrity.
The 250-page report titled “White Paper on the State of Bangladesh Economy” will have 22 chapters, including their findings on GDP growth, inflation, external balance, banking sector situation, power and energy situation, government’s debt, quality of statistics, trade, revenue, expenditure, mega projects, business environment, poverty and equality, capital market, education, health, women and climate issues.
The report will be handed over to Chief Adviser Muhammad Yunus on Sunday and made available for public consumption the following day.
“We will provide the real picture of Bangladesh’s economy,” said one of the committee members.
The committee — led by Debapriya Bhattacharya, a distinguished fellow at the Centre for Policy Dialogue — made its observations on mega projects like Padma bridge and the railway link, the Rooppur nuclear power plant, Matarbari power plant and Karnaphuli tunnel.
“We have incorporated our observations on the corruption charges by the World Bank in the Padma bridge project and the issue of the Canadian court. We have our observations on building the bridge with own funds,” said another committee member.
The 6.15-kilometre Padma bridge cost Tk 30,193 crore, or $3.56 billion. Of the amount, $2.4 billion was paid through foreign currency provided by the Agrani Bank.
Total public debt, especially the repayment of foreign loans over the next four years for the ongoing 215 foreign-funded projects, was incorporated in the report, said another committee member.
The committee has suggested pathways to rationalise the huge subsidy expenditure, improve the bad loan situation and strengthen market management for inflation control.
The committee members include economists AK Enamul Haque, Kazi Iqbal, Mustafizur Rahman, Selim Raihan, Sharmind Neelormi, Mohammad Abu Eusuf, Ferdaus Ara Begum and Zahid Hussain; energy expert Mohammad Tamim; and manpower export expert Tasneem Arefa Siddiqui.