How a Nation's Economy Was Drained

According to the current governor of Bangladesh Bank, Ahsan H. Mansur, during Sheikh Hasina's 15-year tenure, approximately $17 billion has been siphoned out of Bangladesh's financial system. However, some economists estimate that the total amount of money laundered during this period exceeds $30 billion.

Ahsan Mansur stated that criminals within the government and major companies orchestrated what he described as the "biggest bank heist in history," causing unprecedented damage to Bangladesh's economy.

These revelations were published in a New York Times report on Wednesday, December 4. The report notes that while the exact amount of money laundered remains uncertain, Mansur's claims highlight the scale of corruption.

The report does not specify when Mansur's interview was conducted.

Economic Decline Under Hasina’s Leadership
This week, a white paper committee on economic conditions revealed that an average of $16 billion has been illegally siphoned out of Bangladesh annually during Sheikh Hasina's 15-year rule.

Read More

None Can Snatch Our Unity, Independence, CA Tells Political Leaders

Mansur told the New York Times that the highest levels of political authority exploited banks as their "ideal looting ground." Under this scheme, hundreds of millions of dollars in loans were provided to shell companies, many of which did not exist. These funds, Mansur explained, are unlikely ever to return to the banking system, with a significant portion laundered abroad.

Ahsan Mansur, who worked with the International Monetary Fund (IMF) for 27 years, stated that the entire governance structure of the banking sector was effectively "hijacked." He added, "Nowhere else in the world have the highest levels of government enabled systematic robbery of an entire banking sector in collaboration with thugs."

Mansur warned that the country’s economic turbulence is far from over, predicting stormier times in the coming year before any signs of recovery emerge.

Hasina's Resignation and Political Fallout
On August 5, Sheikh Hasina resigned amidst a popular uprising and fled to India. Her future remains uncertain, though Bangladesh's interim government has announced efforts to extradite her. Meanwhile, Saifuzzaman Chowdhury, a former MP and close ally of Hasina, is under investigation for money laundering, according to AKM Ehsan, the executive director of Bangladesh's Financial Intelligence Unit. However, formal charges against Chowdhury have yet to be filed.

In an interview with Al Jazeera, Chowdhury claimed that the investigations were part of a "witch hunt" against the Hasina administration, and he was not immune to it. Attempts by the New York Times to contact both Hasina and Chowdhury were unsuccessful. The Awami League’s headquarters in Dhaka was found deserted, and efforts to reach Hasina's spokesperson also failed.

Islami Bank Scandal
The report delves into the resignation of Md. Abdul Mannan, the former managing director of Islami Bank. On January 5, 2017, Mannan was summoned by military intelligence and forced to resign under direct orders from Sheikh Hasina, according to his account.

Mannan described the humiliation he endured and compared his situation to the historical resistance of Caliph Uthman during a siege. Despite initially resisting, Mannan eventually signed his resignation before being released. He spent the next eight years in virtual exile before returning as the chairman of another bank.

Following his departure, S. Alam Group gained control of Islami Bank and other financial institutions. Allegations arose that S. Alam Group, with backing from Sheikh Hasina, colluded to drain the banking sector. The group’s founder, Saiful Alam, expanded his businesses significantly during Hasina’s tenure, including ventures in energy and real estate.

Banking Sector in Crisis
According to the New York Times, many banks in Bangladesh are now on "life support." Even solvent banks struggle to provide loans or fulfill depositors' withdrawal demands. In some cases, employees have reported being unable to withdraw their full salaries on payday.

Economic hardship has forced companies like pharmaceutical firm Techno Drugs to lay off workers. Deputy General Manager Majedul Karim told the New York Times that low-income workers have been hit hardest, with many reporting that banks are unable to disburse cash, even through debit cards.

Mansur noted that while inflation is easing and remittance flows are increasing, this year will not bring significant growth for Bangladesh. He remains hopeful, however, that the IMF will provide an additional $3 billion to stabilize the currency.

The report paints a dire picture of the economic damage inflicted during Sheikh Hasina's tenure, linking it to widespread corruption, banking fraud, and a systematic failure to protect the country's financial system.