Economists estimate $30 billion looted during Hasina’s tenure: NYT

The New York Times on Wednesday published a report titled 'How a country’s economy was siphoned dry', in which Bangladesh's central bank governor, Ahsan Mansur, calculates that about $17 billion was siphoned out of the country’s financial system in the 15 years before the Sheikh Hasina-led government fell in August this year.

However, the true value looted during Ms Hasina’s rule, before she left the country, might exceed $30 billion, the report said, citing other economists. 

According to the report, Mr Mansur said that the money was taken using a network of financial schemes. He explained that what the perpetrators in the government and at some of the country’s biggest companies committed was effectively the largest bank heist in the history of money and it inflicted incalculable damage to the country’s economy.

“The highest level of political authority realized that the banks are the best place to rob,” said Mr. Mansur, an appointee of an interim government in Bangladesh. Afterwards, the perpetrators took control of the central bank and the ownership of several private banks and their boards of directors. The banks subsequently lent billions of US dollars to companies, some of which were fictional, and much of that money was illegally taken out of the country, the report added.

Mr Mansur, who worked at the International Monetary Fund for 27 years, said that while working for the IMF, he never witnessed “any country where the highest level of the government, with the help of some goons,” managed “the systematic robbing of the banks.”

Citing AKM Ehsan of the central bank’s investigation wing, the Bangladesh Financial Intelligence Unit, the New York Times mentioned that former Awami League lawmaker Saifuzzaman Chowdhury is now being investigated by the interim government. He was quoted as telling Al Jazeera that he was the subject of a “witch hunt” against members of Ms. Hasina’s government.

Efforts to reach Mr Chowdhury, as well as Ms Hasina, for comment were unsuccessful, the report added.

The NYT report also described how Mohammad Abdul Mannan, managing director of Islami Bank Bangladesh, was forced to resign, with inputs from him. Citing both Mr Mannan and Mr Mansur, it said that S Alam Group took control of Islami Bank and other banks.

Some banks in Bangladesh have been on life support. Even the healthy ones are unable to extend much credit and can only sporadically honor depositors’ withdrawals, Mr Mansur reportedly said.

The report said that even the central bank governor wonders which of the banks are worth saving.

Mr Mansur, who took over the central bank in August, recalled what he witnessed when first looking into the economy.

“Everything was a disaster,” he said.

However, now he exudes “cautious optimism," even though he believes things are coming back to a stable level.

Economic growth is unlikely this year, as the central bank governor indicates.

This “is not the year for economic growth,” Mr Mansur acknowledged but pointed to positive signs such as declining inflation and growing remittances. “We have to be satisfied with that,” he added.