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Bangladesh Investigates Corruption Under Sheikh Hasina’s Regime

Ten Bangladeshi businesses linked to Hasina’s regime face investigation for embezzling billions.

Bangladesh’s central bank has taken unprecedented steps by hiring three of the “Big Four” accounting firms—EY, Deloitte, and KPMG—to audit financial irregularities that have shaken the nation’s banking sector. According to Ahsan Mansur, governor of Bangladesh’s central bank, the audits are centered on recovering $17 billion allegedly embezzled by businesspeople linked to former Prime Minister Sheikh Hasina’s regime. The Financial Times broke the story on Sunday, highlighting a monumental scandal involving some of the country’s leading businesses and political elites.

Sheikh Hasina, who served as Prime Minister of Bangladesh from 2009 until her ouster in 2024, fled to India in August amidst mounting allegations of corruption and public dissent. The investigation has widened to include her relatives and key figures within her administration, intensifying scrutiny over decades of alleged systemic mismanagement. Mansur further revealed that the Bangladesh Financial Intelligence Unit (BFIU) has formed 11 joint investigation teams tasked with identifying and reclaiming misappropriated funds. The findings aim to pave the way for prosecutions against those involved.

The charges of corruption against Sheikh Hasina and her cronies include widespread allegations of embezzlement, money laundering, and misuse of public funds. Over her 15-year tenure, her government faced multiple accusations of awarding inflated contracts, receiving kickbacks, and enabling financial mismanagement in state-run institutions. Ten prominent Bangladeshi businesses, reportedly close to the former regime, are under investigation for their roles in siphoning billions of dollars from state-owned banks. Ahsan Mansur has emphasized the scale and scope of corruption, describing it as a “shocking betrayal of public trust.”

One of the most notorious examples is the Padma Bridge project, a massive infrastructure undertaking meant to connect southern Bangladesh with the capital, Dhaka. While initially celebrated as a milestone for the country’s development, the project was marred by allegations of bribery and the misuse of international aid. Investigations revealed that senior officials were implicated in corrupt practices, diverting funds earmarked for construction into private accounts. The project became a symbol of squandered opportunities and deep-seated corruption within government institutions.

Another major scandal involved the sale of the Ruposhi Bangla Hotel, a state-owned property. The transaction was riddled with allegations of kickbacks and inflated valuations, with funds reportedly flowing to individuals close to Sheikh Hasina’s inner circle. This case further highlighted the nexus between political power and financial misconduct, fueling public anger over the misuse of state assets.

The Rooppur Nuclear Power Plant project also came under scrutiny for its financial irregularities. Investigators uncovered inflated costs and suspicious payments to contractors, raising serious concerns about how public funds were being managed. The scandal not only called into question the transparency of large-scale government projects but also underscored the challenges of accountability in a system where political connections often shield wrongdoers from prosecution.

The accusations extend to high-ranking officials and relatives of Sheikh Hasina, implicating them in creating shell companies, purchasing overseas assets, and manipulating public contracts for personal gain. Mansur has pointed to evidence of luxury properties and offshore accounts linked to these individuals, further inflaming public outrage.

Sheikh Hasina’s departure from Bangladesh in August was precipitated by intensifying political unrest, legal challenges, and international scrutiny. Facing mounting corruption allegations, mass protests erupted across the country, demanding her resignation and accountability for the financial debacle. Amid fears of arrest and trial, Hasina sought refuge in India, reportedly under temporary humanitarian protection. Indian officials have yet to confirm her legal status, but sources indicate that she has been granted a limited stay on political grounds.

The situation has caused friction between Bangladesh and India, with critics in Dhaka accusing New Delhi of harboring a fugitive leader. Indian opposition leaders have also weighed in, urging Prime Minister Narendra Modi’s administration to clarify its position on granting asylum to Sheikh Hasina.

The controversy surrounding Hasina’s stay in India has heightened tensions between the two South Asian neighbors. Bangladesh’s current administration, led by a coalition of opposition parties, has accused India of undermining their efforts to hold Hasina accountable. In response, Indian officials have defended their decision, citing humanitarian considerations and a need to ensure regional stability.

Dr. Mohammed Yunus, a Nobel laureate and prominent critic of Sheikh Hasina, has condemned India’s perceived complicity. “Providing refuge to someone accused of plundering the nation’s wealth sends a dangerous message to the people of Bangladesh,” Yunus said. Meanwhile, Hasina’s defenders argue that the allegations against her are politically motivated. Former ministers in her government claim the investigations are part of a broader campaign to discredit her legacy.

Dr. Mohammed Yunus, who has frequently clashed with Sheikh Hasina over governance issues, called the corruption scandal “a national tragedy.” He urged the international community to assist Bangladesh in recovering the embezzled funds and prosecuting those responsible. “The people of Bangladesh deserve justice and transparency,” Yunus stated.

Supporters of Sheikh Hasina, however, have dismissed the charges as baseless. “This is a witch hunt orchestrated by political rivals who want to erase Sheikh Hasina’s achievements,” said Abdul Hannan, a former minister in her administration. “She transformed Bangladesh into a middle-income country and should be celebrated, not vilified.”

The views expressed in this article are the author’s own and do not necessarily reflect Coverpage’s editorial stance.

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