Home Today's Paper Most Popular Video Gallery Photo Gallery
Subscription Blog Signin Register
Logo
Sunday, October 21, 2018 10:57:38 AM
Follow Us On: Facebook Twitter Twitter Twitter Twitter

Commentary

Country of easy swindling and unrestrained capital flight

By Editorial Desk
27th-Jun-2016       
Comments
Share your thought
Post a comment »
Read all () »

Unchecked capital flight at several billion dollars annually over the past decade has brought the country's banking sector to the brink. It appears scandalous to note that Bangladesh as a capital deficit country has sadly turned into a major capital exporting nation in recent past. The economy is losing so much money when it is starving from capital shortage to finance the much-needed socio-economic services.
The country lost around $55.87 billion from 2004 to 2013 as a news report said on Sunday quoting disclosure by high profile economists at a seminar in the city. It means that $5.59 billion went out illegally every year on an average. The capital flight moreover escalated to $9.66 billion in a single year in 2015.
The drainage continued unabated as our Finance Minister was sitting in total ignorance until recently when he suddenly woke up and told Parliament that the banking sector saw unbridled looting in the past years, and sea level theft is only the appropriate expression to describe the situation. But the Minister was defiant only few years ago when swindling of state-owned banks came to the light. Muhith had laughed out Hall Mark swindling of Tk 4,000 crore from a single Sonali Bank branch in 2013 saying it was just peanut and blamed media for harming the banking sector by publishing such report.
Now that most banks are empty and swindlers have moved out over Tk 4.5 trillion abroad which is around 1.25 times of our national budget for 2016-17, he agreed that massive theft from banks and capital flight have taken place. The Minister however does not know how the swindled money, which is no less than Tk 30,000 crore in some estimates from banks, would be recovered and how he would trace the capital moved out of the country. It appears that Bangladesh is a country where easy swindling and unrestraint capital flights are possible.  
Capital flight makes other nations richer while making our nation poorer. The thieves are using this money abroad to buy assets or set up business creating jobs and income for other nations when our people are suffering from joblessness. They have become human commodity to be exported out of the country.     
It appears that the country lost 5.5 percent of the GDP annually through capital flight over the past decade when our economy also reportedly grew at around 6 percent. It means in one hand we were either hovering at around zero percent growth annually except tall talks about development or that the country's growth potentials remained drastically underutilized due to removal of investment fund to outside world.
The discussants blamed lack of proper investment climate in uncertain political situation for much of the capital flight as owners of the fund want to protect in safe custody. Businessmen are even openly demanding permission now to legally transfer capital abroad for investment. So it is important we must overcome these investment shortfalls to stop capital flight.     
The disclosure about terrible capital flight in presence of past policy makers such as former advisers to caretaker government Dr Akbar Ali Khan, Dr Mirza Azizul Islam, former governor of Bangladesh Bank Dr Farashuddin led many to question how the looters of public money felt so secured as if we do not have people with strong sense of patriotism and love for the country.
The biggest allegation for capital flight goes to big business houses. But when FBCCI President Abdul Matlub Ahmed asked the government to take action to stop capital flight, it sounds hollow and evasive. When powerful businessmen closer to the ruling party are engaging in capital flight, his suggestions for action appears meaningless.
The frustrated people can only ask for whom the government exists? It has no anxiety to save public property. 

Tariff
Add Rate

News Archive

Inside The New Nation

Editorial »

Khashoggi`s brutal murder has brutally damaged image of Saudi Kingdom


The Saudi Kingdom has ultimately confirmed that writer and critic Jamal Ahmad Khashoggi was killed inside the Saudi consulate in Istanbul city.  Saudi state media reported Khashoggi was killed in "fist-fight" with the Kingdom's officials inside its consulate. The announcement marked a U-turn from the Kingdom, which had previously denied ...

International »

Khashoggi criticises Saudi Prince in newly released interview


Saudi critic Jamal Khashoggi criticized Crown Prince Mohammed bin Salman's "authoritarian rule" shortly before his death, in an interview published following confirmation he died at the kingdom's Istanbul consulate.Speaking off the record to a Newsweek journalist working on a story about the Saudi leadership, he insisted he did not view ...

Business & Economy »

Economists sign declaration against Brazil frontrunner


AFP, Rio De Janeiro :More than 350 economists -- among them a Nobel Prize winner -- have signed a declaration saying Brazil's frontrunner to be president, far-right politician Jair Bolsonaro, is not the best choice for his country.The experts stated that Bolsonaro's leftist rival, Fernando Haddad, was "the best alternative" ...

Entertainment »

Sonakshi to play the female lead in Mogul?


A biopic based on the life of a T-series honcho Gulshan Kumar is in the pipeline, but looks like the film is facing a lot of hurdles. After the director of the film Subhash Kapoor was accused in the ongoing #MeToo movement of sexual misconduct, Aamir Khan who was co-producing ...

Entertainment »

Vidya Balan's first look from the NTR biopic


Vidya Balan is one the top actresses of Bollywood. She has the ability to captivate the audience with her performances. Vidya has already impressed the audience with her brilliant performance in the biopic of Silk Smita that was titled The Dirty Picture and now the actress is set to do ...

City »

BNP Secretary General Mirza Fakhrul Islam Alamgir speaking at a rally organised by JAGPA–an ally of the 20-party alliances on Saturday at the DRU Auditorium demanding release of Khaleda Zia and annulment of Digital Security Act 2018 and verdict against Tarique Rahman, party's Senior Vice-Chairman.


Editorial »

European Union must challenge the undemocratic election process


THE European Union has decided not to deploy an election observation mission during the 11th parliamentary election in Bangladesh due by January 28 next year. This has been conveyed to the Election Commission in a diplomatic note. A copy of the note verbale was also handed over to the commission ...

Sports »

Los Angeles Dodgers' Austin Barnes hits an RBI single during the fifth inning of Game 5 of the National League Championship Series baseball game against the Milwaukee Brewers in Los Angeles on Wednesday.


Cricket »

Ten-wicket Abbas destroys Australia for Pakistan's series win


AFP, Abu Dhabi :Medium pacer Mohammad Abbas took his maiden ten-wicket haul in a match to fire Pakistan to a 373-run win over Australia in the second Test in Abu Dhabi on Friday.Abbas followed his 5-33 in the first innings with figures of 5-62 to wreck Australia for 164 after ...

Entertainment »

Aamir Khan`s smile in new poster of Thugs of Hindostan


Ever since the intriguing trailer of Aamir Khan, Amitabh Bachchan, Fatima Sana Shaikh and Katrina Kaif starrer Thugs of Hindostan has been unveiled, there is much excitement around the film. The film is one of the biggest releases of the year and will hit the silver screens on November 8. ...

City »

Bangladesh General Students` Parishad formed a human chain on Friday in front of the Jatiya Press Club demanding 35 years limit applying for govt job.


Business & Economy »

Mamun-Ur-Rashid, Managing Director of Standard Bank Limited poses for photo session with the participants of a two day-long training on "Self Leadership, Advanced Managerial Skills & 21st Century Managerial Mindset" organized by the Training Institute of the Bank. Alkona K. Choudhuri, SEVP and Head of Human Resources Division of SBL, Md. Saif Noman Khan, Asst Prof. of IBA, DU, Md. Zakaria, Principal and Md. Amzad Hossain Fakir, Faculty of SBL Training Institute were present on the occasion.


International »

Trump concedes Khashoggi likely dead, threatens consequences


AP, Washington :President Donald Trump acknowledged Thursday it "certainly looks" as though missing Saudi journalist Jamal Khashoggi is dead, and he threatened "very severe" consequences if the Saudis are found to have murdered him. His warning came as the administration toughened its response to a disappearance that has sparked global ...

International »

Russians ‘will go to heaven’ in event of nuclear war: Putin


AFP, Moscow :Russians will "go to heaven" as martyrs in the event of nuclear war because Moscow will only ever use nuclear weapons in retaliation, President Vladimir Putin said Thursday."We have no concept of a preemptive strike," Putin told a forum of international experts in the southern city of Sochi ...

Football »

Chairperson of the Women's Football Committee of Bangladesh Football Federation (BFF) Mahfuza Akter Kiron speaking at a press conference at the conference room in BFF House on Thursday.


 
Items that you save may be read at any time on your computer, iPad, iPhone or Android devices.
 
Are you new to our website? Do you have already an account at our website?
Create An Account Log in here
Email this news to a friend or like someone
Email:
Write a comment to this news