Ex-advisers deny suggesting black money whitening scheme

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Two former finance advisers of caretaker government have denied having recommended any black money whitening scheme in a meeting last week with the finance minister, reports bdnews24.com.
The two advisers-Dr Akbar Ali Khan and Dr AB Mirza Azizul Islam-have also protested media reports which said AMA Muhith was told by the former finance ministry chiefs that the government should go for low-interest bonds to absorb black money.
"In Saturday's meeting, former finance minister M Syeduzzaman, Dr Mirza Aziz and I were present among the former ministers and advisers. None of us came up with any proposal for whitening black money," Dr Khan told the news agency Friday.
He said former finance secretary Matiul Islam raised the issue and suggested such a scheme. "No one else talked of any such thing in that view-exchange meeting," said Dr Khan.
The Mar 21 meeting at a state guest house also heard from former finance secretaries.
"It's not clear to me why the finance minister told the media that we recommended whitening of black money through government bonds," Dr Khan said.
A similar statement came from the 2007-8 caretaker government adviser, Mirza Aziz.
"I have always been against giving opportunity to legalise black money. I still hold that position. How can I propose to the finance minister that black money be allowed to be whitened," Mirza Aziz told the news agency Friday.
He said he had not proposed "anything" in this regard.
"In my two years as finance adviser," he said, "I allowed undeclared legal income to be legalised twice. But no black money or illegally earned income was allowed to be legalised."
Mirza Aziz commented that it would be "unethical" to allow legalising black money.
Dr Khan echoed Mirza Aziz. "It does not help us. Such opportunities were given in the past. Not many came forward. The government did not make much money," said Dr Khan, also a former cabinet, finance and IRD secretary.
"Only once did the black money holders respond," he said, "when the BNP-Jamaat government gave the opportunity towards the end of its tenure."
And he explained why. "There was a specific reason. Those who made money in an atmosphere of widespread corruption in those five years put pressure on the government to give them the opportunity."
Finance Minister Muhith did not specify who said what at the meeting, but his statements to the media led to news reports that the former finance ministry chiefs recommended such a formula.
"I had already announced that we'd consider allowing the black money (undeclared income) to be whitened. Former finance minister and advisers have suggested using low interest five-year bonds to do that," AMA Muhith had told reporters after the meeting with them.
Giving such an opportunity repeatedly, Dr Khan said, would create a culture of impunity in the country.
Two days later, FBCCI leaders proposed that black money holders be allowed to buy five-year government bonds at 7.5 per cent.
They told NBR chief Mohammad Abdul Mazid Monday that the low interest bond would help Bangladesh weather the crisis triggered by the global recession.
"This black money [undisclosed income] whitening initiative will boost investment, create new jobs, with direct positive impact on the economy," FBCCI's Annisul Huq said at the pre-budget discussion.