Owners themselves laundered money from their banks

Appalled by the dimensions of past bank forgeries and money laundering, Planning Adviser Prof Wahiduddin Mahmud says Bangladesh could go bankrupt in a Sri Lanka-like situation shortly if the last government had not fallen on August 5.

"The owners themselves siphoned off money from their commercial banks over the years. Even the government instrument sometimes couldn't prevent those misdeeds," he said Monday at an iftar party in Dhaka.

"Besides, the macroeconomic scenario was falling at a so faster rate that I assumed the Sheikh Hasina government would not sustain much time," the planning adviser of the post-uprising government told his audience.

Development Journalists Forum of Bangladesh (DJFB) organised the iftar function where Professor Mahmud was present as chief guest.

The planning adviser draws a bleak picture of investment, especially foreign direct investment or FDI, under the hangover of mismanagement and uncertainties stemming from the recent past.

"Amid the country's ongoing turmoil, nobody would invest. The businessmen need safe and secure environment. Bangladesh's current environment has to be improved to attract investment," he told the journalists.

The academic-turned government functionary, however, says the government has been able to protect the economy from falling into bankruptcy, and check the wonton laundering of money.

Prof Mahmud notes that Bangladesh's foreign-exchange reserves during the last government were depleting at a faster rate, especially in the last couple of years. "We have been able to check the falling scenario."

During the seven-month reign of this interim government, some US$4.0 billion worth of remittance has increased compared to the same period last fiscal, he adds.

"Although the loan repayment has increased, and some $3.0 billion worth of FDI and foreign aid has declined during the last seven months, but we are hopeful of stabilizing the scenario within a shorter period," the senior economist told the meet.

"We have got a fueling inflation trend from the autocratic government, which has been stabilised over the last few months," he added.

Members of the Planning Commission and journalists from different media were present at the even party of breaking fast.

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