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NBR to hire firm for info on money laundering

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NBR to hire firm for info on money laundering

The National Board of Revenue is set to hire a global accounting firm to gather information on illegal fund transfers from Bangladesh, said its Chairman Md Mosharraf Hossain Bhuiyan yesterday. Bhuiyan, however, declined to disclose the name of the firm. “Let us sign an understanding agreement with the firm first,” he said, adding that the firm has operations in Bangladesh.

The disclosure came at a preliminary agreement signing ceremony between the NBR and the Bangladesh Financial Intelligence Unit (BFIU), the central bank arm responsible for analysing suspicious transactions and information related to money laundering and terrorist financing. Under the deal, the NBR and the BFIU will exchange information regarding money laundering and terrorism financing to fight illegal activities. The agreement comes at a time when huge amounts of funds are believed to be siphoned out of the country through illegal means such as trade mis-invoicing.

The Global Financial Integrity said $61.6 billion were siphoned out of Bangladesh between 2005 and 2014, which is equivalent to 25 percent of the country’s gross domestic product in fiscal 2016-17. But Abu Hena Mohd Razee Hassan, deputy governor of the Bangladesh Bank, downplayed the figures numbers, saying the BFIU never accepts as complete truth the figure provided by the GFI.

The Swiss National Bank publishes a report every year that draws huge attention from the Bangladeshi media. The BFIU examined the data and found that 93 percent of the transactions were done through the proper channel, he said.

In other words, personal deposits accounted for only 7 percent of the total published figure. “So the extent of money laundering is not as severe as the GFI numbers suggest.”

Some 32 cases are under trial to bring back the siphoned off money. “All the agencies are working to curb illegal capital flight. We have already frozen a number of accounts of some financial institutions for wrongdoings,” he added. The agreement will act as a deterrent for unscrupulous people, Bhuiyan said, adding that the NBR would be able to provide data on tax, customs as well as bank statements to the BFIU. The BFIU will also sign similar agreements with the Anti-Corruption Commission, Bangladesh Police and other agencies related to financial matters, according to Hassan.

It has already signed agreements with 56 countries to exchange information, he said.

Costs treble for 8 revised projects

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Costs treble for 8 revised projects

The Ecnec yesterday approved eight revised projects with the cost increasing three times compared to the original estimate. The projects’ cost increased to Tk 6,416 crore from Tk 2,008 crore, according to the planning ministry documents.

Prime Minister Sheikh Hasina attended the meeting of the Executive Committee of the National Economic Council (Ecnec) in the planning ministry’s Agargaon office. The meeting approved 11 projects in total, all funded by the government. An increase in work volume has caused the project cost to rise, Planning Minister AHM Mustafa Kamal said after the meeting.

The ministry and divisions made no mistake in the planning of the projects, which could be blamed for the rise, he said. He gave an example of a 20-kilometre road, which was later increased in length to 38 km, as part of efforts to connect a growth centre and widening of the narrow sections.

On why road construction cost per km is higher compared to that in other countries, Kamal said the country’s roads were full of potholes and the earth required to fill those had to be brought from far away, which pushes up the cost.

One of the approved projects on the construction of long bridges at upazilas and unions was revised for a third time. The project would now cost Tk 2,287 crore, up from Tk 628 crore. It was first approved in March 2010 and scheduled to be complete by 2013. It was revised again in April 2012 with the cost raised to Tk 1,406 crore while completion date set at June 2020.

The planning ministry proposal said increased land acquisition, extension of time frame and rate schedule pushed up the cost. Cost of two other projects on Greater Faridpur Grameen Infrastructure Development rose threefold, one from Tk 417 crore to Tk 1,489 crore and another from Tk 553 crore to Tk 1,709 crore.

Another project over the construction of a building for the National Board of Revenue saw the cost to rise from Tk 141 crore to Tk 495 crore. Kamal said the prime minister had pointed out that the building scheduled to have 20 storeys should not have more than 12 storeys because of its closeness with Hazrat Shahjalal International Airport in the capital. The other three new projects okayed were on the construction of 288 flats at Tk 290 crore for government officials in Mirpur, a Tk 495 crore headquarter of the Rapid Action Battalion and a Tk 219 crore training academy for air force troops in Chittagong.

ECNEC approves 11 projects worth Tk 7,4234cr

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ECNEC approves 11 projects worth Tk 7,4234cr

The Executive Committee of the National Economic Council (ECNEC) accredited 11 improvement tasks involving Taka 7,423.72 crore.

The approval got here from ECNEC meeting held at the NEC Conference room in Dhaka’s Sher-e-Bangla Nagar vicinity with ECNEC Chairperson and Prime Minister Sheikh Hasina on the chair.

After the meeting, Planning Minister AHM Mustafa Kamal advised journalists that a total of eleven tasks were authorised these days involving Taka 7,423.72 crore ncluding one to set up RAB headquarters in the capital with Taka 495.10 crore.

“The whole value of the eleven initiatives will come from the country exchequer,” the Minister added.