There are allegations that during the ousted Awami League government’s tenure (2009-2024), a vast amount of money was looted under the guise of state expenditure. Even loans were taken from domestic and foreign sources, and large sums were spent in the name of development. As a result, the country’s debt burden kept growing. There were also allegations of major financial irregularities in the procurement processes of various state-owned enterprises. Alongside this, incidents of fund embezzlement occurred in state-owned banks.
After the current Interim Government took office in August 2024, many expected forensic audits to be conducted into the misuse of funds under the previous regime. Through this, the amount of embezzled money could be determined, and actions taken against those responsible. However, over the past 13 months, the Interim Government has not taken any such initiative. Analysts say the Interim Government has continued its activities in a conventional manner, which is why no such move has been observed. The government, on the other hand, claims it has tried to do as much as possible within its capacity.
A forensic audit refers to a specialized process of investigating financial fraud, irregularities, or crimes, where auditors analyze financial records to identify potential fraud and collect evidence. While a regular audit focuses on ensuring the accuracy of financial statements, the primary goal of a forensic audit is to detect fraud, quantify its extent, and identify the perpetrators.
During the fallen Awami League government’s tenure, from FY 2009–10 to FY 2023–24, a total of 15 national budgets were implemented. At the beginning, in FY 2009–10, the budget size was over BDT 1.01 trillion, which rose to over BDT 6.11 trillion in FY 2023–24. Altogether, in the Awami League’s 15 years in power, budgets totaling over BDT 47.74 trillion were implemented. One-third of this amount was allocated for development expenditure. In FY 2009–10, the development budget was BDT 281.15 billion, which rose to BDT 2.09 trillion in FY 2023–24 budget. Over the 15 years, the now ousted Awami League government spent over BDT 16.79 trillion on development projects.
When Sheikh Hasina fled in August 2024, she left behind BDT 18.35 trillion in government debt. This debt came from both domestic and foreign sources. Comparatively, when Sheikh Hasina assumed power in 2009, the government’s total debt stood at BDT 2.76 trillion. This means that over the Awami League’s 15 and a half years in power, government debt increased by over BDT 15.58 trillion, accounting for around 85 percent of the total debt. The ousted government had taken these loans mainly to finance development projects.
During the Awami League’s tenure, nearly BDT 20 billion worth of buses and trucks were purchased for the Bangladesh Road Transport Corporation (BRTC). These vehicles were procured from India, South Korea, China, Japan, and Sweden. However, a large portion of the buses and trucks developed technical problems shortly after purchase. Many of them remain out of service in the BRTC fleet or have been sold off through auctions. Allegations of irregularities and corruption in these purchases surfaced during the Awami League era, but the then-government never initiated any investigation. The Interim Government has also not taken any significant steps in this regard so far.
In the past, there were instances of widespread misuse of public funds in the name of foreign tours. The Prime Minister’s foreign visits with large entourages drew significant criticism. Along with ministers and bureaucrats, many individuals from the country’s financial sector—accused of corruption—were also included in these trips. In addition, several bureaucrats traveled abroad at public expense under the pretext of gaining project experience, enrolling their children in foreign universities, or attending graduation ceremonies. There were also allegations of money laundering behind seminars, workshops, and roadshows organized abroad in the name of attracting foreign investment. Notably, Sri Lanka’s former Prime Minister Ranil Wickremesinghe was just recently imprisoned over allegations of misuse of public funds during his foreign trips.
The ousted Awami League government also faced widespread allegations of corruption in software procurement under the banner of information technology development and the implementation of “Digital Bangladesh.” According to the ICT Division, from 2009 to 2024, nearly BDT 250 billion was spent on various projects and programs by the division. Other ministries and departments also undertook digitalization-related projects. On September 3, 2024, at a review meeting of the Annual Development Program (ADP) for FY 2024–25 at the Secretariat, the then-Adviser Nahid Islam said that during the Awami League period, a total of BDT 650 billion was invested in the telecommunications and ICT sector. A large portion of this investment has been marred by allegations of irregularities and corruption. The Interim Government has not yet taken any initiative to conduct forensic audits into these allegations. However, on April 17, the government formed a committee to prepare a white paper on corruption and irregularities in the ICT sector during the previous regime. The committee has not yet submitted its report.
During the past decade and a half, Bangladesh’s transport infrastructure sector became one of the major avenues for corruption and embezzlement. Eight projects under the Ministry of Road Transport and Bridges, the Ministry of Railways, and the Ministry of Civil Aviation and Tourism saw expenditure rise by 68 percent—or an additional $7.52 billion—due to flaws in planning and feasibility studies, delays in implementation, and corruption. These projects include the Padma Bridge project, the Padma Bridge Rail Link project, the Jamuna Railway Bridge project, the Dhaka-Mawa Expressway project, the Karnaphuli Tunnel, the Dhaka MRT Line-6, the third terminal construction project of Hazrat Shahjalal International Airport, and the Bus Rapid Transit (BRT) Line-3 project. The initial estimated cost for these projects was $11.2 billion, which later rose to $18.64 billion.
Beyond these eight projects, the three ministries—along with the Ministry of Shipping—implemented several major projects during the Awami League era. Many of these involved the construction of some of the world’s costliest roads and highways, expressways, railway lines, procurement of locomotives and coaches, as well as ships and vessels. A significant portion of the expenditures on these projects was lost to corruption and embezzlement.
After the Interim Government took office, a white paper committee on Bangladesh’s economic situation was formed on August 28, 2024, headed by Dr. Debapriya Bhattacharya, Distinguished Fellow at the Centre for Policy Dialogue (CPD). According to the committee’s report, there was extensive corruption surrounding public investments during the Awami League’s 15 years in power. Around BDT 7 trillion was spent on goods and services for government activities. Out of this, bribes alone accounted for an estimated BDT 1.61 trillion to BDT 2.8 trillion, taken by political leaders, bureaucrats, and their associates. During this period, $234 billion—or BDT 27 trillion—was illicitly transferred out of the country.
The committee noted that these figures and estimates on money laundering are preliminary and based on initial analysis. Confirming them would require a comprehensive forensic audit conducted under international standards, scrutinizing every transaction in detail. Such an audit would reveal the true picture of bribery, corruption, and money laundering, identify those responsible, and pave the way for legal action.
Over the past 15 years, another major area of irregularities and embezzlement was the power and energy sector. The White Paper Committee’s report revealed that at least $6 billion in irregularities and corruption took place in this sector. The report noted that commissions in building power plants, capacity charges for keeping plants idle, and excessive profits were all taken by the private sector.
The committee report further mentioned large-scale commission trading in the spot market for LNG purchases during the ousted Awami League government. Allegations surfaced that the LNG spot market cartel was formed under Nasrul Hamid, the former State Minister for Power, Energy, and Mineral Resources in the ousted Awami League government. During that period, only four companies repeatedly handled LNG imports: Vitol Asia and Gunvor from Singapore, TotalEnergies from Switzerland, and Excelerate Energy from the United States. Petrobangla sources confirmed that over 60 percent of the LNG was supplied by Vitol Asia and Gunvor. Nasrul Hamid was closely connected with these two companies, and even his family members had business ties with them. After the Interim Government came to power, LNG was no longer imported from Vitol Asia.
Although various committees were formed by the ministry to reduce excess costs and financial losses in the power and energy sector, no visible initiative has yet been taken to conduct a forensic audit into the irregularities and corruption of the former government.
Dr. Zahid Hussain, former Lead Economist of the World Bank’s Dhaka office, told Bonik Barta, “While starting the forensic audit of five private banks, we faced obstacles in selecting firms, arranging funds, and obtaining approval from both the regulators and the government. In this reality, to bring public finance under forensic audit, a coordinated initiative will be needed. The Cabinet will have to decide that we want to conduct an external, including forensic, audit of public finance. In this case, state-owned enterprises would be a major area for such audits. However, to carry out such a large-scale forensic audit, coordinated participation from all government departments and agencies will be required, which is quite unlikely. It is more practical to start on a smaller scale with priority areas. In the health sector, development allocations remain unspent, yet we hear of massive corruption. Despite spending trillions, including subsidies in the power and energy sector, problems persist. Corruption exists there too. The transport sector is also important. So, to catch the big fish, forensic audits must begin on a priority basis in these sectors. The government’s tenure and capacity must also be considered. Rather than launching a grand initiative and achieving nothing, it is better to start small and move toward something bigger.”
There are currently 232 autonomous, semi-autonomous, and statutory government institutions in the country. Due to irregularities, corruption, and inefficiency, most of these institutions generate little to no returns for the government. Instead, funds from the national treasury are required to keep them afloat. According to economic surveys, as of June 30, 2024, the debt of these institutions stood at BDT 2.18 trillion. In FY 2023–24, the government provided them with BDT 507.83 billion in grants. The Interim Government has not yet taken any initiative to audit the operations of these corruption-ridden institutions.
Dr. Mustafa K Mujeri, Executive Director of the Institute for Inclusive Finance and Development (InM), told Bonik Barta, “There was a need for initiatives such as forensic audits at the outset. Government institutions are not profitable. Public revenue must be spent in various ways, including subsidies. If the amount of embezzled funds in government sectors had been identified and reforms undertaken, it would have been possible to prevent the misuse of public money. But sadly, in the past year, no such initiative has been seen. When we talk about financial reforms, what was needed was to block all the avenues through which public funds were embezzled in the past.”
The former Chief Economist of Bangladesh Bank further said, “When a new government comes after another leaves, its first responsibility is to assess the situation and then undertake reforms accordingly. But nothing like that has happened. It was not even examined whether public money was spent properly. No sector has moved in the right direction. If we had proceeded correctly, the financial sector would have been on a clear path within a year about what needed to be done. Since we did not move according to plan, chaos now prevails in the financial sector.”
After Dr. Ahsan H Mansur took over as Governor of the central bank, the boards of more than a dozen private banks were dissolved. International audit firms were appointed to investigate irregularities, corruption, and embezzlement in those banks. Forensic audits and asset quality reviews of at least six banks have already been completed. Based on the audit reports, the central bank has also taken steps to merge five Shariah-based private banks.
While various initiatives for auditing and merging private banks are being implemented, state-owned banks have largely remained outside the discussion. Yet, soon after Sheikh Hasina’s government took office in 2009, looting began in state-owned Sonali, Janata, Agrani, Rupali, and BASIC banks. The Janata Bank-Bismillah Group scandal in 2011 sparked nationwide criticism. In 2012, the Hallmark Sonali Bank scandal came to light. A year later, the BASIC Bank looting scandal surfaced in 2013.
During the Awami League’s tenure, more than BDT 1.5 trillion was embezzled from state-owned banks through a series of major loan scams. By June 2025, Janata Bank’s default loans had reached BDT 721.07 billion. At the same time, Agrani Bank’s default loans stood at BDT 322.57 billion, Rupali Bank’s at BDT 221.80 billion, Sonali Bank’s at BDT 198.18 billion, and BASIC Bank’s at BDT 87 billion. Against these defaulted loans, the state-owned banks have been unable to maintain required provisions.
On one hand, high defaulted loans, and on the other, continuous losses have pushed the capital shortfall of these banks beyond BDT 1 trillion. Janata Bank alone has a capital shortfall of nearly BDT 530 billion.
Experts say that after the Interim Government took office, even a fraction of the steps taken regarding private banks has not been applied to state-owned banks. Reforms in these banks have been limited to changing Chairmen and Managing Directors.
Asked why no initiatives such as forensic audits were taken regarding embezzlement under state expenditures and irregularities in state-owned banks during the ousted Awami League government, Dr. Anisuzzaman Chowdhury, Chief Adviser’s Special Assistant for the Ministry of Finance, told Bonik Barta, “There are many expectations from us, and we understand that. But at the same time, these expectations should be realistic. The government’s capacity must also be taken into account. We have inherited the bureaucracy from the Awami League, and we have to work with it. We cannot simply dismiss all bureaucrats overnight and replace them. Regarding the irregularities and corruption in state expenditures in the past, several steps have already been taken. We have canceled many projects. The Anti-Corruption Commission (ACC) is taking action against many government officials. Bangladesh Bank has also taken steps regarding state-owned banks. But not everything can be done solely by the Interim Government. Those who come later as a political government will also have a major role to play. Political parties must make commitments in this regard.”