Unbridled corruption particularly in areas related to the agriculture sector has left the country’s food security in peril, the ‘White Paper on the state of Bangladesh economy’ has observed.
The much-talked-about paper has highlighted corruption among eight major reasons which have handicapped the agriculture sector that contributes nearly 14 per cent to the gross domestic product and provides jobs for over 40 per cent of the workforce.
The sector, feeding the country’s 172 million people, had struggled with growing corruption during the 15-year regime of the now ousted Awami League, while at the same time encountered the challenges of low labour productivity, stagnating growth in production, limited access to finance, and fertiliser shortages.
An example of scandalous corruption is the Tk 3,020 crore ‘Mechanisation of agriculture work through integrated management’ project adopted for distributing 51,300 units of agro-machinery over a 2020–2025 period to increase productivity.
But eventually allegations of massive theft of project fund by businesses and officials had surfaced surrounding the distribution of agricultural machinery, says the white paper, mentioning that millions of dollars were stolen by kleptocrats of the Awami League regime before it was finally overthrown on August 5 amid a student-led mass uprising.
The country lost $16 billion annually on an average between 2009 and 2023 because of the illicit fund flow amid systemic tax evasion, misuse of exemptions, and poorly managed public finances, according to the paper.
Income tax exemptions were granted to selected large conglomerates, including the Summit Group, for its liquefied natural gas terminal and 15 power plants, S Alam Group for its coal-based power plants, and BEXIMCO Group for its Sukuk Bond, according to the white paper.    Â
Public money worth $14–24 billion was lost to political extortion, bribery, and inflated budgets with the annual development programme projects worth $60 billion in the past 15 years, said the Whiter Paper prepared by a 12-memebr committee led by economist Debapriya Bhattacharya.Â
Regarding the agriculture sector, the paper said that the Anti-Corruption Commission launched an investigation into allegations of irregularities linked to the farm mechanisation project in 2023 after the government’s Implementation Monitoring and Evaluation Division brought fund embezzlement allegations.
An initiative to provide 50 per cent of the total loan earmarked for the small and medium enterprises to cottage, micro, and small enterprises linked to agriculture by 2024 to boost agricultural production and rural incomes was also abused, reveals the paper.
The White Paper notes that political leaders and corrupt bureaucrats have exploited the agriculture sector as a means to legalise their illegal wealth.
A notable example of this is allegations against a former Inspector General of Police who reportedly had amassed significant wealth and ‘legalised’ part of it through investments in fisheries and received the ‘Integrity Award’ of the Government in 2020–21, the white paper mentions.
On the fertiliser distribution system, the white paper mentions that corruption by the government dealers led to a 59 per cent reduction in the marginal productivity of fertiliser during the Amon season, and a 18 per cent reduction in the Boro season.
Such fertiliser scams had disproportionately affected the marginal farmers than the well-to-do farmers, highlighting the detrimental impact of corruption on those already vulnerable.
The paper has also revealed corruption in the disbursement of agricultural credits.     Â
In 2016–17, the government distributed nearly Tk 17,600 crore as agricultural loan of which nearly 6.82 per cent was spent as bribe to bank officials.
Nearly 54 per cent of the credit was actually used in agriculture, said the paper.
On the public rice procurement policy, the White Paper said that in 2019 the farmers sold only 25.8 per cent of the procurement target to the Directorate General of Food as they were not adequately informed of the government’s rice procurement system.
In 2020, the Anti-Corruption Commission suspected use of bribes and extortions in the rice procurement schemes, the White Paper said, while also asked the government for decisive action to hold corrupt officials accountable for scam in the agriculture mechanisation project.
The interim government appointed the 12-member committee for the formulation of a White Paper on the state of Bangladesh economy on August 29. The committee submitted its report to the chief adviser on December 1.