Finance Minister Amir Khosru Mahmud Chowdhury on Tuesday told Parliament that BNP’s political stance does not allow any compromise on matters related to economic governance and financial discipline.
“I want to clearly state that BNP’s politics does not allow any compromise with anyone on economic operations,” he said, while replying to a supplementary question from NCP lawmaker from Cumilla-4 Md Abul Hasnat, popularly known as Hasnat Abdullah.
Hasnat Abdullah in his question alleged that there had been attempts to rehabilitate S Alam Group even after without repayment of its loans, and wanted to know whether the government had made any compromise with the group.
In response, the Finance Minister asserted that whenever BNP had been in power in the past, there had been no questions regarding macroeconomic stability, the share market, or financial discipline.
“I want to categorically say during BNP’s tenure, no questions were raised about macroeconomic strategy, macroeconomy, or the share market. So, you can rest assured that there is no scope for compromise in BNP’s economic planning,” he said.
Khosru said legal action has been taken against those who fled the country after taking money from banks.
He further said both government-to-government (G2G) initiatives and private recovery firms are working to recover the funds that were siphoned out of the country, expressing hope that the funds would be recovered in the coming days.
Strong effort to recover laundered assets tied to S Alam, Beximco: Khosru
The Finance Minister said the government continues all possible efforts under the existing legal system to recover the assets allegedly laundered abroad by S Alam Group and Beximco Group.
He was replying to a starred question from the same lawmaker.
Abul Hasnat in his question asked the Finance Minister to clarify how many countries Bangladesh has pursued legal action to recover assets allegedly laundered abroad by S Alam Group and Beximco Group, and how much could be recovered in the current fiscal year.
He also mentioned that Islami Bank Bangladesh PLC held Tk 96,195 crore in defaulted loans, around Tk 80,000 crore linked to the S Alam Group, while Janata Bank had about Tk 25,000 crore in defaulted loans tied to the Beximco Group.
In reply, Khosru said cases have been filed in the Bangladesh court as part of the recovery of assets illegally smuggled abroad by the two groups.
He said sending Mutual Legal Assistance Requests (MLARs) to the countries concerned under the Mutual Legal Assistance in Criminal Matters Act, 2012 is a key legal step to recovery of assets illicitly transferred to foreign lands.
The Finance Minister said MLARs have been forwarded in relation to the S Alam Group to four countries – British Virgin Islands, Cyprus, Jersey and Singapore –, while MLARs concerning the Beximco Group have been sent to two countries – the United Kingdom and the United Arab Emirates.
“In addition to criminal proceedings, civil proceedings are being pursued to recover the funds laundered by these two groups,” he said, adding that steps have been undertaken to search for their assets abroad through four reputable foreign law firms.
Khosru, however, said recovering money illegally laundered abroad is a complex and long-term legal process.
He said the recovery can only be possible upon proofs ensured by the courts in Bangladesh or abroad, following responses to MLARs, completion of investigations and identification of assets related to the crimes.
The minister further said it was not possible at this stage to estimate how much money or assets could be recovered in the current or upcoming fiscal year, though efforts under the existing legal framework continue.
Govt plans to revitalise banks: Khosru
The Finance Minister said the government has taken steps to revitalise banks and support private sector recovery through budgetary measures and cooperation with multilateral organisations.
He said Bangladesh’s financial sector is currently facing a significant capital deficit, identifying it as one of the most pressing economic challenges.
Both banks and private sector businesses are experiencing capital shortages as the currency of the country has depreciated by more than 40 percent in recent years, along with rising utility and operational costs, which have collectively created nearly a 50 percent capital deficit in private sector activities, Khosru said.
He also pointed out that a capital crisis has been created in the banks due to capital outflow abroad.
To address this situation, the government has already taken steps to replenish capital and will continue to allocate funds in the upcoming budgets, the minister said.
He added that the government is working with the International Monetary Fund (IMF) to recapitalise the banking sector.
Khosru acknowledged past irregularities, including loan mismanagement and financial sector misconduct, which exacerbated the crisis.