Bangladesh Bank warns against MLM fraud

DHAKA NEWS

Dhaka, Apr 1  Within hours of a parliamentary standing committee proposing formulation of a law to regulate multilevel marketing (MLM) business, the central bank on Sunday warned people against investing in unapproved banking institutions.

In a media statement signed by managing director AFM Asaduzzaman, the Bangladesh Bank cautioned investors not to be swayed by abnormally higher rates of interest offered by 'some institutions'.

"It is to notify all that some institutions under different names are operating like banks in various districts across the country. They are collecting money from people by promising an abnormally higher rate of interest and profit," read the statement.

"As making investments in those institutions not approved by appropriate authorities increases the possibility of being deceived, people are being requested to abstain from going for any financial transaction with those institutions," the statement added.

The central bank notice came amid reports of illegal banking by Destiny 2000 Ltd published in various newspapers over the last few days.

Earlier in the day, the parliamentary standing committee on commerce ministry decided to request the finance minister and the central bank governor for action against Destiny-2000 Ltd-like MLM companies.

"Such companies are swindling people out of millions of taka. We will write to the finance minister and Bangladesh Bank for stopping illegal banking and businesses. We will request for immediate action," said ABM Abul Kashem, chairman of the standing committee.

On Mar 6 last year, then commerce minister Muhammad Faruk Khan had said a law was underway to bring the MLM companies within the legal framework.

There are 62 registered MLM companies operating Bangladesh, Faruk Khan had said.

He had told journalists that only Destiny has 4.5 million clients. Another prominent MLM company is Unipay-2 U.

With regard to rising controversy against Destiny 2000, finance minister Abul Maal Abdul Muhith on Sunday said that action would be taken against the company if the ministry of commerce and Bangladesh Bank make such a recommendation.

Tk 410bn downsized ADP approved

DHAKA NEWS

Dhaka, Apr 1  The government has reduced outlay for the current fiscal's Annual Development Programme (ADP), like previous years.

The size of ADP was Tk 460 billion in the budget for the current financial year 2011-12, but the amount was cut by Tk 50 billion as programme implementation was sluggish and aid money remained stuck in the pipeline.

A National Economic Council (NEC) meeting, chaired by prime minister Sheikh Hasina, on Sunday approved the revised ADP of Tk 410 billion, said planning minister A K Khandaker.

In the revised ADP, foreign aid has been reduced and assessed at Tk 150 billion, and Tk 260 billion has been added from local resources, he said.

Every year, the ADP amount announced during the budget is downsized in the revised one.

Member of the General Economics Division (GED) of the Planning Commission Shamsul Alam told bdnews24.com on Saturday, "The ADP amount is going to be slashed as the money allotted for the programme could not be spent. Another major reason is that project aid is stuck in the pipeline."

The statistics show ADP implementation in the first eight months (July-February) of the current financial year was 38 percent. The implementation had been 37 percent in the same period last fiscal.

Figures suggest the rate of ADP implementation usually remains unsatisfactory in the first seven or eight months of any fiscal but the pace of implementation dramatically quickens towards the end of the year.

Former finance advisor to the caretaker government A B Mirza Azizul Islam expressed disappointment over the trend of downsizing ADP every year.

"It's our bad luck. We adopt a bigger ADP every year but we revise it as implementation falls behind the target," he said.

"Moreover, we finish work hastily at the end of every financial year. We are able to spend money this way but the standard of work falls," he added.

In the last fiscal, ADP implementation rate was 92 percent. The implementation had been 90 percent in 2009-10 and 86 percent in 2008-09, according to government statistics.

"It (the trend) has become a part of our culture. We'll have to move out of this. We'll have to speed up work from the beginning of the financial year," Azizul said.

However, despite cut in ADP allocation, the number of projects has been increased by 189. The main ADP had 1,039 projects while the number has gone up to 1,278 in the revised one.

Asked whether the project number has been raised due to political considerations, the planning minister said, "The number of projects has been increased for the sake of country's development, not politics."

On Mar 12, finance minister A M A Muhith presented to parliament a report on budget implementation progress during the first six months of the current fiscal (July to December). In the report, he announced downsizing the ADP allocation to Tk 405 billion.

But, Sunday's NEC meeting increased the allocation by Tk 5 billion.

Asked whether the prime minister issued any order to accelerate project implementation rate, Khandaker said the prime minister has directed that if a ministry and department fails to use the allotted money, then it should be allotted to those who can use it.

"There's no use blocking money if we cannot use them. The country will develop if the money is given to those who can utilise it," he quoted the prime minister as saying.

The Planning Commission member said the allocation in the power sector has been given the highest priority in the adjusted ADP. The amount of allocation in this sector is Tk 71.83 billion, which is 17.74 percent of the total allotted amount.

Other sectors with high allocation are – transportation (Tk 59.08 billion or 14.59 percent), rural development and rural institutions (Tk 50.13 billion or 12.38 percent), education and religion (Tk 48.08 billion or 11.87 percent), physical infrastructure planning, water supply and housing (Tk 41.76 billion or 10.31 percent), health, nutrition, population and family planning (Tk 33.6 billion or 8.3 percent) and agriculture (Tk 25.41 billion or 6.27 percent).

In 2008-09, the original ADP allocation was Tk 256 billion but later revised downwards to Tk 230 billion.

It had been Tk 305 billion in 2009-10 but was reduced to Tk 285 billion.

In fiscal 2010-11, the main ADP was Tk 385 billion but was downsized to Tk 358.80 billion.

The Planning Commission finalised the size of ADP in line with demands of several ministries and departments, he said.

Shamsul said the new ADP would be cleared by NEC before the next budget is placed.

Make sea limits verdict public: Secretary General Mirza Fakhrul Islam Alamgir

DHAKA NEWS

Dhaka, Apr 1 Two senior BNP leaders have demanded that full text of the maritime boundary dispute case verdict be made public.

"Why we shouldn't get control of blocks in the Bay of Bengal if we have won the dispute with Myanmar? We believe the government campaign over winning the sea limits case is a trick to deceive people," said party's acting secretary general Mirza Fakhrul Islam Alamgir at a discussion on Sunday.

"We urge the government to make the sea limits verdict public. Please don't confuse people by telling lies," said the opposition spokesman and mentioned that Myanmar is also celebrating the verdict.

Alamgir was speaking at a Swadhinota Forum-organised discussion to mark its 19th founding anniversary at Diploma Engineers Institute.

Addressing another discussion at the same venue, BNP's standing committee member Khandaker Mosharraf Hossain said, "Bangladesh had been demanding resolution of the problem over sea limits based on equity, while Myanmar sought a settlement based on the principle of equi-distance. And the international court based its verdict on equi-distance theory."

Echoing Alamgir's demand of making the full verdict public, he said, "We believe Bangladesh lost the case as the verdict was not equity-based. The government move to organise a festival to celebrate the victory is aimed at misguiding people."

The opposition leaders, however, did not produce any document to support their contention.

After the verdict though, the opposition party, including its chief Khaleda Zia, had congratulated the government both in and outside parliament over the victory.

Alamgir also criticised the government's foreign policy, as "the country's economy is becoming dependant, killing along the border is continuing uninterrupted and India is building dams over rivers unilaterally".

Regarding corruption in quick rental power plant, he said, "On one hand, those in the government are filling their pockets by siphoning off money from Tk 20,000-crore subsidy to the sector, and on the other, they are increasing power tariff in phases."

He also urged the government to act wisely by ensuring that the next parliamentary election is held under a non-party caretaker government.

Stay orders upset fight: ACC

DHAKA NEWS

Dhaka, Apr 1 Top corruption buster Ghulam Rahman on Sunday said 'time-consuming' legal process is slowing down their fight.

He said three-fourths of anti-corruption cases are now stuck due to stay orders from higher courts.

"The commission will remain a paper tiger if we cannot get over the time-consuming legal process," the Anti-Corruption Commission (ACC) chairman said at a seminar.

The ACC arranged the seminar titled "Role of mass media and civil society in implementing political commitment in curbing corruption" at its headquarters to rally support for the drive against graft.

"We are trying our best despite a number of limitations. But it is not possible for the commission alone to curb corruption. A combined and coordinated effort is required," said the ACC chief.

Former Bangladesh Bank governor Mohammad Farashuddin presented the keynote paper.

FBCCI president AK Azad termed the initiatives ACC had taken involving share market scam 'insufficient'.

"The commission filed only one case against a person over the scam. But those involved in causing the fall in share market by deceiving people were not brought to justice," said Azad.

"Take action against the real culprits, businessmen will be on your side," he added.

ACC boss Rahman said the commission had legal limitations in taking action regarding share market as Securities and Exchange Commission (SEC) was empowered with enough authority to deal with the issue.

Former caretaker government advisor Mohammad Habibur Rahman attended the seminar as chief guest.

"Only two of the corruption cases filed against heads of the state and government, ministers and politicians since 1991 were finally settled through court," said Rahman, a former chief justice.

"It taints the image of the court in regard to farce taking place over allowing bail to political leaders based on which party they belong to," he added.

"It is the government legal advisers' reservations that delay hearing on the corruption cases pending with the courts," he continued.

Elected representatives and leading professionals among others attended.