The initial findings of the White Paper Committee on the State of the Bangladesh Economy have uncovered extensive economic irregularities, notably in data integrity, project cost assessments, and information transparency.

These issues are especially pronounced in four key sectors: energy and physical infrastructure. The committee, led by renowned economist Dr. Debapriya Bhattacharya, presented these preliminary observations to the Economic Reporters Forum (ERF) on Thursday at the Planning Commission.

The findings highlight a pervasive culture of corruption, with a nexus linking politicians, bureaucrats, business leaders, and certain members of civil society. This coalition has reportedly fostered a climate of financial mismanagement and autocratic political practices, contributing to severe inefficiencies within economic institutions.

According to committee members, these practices have deep and lasting repercussions, with the general population ultimately bearing the cost of this economic malfeasance.

Dr. Debapriya Bhattacharya explained that the committee’s investigative work over the past two months indicates severe misconduct among key stakeholders, leading to the systemic malfunctioning of institutions and significant policy deviations.

“We are attempting to understand whether economic irregularities have encouraged autocratic politics or if an authoritarian political culture has, in turn, fueled corruption within the economy,” Dr. Debapriya stated. He emphasized the dilemma of whether a self-serving political system, characterized by a lack of accountability, has created an economic structure prone to corruption or if economic beneficiaries of these corrupt practices have driven the country toward autocratic governance.

Dr. Debapriya also highlighted how economic misconduct has rendered institutions ineffective, reducing accountability and leading to repeated policy deviations and reform failures. He argued that maintaining a corrupt system has necessitated deliberately avoiding transparency and responsible governance.

Several distinguished economists provided further insights into these findings. Professor M. Tamim of the Bangladesh University of Engineering and Technology (BUET) discussed the challenges in evaluating corruption tied to large-scale infrastructure projects. He mentioned that estimating the extent of misappropriation within these mega-projects remains difficult.

However, he pointed out that all major project approvals originate from the Prime Minister’s Office, suggesting that high-level oversight might not have been stringent enough to prevent such irregularities.

Professor Mustafizur Rahman, a distinguished fellow of the Centre for Policy Dialogue (CPD), addressed the complications of tracking illicit financial flows from various stages of project development, including the Detailed Project Plan (DPP) and Revised DPP (RDPP). He noted that inadequate oversight and accountability have exacerbated these challenges.

The White Paper committee examines these issues through the lens of project investment patterns, frequency of project launches, and their phasing and pacing over time. Dr. Rahman added that illicit financial outflows initially remained within the country but were later transferred abroad, impacting the formal inflow channels and straining financial resources.

Professor A.K. Enamul Haque of East West University pointed to audit objections raised by the Auditor General’s Office over several years. He noted that these objections, which flagged significant irregularities, were largely ignored. Additionally, the Anti-Corruption Commission failed to investigate these issues, and even in cases where probes were initiated, they were often discontinued.