Yaqeen Blog

For over three decades, the political landscape of Bangladesh has been defined by the "Battle of the Begums"—the intense, often violent rivalry between Sheikh Hasina of the Awami League (AL) and Begum Khaleda Zia of the Bangladesh Nationalist Party (BNP). While both leaders oversaw periods of significant economic growth, their respective tenures have been marred by allegations of systemic corruption, financial siphoning, and the enrichment of family dynasties.

Following the collapse of the Hasina government in August 2024, new investigations and historical data have shed light on the staggering scale of capital flight and institutional capture under both regimes.

🟢 The Awami League Era (2009–2024): The "Missing Billions"

Under Sheikh Hasina’s 15-year uninterrupted rule, Bangladesh saw unprecedented infrastructure development. However, investigators and the interim government led by Muhammad Yunus now allege that this growth was a facade for deep-seated kleptocracy.

• Estimated Financial Loss: The interim government estimates that between $16 billion and $234 billion was laundered or siphoned out of Bangladesh during Hasina’s tenure. Transparency International UK has identified over £400 million in UK property linked to former AL insiders.  

• The Banking Crisis: Extensive "takeovers" of private banks (most notably S. Alam Group’s alleged control over multiple banks) led to massive loan scams. The central bank estimates billions were siphoned through non-performing loans (NPLs) that rose to 20% of all banking assets by early 2025. 

• Family Beneficiaries:

  • Sajeeb Wazed Joy (Son): Accused by opposition and some international whistleblowers of benefitting from power sector commissions and telecommunications contracts. Allegations surfaced regarding a $50 million bribe related to the MiG-29 purchase during Hasina's first term.

  • Saifuzzaman Chowdhury (Former Minister): A close ally whose UK property empire—reportedly worth over £200 million—is currently under investigation by the UK's National Crime Agency (NCA).  

🟡 The BNP Era (2001–2006): The Rise of "Hawa Bhavan"

The BNP’s second term is often cited by Transparency International as the period when Bangladesh topped the Corruption Perceptions Index for five consecutive years.

• Hawa Bhavan: This became the unofficial "alternative power center" operated by Khaleda Zia’s son, Tarique Rahman. It was alleged that no government contract or business deal could be approved without a "commission" paid to this office.

• The Siemens Scandal: In a rare case of a successful international recovery, the US Department of Justice (DOJ) and Singaporean authorities returned nearly $2 million to Bangladesh in 2013. This money was part of a bribe paid by Siemens to Arafat Rahman Koko (Zia’s younger son) to win a telecommunications contract.

• Family Beneficiaries:

  • Tarique Rahman (Son): Convicted in absentia in multiple cases, including the Zia Orphanage Trust case, where he was initially sentenced to 10 years for embezzling 21 million taka ($305,000). He has lived in London since 2008. 

  • Arafat Rahman Koko (Son): Convicted of money laundering related to the Siemens and China Harbor corruption payments.

📊 Comparative Corruption Metrics

🔗 Investigative Dossiers & Sources

Transparency International UK: Returning Bangladesh's Missing Billions (2025 Report)

Financial Times: Bangladesh's Missing Billions: Stolen in Plain Sight

World Bank: Estimating the Effects of Corruption: Implications for Bangladesh

The Guardian: Money Trail: Questions over Deposed Bangladeshi Elite’s £400m UK Empire

US Department of Justice: Forfeiture of Proceeds of Foreign Corruption - Arafat Rahman Koko

The Analyst's Verdict

For international observers, the corruption in Bangladesh is not merely about individual greed but a structural failure of institutional checks and balances.¹⁰ While the Hasina regime utilized "mega-projects" and banking dominance to move vast sums, the Zia regime utilized centralized political "toll gates." In both cases, the losers have been the 170 million citizens whose national wealth has historically been treated as a private treasury.