Syed Mansur Hashim
Of all the advisors in the current interim government, the job of the finance advisor is perhaps most crucial. The financial sector has basically been left to bleed by the oligarchs of the past regime and it was done in connivance with the regulatory authority. So, the first steps have been taken to remove those at the top of the various institutions that were supposed to safeguard the banking system from the wholesale graft that caused its haemorrhage. The amount of money siphoned off is stupendous. According to the Centre for Policy Dialogue (CPD), there have been as many as 24 major bank scams over the last 15 years and total amount embezzled stands at Tk 922.6 billion.
According to eminent economists of the country, the finance advisor must streamline major institutions on a war footing. While it will take time to formulate an appropriate economic policy, it is imperative to take immediate steps to safeguard various documents related to the sanctioning of the thousands of loans that have taken place over this period. Already there have been several instances that have come to light where former (and current) employees of various institutions trying to sneak out sensitive documents out of their respective offices in an effort to make it impossible for the authorities to conduct thorough investigations or to mask their complicity in the proceedings. The horrifying incidence that occurred on August 11 at the Islamic Bank head office in Dilkhusha commercial area ought to serve as a reminder for policymakers that the situation is far from stable from a law enforcement point of view.
There has been enough bungling and juggling with data related to exports, imports and the GDP and these need to be rectified for fixing economic indicators. It is astonishing to see the scam mentality become so pervasive. Beyond the banking sector, the government’s first order of business must be to combat inflation. Media have played their part in highlighting the double-digit inflation that consumers have had to bear for more than two years. While former policymakers came up with one lame excuse after another, the knee-jerk approach to combating market syndication by launching so-called market drives, the net result had been zero. This is what happens when there is zero accountability and ordinary citizens of the land are held hostage.
People have been bled dry and while prices of essentials have dropped significantly due to the liquidation of the extortion network, serious reform is required in the supply chain where accountability of both the authorities and market players is required. The penalty system of fines and incarceration under the consumers’ protection Act needs to be revamped to match today’s reality. Moves must be made to break up the powerful cartels that have evolved into mafia-like organisations. Fear of retribution is no longer there and effective reforms will make it difficult for anyone to take people for a ride in the future.
A strong monetary policy would help curb inflation, and appropriate fiscal policies help improve market management. As one economist has pointed out, “the formation of a banking commission is long overdue” – such a commission could help sort out the bank default mess. The financial intelligence agencies need serious overhaul and that would perhaps help increase inflow of remittances through banking channels. Hopefully, the finance advisor will be equal to the task.
mansur.thefinancialexpress@gmail.com
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