The interim government pressured banks early this year to provide Tk100 crore to three organisations from CSR funds for campaigning in favour of ‘Yes Vote’.
Among them, banks were asked to allocate nearly Tk13 crore to an organisation that was not even registered.
Objections were raised within banks regarding the legality of such spending for a vote campaign. Eventually, amid pressure and negotiations, around Tk4 crore was collected for the three organisations, violating banking norms.
The allocated funds went to Shushashoner Jonno Nagorik – SHUJAN (Citizens for Good Governance), Students Against Discrimination (SAD) Foundation and Debate for Democracy, according to analysis of documents and interviews with around a dozen officials obtained by TIMES of Bangladesh.
Documents show the Association of Bankers Bangladesh (ABB) provided Tk2.5 crore to SHUJAN and Tk21 lakh to Debate for Democracy. On the other hand, Bangladesh Bank gave Tk1 crore to SAD Foundation, an organisation linked to the anti-discrimination student movement.
Officials said bank managing directors and central bank officials were taken aback during a bankers’ meeting held on 11 January this year when Financial Institutions Division Secretary Nazma Mobarek attended the meeting.
To normalise the situation, Bangladesh Bank’s the then governor Ahsan H Mansur said the secretary was present as “an important public issue” was being discussed. At the meeting, the government’s directive for banks to fund the referendum campaign was presented, and Tk100 crore was sought from corporate social responsibility (CSR) funds, although the issue was not on the meeting agenda.
Strong objections were raised in the meeting, with participants saying CSR funds could not be used for vote campaigning.
“When an uncomfortable situation arose, the governor ended the meeting by assuring a resolution later,” a Bangladesh Bank official told TIMES.
The following day, the governor summoned ABB board members again. When ABB Chairman and City Bank Managing Director Mashrur Arefin attended with seven officials, another meeting was held in the presence of SHUJAN Secretary Badiul Alam Majumdar, representatives of the anti-discrimination student movement, and central bank officials.
Banks were again asked to provide Tk100 crore.
A Bangladesh Bank official present at the meeting said, “The governor directly instructed banks to give Tk100 crore to three organisations for “Yes Vote” campaigning, stating it was the government’s demand.”
Speaking to TIMES on Thursday, Mashrur Arefin said, “We were requested by the governor to provide a large sum from ABB fund. We informed we do not have that level of funds.”
The issue of large CSR spending on political programmes during the Awami League government also came up in discussions.
However, one official present said, “The governor made it clear that the government wants it, so it must be done. Otherwise, it would be difficult to face the chief adviser.”
Mashrur Arefin said, “When we narrated our problem and Bangladesh Bank did not agree to issue a written instruction, the governor requested for around Tk20 crore to be given to three organisations.”
“We agreed to provide Tk2.5 crore to SHUJAN and Tk20–25 lakh to Debate for Democracy. We refused to fund the anti-discrimination student movement as it was not a registered organisation,” the ABB chairman said.
Mashrur added, “I was personally in favour of ‘Yes vote’ for national interest. Current ruling party was also in favour of it. My personal preference did not play any role in making this fund available. What we did was done at the request of governor.”
Documents show that the next day, an application was filed to register a social organisation named SAD Foundation with the Registrar of Joint Stock Companies and Firms. It was registered nine days later on 21 January.
On the same day, SAD applied to Bangladesh Bank seeking Tk12.80 crore from CSR funds. A proposal to allocate Tk9 crore to the organisation was placed at the central bank’s board meeting on 25 January, bypassing usual procedures. Due to pressure from some directors, the governor ultimately secured approval for Tk1 crore.
By virtue of his position, the governor serves as chairman of the board.
SHUJAN and Debate for Democracy had already received funds from ABB.
“Within days of the meeting with the governor, instructions came from the Chief Adviser’s Office for banks to support the ‘Yes Vote’ campaign. We then issued ABB cheques after receiving detailed budgets from the two organisations,” Mashrur Arefin said.
“We had to comply with the regulator’s instructions and advice,” he added.
When TIMES asked about the matter, Ahsan H Mansur initially denied that money was allocated for ‘Yes vote’ campaign.
He however admitted when the reporter informed him that TIMES has obtained relevant documents, saying, “The funds were provided for “Yes Vote” campaign as per government instructions. The money was used for public welfare, so I do not see anything negative here.”
SHUJAN Secretary Badiul Alam Majumdar, who was not supposed be in the meeting, said he attended the bankers’ meeting at the then governor’s invitation.
Regarding not submitting audit report on expenditure of the fund, he told TIMES, “We have already submitted a preliminary expenditure statement to ABB. The audit is ongoing, and we expect to submit the report within a week.”
According to available information, around Tk142 crore was spent on the ‘Yes Vote’ campaign by six ministries and the Election Commission. Of this, Tk46 crore was allocated by the Ministry of Cultural Affairs, Tk4.71 crore by the Ministry of Information, Tk7 crore by the Ministry of Religious Affairs, Tk72 crore by the Local Government Engineering Department, Tk4.52 crore by the Ministry of Social Welfare, and Tk4.34 crore by the Ministry of Women and Children Affairs. The Election Commission’s public relations wing spent Tk4 crore.
Note: Two paragraphs have been amended, while one paragraph added in this report following further clarifications from Mashrur Arefin.
