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Viewing cable 08DHAKA315, BANGLADESH CONTRIBUTION TO REPORT ON FISCAL TRANSPARENCY IN

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Reference ID Created Released Classification Origin
08DHAKA315 2008-03-12 06:19 2011-08-25 00:00 UNCLASSIFIED Embassy Dhaka
VZCZCXRO2304
PP RUEHCI
DE RUEHKA #0315/01 0720619
ZNR UUUUU ZZH
P 120619Z MAR 08
FM AMEMBASSY DHAKA
TO RUEHC/SECSTATE WASHDC PRIORITY 6430
INFO RUEHLM/AMEMBASSY COLOMBO PRIORITY 8364
RUEHIL/AMEMBASSY ISLAMABAD PRIORITY 2090
RUEHKT/AMEMBASSY KATHMANDU PRIORITY 9589
RUEHNE/AMEMBASSY NEW DELHI PRIORITY 0558
RUEHCI/AMCONSUL KOLKATA PRIORITY 1210
UNCLAS SECTION 01 OF 02 DHAKA 000315 
 
SIPDIS 
 
SIPDIS 
 
DEPT PASS TO EEB/IFD/OMA, SNOW, FIGUEROA AND WEBER 
 
E.O. 12958: N/A 
TAGS: EAID ECON PREL PGOV KCOR BG
SUBJECT: BANGLADESH CONTRIBUTION TO REPORT ON FISCAL TRANSPARENCY IN 
COUNTRIES RECEIVING USG ASSISTANCE 
 
REF:  STATE 16737 
 
1.  The following is draft text on Bangladesh for the 
Congressionally-mandated report on fiscal transparency in countries 
receiving USG assistance. 
 
2.  While the Government of Bangladesh (GOB) demonstrates a 
commitment to financial transparency and accountability, its public 
accounting system does not meet international standards.  The annual 
national budget is made public and is available on the website of 
the GOB's Ministry of Finance.  Most, but not necessarily all, 
revenues and expenditures are included in the publicly-available 
budget.  The GOB meets regularly with international donors, 
including the United States, and frequently provides additional 
budget information and updates. 
 
3. As a least developed country (LDC), Bangladesh struggles with 
capacity and political will in strengthening fiscal transparency. 
Bangladesh's Constitution created the Office of the Comptroller and 
Auditor General, which is charged with auditing GOB finances and 
reporting its findings to Bangladesh's Parliament.  The Office is 
run by a Presidential appointee and is an independent body.  Its 
annual reports to Parliament have highlighted fiscal problems and 
abuses.  Action is seldom taken on the findings of the Comptroller 
and Auditor General, however.  When Parliament is in session, there 
are two standing committees that exercise fiscal oversight over the 
national budget: the Standing Committee on the Ministry of Finance 
and the Public Accounts Committee.  There are also committees that 
oversee public procurement and public enterprises.  These committees 
in the past have been somewhat effective in policing the GOB's 
fiscal transparency. 
 
4.  Parliamentary elections were scheduled for January 2007, but 
political unrest in Bangladesh led to the imposition of a state of 
emergency in January 2007.  While Parliament is not session pending 
elections scheduled for the end of 2008, Bangladesh's Caretaker 
Government has taken numerous steps to address transparency and good 
governance generally and government corruption in particular.  It 
strengthened the country's weak Anti-Corruption Commission (ACC), 
formed a National Coordination Committee to help coordinate 
government and security forces efforts to investigate graft, and set 
up several task forces to help the committee with its work.  In 
2007, security forces detained several hundred high-profile graft 
suspects. Among those detained were former prime ministers Sheikh 
Hasina and Khaleda Zia, both of whom were charged in bribery cases 
dating to their government tenures.  Local media reported in 
February 2008 that at least 240 people, including politicians, 
government officials and businesspeople, had been sentenced to jail 
in the anti-corruption drive. 
 
4.  With an aim to contribute to good governance and accountability, 
USAID began implementing in October 2007 a four-year, $18 million 
anti-corruption program for Bangladesh. It will provide technical 
assistance to strengthen parliamentary oversight committees, the 
Office of the Comptroller and Auditor General, citizen advocacy and 
watchdog initiatives, legal reforms that promote greater access to 
reliable information, investigative journalism, and citizen 
participation in understanding and developing program-based budgets. 
 It will help increase the public sector's credible and effective 
stewardship of public resources by assisting in a more transparent 
development, review and implementation of the Government of 
Bangladesh's national budget. 
 
5.  The Department of Justice (DOJ) has provided training on 
financial investigations to the national corruption task forces. 
This training has involved instructors from the Internal Revenue 
Service and the U.S. financial intelligence unit, who have taught 
simple forensic accounting, investigative methods and interviewing 
to 90 members from the five-agency national corruption task forces. 
DOJ also has worked with the Government of Bangladesh to establish 
an operational financial intelligence unit in the central bank. 
 
6.  Bangladesh receives a significant amount of aid from other donor 
countries and multi-lateral lending institutions, including in the 
areas of fiscal transparency and good governance. In November 2007, 
for example, the Asian Development Bank (ADB) and the GOB signed a 
$150 million loan agreement aimed at fighting corruption and 
fostering economic growth by strengthening governance.  Also in 
November 2007, the World Bank released a report on   Public Sector 
Accounting and Auditing in Bangladesh, which recommends Bangladesh 
adopt International Public Sector Accounting Standards (IPSAS).  The 
World Bank is also funding a $24 million Public Procurement Reform 
project.  The International Monetary Fund's last Report on 
Observance of Standards and Codes covering fiscal transparency in 
Bangladesh dates from 2005. 
 
 
DHAKA 00000315  002 OF 002 
 
 
PASI