Abul Hossain finally shown the door
Dhaka, July 23 (UNB) – The government has finally swallowed the bitter pill by removing Information and Communication Technology Minister Syed Abul Hossain from the Cabinet in an apparent move to revive the World Bank’s loan deal for the Padma Bridge project.
Abul Hossain, a former communications minister who was transferred to the ICT Ministry on December 5 after the WB brought graft allegation against him in the bridge project, quit after a prolonged controversy on Monday.
Speculation had been running high since this morning that the embattled minister might be shown the door as he did not show up at today’s scheduled cabinet meeting.
“Yes, he didn’t turn up at the cabinet meeting and quit finally from the cabinet,” a source close to the meeting told UNB.
Sources at the ICT Ministry said Abul submitted his resignation letter to the Prime Minister at 7.30am.
The indication of Abul Hossain’s removal came on Sunday when Finance Minister AMA Muhith said the fourth condition of the World Bank – sending those charged with graft in Padma Bridge project on leave until they come out clean – is under consideration of the government to have a review on the Bank’s decision on its cancelled Padma Bridge project loan deal.
In an open letter to the people of the country on Sunday and Monday, Abul said, “I’m ready to take any step in the greater interest of the country…I’ll surely make any sacrifice without any hesitation what will be good for the country.”
Ex-communications minister Abul Hossain is among those charged with the graft allegation.
The World Bank annulled a $1.2 billion credit for Padma Bridge project last month, saying it has "credible evidence" of a high-level of corruption conspiracy among Bangladeshi government officials.
"In light of the inadequate response by the government of Bangladesh, the World Bank has decided to cancel its $1.2 billion ... credit in support of the Padma multipurpose bridge project, effective immediately," the World Bank said in its statement after the cancellation of the loan deal.
The global lender said it had provided evidence of corruption from two investigations into the Padma bridge project to Bangladesh's prime minister and other senior government officials in an effort to press for action.
The 6.2-km bridge is meant for linking the country's impoverished south with capital Dhaka.
The annulment of the deal by the WB virtually pushed the AL-led grand alliance government backward and triggered blistering criticism from the opposition camp.
In her instant reaction to the WB decision, opposition leader during her visit to disaster victims in Chittagong, demanded resignation of the government claiming the Prime Minister and her family members were also involved in the bridge project graft.
In her efforts to keep the bridge project afloat, Prime Minister Sheikh Hasina in her winding-up speech at the 13th session of the 9th parliament recently revealed a plan for the construction of the mega project with own fund.
According to the plan, the construction work on the bridge will start in the current fiscal year and complete within fiscal 2015-16 at a cost of Tk 23,000 crore.
But her plan also drew criticism from exporters and opposition as they believe the country will not be able to implement the mega project like Padma Bridge with domestic fund.
Experts and top opposition leaders have long been urging the government to remove Abul Hossain in line with the WB suggestion and reinstate the scrapped deal.
Though the government has long been showing a rigid stance not to remove Abul as per the WB demand, it softens its position on Sunday through announcement of accepting the World Bank's fourth condition.
Background
The Executive Committee of National Economic Council (Ecnec) approved a project proposal worth Tk. 10,000 crore back in 2007 to construct the Padma Bridge.
The past military-backed caretaker government initiated the design work on the project with financial assistance from the Asian Development Bank. In January 2009, the present government decided to take forward the project and decided to appoint a consulting firm for the design work. And the implementation work kicked off in February, while the engineering feasibility study completed by the yearend.
Then the government sought assistance for the project from the development partners and concluded loan agreements worth US$2.3 billion with four development partners (DP) in early 2011.
An agreement for UD$1.2 billion was signed with the World Bank on 28 April, 2011. Loan agreements were also signed with the JICA on 18 May for US$ 415 million, with the IDB on 24 May for US$ 140 million and with ADB on 6 June for US$ 615 million.
It was estimated at that time that the project would cost around US$ 2.90 billion (around Tk. 20,000 crore as per the existing exchange rate).
Abul Hossain, a former communications minister who was transferred to the ICT Ministry on December 5 after the WB brought graft allegation against him in the bridge project, quit after a prolonged controversy on Monday.
Speculation had been running high since this morning that the embattled minister might be shown the door as he did not show up at today’s scheduled cabinet meeting.
“Yes, he didn’t turn up at the cabinet meeting and quit finally from the cabinet,” a source close to the meeting told UNB.
Sources at the ICT Ministry said Abul submitted his resignation letter to the Prime Minister at 7.30am.
The indication of Abul Hossain’s removal came on Sunday when Finance Minister AMA Muhith said the fourth condition of the World Bank – sending those charged with graft in Padma Bridge project on leave until they come out clean – is under consideration of the government to have a review on the Bank’s decision on its cancelled Padma Bridge project loan deal.
In an open letter to the people of the country on Sunday and Monday, Abul said, “I’m ready to take any step in the greater interest of the country…I’ll surely make any sacrifice without any hesitation what will be good for the country.”
Ex-communications minister Abul Hossain is among those charged with the graft allegation.
The World Bank annulled a $1.2 billion credit for Padma Bridge project last month, saying it has "credible evidence" of a high-level of corruption conspiracy among Bangladeshi government officials.
"In light of the inadequate response by the government of Bangladesh, the World Bank has decided to cancel its $1.2 billion ... credit in support of the Padma multipurpose bridge project, effective immediately," the World Bank said in its statement after the cancellation of the loan deal.
The global lender said it had provided evidence of corruption from two investigations into the Padma bridge project to Bangladesh's prime minister and other senior government officials in an effort to press for action.
The 6.2-km bridge is meant for linking the country's impoverished south with capital Dhaka.
The annulment of the deal by the WB virtually pushed the AL-led grand alliance government backward and triggered blistering criticism from the opposition camp.
In her instant reaction to the WB decision, opposition leader during her visit to disaster victims in Chittagong, demanded resignation of the government claiming the Prime Minister and her family members were also involved in the bridge project graft.
In her efforts to keep the bridge project afloat, Prime Minister Sheikh Hasina in her winding-up speech at the 13th session of the 9th parliament recently revealed a plan for the construction of the mega project with own fund.
According to the plan, the construction work on the bridge will start in the current fiscal year and complete within fiscal 2015-16 at a cost of Tk 23,000 crore.
But her plan also drew criticism from exporters and opposition as they believe the country will not be able to implement the mega project like Padma Bridge with domestic fund.
Experts and top opposition leaders have long been urging the government to remove Abul Hossain in line with the WB suggestion and reinstate the scrapped deal.
Though the government has long been showing a rigid stance not to remove Abul as per the WB demand, it softens its position on Sunday through announcement of accepting the World Bank's fourth condition.
Background
The Executive Committee of National Economic Council (Ecnec) approved a project proposal worth Tk. 10,000 crore back in 2007 to construct the Padma Bridge.
The past military-backed caretaker government initiated the design work on the project with financial assistance from the Asian Development Bank. In January 2009, the present government decided to take forward the project and decided to appoint a consulting firm for the design work. And the implementation work kicked off in February, while the engineering feasibility study completed by the yearend.
Then the government sought assistance for the project from the development partners and concluded loan agreements worth US$2.3 billion with four development partners (DP) in early 2011.
An agreement for UD$1.2 billion was signed with the World Bank on 28 April, 2011. Loan agreements were also signed with the JICA on 18 May for US$ 415 million, with the IDB on 24 May for US$ 140 million and with ADB on 6 June for US$ 615 million.
It was estimated at that time that the project would cost around US$ 2.90 billion (around Tk. 20,000 crore as per the existing exchange rate).
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