The New Nation - Internet Edition

Emergency to continue until polls: Fakhruddin EC will decide whether Khaleda, Hasina will be allowed to stand for elections

UNB, Dhaka

Chief Adviser Dr Fakhruddin Ahmed has said his caretaker government wants to continue with the state of emergency until general election as they think emergency will help control the old tricks of money and muscle power during the polls.

In an interview with the Time magazine in New York where he went to attend the 63rd UNGA session, he also said it would depend on the Election Commission whether or not the two former Prime Ministers--Khaleda Zia and Sheikh Hasina-to be allowed to stand for election.

"Well, that will depend on the Election Commission. The law under which elections will be held stipulates certain conditions for anyone to submit a nomination. Anyone who satisfies these conditions is eligible," he told the American newsmagazine in a preview of the perspective in which the politicians will have to perform at the next polls following a paradigm shift.

Asked can there be an election without them, particularly in Bangladesh's context, Dr Ahmed parried this question: "I really don't want to speculate on that."

Asked about political parties' demand for lifting the state of emergency, the Chief Adviser referred to the municipal elections that took place in early August. "We relaxed the emergency rules to allow for normal election campaigning. We haven't heard any complaint from any of the candidates."

But, the Time World Editor said, the political parties are asking for the emergency measures to be withdrawn now. In response Dr Ahmed said, "Yes, but we are explaining that there is no reason elections can't be held-- free, fair, credible elections-- with relaxed emergency rules."

He was told that emergency was declared in 2007 because of certain circumstances--violence in the streets, chaos. But that is not the case right now.

Dr Ahmed responded: "Yes, there has not been any disruption of normal economic activities during the past 20 months. But we'd like this to continue until the election. Please remember that one of the problems with the election process has been that money and muscle power were used in the past; in order to retain control over that, I think the emergency rules will help."

Asked why the elections are being held now, the head of the interim caretaker government said soon after he took over as Chief Adviser, he announced that they would hand over power to the next elected government as soon as the Election Commission had completed a proper voter-registration process.

"We've also done some institutional reforms to the Election Commission, the Anticorruption Commission and other areas to establish good governance. We've set up a national human rights commission, passed the Right to Information Act, strengthened local governments."

Asked whether he is now confident that these reforms are irreversible, the Chief Adviser said he felt quite confident, because these reforms were demanded by the civil society, and by the political parties. "I do hope that the next government and the governments thereafter will strengthen these reforms." The Time World Editor pointed out that Bangladesh is now going into an election with exactly same people standing for office, the same parties that have been tainted by charges of corruption and whose governance has been discredited.

In response Dr Ahmed said, "Right from Day 1, we have been saying that the anticorruption cases will be tried under normal laws of the land and everyone will be allowed due process under the law. [Zia and Hasina] have been released on bail by the courts. One of the reforms we did was making the courts totally independent from the executive branch. Basically the process will continue under the next government."

Asked about the current status of the anti-corruption drive that had landed former ruling politicians in jail after the 1/11 changeover, he said, "It's gone well. Quite a good number of people have been convicted by the courts. Cases against others are continuing in the course of law."

Asked how many people have been convicted, he said probably about 70 or 75 people. "But the anticorruption strategy also has expanded to include preventive measures. So we are building up a campaign against corruption through the independent Anticorruption Council. I believe that this kind of comprehensive approach ultimately will make corruption feature less and less in our daily lives."

The interviewer quipped: "but if politicians under corruption charges come back to power in the electionst you can see how people may think it's all been wasted."

Dr Ahmed disagreed. "I don't think so. As I said, a good number has been convicted. Yes, some of those accused are released on bail and that has been done through due process of law."

Asked about the two former prime ministers-one set free on bail in all the graft cases filed against her under the purge while the other released on parole--the CA said, "Yes, they are still facing trial."

The Time noted that the fear is that whichever party is elected will use the power to have all the charges against its own leadership dropped.

In response Dr Ahmed, whose government is conducting comprehensive reforms with military backing against the backdrop of past politico-electoral crisis, said, "I think it's a question of whether we are going back to the [old] system. There have been major changes in the system. Institutions have been strengthened, and these institutions have gotten support from society at large. I think everybody hopes that will continue."

Asked about the role of the military once the elections have been held, the Chief Adviser said, "Well, the military has a role that is defined for them. They can always come in aid of civil administration: that's also provided for in our laws."

US Senate endorse $700b bailout plan

AFP, Washington

The US government enacted a landmark $700 billion bank bailout on Friday, but investors questioned whether it could contain a panic that began on Wall Street and spread to become a global financial crisis.

The US House of Representatives approved the rescue plan by a vote of 263-171 on Friday. That sent the measure to President George W. Bush, who quickly signed it into law, concluding two weeks of high-stakes haggling over the plan that had roiled and captivated global markets.

The US House of Representatives on Friday approved a revised 700-billion-dollar Wall Street bailout, bowing to intense pressure to help avert a global economic meltdown.

Markets pivoted on passage of the US bailout, as investors' attention turned to signs of a gathering recession.

Stocks, which had been higher before the vote, dropped, with the S&P 500 index closing at its lowest level in almost four years. The dollar was also in retreat.

"This probably comes a bit too late. If this had been done earlier, it probably would have had a much bigger impact in restoring confidence," said Anna Piretti, economist at BNP Paribas in New York. US Treasury Secretary Henry Paulson, who had been the administration's chief lobbyist for the plan, said he would move quickly to buy up distressed assets from banks.

"We have shown the world that the United States of America will stabilize our financial markets and maintain a leading role in the global economy," Bush said in a short statement delivered before cameras outside the White House.

Analysts cautioned it was still unclear whether the US plan would work as advertised.

"There are more questions than answers out there still," said David Kelly, chief market strategist of JPMorgan Asset Management. "Even if the banks do participate, how willing will they be to make new loans into the economy if they can get rid of the bad ones?"

The US government has run up a bill of $1 trillion in recent weeks as it rushed to stabilize its banks, including the seizures of Fannie Mae and Freddie Mac. That cost is equal to over seven percent of the world's largest economy.

Earlier on Friday, the hobbled financial sector was bolstered as Wells Fargo & Co stepped in to buy Wachovia Corp in a deal that would take the place of a shotgun merger with Citigroup Inc brokered by US banking regulators.

But in signs of the spreading crisis, California said it was running out of money, France said the world stood on the "edge of the abyss" and European leaders divided over their response to the banking sector's difficulties.

The House had shocked world markets on Monday by rejecting a previous draft. With elections a month away, lawmakers from both parties were wary of voter backlash in asking taxpayers to pay for Wall Street's mistakes.

Earlier on Friday, the United States reported its biggest monthly job loss in 5-1/2 years, more evidence of an approaching recession. Data showed the US services sector holding up.

Earlier, the U.S. Senate approved a $700 billion bailout of the financial industry on Wednesday that political and financial leaders called crucial to averting economic catastrophe.

The bill is aimed at reinvigorating worldwide credit markets and interbank lending that had frozen up while overleveraged financial institutions staggered under the weight of failed mortgages.

Amid warnings that failure to act could plunge the country into a depression, more than 60 Senators voted in favor, exceeding the majority needed to send the measure to the House of Representatives, probably for a vote on Friday.

The House had rejected a similar measure on Monday, sending global markets into a tailspin, so congressional leaders added two sweeteners to the bill-a tax cut and extended federal protection for bank deposits-that could turn "no" voters into supporters.

Central bankers and pensioners worldwide were counting on the rescue plan to empower the U.S. Treasury to buy distressed assets from financial firms, clean up their balance sheets and jump-start lending.

The vote came amid early trade in Asian markets and the dollar climbed near a one-year peak against a basket of currencies while Japanese stocks extended losses.

The credit crisis also reverberated among European banks while recessionary signals mounted in the United States.

U.S. factory activity shrank in September to its lowest since the 2001 recession and major automakers reported plunging U.S. sales for September, led by a 34 percent slide at Ford Motor Co.

In Europe, France and Germany clashed over the idea of a U.S.-style financial rescue fund for Europe amid further signs of contagion from the global credit crisis.

Alleged terrorist, outlaw killed in RAB crossfire

Staff Reporter

An alleged terrorist and an outlawed party leader were killed in separate shootout between their cohorts and Rapid Action Battalion members at Kayatpara under Sarulia and Ataikula police stations yesterday.

He was identified as Aminur Rahman, son of Omar Ali of village Sanarpar under Siddirganj police station. He was accused in 10 cases filed with the police station.

RAB 10 sources said they arrested Aminur from Dhaka-Chittagong Highway at about noon on Thursday and took him to RAB camp at Dhalpur in the city for interrogation.

Following his confession the elite force accompanying Aminur went to Kayatpara at 4:00am to recover firearms.

Sensing the presence of the RAB members, accomplice of Aminur opened fire on the elite force. The RAB members returned fire, which resulted in a gun-battle.

During the 20-minute shootout, Aminur received bullet injury and died on the spot, source added.

The RAB members recovered a pipe gun, a country-made pistol and 10 bullets from the spot.

The body of Aminur was sent to Dhaka Medical College Hospital for autopsy.

In another incident, the deceased was identified as Shahidul Islam Shahid of Kalibari village in Ataikula police station. Shahid was a regional leader of Purbo Banglar Communist Party (ML-Lal Pataka), RAB sources said.

Acting on a tip off, a team of RAB-12 went to Raghunathpur where the extremists were holding a clandestine meeting at about 2:00am.

Sensing their presence, the gang opened fire on the elite force, forcing them to fire back that triggered a gun-battle. At one stage, the outlawed party members managed to flee the scene.

Later, the elite force recovered the bullet-hit body of Shahid from the spot.

A revolver, one rifle and 10 rounds of bullet were also recovered from the scene.

RAB sources said Shahid was wanted in a dozen of cases, including seven murders.

Emergency may jeopardise credibility of JS polls: EIU Khaleda, Hasina remain popular figures

UNB, Dhaka

London-based Economic Intelligence Unit (EIU) has said the caretaker government and the Election Commission need to overcome a number of obstacles in the weeks ahead to ensure that the forthcoming parliamentary polls are free, fair and credible.

The EIU in its October report said barring a deterioration in the security situation, the caretaker government is expected to hand over power to a new government shortly after the parliamentary election on December 18.

It said the election would be regarded as free if members of all political parties in Bangladesh were able to participate.

The report said the recent decision by the caretaker government to grant bail to a number of important politicians, arrested as a result of its anti-corruption drive, has helped fulfill its promise of a free poll.

More importantly, it said the leaders of the two largest political parties, Khaleda Zia of BNP and Sheikh Hasina of Awami League, who are both under investigation for corruption, are now in a position to participate.

Both have been granted bail, and as neither has yet been prosecuted, they could conceivably contest their seats and "one of them could become the next Prime Minister."

It said Begum Zia and Sheikh Hasina remain hugely popular figures, but the success of the AL at the elections for city corporations and municipalities in August means that it is in a favourable position to win.

It said the election would be deemed to be fair if voters were allowed to exercise their democratic rights. There remains uncertainty, however, over whether this condition can be met.

The report said severe restrictions have been placed on civil liberties since emergency rule was imposed on January 11, 2007.

It said concerns over a possible deterioration in the security situation in the run-up to the parliamentary poll are likely to prevent a complete lifting of emergency rule, although the government may relax certain restrictions ahead of and during the election.

Political parties will continue to make the full lifting of the state of emergency a primary condition of their participation in the forthcoming polls.

The EIU said maintaining emergency rule may jeopardise the credibility of the poll, especially if the European Commission decides not to send a delegation to observe the vote.

The integrity of the poll could be undermined further if the main political parties decide not to participate, but given the conciliatory stance adopted by the Election Commission in recent weeks and its ongoing efforts to engage the parties in dialogue, this seems unlikely.

The report said the BNP and the AL are already considering plans to attract smaller political parties to their camps in an attempt to increase their chances of winning the election.

Given the short time left before the poll, the report said the Election Commission may offer further compromises to ensure that the election goes ahead as planned. To this end, the EC may drop its demand for internal reforms in the main political parties. It said elections to local councils are planned to take place in two phases, on December 24 and 28, but given the protests lodged by the main parties, these may be delayed until early 2009.

The EIU said despite the efforts of the caretaker government to implement a range of reforms, the political scene will continue to be dominated by the two main parties and their respective leaders.

$165m ADB loan to boost private projects

BSS, Manila

Bangladesh will mobilise massive private sector funds to invest in infrastructure projects with the help of a $165 million loan facility to be funded by the Asian Development Bank (ADB).

The Public-Private Infrastructure Development Facility will catalyse private sector investments of up to $600 million to finance 15 to 20 projects, mostly in energy, adding at least 900 megawatts of power generation capacity in Bangladesh and providing electricity to about 100,000 more households through the renewable energy program, an ADB press release said on Friday.

ADB is providing $82 million to help finance large infrastructure projects worth more than $30 million each, $50 million to assist small and medium-sized energy projects with a total project cost size of not over $30 million each and $33 million to promote renewable energy.

A $500,000 technical assistance grant will also be provided for training and support.

"The Facility will improve the infrastructure sector in Bangladesh through increased private sector participation, thereby promoting economic growth and reducing poverty," said Peter Marro, Senior Investment Specialist at ADB's South Asia Department.

He added that private sector participation can potentially speed up the pace of infrastructure development, expand access, and deliver efficient services.

The Public-Private Infrastructure Development Facility is an integral part of ADB's sector strategy and complements ADB's parallel initiatives in governance, capital markets development, and promotion of public-private partnerships, the release said.

It will be managed by state-owned Infrastructure Development Co. Ltd. (IDCOL), which will provide financing of up to 40 percent of each project and a loan repayment period of upto 20 years. Private investors are required to inject at least 20 percent equity in the projects they invest in.

Apart from energy, IDCOL's project pipeline includes small transportation and water projects. The Islamic Development Bank is currently processing a parallel financing facility of up to $18 million for IDCOL's solar energy programme.

AL, BNP taken by surprise

Staff Reporter

Leaders of major political parties, particularly the BNP and the Awami League criticised the Chief Adviser's comment that the Caretaker Government wanted to continue with the state of emergency until December 18 general elections.

They reiterated their demand for the withdrawal of the state of emergency for creating a congenial atmosphere to hold a free and fair election terming the state of emergency as a major obstacle to a credible parliamentary polls.

The leaders also warned that they would not take part in the elections under the state of emergency.

BNP Secretary General Khondoker Delwar Hossain yesterday said a fair election is not possible under the state of emergency as voters will not be at ease to exercise their right of franchise under such a situation.

Talking to the reporters at his NAM Flat residence in the city, he said the BNP would participate in the upcoming parliamentary elections, but a congenial atmosphere has to be created for the polls.

"The four-party alliance would take part in the polls if their five-point demands were fulfilled," he said adding the alliance would hold a rally on October 12 to implement those demand.

Demanding withdrawal of the emergency, the BNP secretary general said confusion has been created in the public minds, as the dates for upazila elections have been declared immediately after the parliament polls. So, he said, the upazila election schedule has to be deferred.

AL presidium member Tofail Ahmed said the comment of the Chief Adviser is pulling the parliamentary polls towards uncertainty.

"It is clear to the people of the country that the government is trying to push back the national election," he observed.

The AL leader said the prime job of the caretaker government is to withdraw the state of emergency completely to create a level playing ground for all the political parties so that no one can accuse the government for foiling the December polls.

Another AL presidium member Begum Matia Chowdhury said the Chief Adviser violated his promise, since the CA in his address to the nation, assured the countrymen that the state of emergency will be lifted by turns before the national polls.

She also pointed out that the national election, will not be acceptable to the international community as well as the countrymen if it is held under the state of emergency."

Meanwhile, Awami League (AL) Acting President Zillur Rahman, " I am not completely aware of the Chief Adviser's (CA) comments in a interview with Time Magazine. I will comment on this issue later."

Eid celebrated

Chief Adviser Dr. Fakhruddin Ahmed embracing Army
Chief General Moeen U Ahmed at a Eid day function at the
Chief Adviser's house while US Ambassador James F Moriarty
met BNP Chief Khaleda Zia at the Ladies Club reception
arranged by BNP and AL Acting Ch

Staff Reporter

The holy Eid-ul-Fitr, one of the greatest religious festivals of the Muslims, was celebrated in the city and elsewhere in the country on Thursday amid enthusiasm and with due solemnity and religious fervour and seeking divine blessings for the continued peace, progress and prosperity of the country as well as the Muslim Ummah.

To mark the day, hundreds of thousands of devotees irrespective of their social standing attended Eid congregations in different Eidgahs, mosques and open spaces throughout the country in the morning.

After the Eid prayers, the devotees embraced each other demonstrating the fraternity among the Muslims. Men, women and children attired in their best greeted each other saying, "Eid Mubarak."

Friends, relatives and neighbours visited each other's houses, exchanged greetings and shared special diets on the occasion.

The main Eid congregation in the city was held at the National Eidgah Maidan at 8:30am under the auspices of Islamic Foundation Bangladesh and Dhaka City Corporation (DCC).

President Prof Dr Iajuddin Ahmed, Chief Adviser Dr Fakhruddin Ahmed, Speaker Barrister Jamiruddin Sircar, Chief Justice MM Ruhul Amin, Deputy Speaker Akther Hamid Siddiqui, Advisers, Dhaka City Mayor Sadeque Hossain Khoka, Judges, political leaders, and people from all walks of life offered the Eid prayer there under a tight security cover.

Acting Khatib of Baitul Mukarram National Mosque Mufti Nuruddin conducted the Eid prayer seeking divine blessings for peace and progress of the country, welfare of the people and greater unity of the Muslim Ummah.

Five Eid congregations were held at the Baitul Mukarram National Mosque. Eid congregations were also held at eidgahs, mosques and open places in the city and elsewhere in the country.

The largest Eid congregation in the country was held at Sholakia in Kishoreganj district where several lakh devotees from home and abroad attended the Eid prayers.

President Prof Dr Iajuddin Ahmed and his wife Prof Dr Anwara Begum exchanged greetings with diplomats, officials and distinguished personalities at the Bangabhaban on the occasion of holy Eid-ul-Fitr.

Dean of the diplomatic corps, ambassadors and high commissioners of different countries and chiefs of international agencies attended a reception arranged for them at 9:30am.

Later, Speaker Barrister Jamiruddin Sircar, Chief Justice MM Ruhul Amin, advisers, Chief Election Commissioner Dr ATM Shamsul Huda, judges of the Supreme Court, former advisers, ministers and members of parliament, leaders of different political parties, including BNP and Jamaat-e-Islami, chiefs of three services, vice chancellors of public and private universities, educationists, secretaries, recipients of national awards, editors and senior journalists, writers, poets, litterateurs, representatives of business community, religious personalities, artistes, high civil and military officials and retired officials attended another reception.

Dr Iajuddin Ahmed and Prof Anwara Begum welcomed the guests at the Bangabhaban and exchanged greetings with the guests and wished them a happy future.

Secretary of the President's Office Md Sirajul Islam, Military Secretary to the President Major General Mohammad Ruhul Amin and the President's Press Secretary Abdul Awal Hawlader were present on the occasion.

The Chief Adviser Dr Fakhruddin Ahmed hosted separate Eid reception for foreign diplomats and people from all walks of life from 10:30am to about 12:30pm.

He said necessary amendments were made to the electoral laws following the Election Commission's consultation with political parties, journalist community and civil society.

The Chief Adviser said preparations for holding the election are at the final stage, and the election date has already been announced.

He conveyed greetings of Eid-ul-Fitr to the countrymen and wished all of the citizens a peaceful, prosperous and beautiful Bangladesh and their good health.

Dr Fakhruddin Ahmed and his spouse Neena Ahmed exchanged Eid greetings and pleasantries with the guests.

Speaker Barrister Jamiruddin Sircar, Advisers, Special Assistants, politicians, including leaders of BNP, Jamaat-e-Islami, and JAGPA, diplomats, chiefs of three services of the Armed Forces, people from different professions and senior civil and military officials attended the

reception.

Advisers of the caretaker government, chiefs of three services, diplomats, professionals, high civil and military officials and elite people of society met with the Chief Adviser and exchanged greetings.

Under a government-announced programme, the National flag was hoisted atop public and private buildings on the Eid day.

The main thoroughfares starting from Dhaka Gate at Banani to Bangabhaban and the road islands were decorated with the national flag and banners inscribed with 'Eid Mubarak' in Bengali and Arabic.

On the occasion, the Muslims treated their guests to sweets and pilau-meat. Improved diets were served at different hospitals, jails, government children homes, vagrant welfare centres and homes for the distressed persons.

The government announced holidays from Wednesday to Friday to mark the day. Newspapers brought special supplements while TV channels broadcast special programmes on the occasion. Newspaper offices were closed till Friday.

Our correspondents from different districts, including, Chittagong, Rajshahi, Khulna, Barisal and Sylhet reported that people of those areas celebrated the holy Eid-ul-Fitr amid enthusiasm and with due solemnity.

However, morning rain and drizzle marred Eid congregations at different places.

Meanwhile, DhakaBashi, a social organisation of the city, brought out a traditional and colourful rally in the city on Friday, the following day of the holy Eid-ul-Fitr, conveying the Eid greetings to city dwellers.

8 public banks owe NBR Tk 895cr in tax arrears

Staff Reporter

Four public limited commercial and four government specialised banks owe Tk 895 crore in income tax arrears to the National Board of Revenue (NBR), official sources said.

The NBR last week has requested the Ministry of Finance to deposit the said amount to the government exchequer, as the ministry is parent organisation of the banks.

These banks have not been paying any income tax since 1986-87 fiscal, the revenue authority said in a letter last week and requested the Finance Ministry to make the payment from its specified head of expenditures.

"The payment of long overdue tax money will help the NBR meet its revenue income target," said a high official of the Finance Ministry.

He said the Ministry would prepare a proposal to release Tk 895 crore after the Eid vacation and send it to Finance Adviser Dr Mirza Azizul Islam for approval.

According to the sources, the Bangladesh Shilpa Bank owes Tk 42 crore, Rajshahi Krishi Unnayan Bank Tk 4.72 crore and Bangladesh Krishi Bank Tk 89 crore.

Unpaid income tax of Janata Bank totalled Tk 316 crore, Sonali Bank Tk 279.63 crore and Rupali Bank Tk 48 crore, while Pubali Bank owes Tk 80 lakh.

The NBR realised tax arrears of Tk 1,300 crore from Bangladesh Petroleum Corporation through budgetary provision in the last fiscal year, sources said.