ANTI-CORRUPTION CHIEF LOOKS PAST ELECTION TO

C O N F I D E N T I A L SECTION 01 OF 02 DHAKA 001268

SIPDIS

DOJ FOR OPDAT BARBARA BERMAN

E.O. 12958: DECL: 12/01/2018
TAGS: ELAB KCRM KDEM PGOV PINR PREL BG
SUBJECT: ANTI-CORRUPTION CHIEF LOOKS PAST ELECTION TO
INCREASED ROLE FOR HIS COMMISSION

Classified By: Geeta Pasi, Charge d'Affaires, a.i.
Reasons 1.4(b) and (d)


1. (C) Hasan Mashud Chowdhury, Chairman Bangladesh,s Anti-
Corruption Commission, has attempted to keep the ACC out
of political deal making preceding the national
parliamentary elections slated for later this month.
Chowdhury interprets the recent increase in judicially
granted bails and their subsequent approval upon appeal as
a result of the Supreme Court,s desire to overcome division
between the trial and appeal courts. The ACC Chairman,s
vision for the future includes expansion and training of
staff and a focus on corruption within the judiciary. It
is not clear whether Chowdhury, or his reforms of the ACC,
will survive once an elected government comes into
office.

Political Scenario
--------------


2. (C) During a recent meeting, ACC Chairman Hasan MaShud
Chowdhury shared his views on the upcoming for the December
29, 2008 national parliamentary elections. He predicted the
caretaker government would continue to give in to the
demands of the parties, saying the political parties were
driven by a desperate desire to come to power and motivated
primarily by fear of losing the elections. In
handicapping the election, he noted that the Awami League
had an advantage in that it had a second string of
potential candidates beyond those potentially ineligible
based on criminal convictions or other reasons. He
encouraged the USG to help temper BNP leader Khaleda Zia,s
rhetoric. He acknowledged that boycotting the elections in
1986 had helped the BNP gain supporters in the long run.
Contrasting the events of 1986 with the current situation,
he predicted that the BNP would lose, not gain, if it failed
to participate in the elections. Chowdhury stressed the
importance of the ACC remaining impartial and outside any
political deal making.

Personal Accusations and the Judiciary
-------------- --


3. (C) Recently, former BNP Energy Advisor Mahmudur Rahman
accused the ACC Chairman of engaging in money laundering
during his past tenure as Chairman of the Bangladesh
Army-controlled Trust Bank. Rahman, a close advisor of BNP
Chairperson Khaleda Zia, was himself a target of an ACC
investigation. Chowdhury opined that targets of corruption
investigations have sought to distract the ACC and other
agencies from their work by maligning those organizations
and their employees.


4. (C) Founded in the British legal tradition, the
judicial system in Bangladesh establishes the Supreme Court
as the highest court in the land. The Supreme Court has
two divisions - the High Court Division (basically a higher
level trial court) and the Appellate Division (which hears
appeals from the High Court). Until June and a shift in
Chief Justices, the Appellate Division generally showed
itself willing to overturn actions taken by the High Court in
anti-corruption cases. Chowdhury noted that, in the past six
months, the High Court had granted an extraordinary number of
bail requests to persons accused of corrupt practices.
During the same period and in a departure from past practice,
the Appellate Division has been less willing to overturn such
actions taken by the High Court.


5. (C) Chowdhury described Judge MM Ruhul Amin (head of the
Supreme Court since late May 2008) as a &wise man8 whose
goal was to unify the two court divisions, and dispel the
appearance of a divided Supreme Court, with the High Court
and Appellate divisions frequently heading in opposite legal
directions. He expressed concern, however, about the costs
involved in reaching such unity, with both judicial divisions
supporting the decisions to grant bail in controversial
cases. Later, Chowdhury stated that half the judges were
from political parties, and party loyalty blinded them.
Finally, Chowdhury revealed that the ACC was investigating
three cases focusing on the finances of particular judges
which would be pursued in the post-election period. He
stated that the ACC would complete those investigations after
the elections to avoid possible accusations of

DHAKA 00001268 002.2 OF 002


politically-motivated prosecutions and &tit for tat8
punishment by the ACC aimed at the judiciary.

The Future of the Commission
--------------


6. (C) The ACC Chairman revealed an ambitious plan for the
post-election period. In his opinion, the ACC will no
longer have to be as concerned about the appearance of
partisanship after the elections. In fact, he sees a
post-election period marked by decreased attempts to
interfere with the ACC, given the conclusion of the current
round of political negotiations.


7. (C) Chowdhury outlined his plans for the ACC to regroup
in 2009. The Chairman acknowledged that the ACC,s existing
personnel did not understand their role and functions and
said he planned to hire additional people and conduct
needed training. He welcomed US assistance in this
regard. Chowdhury highlighted the ACC,s increasing
cooperation with foreign banks and governments and
enhanced involvement in international anti-corruption
efforts such as Corruption Hunter Network and Global
Witness.

Comment
--------------


8. (C) Chowdhury has ambitious plans for the ACC, for the
coming year and acts as if he intends to remain in place
after the elections. Ultimately, however, his survival
depends more on the willingness of the new government to keep
him than his own desires. The ACC should play a significant
role in Bangladesh,s law enforcement community. The
recently enacted Money Laundering Ordinance of 2008 specifies
that the ACC is the entity charged with investigating all
money laundering related cases, not just cases involving
corruption. This designation signifies a crucial role for
the ACC in combating money laundering and financial crimes in
general. The DOJ Resident Legal Advisor,s Office will
spearhead the Embassy,s efforts to assist the ACC with its
training and development needs. At the same time, to ensure
the ACC,s continued relevance, we will have to work with the
next government to ensure its support for the Commission,s
work.
PASI