Introduction :

Corruption is a complex social, political and economic phenomenon that affects all countries.
Corruption is a form of dishonesty or a criminal offense which is undertaken by a person or an
organization which is entrusted in a position of authority in order to acquire illicit benefits or
abuse power for one's personal gain. Greed of money, low level of democracy, weak civil
participation, low political transparency, low press freedom, low economic freedom, lack of
morality, poverty, political instability, lack of transparency and accountability, lack of proper
policies against corruption etc are causes of corruption. Bribery, embezzlement, theft, fraud,
graft, extortion, blackmail, influence paddling, networking, abuse of discretion, nepotism,
favoritism, clientelism etc are some methods of corruption. There are many theories related to
the incidents of corruption. Rational choice theory assumes that individuals are driven by their
preferences when they make any decision. According to Scott (2008), institutional theory is a
widely accepted theoretical posture that emphasizes productivity, ethics, and legitimacy.
Corruption occurs in such a situation where Institutional weakness like lack of transparency,
accountability and oversight exist. Principle Agent theory emphasizes on the relationship
between the principle(the government or the public) and an agent( government officials and
politicians) The two parties always want to act in their own interests without considering the
others. Game theory means strategic interactions among rational decision makers. The actors
in this process wanted to maximize their own benefits. Rent seeking theory means the activities
of group and people to seek economic rewards by manipulating political and government
framework rather than engaging productive activities. Collective action theory means that the
incidents of corruption occur through the collective activities of groups or organizations driven
by shared interests, norms and incentives.Here,we discuss about seven settled case against
corruption during(2003-2004) analysing through theories.Masud Ahmed, postal operator of
the Dhaka central postal office, was sentenced to 21 years imprisonment for embezzling about
13 lakh taka from the postal department by showing fake pension in 11 August 2003.The anti
corruption bureau did not find the truth of corruption charge against 8 employees of Khulna
University in October 4,2003.Navy Frigate scandal against former PM Sheikh Hasina filed in
August 7,2002 and got bail in August 30,2003.Former president HM Ershad was accused of
involving in oil extraction work from Sylhet Horipur to Scimitar exploration without
international tender in 1 June 2003.The high court granted bail to the former minister Shah A
M S Kibria and fomer MP Dr H B M Iqbal in a separate ETV corruption case settled in June
8,2003.The High court settled the corruption case against the Khaleda zia alleging for causing
financial damage to the government in 11 September 2003.Captain Atiur Rahman and 3 army
members were accused of extortion of 3 lakh taka and was sentenced to seven years
imprisonment.

Definitions of Corruption:
Corruption is a form of dishonesty or a criminal offense which is undertaken by a person
or an organization which is entrusted in a position of authority, in order to acquire illicit
benefits or abuse power for one's personal gain.
By Emmanuel Kreike-
Corruption can be defined as breaking the rules pertaining to a certain office, it can be
defined economically, and it can be defined as acting against general interest.

By Oxford-
Dishonest or illegal behavior, especially of people in authority allegations of bribery and
corruption The new district attorney has promised to fight police corruption.

By Merriam Webster-
Corruption is dishonest or illegal behavior especially by powerful people.

By Joseph S. Nye-
Corruption is “behavior which deviates from the formal duties of a public role because of
private-regarding (personal, close family, private clique) pecuniary or status gains; or
violates rules against the exercise of certain types of private- regarding influence.

By World Bank-
Corruption is the abuse of public office for private gain—covers a wide range of behavior,
from bribery to theft of public funds. Corruption exists all over the world, but it is usually
present in countries with weak institutions, often affected by fragility and conflict.

Observation of Corruption in Bangladesh during 2003-2004:

After observing headlines of “Prathom alo” news daily, cases from 2003-2004 paint a grim
picture of corruption in Bangladesh, spanning across government agencies, political
institutions, defense procurement, media, and the military. Implications of corruption on
Bangladesh during 2003-2004 is observed by TIB ( Transparency International Bangladesh)
commented thus if you review the prevalence of corruption in Bangladesh, it is really
disappointing. There is more or less corruption in the country's politicians, bureaucracy,
businessmen, industrialists, people involved in every profession and even the general public.
As days go by, the prevalence of corruption is increasing.

A lot of bribery and corruption is also heard in the payment of various bills including the project
work of the office of education, health, rural development, PWD, accounts and audit etc.
Without listing it like this, it can be said that where there is expenditure of money or any
approval process, there is more or less possibility of bribery and corruption. Underestimation,
excessive profiteering, adulteration of food and consumables, tax and VAT evasion are
commonplace in business.

Not teaching properly in schools-college-universities, charging extra fees or unnecessary and

wrong treatment in hospitals, embezzling bank money, taking bank loans with false
information, sending money abroad by money laundering, etc. are often heard of wrongdoings.
Abusing power to benefit someone and harm someone, giving false testimony in court or any
investigation, political corruption, etc. is a higher level of corruption.

After declaring the report of TIB on 8.10.2003 Prothom alo while describing the consecutive
top position of Bangladesh in corruption commemorate that when Bangladesh was identified
as the top corrupt country in 2001 and the then Awami League government rejected this report
of TIB. And after the same incident in 2002, BNP Chairperson Khaleda Zia said that the
corruption of the former Awami League government has brought Bangladesh to this
stage.

After deeming the international Anti-Corruption organisation based in berlin Transparency

international index from 2001-2004, it was observed that although from 2001 Bangladesh's
position slightly changed but still held inglorious position on the table. The positions and
obtained point out of 10 is giver during 200-2004:

Year Bangladesh (Score,

Rank)
2001 0.4 (91)
2002 1.2 (102)
2003 1.3(133)
2004 1.5 (145)

According to the Protham Alo on 28 September 2003 stated that has been found that
the total number of cases pending and under investigation in the Anti-Corruption Bureau is 7
thousand 738 till last June. 4 thousand 838 cases pending trial in court and 2 thousand 900
cases under investigation in Anti-Corruption Bureau. Apart from this, 8 thousand 500
complaints received in the Anti-Corruption Bureau are under investigation. Therefore, the
overall situation of Bangladesh in corruption is yet a major concern and impactful combined
initiative of government, people and law enforcing agency, anti-corruption Commission
(dudok) is needed to erupt corruption from our country.
1.

Date: 11 August, 2003

Title: “The high cost of Greed: Postal operation faces 21 years in prison for
corruption”

Case description: Court has sentenced Masood Ahmed, the postal operator of Dhaka
Central Postal Office or GPO to 21 years imprisonment for embezzling about 13 lakh taka from
the postal department by showing fake pension. Last Saturday, Dhaka Divisional Special Judge
Mohammad Azizul Haque announced this verdict in his tribunal. The court gave this verdict
after reviewing the testimony of seven witnesses and other information. Accused Masud
Chowdhury was present in the court during the pronouncement of the verdict. The court
imposed a fine of Tk 14 lakh on the accused in addition to imprisonment. Failure to pay the
fine will result in additional 1 year imprisonment. According to the complaint, the accused
served as a postal operator from July 20, 1997 to February 1998. At that time, he made 36 fake
vouchers and withdrew Tk 13 lakh 6 thousand through pay order with postmaster’s fake
signature.

Relation of Corruption case with theories: This case of embezzlement defines interplay of
institutional and societal norms and economic interest. For proper understanding of accused
motives, theories can be an conclusive illustration with best approach:

1. Rational Choice Theory: This theory basically proposed that Masud Chowdhury’s
actions of creating fake vouchers and withdrawing a large sum of money through
fraudulent means is an rational action. He purposefully perceived the benefits of
embezzling funds to outweigh the potential risks, such as detection and punishment. By
exploiting his position as a postal operator, he could access the funds and rationalized
his actions based on the financial gain he derive himself to achieve.
 2. Institutional Theory: The case also highlights institutional weaknesses within the
postal system that allowed corruption to occur. The lack of proper supervise, fragile
internal controls, and faint accountability mechanisms enabled Masud Chowdhury to
carry out his embezzling activities without detection for a significant period of almost
1 year. This suggests systemic issues within the postal service that facilitated corrupt
behavior and contribute to such corrupt practice within system.

3. Cultural corruption: This theory posits that Masud Chowdhury’s actions may have
been influenced by cultural norms within the organization or broader society that either
forgo or tolerated as society by itself able to digest it. In environments where corrupt
practices are normalized or perceived as necessary to achieve personal gain, individuals
like Masud may be more likely to involve in such behavior. Addressing these cultural
norms is essential for combating corruption effectively.

Overall, this case exemplifies how corruption can manifest within institutions and systems, and
how different theories can help understand the underlying motivations and dynamics involved.

Suggestions:

Corruption nowadays is perniciously prevalent in every sphere of social, political, economic

structure. Assertion of power, abuse of public office and authority in transports, finance,
banking and insurance, hospitals and clinics, business and political parties, educational
institutions and many more sectors are plunged into corruption.

To address corruption and fraudulence in society and institutions, a pragmatic reformative

resolution could involve a multi-faceted approach:

1. Strengthening Oversight and Accountability: Implementing robust oversight

mechanisms within institutions can help detect and prevent corruption. This includes
regular audits, transparent financial reporting, and independent oversight bodies with
the authority to investigate allegations of corruption.
2. Enhancing Transparency: Promoting transparency in government processes,
procurement, and decision-making can reduce opportunities for corruption. This can be
achieved through measures such as public disclosure of financial information, open
bidding processes for contracts, and whistle-blower protection laws.

3. Strengthening Legal Frameworks: Enacting and enforcing laws that criminalize

corruption and fraud, with appropriate penalties for offenders, is essential. This includes
prosecuting individuals involved in corrupt activities, regardless of their position or
influence.

4. Promoting Ethical Leadership: Fostering a culture of ethical leadership and integrity

within institutions is crucial. This involves promoting values such as honesty,
accountability, and professionalism among public officials and employees.

5. Enhancing Public Awareness and Participation: Educating the public about the
detrimental effects of corruption and fraud on society, and empowering them report
instances of corruption, can help create a more vigilant and accountable society.

6. Utilizing Technology: Leveraging technology, such as digital payment systems, block

chain, and data analytics, can help reduce opportunities for corruption and improve
transparency and accountability in financial transactions and government operations.

7. Strengthening Anti-Corruption Institutions: Investing in the capacity and independence

of anti-corruption agencies, such as anti-corruption commissions or ombudsman
offices, can enhance their effectiveness in investigating and prosecuting cases of
corruption.
By implementing these measures collectively, society and institutions can work towards
impeding corruption and fraudulence, thereby fostering trust, integrity, and accountability in
governance and public service.

2.

Date: October 4, 2003

Title: Disproven Allegations: Anti-Corruption Bureau Finds No Truth in

Corruption Scandal

Case summary: The anti-corruption bureau did not find the truth of the corruption charges
brought against 8 employees of Khulna University. In a letter sent to the officials, the
AntiCorruption Bureau has cleared the allegations against eight officials of Khulna University.

An anti-corruption bureau team investigated the work of two Kabikha projects on the ground
in the presence of two representatives of the university, two engineers of the water development
board and the chairman members of the local union council. After investigation by the
investigation team, a letter signed by the deputy director of AntiCorruption Bureau, Tankforce
Four, was sent to the accused as the complaints filed against the project president and eight
officials were not proved. Four cases were filed against eight officials of the project committee
without measuring the earthwork of ten TR projects. The victims also termed all four cases as
intentional.

Case Relation with theories:

This case can be analyzed through the lens of the Institutional Theory of corruption.
The Institutional Theory:

The theory suggests that corruption often thrives in environments where institutional
weaknesses, such as lack of transparency, accountability, and oversight, exist. Institutional
theory considers that corruption is influenced the character, design and transparency of the
political system and its institutions. At the same time, it acknowledges that the relationship
between corruption, institutions, political systems, culture and gender is highly complex
(Debski and others, 2018; Stensöta, Wängnerud and Svensson, 2015).

In this case, the fact that the Anti-Corruption Bureau cleared the allegations against the eight
employees of Khulna University despite complaints filed against them highlights potential
institutional weaknesses. The involvement of multiple parties, including representatives from
the university, engineers from the water development board, and local union council members,
in the investigation suggests a complex institutional framework. However, if these institutions
lack proper mechanisms for oversight and accountability, it could create loopholes for
corruption to go undetected or unpunished. Conversely, rival factions within the university or
external stakeholders may have sought to discredit or undermine the accused employees for
personal or political gain. If they were falsely accused, they may have faced reputational
damage and legal consequences despite their innocence, prompting them to defend themselves.

Moreover, the filing of cases against the officials based on allegations of intentional
wrongdoing without proper evidence or measurement of the earthwork further underscores
potential institutional deficiencies in the legal and investigative processes.

Overall, the case highlights the importance of strengthening institutional frameworks,

including anti-corruption agencies, to effectively combat corruption and ensure accountability
in public institutions. Without robust institutional mechanisms in place, corruption allegations
may not be thoroughly investigated or addressed, undermining public trust and perpetuating a
culture of impunity.

Recommendations in thus case are already mentioned.

3.
Case filed: August 7, 2002.

Case settled: August 30, 2003

Tittle: Navy Frigate Scandal: Former PM Sheikh Hasina and Accused Get
Bail

Case summary: It is said in the complaint of the case that the accused have caused a loss of
511 crores 17 lakhs 9 thousand 823 taka 15 paisa to the government in connivance with each
other. The Anti-Corruption Bureau filed a charge sheet against six people in the court on
August 3. The Anti-Corruption Bureau had filed the case at Tejgaon police station on August
7, 2002.Charges against former prime minister Sheikh Hasina and five other accused in the
corruption case related to the purchase of frigates for the navy. The other five accused in the
case are FBCCI President Abdul Awal Mintu, former Navy Chief Rear Admiral (retd) Nurul
Islam, former Assistant Navy Chief Commodore (retd) AKM Azad, Commodore (retd)
Harunur Rashid and Commodore (retd) M Shahabuddin.Dhaka Divisional Special Judge
Azizul Haque was in the duty of handling this case.

Sheikh Hasina and others got bail of this case on August 30, 2003. They’ve applied and got
bail on a surety of Tk 1 lakh.Barrister Roknuddin Mahmud, president of the Supreme Court
Lawyers Association, applied for her bail on behalf of Sheikh Hasina. He said that Sheikh
Hasina was the Prime Minister of the country and is currently the leader of the opposition in
the Parliament. He has been involved in this case for political harassment. It has been said that
frigates were purchased for the Navy through an inter-ministerial meeting, but they were
involved in this case with the intention of harassment. The defendant in the case, the newly
elected president of FBCCI, businessman Abdul Awal Mintoo, applied and got bail on a surety
of Tk 1 lakh. The other four accused in the case, former Chief of Naval Staff Real Admiral
(retd) Nurul Islam, former Assistant Chief of Naval Staff Commodore (retd) AKM Azad,
Commodore (retd) Harunur Rashid and Commodore (retd) M Shahabuddin were granted bail
by the same court.They were also present in court at 30th august. The case was referred to
Departmental Special trial and sent to court. Management of the case on behalf of the applicant
Barrister Roknuddin Mahmud, Advocate Mahbube Baset Majumdarth, Rahmat Ali, Abdul
Matin Khosru, Sahaba Dhatun, Syed Rezaur Rahman, Kamrul Islam etc. PP Abdullah Mahmud
Hasan, Additional PP Gholam Mostafa Khan and Md Khorshed Alam appeared for the state.
Related theory with this case:

Rational choice approach theory: We can see the connectivity of navy personnel’s with this
case. Its more likely a collective corruption where self-interest influenced them to do so. We
can connect it with the rational choice approach theory. Mostly with the ‘Prisoners dilemma’
approach. Rational choice theory model explains human behavior as the result of individual,
self-interested preferences. People are calculating and strategic and they carefully weigh the
costs and benefits of certain actions before undertaking them. Moreover, individuals have
fixed, well-defined, ranked, and consistent preferences, and they behave instrumentally to
achieve those preferences. The ultimate goal for individuals is to maximize utility: to attain
whatever goal makes them happier, more satisfied, or better off, such as power or money.

‘Prisoner’s dilemma’ actually explains Collective action approach. Corruption may be a

particular type of collective action problem, a prisoner’s dilemma, wherein individuals have
incentives to pursue their own self-interest rather than work with others towards the collective
good. Sometimes it is labelled as the “social dilemma”

Suggestions:

Minimizing self-interest is necessary: Most of the time we can notice that people do corruption
based on self-interest. So minimizing self-interest can help to reduce corruption.Focusing on
collective good: When collective good will be prioritized then self-interest based corruption
will be minimized.

Reference:

[1] Prothom Alo, Sheikh hassina & the frigate corruption case, 30th October 2003.

4.

Date: 1st June, 2003

Case Title: Ex-president Hussain Muhammad Ershad Walks Free: Granted

Bail in Oil Extraction Case
Case Summary: Former President HM Ershad who was accused appeared in court on Saturday
and got bail in the case filed against him for awarding oil extraction work in Sylhet’s Haripur
to Scimitar Exploration without international tender. Metropolitan Sessions Judge Matiur
Rahman granted his bail on Tk 50,000 bond.

When he reached the court, a large number of Jatiya Party leaders and workers welcomed him
there. At that time, among others Secretary General of Jatiya Party ABM Ruhul Amin
Hawlader, Presidium Member Sayed Abul Hossain Babla, Professor Delwar Hossain Khan and
many were present.The case was conducted by Advocate Sheikh Shirajul Islam, Alimullah
Majumdar, Muniruzzaman and many on his behalf. On May 12, the Anti-Corruption Bureau
filed a charge sheet against HM Ershad and former communications minister Anwar Hossain
Manju. The case was filed in Tejgaon police station on January 16, 1996 for allowing Scimitar
Exploration Limited to extract oil from the Haripur oil field without inviting international
tenders.

Case relation with corruption theory:

By analysing the case it can be related with the corruption theory of Rational Choice.

Rational Choice Corruption Theory: This theory is a framework used to analyse and
understand the dynamics of corruption by focusing on the rational decisions made by
individuals involved in corrupt practices. This theory postulates that individuals engage in
corrupt behaviours when they perceive that the benefits of committing corrupt acts outweigh
the potential costs and risks associated with getting caught and punished. They weigh the
potential benefits they can gain from corrupt activities, such as financial gain, power, or status,
against the potential costs and risks involved, such as legal consequences, reputational damage,
or loss of trust.

According to this theory, individuals are assumed to be rational actors who make decisions
based on self-interest and a calculated assessment of the consequences of their actions. They
choose corruption as a means to achieve their goals when they believe it is more beneficial than
engaging in legal and ethical behaviour.

While the theory focuses on individual decision-making, it also recognizes the role of
institutional and systemic factors in shaping corrupt behaviours. The theory emphasizes that
corrupt activities thrive in environments where there are opportunities and incentives for
individuals to engage in such behaviours. Structural issues such as poor governance, political
corruption, weak rule of law, lack of transparency, ineffective oversight mechanisms, and a
culture of impunity can create favourable conditions for corruption to occur.

In the above described case it is seen that HM Ershad gave the permission to extract oil from
Haripur oil field to Scimitar Exploration without any international tender. While it is clear that
it was his rational choice to choose self interest and greed over moral values and laws, it also
shows the flaws and incapability of the government. Because of the weak structure and lack of
transparency in the system such big corruption can happen.

Suggestions: Strength Transparency and Accountability : It is clear from above case that the
lack of transparency and accountability in government system is responsible to great extant for
corruptions to take place. So, to eliminate corruption clear and transparent processes in
government operations and decision making have to be established. Also, implementation of
mechanisms such as regular audits and disclosure requirements are must.

International Cooperation: In the mentioned corruption case the corruption happened with
the involvement of an international company which is Scimitar Exploration, a US oil company.
So, to prevent this type of corruption it is necessary to collaborate with international
organizations, other governments and civil society groups to share best practices, exchange
information and combat cross-border corruption.

5.

Date : 17 June 2003

Title: Fourteen Years Later, ETV Corruption Case Sees Latest Development
With Bail Grants

Case description: In a separate corruption case, the High Court granted bail to former Finance
Minister Shah A M S Kibria and former MP Dr. H B M Iqbal. Besides Former Information
Secretary Akmal Hossain also got bail from the High Court.
Former Finance Minister and Awami league leader Shah AMS Kibria MP and former
Information Secretary M Akmal Hossain were yesterday granted anticipatory bail for 6 months
in ETV corruption cases. A High Court bench consisting of Justice Syed Amirul Islam and MA
Hafiz passed the order.

The Bureau of Anti-Corruption (Bac) filed two cases with Ramna Police Station on June 8,
2003.

Abu Sayeed and Akmal Hossain faced allegations of irregularities in the licensing process for
ETV, while Kibria was charged with facilitating ETV’s evasion of telecast royalties, leading to
Bangladesh Television (BTV) a lose of Tk 1.24 crore from March 8, 2000 to August 29, 2002.

In 1998, 17 organizations submitted the-ir proposals after the governme-nt opened up the
proce-ss to set up and run a private TV channel. A te-chnical committee led by Anisur Rahman
e-valuated the proposals and identifie-d three organizations as the “most responsive” –
Multimode Transport Expert Ltd., Autonomous Me-dia Benefit, and Beximco Me-dia Ltd.

The- technical committee rejected the proposals from 11 othe-r organizations, including ETV
and Minard (Bangladesh) Ltd, as “nonresponsive”. However, after submitting the report to the
Information Secretary Akmal on July 9, 1998, Anisur was asked to include the “non-
responsive-” ETV in the “responsive” list, as pe-r the wishes of the “highe-r authorities”.

The re-cent report placed e-ight firms on top by recommending ETV. Multimode Transport
Consultant Ltd e-nded up last. Another ‘non-responsive-’ company, Minard, came second.
Beximco Me-dia Ltd was labeled ‘non-responsive-’ as well.

Relation of Corruption Case with Theories:

Analyzing this corruption case in relation to theories of corruption:

1. **Principle-Agent Theory**: This theory focuses on the relationship between a

principal (e.g., the government or the public) and an agent (e.g., government officials
or politicians) who acts on behalf of the principal. In this case, the government officials,
including the former Finance Minister, former MP, and former Information Secretary,
 are the agents entrusted with public responsibilities. However, they may act in their
own interests rather than in the interests of the public (the principal).

Government officials had access to information and authority regarding the licensing process
for private TV channels. They abused their power by manipulating the evaluation process to
favour certain organizations, including ETV, which led to allegations of irregularities and
corruption.

The actions of the government officials, such as instructing the technical committee to include
ETV in the list of “responsive” organizations despite being initially deemed “non-responsive”,
demonstrate a moral hazard. They prioritized their personal interests or those of influential
parties over the public interest, potentially causing harm or loss to the government and the
public broadcaster.

The Bureau of Anti-Corruption (Bac) filing cases against the accused and the subsequent legal
proceedings represent the principal’s attempt to control and hold the agents accountable for
their actions. However, the granting of anticipatory bail by the High Court may indicate
limitations in the principal’s control mechanisms or the challenges in prosecuting corruption
cases involving influential individuals.

2. **Game Theory**: Game theory analyzes strategic interactions between rational

decision-makers. In this case, the government officials and other actors involved in the
licensing process may have engaged in strategic calculations to maximize their own
benefits. The manipulation of the technical committee’s report and the inclusion of ETV
in the “responsive” list could be seen as strategic moves to secure favorable outcomes
for ETV and potentially gain benefits or favors in return. The actions of the government
officials and other actors can be viewed as part of a strategic “game” to exploit
loopholes in the system for personal or collective gain.

Overall, while all the theories provide insights into different aspects of corruption, the
Principle-Agent Theory and Institutional Theory appear to be particularly relevant in
understanding the dynamics of corruption in this case, highlighting issues of trust,
accountability, and institutional

integrity.

Recommendations:

1. Independent Evaluation Committees: Establish independent evaluation committees

comprised of experts from relevant fields to evaluate proposals objectively. These
committees should be insulated from political interference and influence, ensuring that
decisions are based solely on merit and compliance with regulations. As a result, taking
illegal means will be particularity identified and easily bring into book.
2. Other suggestions have been given in the previous cases

6.

Date: 11 September, 2003

Title: “Corruption case against Khaleda Zia, alleging for causing financial
damage to the government: Dismissed by the High Court.”

Case description:

The High Court dismissed the corruption case related to the purchase of two Airbus of Biman
filed during the Awami League era against eight people including the Prime Minister Begum
Khaleda Zia. As a result, eight accused including the Prime Minister were acquitted of the case.
The recreational bench of the High Court consisting of Justice Md. Zainul Abedin and Justice
Tariq Ul Hakim announced this verdict. The court said in the judgment that Biman’s purchase
of Airbus was an internal matter of Bangladesh Biman. Biman bought aircraft from abroad with
their own money. In this case, the Cabinet Committee regarding the purchase of aircraft took
the final decision. Allegations of corruption that the planes were purchased without ECNEC’s
approval were not true. As a result, the court dismissed all proceedings of the case.

When the Awami League government was in power, the anti-corruption bureau filed a case
against eight people including Khaleda Zia at Motijheel Thana on August 30, 1998, alleging
government damage of 174 crore 88 lakhs 62 thousand 500 Tk. The other accused in the case
were the Finance Minister M Saifur Rahman, the then Minister of State for Civil Aviation and
Tourism Abdul Mannan, Md Ayubur Rahman, Mahmudur Rahman, Anwar Hossain, Abbas
Uddin Khan and Md Siddiqur Rahman. On October 3, 2000, the charge sheet was filed in the
court. Begum Khaleda Zia got bail from the court on November 6, 2000, when the case was
sent to the Divisional Special Judge Court for trial. Advocate Khandaker Mahbubuddin Ahmad
handled the case on behalf of the petitioner. He was assisted by advocate Ruhul Quddus Kajal.
On the other hand, Attorney General ABM Waliur Rahman Khan, Ibrahim Khalil and Farah
Mahbub appeared for the government.

Relation of the case with theories along with suggestions :

Though the case was finally cleared by the High Court, the allegations can be related with some
theories of corruption.

1) Institutional theory: According to institutional theory, the norms, policies, and

standards that are rooted in institutions have an impact on corruption. The procurement
procedure and corruption tendency of Biman Bangladesh Airlines were shaped by the
institutional framework of the aviation industry and government control systems.

As a state-owned company in the aviation industry, Biman was vulnerable to institutional

pressures from the inside as well as the outside. It’s possibly that Biman’s internal
organizational culture and procedures helped to create an environment that encouraged
dishonest behavior. When internal controls, accountability systems, and openness are lacking,
people may feel free to act corruptly without worrying about being caught or facing
consequences. Externally, Bangladesh’s broader institutional environment, which includes
political favoritism, bureaucratic inefficiencies, and regulatory deficiencies, may have allowed
illegal procurement practices. Political involvement, in particular, may damage institutional
integrity and increase rent seeking behavior among government officials and commercial
organizations.

Suggestion: To reduce the risk of corruption, the institutional theory insight emphasizes the
demand for reforms that strengthen institutional integrity, increase transparency and
accountability, and develop an ethical culture within both public and private sector
organizations.

2) Principal-agent theory: The principal-agent theory sheds light on the interaction

between government officials, who function as principals, and Biman Bangladesh
Airlines, which serves as their agent. In this scenario, government officials charged with
monitoring Biman’s initiatives and procurement decisions are required to behave in the
best interests of both the government and the public. However, the principal-agent
relationship is liable for agency difficulties, in which agents prioritize their own self-
interest over the principal’s aims. Allegations of corruption in the Aircraft purchase case
point to an error in the principal-agent relationship, with authorities potentially putting
personal benefit or political concerns ahead of public welfare. In this context, agency
difficulties are caused by poor oversight systems, a lack of openness in decision-making
processes, and insufficient checks and balances to hold agents to blame for their actions.
Furthermore, political favoritism and rent-seeking behavior may worsen agency issues
by generating incentives for collaboration and corruption among principals and agents.

Suggestion: To address agency concerns, changes must be implemented to align principals’

and agents’ interests, strengthen monitoring and control mechanisms, and develop an ethical
culture among government officials and corporate companies. To reduce the possibility of
corruption in principal-agent relationships, accountability mechanisms should be strengthened,
procurement processes should be made more transparent, and anti-corruption laws must be
enforced.

3) Rent-seeking theory: Rent-seeking theory explains how people or groups seek

economic rewards by manipulating the political or governing framework rather than
engaging in productive activity. In the instance of Biman Bangladesh Airlines’ Airbus
 purchase, charges of corruption point to rent-seeking behaviour by government officials
and corporate organizations engaged in the procurement.

Rent-seeking conduct can take many forms, including bribery, kickbacks, and influence
advertising, all aimed at obtaining favourable results or contracts. In this case, allegations that
the Airbus purchase was done without necessary permission processes may indicate attempts
to avoid regulatory supervision and use system flaws for personal gain.

Rent-seeking behaviour is influenced by regulatory capture, which occurs when private

companies influence governmental processes to favour their own interests, as well as
insufficient implementation of anti-corruption laws. Political favouritism and clientelism can
also encourage rent-seeking by acknowledging loyalty and providing with lucrative
opportunities.

Suggestion: To prevent rent-seeking behaviour, officials must address systemic operators of

corruption, such as regulatory gaps, ineffective enforcement structures, and institutionalized
funding networks. Building regulatory frameworks, increasing competition and transparency,
and raising public knowledge and engagement are necessary tactics for reducing the risk of
rent seeking behaviour while also enabling equitable and sustainable development.

7.

Case Tittle: Seven Years in Jail: Capt. Atiqur Rahman Sentenced for
Extortion and Corruption

Case summary: The martial court headed by Lt. Colonel Rabiul Matin Chowdhury from Savar
cantonment announced this verdict against the accused captain Atiqur Rahman and three army
member. It was formed to verify the veracity of the allegations against Captain Atiq and four
army officers in connection with the arrest of Indian citizen Suresh Kumar Dhanuka from
Bangabazar of the capital and the extortion of Tk 3 lakh. The accused were interrogated several
times and evidence was found of their involvement. In judgment as per the rules of the martial
court, Captain Atiqur Rahman and three army personnel were dismissed from their jobs and
sentenced to various terms of imprisonment.

Capt. Atiqur Rahman in the pronounced judgment was sentenced to seven years rigorous
imprisonment with suspension from service, soldier Mizanur Rahman was sentenced to four
years rigorous imprisonment with suspension from service and soldier Afzalul Alam was
sentenced to three years rigorous imprisonment with suspension from service. The verdict was
announced yesterday in the unit where Captain Atiq was working in the Supply and Transport
Battalion of Savar Cantonment. Those who were punished were sent to Dhaka Central Jail
yesterday. Earlier, the military court’s verdict approved the army headquarters in Dhaka and
the headquarters of the 9th Infantry Division in Savar. The trial by a three-member military
court began on February 27. The trial ended on March 5 after six working days.

Earlier in a brief military court, soldier Md Ashiqur Rahman was sentenced to 89 days rigorous
imprisonment in military prison, according to a press release of Inter-Services Public Relations
(ISPR). Ashiqur Rahman was with Captain Atiq, but he did not accept any money. It is said
that his trial was completed early and the verdict has started to be implemented.

Case relation with corruption theories:

Analysing the case, the collective action theory showing some discontinuation is likely
aligned.

1. The collective action theory: This theory posits that corruption occurs through the
collective actions of individuals within a group or organization, often driven by shared
interests, norms, or incentives. In the case of Captain Atiqur Rahman and the three army
personnel, their actions appear to align with this theory:

Shared Interests: The accused army personnel, including Captain Atiqur Rahman, are
implicated in the arrest and extortion of an Indian citizen. It suggests that they may have
shared interests in financial gain or exerting control over individuals perceived as
vulnerable.
 Norms and Incentives: Although in Armed forces discipline, norms, ethical and
responsible behavior is strictly maintained and remains conventional practices, Within
the military, there were may have possibility of the presence of norms or incentives
that encourage or tolerate corrupt behavior, such as loyalty to superiors or the
expectation of impunity. The accused may have felt emboldened to engage in corruption
due to perceived support or protection from higherranking officers or a culture of
impunity within the military.

Group Dynamics: The involvement of multiple army personnel in the alleged

corruption scheme indicates a group dynamic at play. Group cohesion, peer pressure,
or a desire to conform to the actions of others within the unit may have influenced
individual decisions to participate in corrupt activities.

Abuse of Power: The fact that the accused individuals are army personnel highlights
the potential abuse of power within hierarchical organizations. Military personnel may
exploit their positions of authority and access to resources to engage in corrupt
practices, knowing that they have the ability to exert control and influence over others.

Overall, the case illustrates how corruption and abuse of power can manifest within collective
contexts, such as military units, where shared interests, norms, and group dynamics can
facilitate and perpetuate corrupt behavior. Addressing such corruption requires not only holding
individuals accountable but also addressing systemic issues within organizations and fostering
a culture of integrity, transparency, and accountability.

Recommendation: Other recommendations were already mentioned in previous cases.

Society Engagement: Engaging civil society organizations, media, and the public in
monitoring and reporting instances of corruption within the military can complement
institutional efforts. Establishing channels for whistleblowers to report corruption
anonymously and protecting them from retaliation is crucial for encouraging transparency and
accountability.
Legal Frameworks: Enacting and enforcing strict laws and regulations to punish corrupt
practices within the military is imperative. This includes establishing clear guidelines for

investigating and prosecuting corruption cases, as well as imposing severe penalties on

offenders to deter future misconduct.

Conclusion :
Abuse of power or public office for private gain is corruption. Those who abuse their power
may be individuals or they may belong to organisations, such as businesses or governments. It
can happen through improper or unlawful actions, failure to act by public sector staff or
agencies. Corruption drains resources from much-needed investment in health, education,
infrastructure and other basic services as such resources are diverted from these well meaning
developmental programmes by selfish individuals for their personal use. The consequences of
corruption can be social and financial but they have a major impact on those who are financially
vulnerable. When a organisation is corrupted ,it can result in financial loss, loss of the
reputation, the people who are engaged with the organisation may face to loss their job etc.
When corruption is held in educational institutions, there is a lack of transparency,
accountability, and oversight. It also damages the reputation and the educational environment
of the institutions. Besides, when a teacher who himself or herself is corrupt, then there is a
question about what type of education he or she gives his or her students. Corruption in
government bodies greatly hampers the hopes and aspirations of the masses . They loss their
faith in governmental institutions. Corruption also caused the economic loss and inefficiency.

Corruption increases inequality, decreases popular accountability and political responsiveness,

and thus produces rising frustration and hardship among citizens. To stop corruption, there are
needs for transparency, accountability, cooperation among the political parties, awareness
among the people, strengthening of different anti-corruption organisations and so on. There
also a need to increase the morality of the people.