Special Report :
Former adviser to Bangladesh’s interim government Asif Mahmud Sajib Bhuiyan is facing allegations of embezzling and laundering as much as Tk 11,000 crore (approximately US$900 million) from state funds, with the Anti-Corruption Commission (ACC) reportedly conducting an inquiry into the alleged financial irregularities.
The allegations concern the period when Asif Mahmud served as a key adviser to the interim administration and held responsibilities for three major ministries—Local Government, Rural Development and Cooperatives; Youth and Sports; and Labour and Employment.
According to allegations cited in an investigative analysis, a carefully coordinated network allegedly exploited the political and administrative vacuum during the interim government’s tenure to divert public funds through development projects, procurement processes and digital financial channels.
During his tenure, Asif Mahmud reportedly exercised significant authority over ministries overseeing a combined budget of more than Tk 47,000 crore.
The Local Government Division’s allocation for the 2025–26 fiscal year was around Tk 42,433 crore. Including the remaining allocation from the previous government’s budget, the total was estimated at approximately Tk 44,243 crore.
The Youth and Sports Ministry had an allocation of around Tk 2,423 crore, while the Labour and Employment Ministry had approximately Tk 438 crore.
Together, the allocations amounted to roughly Tk 47,104 crore.
Those making the allegations argue that the scale of the budgets under his supervision created opportunities for large-scale financial irregularities. However, the alleged embezzlement figure of Tk 11,000 crore has not been independently established in a court of law.
Crime analysts cited in the allegations describe the suspected operation as a highly coordinated scheme.
Under normal democratic arrangements, development projects under the local government ministry are implemented with oversight from elected representatives at district, upazila and municipal levels. During the interim administration, however, elected local representatives were absent, potentially reducing conventional political oversight.
The allegations further claim that the administrative uncertainty at the time enabled a network of officials and associates to exercise extensive influence over project approvals, procurement and fund disbursement.
Among the allegations are the use of front companies or anonymous bidders, manipulated tender processes and fictitious or inflated development projects involving roads, infrastructure, youth programmes and labour-welfare initiatives.
These claims remain subject to investigation and verification by the relevant authorities.
One of the most serious allegations concerns the alleged use of digital financial channels to move illicit proceeds abroad.
According to the claims, funds allegedly generated through commissions and irregularities in development projects were transferred through a combination of conventional and digital channels before being converted into cryptocurrency.
The allegations also point to the involvement of individuals described as technology specialists who allegedly assisted in moving funds through blockchain-based platforms.
The money was reportedly transferred into password-protected cryptocurrency wallets, making the movement of funds more difficult to trace through traditional financial-monitoring mechanisms.
However, no publicly verified evidence has yet been presented establishing that Asif Mahmud personally controlled such cryptocurrency wallets or that Tk 11,000 crore was transferred abroad through them.
The allegations have reportedly prompted scrutiny by the Anti-Corruption Commission, with investigators examining documents relating to major projects, tender procedures, e-GP records and special allocations approved during Asif Mahmud’s tenure.
Financial investigators are also reportedly examining digital transaction trails in an effort to determine whether public funds were diverted and subsequently transferred outside Bangladesh.
The Bangladesh Financial Intelligence Unit (BFIU) and the Criminal Investigation Department (CID) have been mentioned in connection with efforts to trace suspicious financial transactions and conduct digital forensic analysis.
Investigators are expected to examine bank records, procurement documents, project files, transaction histories and other digital evidence before determining whether there is sufficient evidence to proceed with formal criminal charges.
The allegations have generated controversy because the interim government came to power following a mass uprising that was widely associated with demands for an end to corruption, discrimination and abuse of state power.
The emergence of allegations against a prominent former adviser has therefore raised questions about transparency, accountability and financial oversight during the interim administration.
Supporters of Asif Mahmud have reportedly questioned whether it would have been practically possible to embezzle Tk 11,000 crore from a single ministry. Those making the allegations, however, argue that the former adviser’s combined responsibilities over three ministries and their large budgets provided a broader financial sphere in which irregularities could allegedly have occurred.
As of now, the allegations should be treated as claims under investigation rather than established facts. A final determination of criminal liability would depend on documentary evidence, forensic findings and, ultimately, judicial proceedings.
If investigators establish a clear financial trail and sufficient evidence of wrongdoing, the ACC could pursue formal legal action and submit a charge sheet to the court.
