The Palli Daridro Bimochon Foundation (PDBF), tasked with combating rural poverty in Bangladesh, has become mired in a corruption scandal that threatens to undermine its public trust and mission. Allegations of widespread financial irregularities involving Tk 700 crore have cast a dark shadow over the organisation, raising serious concern regarding governance, accountability and the effective use of public funds meant for the country’s most vulnerable.
At the core of the scandal is the alleged misuse of loans by its top officials, leading to the embezzlement of Tk 500 crore. This shocking figure represents a deep failure in oversight, letting those in power exploit resources that were supposed to alleviate poverty. Moreover, the decision to reduce savings interest rates for beneficiaries from six percent to three percent raises fear regarding the foundation’s commitment to its mission and transparency. Such actions affect those relying on the PDBF’s services and erode public trust in the organisation.
One of the most remarkable aspects of this crisis is the mismanagement of clients’ deposits. Instead of safeguarding these funds in banks, as required by PDBF regulations, the organisation reportedly placed them in risky leasing companies, jeopardising the financial security of the foundation and its clients. This violation of established procedures exposes a significant gap in financial governance and answerability in the PDBF.
Adding to the concern is the controversy surrounding the appointment and actions of Muhammad Maududur Rashid Safdar the PDBF’s current Managing Director (MD). His reappointment, despite exceeding the organisation’s age limit for the position, has drawn criticism for violating employment regulations. Safdar is also accused of mismanaging Fixed Deposit Receipts (FDRs), with sums ranging from Tk 120 crore to Tk 1500 crore being held in banks, contrary to PDBF rules. The fund, which should have been used for daily operations, was instead tied up in financial implementations, raising further questions regarding his leadership and decision-making capabilities.
Although the government formed an investigation
committee last year, concern
remains regarding the impartiality and
effectiveness of the probe, particularly with current
leadership still in place
Corruption in the recruitment process has also been exposed. In 2017, the PDBF’s management manipulated the hiring process to recruit 727 field organisers, far exceeding the approved 304 positions. This illegal expansion of officials resulted in a financial loss of Tk 44.44 crore and was reportedly facilitated by the falsification of examination results and the submission of forged documents. Such unethical practices inflate costs. Besides, it undermines the quality and effectiveness of the PDBF’s workforce.
The loan management system of the organisation is another factor of concern. Despite claims that loan defaults were exacerbated by the COVID-19 pandemic, an audit revealed that Tk 218 crore in loans remained unpaid by over 374,609 borrowers long before the pandemic. This suggests a deeper issue with the PDBF’s financial practices and its capability to handle and recover loans effectively. It points to poor governance and an incapability to enforce its own policies, jeopardising the foundation’s financial sustainability.
In 2014, the PDBF paid Tk 56.73 lakh to Lazuk Electric Company Ltd for solar systems. Furthermore, the organisation purchased poor-quality solar systems at inflated prices, causing a loss of Tk 17.22 crore. In another alarming discovery, old and damaged materials were provided, resulting in an embezzlement of Tk 7.7 crore, which was deposited into the private accounts of top PDBF officials. This highlights a direct betrayal of the public trust and a misuse of resources intended to benefit rural communities.
Given the scale of these irregularities, it is necessary that rapid and decisive action be taken. Although the government formed an investigation committee last year, concern remains regarding the impartiality and effectiveness of the probe, particularly with current leadership still in place.
The government must ensure a transparent, independent investigation to identify those responsible for these corrupt practices and hold them answerable.
