Sheikh Hasina's $150 bn scandal and South Asia’s corruption epidemic

Is corruption an inevitable part of leadership in South Asia? The region’s political history suggests the answer might be a resounding "yes." From Pakistan and India to Bangladesh and Sri Lanka, prime ministers and presidents have consistently faced allegations of graft or legal cases during or after their terms in office.

In Bangladesh, former Prime Minister Sheikh Hasina is now accused of amassing $150 billion in black money. This is reportedly the largest corruption scandal among South Asia’s contemporary leaders. Investigators are probing how these funds were accumulated, transferred overseas, and whether the interim government will succeed in recovering them.

The country’s Anti-Corruption Commission has launched inquiries into transactions involving 49 former ministers across multiple nations, including India, Switzerland, and the UK.

This scandal echoes past cases in South Asia. In Pakistan, former Prime Ministers Nawaz Sharif and Imran Khan were disqualified over corruption charges, while Benazir Bhutto and Asif Zardari faced trials but avoided convictions due to legal loopholes.

India’s leaders, including Rajiv Gandhi and Narendra Modi, have also been linked to major scandals, though convictions have been rare.

Sri Lanka’s Rajapaksa brothers were found guilty of corruption in infrastructure deals with China, leading to the country’s economic collapse, while Nepal’s former PM K.P. Sharma Oli faced accusations of misusing public funds in a tea estate scam, though charges were never proven.

Maldives’ ex-President Abdulla Yameen was sentenced for money laundering but released earlier this year.

As Bangladesh faces new scrutiny, international bodies, including the UK and Transparency International, are being approached for assistance. The Dhaka Metropolitan Court has already banned 17 ministers and nine MPs from travelling abroad, indicating the government’s intent to pursue justice.

Transparency International ranked Bangladesh as South Asia’s second-most corrupt nation in 2022, following Afghanistan. Despite its recent economic growth, the country struggles with systemic corruption, a challenge deeply rooted in the region’s political fabric.