The United Group in Bangladesh scandal surrounding Ashuganj Power Station highlights significant corruption and tax evasion, implicating former officials and government ministers in a multi-billion USD embezzlement case.
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| The United Group’s manipulation of the Ashuganj Power Station project in Bangladesh has raised serious questions about the involvement of key government figures, corruption, and significant financial losses. Image: ChicHue |
Dhaka, Bangladesh — March 19, 2025:
The recent revelations surrounding United Group’s involvement in the Ashuganj Power Station project expose a massive corruption scandal that has shaken the foundation of Bangladesh's power sector. The complex web of deceit and manipulation, involving former State Minister for Power Nasrul Hamid Bipu and senior officials at Ashuganj Power Station Company Limited (APSCL), has resulted in billions of USD being siphoned off from public coffers.
United Group's questionable handling of its shares in the Ashuganj power plant is a key focal point of the controversy. Despite an agreement that outlined a 3 billion BDT (approximately 28 million USD) investment by the government, United Group managed to manipulate its shareholding by undervaluing land and failing to make required investments. As a result, United Group’s stake in the project ballooned from 71% to 91%, leaving the government with a mere 9% share, a drastic shift that deprived the nation of an estimated 88 million USD over the past decade. This manipulation raises serious concerns about the transparency of public-private partnerships in Bangladesh's energy sector.
Compounding the scandal, United Group has been implicated in large-scale tax evasion. Investigations revealed that the company evaded substantial amounts of income tax over several fiscal years. This fraudulent activity was allegedly carried out with the assistance of senior government officials, who helped falsify financial documents, allowing the company to declare taxable income as tax-free. The tax evasion amounts to tens of millions of USD, further highlighting the systemic corruption that permeates the power sector.
The involvement of high-ranking officials, including Bipu, Abul Kalam Azad, and Anwar Hossain, raises alarming questions about the extent of political collusion in this scam. Sources suggest that these officials were motivated by personal gains, including bribes in the form of land deals, further cementing the idea that powerful interests have systematically manipulated public resources for private enrichment. The silence of APSCL officials and the lack of any serious investigation or protest further point to the complicity of the state in allowing such fraud to persist.
In response to the scandal, experts have called for immediate action. Dr. Shamsul Alam, energy advisor for the Consumers Association of Bangladesh (CAB), has stated that this is a criminal offense and that those involved should be prosecuted. Given the scale of the fraud and the involvement of key government figures, it is crucial that the government take immediate steps to investigate the matter and bring the perpetrators to justice. Failure to do so could set a dangerous precedent, undermining the integrity of state-owned companies and public-private collaborations across the country.
As the investigation continues, the United Group scandal serves as a stark reminder of the challenges facing Bangladesh's energy sector. The government must ensure that the rule of law is upheld, that accountability is demanded, and that future energy projects are conducted with transparency and fairness. Without these reforms, the public will continue to suffer from the unchecked power of corporate entities and the corruption that enables them.