Lack of transparency in political party finances hindering democracy

Speakers at a discussion meeting on how the lack of transparency in party financing affects democratic competition, policy decision-making, and a fair market environment.

Dhaka, Nov 24 - Speakers at a discussion on Monday highlighted the deep-rooted opacity within Bangladesh’s political financing structure, the weaknesses of existing regulatory mechanisms, and the negative implications of pervasive informal transactions.

They discussed how the lack of transparency in party financing affects democratic competition, policy decision-making, and a fair market environment.

The conversation also focused on the inequities created through political–business linkages, weakened accountability, and the emergence of an uncertain and anti-competitive business climate under the guise of “business protection.”

Dacca Institute of Research and Analytics (DAIRA) hosted the discussion titled “Political financing culture in Bangladesh: Challenges, realities and new pathways” at the Bangladesh Institute of International and Strategic Studies (BIISS) auditorium.

The session began with the presentation of a policy brief by DAIRA researchers Ragib Anjum and Ahmudul Haque.

They outlined the patterns and opacity of political parties’ financing practices in Bangladesh, particularly the lesser-researched area of regular income and expenditure beyond election periods.

To explain political parties’ heavy dependence on business actors, they presented three analytical models, discussing both the causes and consequences of such dependence.

Their presentation also highlighted a set of practical policy recommendations aimed at ensuring transparency, accountability, and clearer reporting standards within Bangladesh’s political financing system.

Dr Badiul Alam Majumdar, secretary of Shujan who served as the head of the Election Reform Commission, said politics has now turned into a business. “Our political parties behave like business syndicates. Do we even have a single democratic and transparent political party?”

Offering a potential solution, Dr Iftekharuzzaman, Executive Director of Transparency International Bangladesh (TIB), said, “If every elected representative submits a detailed income–expenditure report within one month of assuming office and makes it public, and if the Anti-Corruption Commission and the Election Commission ensure accountability whenever discrepancies arise—wouldn’t that alone address a large part of the problem?”

Addressing gaps in the legal framework, Jesmin Tuli, another member of the Electoral Reform Commission appointed by interim government, said: “Bangladesh’s legal framework does not clearly define political parties’ fundraising methods or legal sources of income. Including these provisions in law is essential, but political parties’ own willingness to reform will ultimately determine the solution to the existing crisis.”

Discussing the internal finances of Bangladesh Jamaat-e-Islami, its Assistant Secretary General Ahsanul Mahboob Zubair said, “There is no income or expenditure in Jamaat without receipts and vouchers. Our primary source of income is our members, every member must contribute 5% of their monthly income to the party.”

Shama Obayed, Organizing Secretary of the Bangladesh Nationalist Party (BNP), stated, “Decentralisation of power is essential to ensure transparency.” She also raised the question, “Why are political parties always held in the dock while bureaucrats, secretaries, and others who enjoy state power remain beyond scrutiny?”

Explaining the nexus between business and politics, Khaled Saifullah, Joint Convener of the National Citizen Party, said that during the 16 years of authoritarian rule, the interdependence between business and politics intensified significantly. He stated that it had become nearly impossible to run a business without political connections.

Echoing his viewpoint, Shams Mahmud, Managing Director of Shasha Denims Ltd, noted that business actors were effectively compelled to contribute financially to political parties to safeguard their varied business interests.

On this issue, A.K.M. Fahim Mashroor, CEO and Founder of bdjobs.com, commented, “Our crisis is not political but economic.” He emphasized the importance of strengthening the rule of law, arguing that the RPO mechanism alone cannot succeed under current circumstances.

Dr. Sazzad Siddiqui, Chairman of the Department of Peace and Conflict Studies at the University of Dhaka, also underscored the need for the rule of law to ensure transparency.

Raising concerns about institutional capacity, Professor Kazi Mohammad Mahbobor Rahman of the University of Dhaka’s Department of Political Science questioned the Election Commission’s ability to resolve the ongoing crisis in political financing.

Discussing the structural barriers in the current political landscape, Syed Hasib Uddin Hossain, Secretary General of Bangladesh Rashtro Shonskar Andolon, pointed out that political parties face immense difficulties in obtaining registration.

As a result, doing politics without substantial financial backing becomes nearly impossible. He further suggested that political parties should transition toward a volunteer-based model.

The roundtable was moderated by Dr Asif Shahan, Professor of Development Studies at the University of Dhaka.

The discussion was attended by many participants, including young student representative Sibgatullah Sibga, Central Office Secretary of Bangladesh Islami Chhatra Shibir. - UNB