Election: Why prices of candidates’ houses, cars, and gold jewelry so low?

It is now election season. Candidates have submitted to the election commission their affidavits, statements of personal election expenses and asset declarations, and copies of their income tax returns, all of which have been published on the election commission’s website. The media have already begun publishing detailed information on candidates’ income and expenditure, as well as their movable and immovable assets.

After reviewing the income and asset values of heavyweight candidates, many people have begun to question why the stated values of candidates’ houses, cars, land, plots, gold, and other assets appear so low—figures that do not match their lifestyles.

The explanation is that candidates have declared the value of their assets at the time they were acquired or purchased. Income tax returns also record assets at their acquisition or purchase price.

For example, a taxpayer may have purchased a 10-katha plot in Gulshan, one of the most upscale areas of the capital, for Tk 100,000 in the 1970s. If the plot has not been sold, its value in tax records still remains Tk 100,000. In reality, the price of a 5-katha plot in Gulshan today is no less than Tk 250–300 million.

Essentially, in order to comply with legal procedures, candidates in the upcoming national election declare asset values based on their acquisition or purchase prices. As a result, the declared values of houses, cars, land, gold jewelry, furniture, and other movable and immovable assets appear very low. In reality, the actual value of their assets is far higher. On paper they appear wealthy; in reality, they are even wealthier.

An election affidavit is a written declaration submitted by a candidate along with the nomination papers on a prescribed form set by the election commission. It is mandatory for the candidate to transparently disclose personal, financial, and legal information in the affidavit.

For the upcoming parliamentary election, all candidates have provided in their affidavits full details of their personal information as well as their movable and immovable assets. Providing false information in an affidavit may lead to the cancellation of candidacy and other punitive measures.
What information must be provided in an affidavit?

An affidavit must include personal details (such as name, age, address, educational qualifications, profession, etc.). In addition, candidates must disclose information on immovable assets—such as land and houses—owned by themselves, their spouses, and their children. They must also declare movable assets, including cash, bank deposits, gold, and shares or ownership in companies and institutions.

In an affidavit, candidates are required to declare the value of their movable and immovable assets. The acquisition or purchase value must be stated. That is, for land, plots, flats, and other immovable property, candidates must declare the amount paid at the time of purchase or acquisition. Many also provide an estimated current value.

Similarly, the purchase value of gold, furniture, electronic goods, and other items must be declared. As a result, there is often a significant disparity between the declared value and the current market value.
The asset information in the affidavit must also correspond with the income tax return. Candidates are required to submit copies of their income tax returns as well.

On this issue, a member of the National Board of Revenue (NBR) told Prothom Alo: “Taxpayers submit asset statements through the IT-10B form, where the acquisition or purchase value must be declared. In this country, the current market value of assets is not officially determined. Moreover, the market value of land and flats varies from place to place, making it difficult to accurately determine the current market value.”

Ten bhori of gold priced at Tk 100,000 in affidavits—how much is it now?
BNP Acting Chairman Tarique Rahman will contest the upcoming election from the Bogura-6 and Dhaka-17 constituencies. In his affidavit submitted to the election commission, he has declared ownership of more than three acres, or over nine bighas, of non-agricultural land. The acquisition value of this land is shown as only Tk 345,000, which means the price per bigha comes to around Tk 38,000–40,000. In reality, land is no longer available at such low prices.

Jamaat-e-Islami Ameer Shafiqur Rahman has stated in his affidavit that he owns a duplex house on 11.77 decimals of land. The acquisition value of the land and the house combined is shown as Tk 2.7 million. Those familiar with the market believe that the current value of such a house would be no less than several crore taka.

In addition, Shafiqur Rahman owns 10 bhori of gold jewelry. The acquisition value of this jewelry has been shown as Tk 100,000—an average of Tk 10,000 per bhori, which reflects prices from at least two decades ago. At present, however, the price of one bhori of gold is more than Tk 200,000. By that calculation, the current market value of 10 bhori of gold jewelry exceeds Tk 2 million.

BNP Secretary General Mirza Fakhrul Islam Alamgir is contesting the election from the Thakurgaon-1 constituency. In his affidavit, he has declared ownership of five acres of agricultural land. He is also a co-owner of part of a two-storey ancestral house. Altogether, the acquisition value of his immovable assets is shown as only Tk 1.905 million. In reality, the current market value of these assets is far higher.

Meanwhile, a 1,950-square-foot flat in Gulshan-2 registered in the name of his wife, Rahat Ara, has an acquisition value of Tk 2.05 million. In reality, the current price of a flat in the Gulshan-2 area is no less than several crore taka. In addition, a five-katha plot in Purbachal in Rahat Ara’s name has a purchase price of Tk 854,000, even though the current price per katha in Purbachal is at least Tk 10 million.

On the other hand, National Citizen Party (NCP) Member Secretary Akhtar Hossain owns 18 decimals of land in Kaunia, Rangpur. In his affidavit, the acquisition value of this land is shown as Tk 23,000—meaning the price per decimal is Tk 1,278. At present, land prices in that area are far higher.

The purchase or acquisition values of houses, cars, plots and land, gold jewelry, and other movable and immovable assets are often shown as very low, while their current market prices are much higher. Because election affidavits require candidates to declare purchase or acquisition values, the true value of their assets is not reflected. As a result, voters and the general public are unable to know the actual worth of candidates’ assets or how wealthy they truly are.

On this issue, Transparency International Bangladesh (TIB) Executive Director Iftekharuzzaman told Prothom Alo: “In affidavits, the acquisition value of assets is declared. However, the public has little confidence in the asset and income–expenditure information provided by election candidates in their affidavits. There are questions about how realistic these figures are. It should be examined whether candidates have undisclosed assets or income, and their lifestyles should also be taken into consideration.”

According to Iftekharuzzaman, the election commission, the National Board of Revenue (NBR), and the Anti-Corruption Commission can work on this matter. If punitive action is taken in a few cases as examples for providing incorrect information, this tendency will decrease.