Tk 20b cash aid for poor lies idle

Money has been allocated in the the budget for giving cash assistance to around 5 million poor families affected by the coronavirus pandemic. A good amount of foreign donations has been received for those who suddenly lost their jobs from factories.

Some Tk 9.12 billion (912 crore) has been disbursed from Tk 12.5 billion (1,250 crore) allocated for 5 million (50 lakh) families. So far, 3,607,872 families have received Tk 2,500 each.

Finally, the government has distributed Tk 8.11 billion (811 crore) and some Tk 4.39 billion (439 crore) remains undistributed. Besides, the government has managed to release Tk 50 million (5 crore) from a Tk 15 billon (1,500 crore) package for workers. The government still has Tk 19.34 billion (1,935 crore) in its hands from these two funds.

In addition to this, Bangladesh Bank, in a letter on 25 February, informed the finance division that cash assistance didn’t reach to 402,168 families even after releasing the money. Hence, Tk 1.01 billion (101.15 crore) of the state exchequer remains in the hands of four mobile financial services (MFSs) providers-- bKash, Nagad, Rocket and SureCash. And this money must be taken back.

Prime minister Sheikh Hasina inaugurated the initiative to provide onetime Tk 2,500 cash assistance for 5 million (50 lakh) poor families on 14 May last year. Before that, deputy commissioners (DCs), upazila nirbahi officers (UNOs) and chairmen and members of union parishad altogether prepared a list of 5 million (50 lakh) families. When the distribution of money began, the list is found to be faulty. Solvent people were found to be listed instead of the needy ones.

A report of the finance division in August last year found that corruption and irregularities took place while distributing the money. After that, the government dropped names of Tk 1.43 million (14.33 lakh) people from the list of 5 million. The social welfare ministry, disaster management and relief ministry and information and communication technology division were involved with the task.

Regarding this, finance minister AHM Mustafa Kamal told Prothom Alo on Saturday, “Some complexities arose since it was the first time. Most of people (listed) have received it (money). Work is progressing so that no problem creates in future. ”

The minister then asked to talk to finance secretary Abdur Rouf Talukder to learn the update situation.

The finance secretary declined to comment on why work on the list hasn’t been completed in 11 months despite there are many poor people in the country. Abdur Rouf Talukder, in a SMS, told Prothom Alo on Saturday night that he couldn’t make comment on the matter.

On the one hand, funds lie idle, but one the other hand, the crisis of needy people is intensifying.

Experts said such a situation has been created due to the bureaucratic weaknesses . The bureaucrats responsible for the job could not identify those who deserve the cash support. They committed irregularities in preparing the list and failed to formulate proper policies.

Murshid Kamal, vice president of Krishalk League’s Rajshahi city unit, is a rich man, but he, too, was listed for cash assistance. A family that owns a 3-story house and lives in air-conditioned facility in the ward no. 6 of Rajshahi city also received Tk 2,500. It was also learned that 400 people were listed from a village and only four of them live in that certain village.

The list also contains the names of more than 100,000 people who enjoy other social safety net privileges. Names of around 300,000 people have been repeated. The list also contains the names of 690,464 people who did not register their mobile SIM against their national identity card (NID). In addition to repeating the details of the same people, the list contains the names of people who enjoy government retirement benefits and who are government employees and own saving certificates worth more than Tk 500,000.

According to the finance division, out of four MFS providers, Nagad brought the government assistance to the highest number of families and SureCash provided the least. About 90,000 families received it through bank account. The highest number of 722,022 families or 20.67 per cent received assistance in Dhaka division and the lowest number of 253,132 families or 7.26 per cent got it in Barisal division.

As many as 1,100,052 people receiving the money are aged between 31 to 40 years. Some 24,000 people are over 80 years. Besides, those who received the money, 1.8 million people are wage earners, 450,000 farmers, 350,000 workers, 225,000 housemaid, 175,000 motor transport workers and 525,000 people are from other professions.

In the meantime, European Union and Germany have provided a EUR113 million equal to Tk 11.35 billion (1,135 crore) to give the jobless workers in Bangladesh Tk 3,000 for three months. The government then added a little amount to it to form a fund worth Tk 15 billion (1500 crore). The labour department started implementing it last October. Before that, a guideline was issued outlining the assistance to 1 million (10 lakh) workers. However, only Tk 50 million (5 crore) has been spent in six months.

Here, the government has not been able to identify those who are in need of the assistance. Since there is no list, no one is getting the money. This money is to be sent through bank accounts or MFS. The guideline sets eight criteria for the workers affected by coronavirus in export-oriented apparel, leather-processed goods and shoe industries. According to the guideline, those who are eligible to receive the money are workers, who had job until last February, who are physically incapable, female workers who has given birth to a baby but is deprived of maternity welfare, workers suffering from Covid-19 and other diseases, workers who are left out of compensation as per Labour Law 2009, laid-off and currently unemployed and workers who lost job after 8 March last year.

Vice president of BKMEA Mohammad A Hatem told Prothom Alo that the policy has been formulated incorrectly. Now the money can be used in three ways. For example, assistance can be made to pay the workers’ wages at the factories which have been shut because of debts and which are in operation but can’t pay their workers plus factories those are not the members of the association.

Respective factories and four associations are responsible for making the primary list. The four associations are Bangladesh Garment Manufacturers and Exporters Association (BGMEA), Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), Leathergoods and Footwear Manufacturers and Exporters Association of Bangladesh (LFMEAB) and Bangladesh Finished Leather, Leathergoods and Footwear Exporters Association.

Regarding the overall situation, executive director of private think tank Policy Research Institute (PRI), Ahsan H Mansur, told Prothom Alo, “Other than the irregularities and corruption, institutional weakness is also a major problem in the country. It was an announcement of the prime minster and the fund has been allocated accordingly. But assistance hasn’t reached (all of) 5 million (50 lakh) families in a year because of management weakness and it is very saddening.”

What lessons have we learned during a year of Covid-19? If a tsunami strikes now and we are to give assistance to 5 million (50 lakh) people, can we do that? Ahsan H Mansur asked.

*This report appeared in the print and online editions of Prothom Alo and has been rewritten in English by Hasanul Banna