EU Resource Centre

This Anti-Corruption Helpdesk brief was produced in response to a query from the European Commission. The Anti-Corruption Helpdesk is operated by Transparency International and funded by the European Union

Query

What are the corruption risks in the public financial management (PFM) system of Bangladesh?

Content

1. Overview

2. Corruption risks in Bangladesh’s tax administration

3. Corruption risks in Bangladesh’s budget processes

4. Corruption risks in Bangladesh’s procurement

5. External audit and parliamentary oversight

6. References

Summary

A country’s public financial management (PFM) system is central for the achievement of a government’s policy outcomes and goals. Like many government activities and processes, a PFM system can also be susceptible to corruption risks. In Bangladesh, there are important corruption risks identified by different institutions, scholars and civil society organisations. These risks are present throughout the PFM system, including the tax administration, the budget preparation and allocation of funds, expenditure of public funds and the external oversight. Some identified corruption risks include bribery and collusion in the tax administration; bribery in the allocation of development funds; embezzlement in the expenditure of public funds; collusion in public procurement tenders; and extortion in the performance of external audits.

This answer considers corruption risks in the PFM system of Bangladesh, focusing on Bangladesh’s tax administration, budget process, public procurement process, and external audit and parliamentary oversight.

Authors

José María Marín, Transparency International, tihelpdesk@transparency.org

Date

21/04/2015

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