Defaulted Loan Holders Now in Parliament

In the run-up to the 13th national parliamentary elections, several individuals listed as loan defaulters managed to contest and win seats in the legislature, raising significant concerns over governance and financial accountability. Among them is Khondkar Abdul Muktadir, elected from the Sylhet-1 constituency, which encompasses Sylhet City Corporation and Sylhet Sadar Upazila. He currently holds the portfolios of Commerce, Industries, and Textiles & Jute.

According to the Bangladesh Bank’s Centralised Information Bureau (CIB), as of December, defaulted loans in the banking sector amounted to BDT 5,57,216 crore, representing 30.60% of total loans. Ahead of the elections, the Election Commission received two lists of potential loan defaulters from the CIB. One list contained 82 names, while the second, comprising 31 individuals, listed those who had obtained court stays, allowing them to contest despite defaulting. Muktadir appeared on the second list, meaning he had a court stay during the election process.

Court Stays and Electoral Outcomes

Out of the 31 individuals with stays, nine were successfully elected as Members of Parliament (MPs). Notably, BNP candidates from Chattogram also secured victories, though official gazette notifications are yet to be issued. In contrast, Manjurul Ahsan Munshi of Comilla-4 saw his candidacy annulled due to unresolved loan defaults.

Senior economist Moinul Islam criticised the situation, stating, “Allowing defaulters to enter Parliament is a highly detrimental decision. The law does not prevent all defaulters from contesting, and once elected, no MP has ever lost their seat due to loan default.”

The 1972 Representation of the People Order, Section 12, bars defaulters from contesting. However, many prospective candidates regularised minor portions of their loans prior to elections, obtained court stays, and successfully ran for office.

Key Defaulter MPs and Loan Details

Other BNP MPs elected under similar circumstances include Abul Kalam (Comilla-9), Lutfur Rahman Matin (Tangail-4), and Mujibur Rahman Chowdhury (Moulvibazar-4), each benefiting from court stays to avoid appearing as defaulters in the CIB records.

Legal experts, including Supreme Court advocate Shahdeen Malik, highlight that some defaults are deliberate, while others arise from business setbacks or acting as guarantors. Courts often grant stays to ensure justice until final settlements are made. Malik added, “The system must prevent individuals who cannot repay large loans from becoming lawmakers, as it generates conflicts of interest, reduces investment, and hampers economic growth.”

This trend is not unprecedented. During the 2014 elections, former Home Minister Mohiuddin Khan Alamgir also contested under a temporary stay and won. Similarly, the 2018 elections saw candidates like Aslam Chowdhury and Giasuddin Qader Chowdhury regain candidacy through court intervention despite loan defaults.

Economists warn that repeated allowances for loan defaulters to enter Parliament may erode public confidence and negatively impact the banking sector. The current scenario reflects a persistent loophole that continues to enable financially irregular individuals to secure political power while potentially influencing economic policy to their advantage.