Bangladesh ruling party hit by mass defections

DHAKA, Oct 26 (Reuters) Bangladesh Prime Minister Begum Khaleda Zia's hopes for re-election next year have been hit by the formation of a new movement established by disgruntled members of her ruling Bangladesh Nationalist Party (BNP).

Named the Liberal Democratic Party (LDP), it is led jointly by retired army colonel Oli Ahmed and former president AQM Badruddoza Chowdhury.

Oli formally broke from the BNP today while Badruddoza left years ago over differences with Khaleda and launched his own party, Bikolpa Dhara, which has now merged with the LDP.

About 25 other BNP leaders -- including a former parliament speaker, current and ex-ministers and members of parliament -- also broke ranks with the BNP today and joined the new party.

The LDP leaders said they had left the BNP because it had become ''a family dynasty'' that promoted corruption and harboured (Islamist) terrorists''.

Khaleda's eldest son, Tareque Rahman, is the BNP's first joint secretary-general, the number three position in the party, and is being tipped as Khaleda's successor.

Khaleda's husband, Ziaur Rahman, was the nation's president and the BNP chief until his assassination in 1981.

Khaleda is due to hand over power to a caretaker authority on Saturday at the end of her five-year rule. The caretaker authority will supervise elections in January 2007.

Political analysts said the LDP's emergence was a big blow to Khaleda and would have a strong impact in her fight against former prime minister Sheikh hasina in the Janaury's vote.

REUTERS LL DS1340