Bangladesh ex-army ruler granted bail

DHAKA, Jan 17 (Reuters) Bangladesh's former army ruler Hossain Mohammad Ershad was granted bail today after he surrendered before a Dhaka court that had sentenced him to two years in prison in a corruption case.

Ershad, who had been ordered by the Supreme Court to turn himself in by January 17, will appeal against his conviction, his lawyer said.

''Now he has been granted a bail, he will appeal to the higher court for a review of the sentence,'' lawyer Rokanuddin Mahmud, told reporters.

Ershad who leads the Jatiya Party, was convicted last year of squandering state funds in a deal to purchase patrol boats from Japan while he was in power from 1982 to 1990.

He was planning to contest parliamentary elections which were due for January 22 but have now been postponed indefinitely after a new caretaker administration took over after months of popular protests.

Ershad had sought a reprieve from the jail sentence, which was given by the lower court and confirmed by the High Court earlier last year.

He seized power in a bloodless coup in early 1982 and was ousted in a people's revolt in December 1990.

REUTERS MS HT1550