Bangladesh graft officials resign in clean-up drive

DHAKA, Feb 7 (Reuters) The head of Bangladesh's Anti-Corruption Commission resigned today along with one of his deputies as part of a drive by the army-backed interim administration to clean up politics ahead of elections.

Officials said the resignation of Sultan Hossain had paved the way for reconstituting the commission charged with fighting graft in governance in the impoverished country of 140 million.

Joint security forces led by the army have detained at least 50 politicians including nine former ministers, in a crackdown on corruption ordered by the interim government headed by former central bank chief Fakhruddin Ahmed.

The politicians belong to both the Bangladesh Nationalist Party of immediate prime minister Begum Khaleda Zia and main rival, the Awami League, led by Sheikh Hasina, another former minister.

The politicians were likely to face charges of corruption, involvement in anti-state and anti-people activities, and misuse of power to amass wealth, police said.

The government's decision to take on corrupt politicians across the spectrum as part of an effort to hold a free and fair election has been lauded by Bangladesh's donors and investors.

''It is extremely difficult to improve political and economic governance but now we see a great opportunity to tap the country's potential,'' Kunio Senga, south Asia director-general of the Asian Development Bank (ADB), said.

Senga who held talks with government leaders lauded Bangladesh's micro-finance programmes and offered to enhance support to this sector.

''If government seeks our involvement in micro-credit, yes, we will like to enhance our support,'' said Senga who arrived yesterday to assess the situation in the country.

The ADB signed a three million dollars loan agreement with Bangladesh to help improve good governance in the capital market and insurance sector.

Bangladesh declared a state of emergency on January. 11. An election planned for January 22 was postponed after 45 people were killed and hundreds injured in countrywide violence.

The interim authority has vowed to hold a free and fair election, but no dates have yet been announced.

Diplomats of the countries of the Association of South-East Asian Nations (ASEAN) met the government's foreign affairs adviser Iftekhar Ahmed Chowdhury, and said they were eager to invest in Bangladesh in the new political climate.

Ahmed told reporters after the meeting that the ASEAN diplomats praised government efforts to restore peace and combat corruption ahead of the elections.

REUTERS AB RK1800