B'desh ex-PM challenges govt over extortion case

DHAKA, July 29 (Reuters) Bangladesh's detained former prime minister Sheikh Hasina began a legal challenge against the army-backed interim government's use of emergency laws to bring extortion charges against her, court and party officials said.

They said Hasina's lawyers today filed a petition signed by her with the High Court.

''We have lots of grounds to challenge the government and we hope we will win,'' Sahara Khatun, a lawyer for Hasina, told reporters before filing the petition.

Hasina, leader of the Awami League, was arrested on July 16 and sent to a house converted into a prison inside Dhaka's sprawling parliament compound. Charges of extorting money from a businessman were formally filed against her a week later.

''The court has accepted the petition, and it is likely to fix a time for hearing it soon,'' a court registrar said.

Bangladesh has been under a state of emergency imposed by the army-backed interim administration, which took over in January and launched a crackdown on corruption ahead of elections planned for late next year.

A senior police officer said today ''formal charges against Hasina will be filed soon for prosecution in another extortion case''.

Police filed two cases against Hasina in June for extorting 1.16 million dollars from two businessmen.

Meanwhile in response to Hasina's request the powerful anti-corruption commission (ACC) has extended the deadline for submitting her wealth statement until end of the next week.

A special anti-corruption court over the past month jailed a number of leaders including two former ministers for not submitting wealth statements within the deadline set by the ACC.

More than 170 political figures, including former ministers in both the governments of Hasina and her arch rival Begum Khaleda Zia, leader of the Bangladesh Nationalist Party, have been detained for graft and abuse of power.

The detainees included Tareque Rahman, Khaleda's elder son and presumed political heir.

The extortion charges against Hasina date back to 1998, during her last spell in office from 1996 to 2001. The authorities have put the case under emergency power rules, which means the prosecution will be completed within 45 days.

Her lawyers are challenging whether the emergency powers imposed in January can be used to try a case relating to offences allegedly committed in 1998.

Hasina denies the charges, which she says are being used to try and force her out of politics ahead of the elections.

If convicted of extortion, she could face from three to ten years in jail, lawyers said.

Meanwhile, the Awami League has asked the government to observe national day of mourning on August 15 for the 32nd anniversary of the death of its founder Sheikh Mujibur Rahman, Bangladesh's independence leader and Hasina's father.

REUTERS SM RN1939