Shock, praise in Bangladesh over ex-leader's arrest

DHAKA, Sep 4 (Reuters) The arrest of Bangladesh's most recent prime minister brought reactions of shock, praise and uncertainty from ordinary citizens today, in a country struggling for political stability.

In the space of a year the poor south Asian nation of more than 140 million people has seen widespread political violence, the takeover of power by a military-backed interim government, and now the arrest of a second ex-premier.

Begum Khaleda Zia, prime minister until October last year, was taken into detention from her home yesterday, while her rival Sheikh Hasina, another former premier, was jailed in July.

''It is shocking ... but worth praise for the army-led caretaker government,'' said Abdul Baset, a Dhaka resident, sweating after a jogging session at a city park in the capital.

''The balance has been drawn,'' he said, referring to the earlier arrest of Hasina. The women are the respective leaders of Bangladesh's top political parties.

Another Dhaka dweller had similar thoughts, saying the move made things equal for the two leaders' followers.

''It looked pretty odd while Hasina was in (jail) and Khaleda out, although they both were suspected of doing similar misdeeds,'' he said.

The women have been accused of various forms of graft and corruption, charges they deny and say are politically motivated.

Hasina submitted a wealth statement to the Anti-Corruption Commission today, an official said, claiming properties worth the equivalent of nearly 0,000 dollar.

She faces charges of extorting more than 1 million dollar from two businessmen during her 1996-2001 term in power.

Bangladesh has been under a state of emergency since the interim government took charge in January after deadly political violence linked to the two women's parties.

The new government, headed by former central bank chief Fakhruddin Ahmed, banned political activities and cancelled an election planned for that month, while promising a free and fair one for late next year, probably in December.

Critics say both leaders have run their parties with an iron fist, and promoted family dynasties while in power.

''But Khaleda's empire seemed to crumble more completely than Hasina's,'' said taxi driver Abdul Karim.

Many political analysts believe the country would be better off with new leaders. Others fear a power vacuum if Khaleda and Hasina have no role to play when democracy is restored.

BARRED FROM ELECTION If convicted, Hasina and Khaleda are likely to be barred from contesting in next polls, along with more than 170 other political stalwarts netted in a countrywide corruption hunt.

Army-led security forces picked up Khaleda and her younger son Arafat Rahman at her Dhaka home yesterday for alleged graft.

Her elder son and likely political heir Tareque Rahman has been in jail since March, facing charges of extortion and abuse of power for amassing wealth.

The Anti-Corruption Commission said it had not completed investigations but had enough proof to detain them pending trials.

The women leaders suffered immense personal losses before venturing into politics. Hasina's father, Sheikh Mujibur Rahman, the country's independence leader, and most of his family were killed in a 1975 army coup.

Khaleda lost her husband, General Ziaur Rahman, a military ruler and president, in an abortive mutiny in 1981.

The two women rotated as prime ministers over the last 15 years, and did not talk to each other for over a decade. Now they are both in special jails on the sprawling, lush green compound of Dhaka's parliament building.

''So close but yet so far,'' a prison official told reporters after Khaleda was taken there yesterday, following a failed attempt to get bail. ''They now live just 60 metres apart.'' Khaleda and Hasina have first-class prisoner status, with access to state-run television and four daily newspapers.

REUTERS PD PM1723