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Abdul Kader Mollah |
There are many reasons countries are and/or stay impoverished. While globalization, unfair tariffs, a history of colonization, and other external bogeymen often receive a disproportionate share of the blame, a significant % of the fault also lies internally.
This article, posted on the news tab by mutineer Art Vandalay presents a particularly galling example -
He was a lowly sales assistant on a salary of $100 a month, but Abdul Kader Mollah allegedly amassed a personal fortune of $300 million by becoming Bangladesh’s Mr Big of corporate bribery.In 12 years with the Titas Gas Distribution Company, Mr Mollah struck corrupt deals with thousands of factories to undercharge them for the gas they consumed, and pocketed millions of dollars in bribes in return, officials claim.
With a population of ~150M, Mr. Mollah quite literally stole 2 bucks from every man / woman / child in the impoverished nation over the course of his treacherous career.
Making things even worse, however, is that Mollah’s exploits were replicated through out the firm -
His case, although extreme, is not an isolated one. Last week authorities said that at least 80 per cent of Titas’ 2,800 workers had made millions of dollars by under-charging in exchange for bribes…The Ittefaq newspaper today ran a front page story on three more multi-millionaire gas workers, including a former receptionist who now allegedly owns an apartment complex and plots of land in smart districts of Dhaka.
Let’s do some back of the envelope calculations… 80% of 2800 workers with conservative estimate of 2 million a piece adds up to almost $4.4BILLION swindled over the course of thier scheme (that would be a little over 1% of Bangladesh’s annual GDP or $30/head).
My econ 101 hat forces a couple of questions about how this scheme could endure so powerfully for so long… For a commodity as, uh, liquid as the international market for Oil & Gas, and with the massive & competitive (relatively speaking) Indian economy a few hundred miles away, how can this lowly clerk have so much power to set local prices?
Afterall, by selectively handing out discounts, he’s robbing his own firm of revenues/profits and thus should be affecting his own prospects at the company in the long term… And, presumably, shouldn’t his customers be able to save the $$$ associated with the bribe and take their biz somewhere else?
The reason, of course, that this “state” of affairs was able to persist is revealed off-handedly in the article -
Titas is the country’s largest state-owned gas distributor, with an 80-per cent market share in Bangladesh
State ownership = price controls, locked in consumers & locked in market share = instead of a market price for the commodity, there’s a market price for bureaucratic favors.




