Law passed with jailing, fines for lying to buy savings certificates

Parliament has passed the Public Debt Bill 2022 with a provision stipulating a maximum six-month prison term and Tk 100,000 fines for providing wrong information to buy savings certificates.

MPs passed the law in voice vote on Thursday after vetting by a parliamentary committee formed to review public opinion.

It was also scrutinised by the parliamentary standing committee on the finance ministry after being placed by Finance Minister AHM Mustafa Kamal in November last year.

The cabinet, chaired by Prime Minister Sheikh Hasina, approved the draft bill in September 2021. Now it awaits signing by President Md Abdul Hamid.

The new law states if a citizen or their representative provides false information for the ownership of certificates issued under government security or national savings schemes, they will be jailed for up to six months and fined Tk 100,000.

The previous act of 1944 did not specify the fines for the breach of the law while the new law includes 40 sections for a sustainable debt policy and planning, risk assessment and expansion of government’s liabilities.

The Bill states a court cannot take cognisance of charges filed by someone other than Bangladesh Bank or National Savings Directorate.

The government will not bear liabilities after paying the capital and interests at the end of a savings certificate’s term.

If the organisation holding government securities is declared bankrupt or dissolved, an administrator appointed for that organisation will take steps on the securities.

If a person transfers the ownership of securities following the law, he or she cannot be held liable for the capital or interests.

The government will be able to collect any sort of loan or investment with or without interests in foreign or local currency to make up for budget deficit or finance a project or other purposes.

The law also includes provisions on Sharia-based securities and bonds.

It stipulates the publication of accounts of government debt.