Foreign ministry denies claim of $29mn going to ‘unknown’ institution in Bangladesh

It says a project titled Strengthening Political Landscape in Bangladesh was implemented with US funding

The government has dismissed claims made by US President Donald Trump regarding a $29 million aid package allegedly received by an "unknown institution" linked to two individuals in Bangladesh.

In a statement on Monday, the foreign ministry clarified that the claim was "not true".

It explained that the information was uncovered during an investigation triggered by "public confusion" following Trump's comments.

The statement also provided clarification on the details surrounding the project, titled Strengthening Political Landscape in Bangladesh, or SPL, which was funded by the United States.

At an event organised with US governors in Washington, DC, on Feb 21, Trump said: "$29 million to strengthen the political landscape in Bangladesh went to an organisation whose name no one has heard of before.

His statement sparked discussions across different circles.

Some people on social media claimed that the grant had been received by the Microgovernance Research Initiative, or MGR, an organisation led by Aynul Islam, an associate professor of political science at Dhaka University.

There were also claims on social media that Sushashoner Jonno Nagorik, or SHUJAN, led by Badiul Alam Majumdar, had received the funding.

In response, Badiul said on Saturday: "This is completely false. SHUJAN is not a registered organisation and cannot receive foreign aid; it operates with the support of different individuals."

An investigation by bdnews24.com found that the SPL project mentioned by Trump was implemented by Democracy International, or DI, a US-based non-governmental organisation, or NGO.

The project began in 2017, during Trump's first term in office.

After a four-year hiatus, upon his return to the presidency, Trump initially targeted the US Agency for International Development, or USAID.

This agency has overseen US humanitarian assistance abroad since the 1960s.

In the early days of his presidency, Trump placed a 90-day suspension on all forms of US development financing abroad, including through USAID, with an executive order.

During this period, Trump was joined by billionaire Elon Musk, who was appointed head of the newly established Department of Government Efficiency, or DOGE.

Trump and Musk claimed that USAID had been wasting taxpayer money on unnecessary projects, which had no benefit to the US, and had even enabled fraud, allowing many to line their pockets.

They also alleged that the agency had been spending funds to control political campaigns in other countries.

Amid such claims, one example they highlighted is a $29 million project in Bangladesh.

In another event in Washington, DC, Trump said: "That $29 million was spent to strengthen the political landscape and to help elect a radical leftist communist in Bangladesh.”

Although Trump did not specify who the "radical leftist communist" was, he frequently uses the term in his criticisms of the Joe Biden administration.

On Feb 29, Foreign Advisor Touhid Hossain said further details regarding the $29 million funding were awaited.

In Monday's statement, the foreign ministry said: “A project funded by USAID, titled Strengthening Political Landscape in Bangladesh, received $29 million in funding and was implemented.”

“The claim made by Donald Trump regarding this project has caused widespread confusion among the public.

“In this context, the foreign ministry conducted an investigation,” it reads.

"In the first term of Trump’s presidency, USAID selected Democracy International, a US-registered organisation, to implement this project."

"After a call for project proposals, several international organisations participated in the tendering process, and USAID made its decision following a transparent, competitive process.

“After signing the contract in March 2017, DI began implementing the project."

Regarding the project’s implementation, the ministry said: “Initially, the SPL project was a five-year initiative with a $14 million allocation.

“It was managed by USAID, with funding from both USAID and the UK's Department for International Development, which committed $10 million to the project.

“The primary aim of the SPL project was to reduce political violence, enhance peace and harmony, foster peaceful coexistence among political parties, build the capacity of political parties, improve the practice of internal democracy, and promote representative leadership.

“DI also conducted survey activities in Bangladesh under this project.”

The foreign ministry added, “In the case of USAID projects, the US government's financial management policies must be followed, which entails a strict audit process.

“Documentation is maintained for several years after the project's completion, and re-audits can be conducted if necessary.”

According to the ministry, the investigation revealed that DI began implementing the SPL project during Trump’s first term.

Therefore, the accusation that the project was given to an institution owned by two individuals in Bangladesh is “untrue”.

The statement said such projects are implemented through the bilateral development cooperation agreement between Bangladesh and the US.

“In this regard, no individual has the authority to influence such decisions," it concluded.