The US has imposed sanctions on a former Bangladesh army chief over his alleged involvement in corruption, saying his actions have contributed to the undermining of the country's democratic institutions and the people's faith in public institutions and processes.

“The US department of state announced on Monday the public designation of former General Aziz Ahmed, previously Chief of the Bangladesh Army Staff, due to his involvement in significant corruption,” state department spokesperson Matthew Miller said on Monday.

Ahmed is an ally of Bangladesh Prime Minister Sheikh Hasina.

“His actions have contributed to the undermining of Bangladesh’s democratic institutions and the public’s faith in public institutions and processes,” Miller said.

Ahmed was engaged in significant corruption by interfering in public processes while helping his brother evade accountability for criminal activity in Bangladesh, he said.

Aziz also worked closely with his brother to ensure the improper awarding of military contracts and accepted bribes in exchange for government appointments for his personal benefit, Miller said.

“This designation reaffirms the US commitment to strengthening democratic institutions and the rule of law in Bangladesh. The US supports anti-corruption efforts in Bangladesh through assistance to make government services more transparent and affordable, improve the business and regulatory environment, and build capacity in investigating and prosecuting money laundering and other financial crimes,” Miller said.

Reacting to the US announcement, Ahmed told Prothom Alo newspaper that the allegations over which the sanctions were slapped on him were “not true”.

He also said though the sanction was slapped on him in person, the image of the ruling Awami League government was diminished since he held an important position during its tenure.

Ahmed called the sanctions on him as “unfortunate” which “surprised and hurt” him. “The two allegations brought against me are not true”, he said.

Ahmed was entrusted as army chief on June 25, 2028, and he served in the position until June 23, 2021.

Australia trade

Australia and Bangladesh on Tuesday said that the two countries would work to expand trade and cooperation in areas including security and the Rohingya refugee crisis.

The statements came as Australian foreign minister Penny Wong arrived in Dhaka on a two-day visit and held talks with Hasina and foreign minister Hasan Mahmud.