DHAKA, April 13: Denmark said on Saturday it would withdraw 45 million dollars in aid earmarked for Bangladesh’s shipping sector because of corruption.

“There was a serious intention of corruption in tendering (for) four ferries. The corruption took place at a high-level, actually from the minister,” Peter Lysbolt Hansen, undersecretary in Denmark’s foreign ministry, told reporters here.

He said the Danish government was withdrawing $5m allocated for this year and $40m over the next five years.

Prime Minister Khaleda Zia’s government was elected six months ago in a landslide on promises to wipe out corruption and crime.

But Hansen said: “There is hardly any action so far though six months have already passed since the government took power.”

He said the Bangladeshi government had urged the Danes to reconsider the aid withdrawal, saying the dispute was because of a “misunderstanding”.

“It was the only way for us,” Hansen responded. “We have an obligation to the Danish taxpayers.”

“We will reassess our cooperation in other areas also if the government does not fulfil its commitment,” said Hansen, quoted by the private UNB news agency.

“Now it’s a test for our future relations. It is the poor people doing this,” he said.—AFP