Former Bangladesh prime minister jailed

Police arrested former Prime Minister Sheikh Hasina on Monday on extortion charges, and she was ordered jailed pending trial, her lawyer said.

Her arrest sparked protests by her supporters, who were driven away by baton-wielding police.

Hasina is the leader of one of two political dynasties who have dominated Bangladesh since 1991. The other is headed by her bitter rival, former Prime Minister Khaleda Zia, who also faces corruption charges.

Bangladesh, under a state of emergency since mid-January, is being ruled by a military-backed interim government. It has vowed to fight corruption and clean up the nation's factional _ and often violent _ politics before holding the next election.

More than 170 people _ most of them associates of Hasina and Zia _ have been arrested under an anti-corruption drive by the military-backed interim government. Supporters of both women say the interim government has tried to force them into exile, although it denies it.

Hasina, who served as prime minister from 1996 to 2001, was arrested at her home in the capital, Dhaka, and taken to a court where a magistrate denied her bail and ordered her into jail ahead of the trial, defense lawyer Abdul Matin Khasru told reporters.

Khasru said Hasina was accused of extorting about $441,000 from a company in return for allowing it to build a power station while she was in office.

Hasina denied the allegations, saying they were aimed at keeping her from contesting the next elections. She arrived at the court with her head covered in a white scarf, escorted by hundreds of security personnel.

"It's a conspiracy to stop me from speaking for the rights of the people. I've done nothing wrong," Hasina told the court jammed with lawyers and journalists.

The interim government denied there was any conspiracy.

"There are specific charges against Hasina. Law will take its own course," the government's Law Adviser Mainul Hosein told The Associated Press.

Hasina, 59, was later taken to a state-owned building that has recently been converted into a jail, police said, without elaborating.

Dozens of supporters demonstrated near the court against Hasina's arrest.

"Free Hasina!" the supporters shouted before being driven away by baton-wielding police, witnesses said.

Hasina is the daughter of Sheikh Mujibur Rahman, Bangladesh's first prime minister, who was assassinated by army officers in 1975. Zia's husband, Gen. Ziaur Rahman, then became president, ruling until he was killed by soldiers in 1981.

The political platforms of Hasina and Zia are similar, and their followings are large. In 1991, Zia was elected prime minister. Hasina followed in 1996, and Zia returned to power in 2001 until last year.

Each time one took office, the other party would launch protests that repeatedly shut down the country. At the same time, a coterie of associates around them grew rich.

On Monday, a Dhaka court asked Zia to appear before it on Aug. 26 to answer charges of tax evasion by Dinkal, a daily newspaper owned by her Bangladesh Nationalist Party.

In June, a court ordered police to probe allegations that she ordered a 2004 grenade attack on a rally addressed by Hasina, leaving 24 people dead.

The New Delhi-based Asian Center for Human Rights said Hasina's arrest was "nothing but a military operation sanctified by the Chief Metropolitan Magistrate" and an attempt to keep her out of the political process.

Police also charged Hasina in April with abetting in the murder of four political opponents after four protesters died at a demonstration held by her Awami League party in October. A court issued a warrant for her arrest on that charge, but it was later withdrawn.

Berlin-based anti-corruption watchdog Transparency International ranks Bangladesh, a nation of 145 million people, as one of the world's most corrupt countries.

The military-backed interim government came to power after 30 people were killed in clashes following the end of Zia's five-year term in October.

National elections planned for Jan. 22 were canceled. While the government has promised elections before the end of 2008, no dates have been announced.

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Associated Press Writer Julhas Alam contributed to this report.