Sheikh Hasina (r) is surrounded by police officers as she leaves court (July 2007 file photo)

Bangladesh's interim government has formally charged former Prime Minister Sheikh Hasina Wednesday with corruption.

Ms. Hasina is accused of illegally awarding contracts to a foreign oil company during her term.

On Monday, authorities also charged former Prime Minister Khaleda Zia in connection with the case.

The Anti-Corruption Commission says the country lost millions of dollars as a result of the contracts given to a Canadian oil exploration company, Niko Resources Ltd.

Ms. Zia has maintained her innocence, saying the allegations are politically motivated. Both of her sons - Tarique and Arafat Rahman - have also been arrested on graft charges.

Both former prime ministers are part of the some 150 politicians arrested last year in a nationwide crackdown on corruption.

The military-backed interim government took power in January 2007 and has promised to hold elections once corruption has been eliminated

The U.S. Ambassador to Bangladesh, James Moriarty, urged Bangladesh to lift a state of emergency so that those elections could take place by the end of the year.

Some information for this report was provided by and Reuters.