BB starts clearing Hall-Mark bills from Sonali Bank account

The central bank has started paying the Hall-Mark Group’s outstanding bills with other banks from its Sonali Bank account.

Sonali Bank is the guarantor of LCs opened for the group, which was found to be involved in a multi-billion taka financial scam.
 
Bangladesh Bank on Thursday deducted $112,370 from state-owned Sonali Bank’s foreign currency clearing account and paid it to the Standard Chartered Bank.
 
Central bank Executive Director Md Ahsanullah told bdnews24.com: “Sonali Bank was given much time to pay off the bills. The bank was not clearing the bills despite their board of directors’ decision.”
 
He said the banking sector was facing ‘many difficulties’ due the stalled bill payment. “Considering everything we’ve taken measures to clear the bills with the money from their (Sonali Bank) account.”
 
The central bank official said they would similarly clear Hall-Mark dues to other banks if they came up with the bill claim.
 
A concern of Hall-Mark Group, Paragon Knit Composite, had imported raw materials worth $112,370 through letters of credit opened by Standard Chartered Bank. 
 
Sonali Bank was the guarantor for the LCs.
 
A guarantor has to clear the bill if its client fails to pay within 180 days.
 
Sonali Bank had stood guarantor for 2,342 LCs, involving Tk 13.16 billion, opened by 42 banks for Hall-Mark.
 
The group defaulted payment of the bills after the scam, in which it embezzled Tk 25 billion from Sonali Bank through forged documents, was unearthed in 2012.
 
The Anti Corruption Commission prosecuted Hall-Mark Group Managing Director Tanvir Mahmud, Chairman Jesmin Islam and General Manager Tusher Ahmed and several Sonali Bank officers over the scam.