Bangladesh Bank officials took benefits from PK Halder: High Court

The Bangladesh Bank’s role in recovering defaulted loans taken from People’s Leasing and Financial Services Ltd or PLFSL, a firm undergoing liquidation, has irked the High Court.

A judge says the central bank officials responsible for overseeing the financial institutions “took benefits” from the scam centring businessman Proshanto Kumar Halder.

Justice Muhammad Khurshid Alam Sarkar made the comments on Tuesday while hearing statements of some of those who defaulted on more than Tk 500,000 loans from PLFSL.

“The Bangladesh Bank officials in charge of overseeing the financial institutions sat there and took [benefits]. These corrupt officials took facilities from PK Halder and the loan defaulters,” the judge said.

The National Board of Revenue has sought details of bank accounts of Shitangshu Kumar Sur Chowdhury, a former deputy governor of Bangladesh Bank, and Md Shah Alam, an incumbent executive director of the central bank, after their names emerged in the PK Halder scam.

Proshanta is a former managing director of the International Leasing and Financial Services Limited or ILFSL and NRB Global Bank.

He is accused of embezzling Tk 3.5 billion funds and purchasing large shares while taking control of four financial institutions, in which he placed his close associates in positions of power.

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These companies are ILFSL, Peoples Leasing and Financial Services Ltd or PLFSL, FAS Finance and Investment Company, and Bangladesh Industrial Finance Company.

The Anti-Corruption Commission arrested Uzzal Kumar Nandi, chairman of PLFSL, and Rashedul Haque, former managing director of ILFSL, on charges of abetting the crimes allegedly committed by PK Halder, a fugitive.

Nandi and Haque named SK Sur and Shah Alam, among others, in their statements to the court.

The High Court on Jan 5 slapped a travel ban on 25 people, including SK Sur and Shah Alam, while hearing a writ petition filed by five of the PLFSL clients who had lost their money in the scam.

‘THEY WILL BE ARRESTED’

The court summoned 280 of the people who had defaulted on repayment of loans worth more than Tk 500,000 from PLFSL following a list prepared by Md Asaduzzaman Khan, a probational liquidator for the firm.

As many as 143 were ordered to appear before court on Tuesday and explain the defaulted loans. The rest were ordered to come on Feb 25.

But after only 51 turned out on Tuesday, Justice Sarker said the absentees will be given another chance. They will face arrest if they do not appear next time on Mar 9, he added.

Some of the loan defaulters who appeared in court sought time to repay, while some others denied taking loans from the firm.

‘BB DID NOTHING’

Citing the statements of the defaulters, the judge said many of them offered to clear debt, but the court cannot collect the money. The PLFSL board will have to be revived.l to collect the debt.

“The Bangladesh Bank needs to do something about it. But they did nothing in the past two years. So I have been compelled to summon them,” Justice Sarkar said.

NI Khan, who was recently appointed chairman of PLFSL, recovered around Tk 1 billion, but it is the job of the Bangladesh Bank, not the court, to handle the financial institutions, he added.

The default loans from PLFSL total over Tk 16.55 billion.

Besides Bangladesh Bank governor, the court asked to hear from the chairmen of the Anti-Corruption Commission and the Securities and Exchanges Commission about PLFSL via video call on Mar 9.

The judge was also peeved at the ACC’s investigation into the PK Halder scam.

“We passed the order on PLSFL in June 2019 and hoped the ACC or the Financial Intelligence Unit will catch them (PK Halder and his associates). But the ACC in January last year informed us that PK Halder had fled. What did the ACC do in the seven months?” he asked.

Lawyers Gazi Mostaque Ahmed, Masud Hasan Chowdhury Parag, Syeda Nasrin and Md Tosadder Raihan Khan argued for the defaulters in the hearing.

Mejbahur Rahman represented liquidator Asaduzzaman while Tanjib Alam and Khan Mohammad Shahmim Aziz stood for the central bank.