BASIC Bank loan fraud: Anti-Corruption Commission grills two former directors

The Anti-Corruption Commission or ACC has questioned two former directors of the BASIC Bank over the embezzlement of Tk 35 billion in loans.

A team led by ACC Director Zayed Hossain Khan questioned AKM Kamrul Islam and Jahangir Akhand at the ACC headquarters from 9am to 1pm on Tuesday, said ACC Deputy Director (Public Relations) Pranab Kumar Bhattacharya.

Former BASIC Bank Chairman Sheikh Abdul Hye Bachchu will be questioned over the massive credit fraud at the ACC on Dec 4.

The ACC opened an investigation into the state-run BASIC Bank after allegations that Tk 35 billion in loans had been illegally disbursed from the Gulshan, Dilkusha and Shantinagar branches between 2009 and 2011.

BASIC Bank is alleged to have given loans without collateral and used false documents and fictitious names and organisations in violation of the rules and regulations.

After nearly four years of investigation, the ACC started 56 cases at three police stations in Dhaka, accusing 156 individuals. Twenty-six among them are bank staffers. The rest are connected to lending institutions and banking oversight organisations.

But the absence of Bachchu and other prominent members of the board of directors on the list of suspects prompted controversy.

The ACC claimed they had not found any evidence of Bachchu’s involvement.

The parliamentary standing committee on the finance ministry was unhappy with the ACC findings and the central bank opened a separate investigation into the matter.

In February 2016, Finance Minister AMA Muhith claimed the investigation into BASIC Bank had found evidence of loan fraud, appointment fraud and promotion manipulation in regards to Bachchu.

In August, the Supreme Court’s Appellate Division expressed its anger that Bachchu and the directors had not been named suspects in loan frauds and money laundering.

The court warned the ACC not to ‘pick and choose’.

Facing criticism, an ACC director told the media that Bachchu would be called in for questioning, even though he was not on the list of suspects.

Bachchu, a former Jatiya Party MP, was appointed chairman of the bank in 2009. His job was extended in 2012.

Bachchu resigned in 2014 amid pressure following the emerging fraud allegations.

The finance minister said Bachchu would not be let off the hook.