Dhaka, Sep 10 (bdnews24.com)—The Federation of Bangladesh Chambers of Commerce and Industry believes the Sonali Bank's Board of Directors is not directly involved with the Hallmark loan scam.
This is the first official statement from the apex business body on the massive rip-off that has shaken the government and touched off intense political debate.
"We have examined the matter. Nothing involving Hallmark was discussed by the bank's (Sonali Bank) board. The Managing Director and his subordinates are involved," said FBCCI President AK Azad at a press conference at Motijheel.
"So, we are not blaming the bank's board directly. We don't see the directors' direct failure."
He, however, said action would be taken if investigations prove the board's negligence in disbursement of the loan.
He said those dishonest businessmen and bankers involved with the scam must be arrested immediately and brought to justice.
An investigation by the Bangladesh Bank in May found the bank's branch at Ruposhi Bangla Hotel had given out about Tk 36 billion – just below 2 percent of the national budget – to textile firm Hallmark Group and other dubious organisations with no notable collateral between 2011 and May 2012. Little-known Hallmark Group alone took Tk 27 billion.
The Sonali Bank authorities have so far suspended two General Managers and at least 20 other officials and made two Deputy Managing Directors (DMDs) officers on special duty (OSD).
The central bank in a letter to the Finance Minister recommended sacking the board, but Finance Minister AMA Muhith dismissed the idea. The government has recently extended the tenure of the bank's incumbent Chairman Quazi Baharul Islam for the next two years amid widespread criticism over the loan forgery.
Expressing his concern, Azad said that the management of the banking sector was at stake. "Due to the mismanagement, there's an apprehension that less money will be available for borrowing by real industrial entrepreneurs and businessmen, which will negatively reflect on the production."
The local banks have refused to pay the inland purchase bills, he said, as a result of which capital worth about Tk 30 billion of the traders has remained stuck.
The FBCCI chief asked the government to stop interfering with the state-owned banks and suggested private and nationalised banks should be brought under the control of the central bank instead of the Bank and Financial Institutions Division of the Finance Ministry.
Both the government and Bangladesh Bank also need to do their jobs properly to restore discipline in the financial management, he added.
Azad also demanded that the personal bank accounts of those involved in Hallmark loan scam be frozen and the National Board of Revenue (NBR) scrutinise their income tax return documents.
"Measures should be taken as per the findings."
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