Awami League people saving Hall-Mark loan scamsters, Muhith tells Parliament

The government cannot arrest all the perpetrators of the Hall-Mark loan scam because of opposition from the ruling Awami League, Finance Minister AMA Muhith says.

His allegations came amid the BNP’s claim that Awami League leaders were involved in the Tk 26 billion scam, Bangladesh’s biggest-ever loan scandal.

A central bank audit revealed a little over Tk 36 billion was taken as loan by five firms, including Hall-Mark Group, from different branches of the state-owned Sonali Bank violating rules.

“We have been able to arrest a deputy managing director of Sonali Bank, who died in jail. The managing director is now probably in jail,” Muhith told Parliament on Tuesday.

“But still some of the directors can’t be arrested and they are all accused of loan fraud. 

“They are outside with backing from our people (Awami League members). I am very upset about this,” the finance minister remarked.

Hall-Mark borrowed Tk 35 billion from Sonali Bank’s Hotel Ruposhi Bangla branch by violating rules between 2010 and 2012.

The Anti Corruption Commission prosecuted its Managing Director Tanvir Mahmud, Chairman Jesmin Islam and General Manager Tusher Ahmed and several Sonali Bank officers over the scam.

Ruposhi Bangla branch’s former deputy general manager Azizur Rahman died in jail.

A number of the accused were still absconding.

Before the finance minister’s speech, the independent lawmaker opposed the grant proposal for bank and financial institutions.

He said, “Thousands of crores of taka have been looted but (the crime) has not been tried.”

Comilla-8 MP Nurul Islam Milan moved a cut motion saying, “The banks have failed to do their job.”

Independent lawmaker Rustam Ali Farazi expressed concern over loan defaults.

“I get worried the moment I hear the name of Sonali (Bank),” he said.

Following the speeches of the MPs, the finance minister said, “Of course, credibility and trust are essential for banks. Lacking them creates many problems.”

He said the government had taken sufficient actions against the loan scammers of Sonali Bank and BASIC Bank.

“Punishment to the managing director or even deputy managing director was unthinkable in Bangladesh. None dared to touch them. I have sent them to jail.”

He admitted that the action against the loan swindlers was not fast enough.

About the BASIC Bank, he said, “We have formed a fresh board of directors. We will take proper action following their report.”

“We have already taken some action so that the bad guys involved with the BASIC Bank cannot leave the country.”

He asked the MPs to raise questions about the list of loan defaulters and promised to answer them.