Bangladesh government is fretting about bank scams

The government is ‘worried’ about credit frauds in state-run banks, Finance Minister AMA Muhith has said.

He told Parliament about the concerns on Thursday after the managing director of Agrani Bank was sacked over irregularities in issuing loans.

“We are very worried about the theft in this sector,” he said in his speech for the passage of the new fiscal’s budget.

“We have taken more measures to prevent these acts.  We are investigating all these incidents and filing cases.”

The central bank removed Agrani Bank’s Managing Director Syed Abdul Hamid over irregularities in distributing loans worth Tk 8 billion.

Within hours, his deputy, Mizanur Rahman Khan, was arrested by the Anti Corruption Commission (ACC) along with two more officials at the bank’s headquarters in Motijheel.

The finance minister has faced flak after loan scams were uncovered at Sonali Bank and BASIC Bank. Both scams are under ACC probe.

Jatiya Party leader Kazi Feroz Rashid argued for slashing allocation for banks and financial institutions.

“Police have stopped muggers on the streets. Now the banks are doing the muggings. The finance minister must stop this at once.”

“The banking sector is a haven for looting. People are taking all they can, and they are not in any pressure to give them back.”

Another MP of the opposition, Nurul Islam Milon, opposed the allocation of over 25 billion to the sector.

“There is no point in giving funds to this sector overrun by irregularities.”

“They’re embezzling billions.”

“We can’t go on like this. Ordinary people’s money is being used to fill in the vacuum in capital caused by all these thefts,” said independent MP Rustam Ali Farazi.  

“We are yet to file all cases over BASIC Bank’s fraud. The ACC has the report,” Muhith told the MPs.     

“Be assured that the ACC will book all these persons who have incriminating evidence against them.”