Staff Reporter :
The Anti-Corruption Commission (ACC) summoned the loan documents of 12 companies for alleged embezzlement of around Tk 900 crore from five branches of Padma Bank Limited (formerly The Farmers Bank).
Meanwhile, Padma Bank, renamed from scam-hit Farmers Bank, has formally begun operations with a promise of ‘secure banking’ for its customers.
The agency summoned the documents related to the loans of the institutions through a letter which was sent to the Managing Director and Chief Executive Officer (CEO) of Padma Bank on Sunday, ACC sources confirmed the matter to this correspondent.
ACC Deputy Director Farid Ahmed Patwari is working as the leader of the investigating team, while Assistant Director Sahidur Rahman is assisting him to conduct the investigation.
The ACC’s summoned letter urged the companies to send the attested copies of the required documents and records by June 16.
The ACC sent its the letter of summon to Engineering and Construction Limited, Nahar Brand Oil Industries Limited, Agro Arina Associates, Abeda Memorial Hospital Private Limited and Winsam Impex, who had taken loan from Motijheel Branch.
Besides, the corruption watchdog also sought documents of Chittagong Fisheries, Apple Global Tel Communications Limited, Golf Orient COS and Agrotech Auto Rice Mills Limited that took loans from the Gulshan Corporate Branch. The ACC in its letter also urged Shetal Enterprise that had taken loan from Khatunganj Branch, Al Ferdous Re-rolling Mills that had taken loan from Shyampur Branch and Phulpur Industries Limited that had taken loan from Haluaghat Branch.
It has been alleged that the loans were granted in collaboration with the officials of Farmers Bank Limited through misusing power. The main motive of the bank officials were, , allegedly, to embezzle and launder the money using the carrier’s account for financial gain and the loan amount is about Tk 900 crore.
Economic Affairs Adviser to Prime Minister Mashiur Rahman unveiled the Padma Bank’s new logo at a city hotel on March 16, 2019.
Farmers Bank got in trouble due to gross irregularities and loan scams and later four state-owned banks-Sonali, Janta, Agrani and Rupali-and non-banking financial institution Investment Corporation of Bangladesh or ICB extended financial assistance to help the bank come back from the brink.
The four banks and ICB now have a 68 percent stake in Padma Bank which began operation with 57 branches across the country aiming to start afresh with a new image.
Farmers Bank, which was established in 2013, became a hotbed for financial irregularities in less than three years of operation.
More than Tk 3,500 crore was siphoned off from the bank, according to Bangladesh Bank.
As of September 2018, default loans at the bank stood at Tk 3,071 crore, up from Tk 723 crore at the end of 2017.
As of September 2018, its non-performing loans accounted for 58 percent of its total outstanding loans of Tk 5,311 crore.
Muhiuddin Khan Alamgir and Md Mahabubul Haque Chisty, the then board chairman and chairman of the audit committee respectively, were forced to resign from their respective posts in November 2017.
Allegations of corruption against them became deafening and depositors, which included different government agencies, started pulling out money.
This prompted the central bank and the government to step in and rescue the bank.
Four state-owned commercial banks — Sonali, Janata, Agrani and Rupali — and the Investment Corporation of Bangladesh bailed out the bank buying equity shares worth Tk 715 crore.
Managing directors of the five financial institutions were appointed directors of the bank.
