Staff Reporter :
Bangladesh Bank (BB) on Wednesday put an embargo on the purchase of bank related products from the companies owned by the directors of the banks.
BB in a circular said that despite having directives not to purchase products or services from the companies owned by the bank directors, the banks have been carrying out such purchases by breaching the rules.
Against this backdrop, the Central Bank issued the directive with stern caution not to buy products from the companies where the bank directors have their interests.
The circular said that in order to avoid the conflict of interest and to ensure good governance, last year in January 21, a circular was served to each bank to submit the reports about the business entities – either individual or family businesses – of the bank directors, managing directors and the officers under two grade of directors.
Presently BB has noticed that some of business entities owned by the bank directors or the companies where directors have interest are participating in the procurement process for the purchase of products or services for the banks by violating the rules, the circular said.
Such activities are a hindrance to the establishment of the good governance in the banking sector, it added.
So, the directors who have companies or have interests in business entities are not allowed to participate in the procurement process to buy products or services in order to give importance to the interest of the bank and the depositors.
