MEDIA reports on Friday said depositors in Farmers Bank have filed complaints with the Bangladesh Bank for failing to repay their deposits on maturity to the tune of around Tk 884 crore. It is feared more such complaints may continue to pour into the central bank as Farmers Bank’s financial situation has collapsed and is posed to face more such default cases.
The Farmers Bank secure large deposits using Mohiuddin Khan Alamgir’s political influence as member of the parliament. His dubious character is widely known. He was facing corruption case during the army backed caretaker government. He wriggled out of the case after Awami League came to power. He was favourite to President Zia and exploited him to obtain a doctorate degree praising success of his canal digging programme which was mistakenly conceived.
As per Bangladesh Bank (BB) the liquidity hit Bank started to stumble since November last year for indulging in malpractices while disbursing more than half of its outstanding loan of Tk 5,130 crore to fictitious business. Most loans became bad loans now. Over the last four months BB received complaints from 14 government agencies for failing to realize Tk 852 crore. Many have sought Finance Ministry’s intervention in this regard. The Bank has also failed to repay 21 business and several individuals. These are term deposit mainly for one year.
Awami League leader Mohiuddin Khan Alamgir lured depositors to put their money in the bank at higher interest from 11 percent to 11.50 percent while others offered 6 to 7 percent. In many cases he exerted pressure on institutional depositors using his official power as MP, former minister and chairman of Parliamentary Standing Committee on public accounts to put money in Farmers Bank. The bank was fraught with irregularities from the beginning started with renting spaces at higher rates and advancing loans to close people against fake documents.
Mohiuddin Khan Alamgir started as a high professional of government later became highly ambitious politically using weak political leadership of the government. He knows the wicked and immoral ways for advancing his self interest. He is now moving low profile following resignation from his position as Chairman of the bank.
BB remained indifferent and failed to punish him while rather entertained his request for refinancing the bank’s capital. The Anti-Corruption Commission (ACC) has become lately active about the corruption in the Farmers Bank. Mohiuddin Khan Alamgir took the license for running the bank but started looting money right from start.
Many wonder how the government can arrange Tk 1100 crore recapitalization fund for the bank selling its share to state-owned banks – these are visibly risky investment open to the money grabbers.
The Farmers Bank secure large deposits using Mohiuddin Khan Alamgir’s political influence as member of the parliament. His dubious character is widely known. He was facing corruption case during the army backed caretaker government. He wriggled out of the case after Awami League came to power. He was favourite to President Zia and exploited him to obtain a doctorate degree praising success of his canal digging programme which was mistakenly conceived.
As per Bangladesh Bank (BB) the liquidity hit Bank started to stumble since November last year for indulging in malpractices while disbursing more than half of its outstanding loan of Tk 5,130 crore to fictitious business. Most loans became bad loans now. Over the last four months BB received complaints from 14 government agencies for failing to realize Tk 852 crore. Many have sought Finance Ministry’s intervention in this regard. The Bank has also failed to repay 21 business and several individuals. These are term deposit mainly for one year.
Awami League leader Mohiuddin Khan Alamgir lured depositors to put their money in the bank at higher interest from 11 percent to 11.50 percent while others offered 6 to 7 percent. In many cases he exerted pressure on institutional depositors using his official power as MP, former minister and chairman of Parliamentary Standing Committee on public accounts to put money in Farmers Bank. The bank was fraught with irregularities from the beginning started with renting spaces at higher rates and advancing loans to close people against fake documents.
Mohiuddin Khan Alamgir started as a high professional of government later became highly ambitious politically using weak political leadership of the government. He knows the wicked and immoral ways for advancing his self interest. He is now moving low profile following resignation from his position as Chairman of the bank.
BB remained indifferent and failed to punish him while rather entertained his request for refinancing the bank’s capital. The Anti-Corruption Commission (ACC) has become lately active about the corruption in the Farmers Bank. Mohiuddin Khan Alamgir took the license for running the bank but started looting money right from start.
Many wonder how the government can arrange Tk 1100 crore recapitalization fund for the bank selling its share to state-owned banks – these are visibly risky investment open to the money grabbers.
