Kazi Zahidul Hasan :
The job of the state-owned Agrani Bank’s Managing Director (MD) Syed Abdul Hamid has been extended for one year more despite his alleged involvement in a Tk 300 crore loan scam.
The bank issued a press release on Thursday making the announcement.
Hamid had been earlier appointed thrice as MD of the bank.
The Banks and Financial Institutions Division (BFID) under the Finance Ministry has renewed his job despite strong objection of Bangladesh Bank (BB) on charge of his proven involvement in loan scandals, sources said.
They said, BFID has recently made the renewal
although BB, the regulatory body of the country’s banking sector, raised objection to the move. BB earlier produced a long list of charges against him and asked the BFID for legal action against him.
It also advised BFID to find an alternative candidate for the post.
“BFID under the Finance Ministry has extension of the term of Abdul Hamid by one year more ignoring BB’s objection,” a senior BB official told The New Nation on Friday on condition of anonymity.
He added that BB raised the objection as it earlier found Hamid’s involved in a loan scam involving Tk 300 crore. “We earlier advised the BFID to take punitive action against him for the loan scandal but surprisingly it rewarded him by extending his job tenure for one more year,” he said. The BB official further said that the BFID should honour the BB’s advice as defined in the Bank Company Act. “Such a denial of the BB’s advice might raise question about the autonomy of the central bank in exercising their authority,” he mentioned. According to a BB investigation report, the Agrani Bank MD resorted to irregularities to grant loans worth Tk 300 crore to Sunmoon Group proprietor Mizanur Rahman Mizan and his different business houses. The Agrani Bank MD and a section of officials at the bank’s Principal Branch presented false information to the Bank’s Board of Directors for sanctioning the loans.
“This kind of fraudulent activities put Tk 300 crore depositors’ money at risk and the bank’s MD is fully responsible for it,” it added.
The BB official further said that a copy of the investigation report was sent to the BFID and Agrani Bank’s chairman, asking both to take necessary action against Hamid. “Before that the central bank sought explanation regarding the matter to the MD but he failed to give any satisfactory answer,” he added. The authorities of Agrani Bank also launched a probe after receiving the central bank’s report.
The probe body produced a similar report like BB finding Hamid’s involvement in the loan scam. Sources said, the Finance Ministry and the central bank have long been at loggerheads over exercising their authority and the issue came in the limelight again following the reappointment of Agrani Bank’s MD. When contacted, SK Sur Chowdhury, Deputy Governor of BB, declined to comment on the issue saying that you better talk to our governor.
The job of the state-owned Agrani Bank’s Managing Director (MD) Syed Abdul Hamid has been extended for one year more despite his alleged involvement in a Tk 300 crore loan scam.
The bank issued a press release on Thursday making the announcement.
Hamid had been earlier appointed thrice as MD of the bank.
The Banks and Financial Institutions Division (BFID) under the Finance Ministry has renewed his job despite strong objection of Bangladesh Bank (BB) on charge of his proven involvement in loan scandals, sources said.
They said, BFID has recently made the renewal
although BB, the regulatory body of the country’s banking sector, raised objection to the move. BB earlier produced a long list of charges against him and asked the BFID for legal action against him.
It also advised BFID to find an alternative candidate for the post.
“BFID under the Finance Ministry has extension of the term of Abdul Hamid by one year more ignoring BB’s objection,” a senior BB official told The New Nation on Friday on condition of anonymity.
He added that BB raised the objection as it earlier found Hamid’s involved in a loan scam involving Tk 300 crore. “We earlier advised the BFID to take punitive action against him for the loan scandal but surprisingly it rewarded him by extending his job tenure for one more year,” he said. The BB official further said that the BFID should honour the BB’s advice as defined in the Bank Company Act. “Such a denial of the BB’s advice might raise question about the autonomy of the central bank in exercising their authority,” he mentioned. According to a BB investigation report, the Agrani Bank MD resorted to irregularities to grant loans worth Tk 300 crore to Sunmoon Group proprietor Mizanur Rahman Mizan and his different business houses. The Agrani Bank MD and a section of officials at the bank’s Principal Branch presented false information to the Bank’s Board of Directors for sanctioning the loans.
“This kind of fraudulent activities put Tk 300 crore depositors’ money at risk and the bank’s MD is fully responsible for it,” it added.
The BB official further said that a copy of the investigation report was sent to the BFID and Agrani Bank’s chairman, asking both to take necessary action against Hamid. “Before that the central bank sought explanation regarding the matter to the MD but he failed to give any satisfactory answer,” he added. The authorities of Agrani Bank also launched a probe after receiving the central bank’s report.
The probe body produced a similar report like BB finding Hamid’s involvement in the loan scam. Sources said, the Finance Ministry and the central bank have long been at loggerheads over exercising their authority and the issue came in the limelight again following the reappointment of Agrani Bank’s MD. When contacted, SK Sur Chowdhury, Deputy Governor of BB, declined to comment on the issue saying that you better talk to our governor.
