Editorial Desk :
An unusual change was brought to the ownership of four non-banking financial institutions before and after the national election of 2014.The institutions are now in dire financial straits. One is on the verge of closure and the others are unable to return their clients’ money. A certain man cunningly took control of these institutions. He launched many companies, some under fake names, bought huge amount of shares from the stock market and transferred money from the institutions he had grabbed in the guise of loans.
The man, Prasanta Kumar Halder, has even launched companies abroad. A number of Bangladesh Bank officials reportedly assisted him. Everything happened in the knowledge of two regulatory bodies, Bangladesh Bank and the Securities and Exchange Commission (SEC). PK Halder is now a fugitive while the depositors are desperately trying to recover their money. The Anti-Corruption Commission (ACC) filed a case against PK Halder on 8 January on charges of amassing assets worth Tk 2.75 billion.
PK Halder took control of four institutions by purchasing the shares of those companies from share market. Bangladesh Bank somewhat helped in taking over of People’s Leasing and Financial Services (PLFS) and Bangladesh Industrial Finance Company (BIFC). Central bank took action against some former members of board of directors of those two companies for taking loan by flouting rules. Taking this chance, PK Halder purchased shares and took control of these two companies.
How could a single person take control of four financial institutions? Why was there no supervision of the Bangladesh Bank? Why did the authorities not appoint any administrator even after being aware of irregularities? Such financial irregularities are spreading like an infection in the country’s banking sector as no action was taken for such crimes in the past.
The government should take stern action against these crimes as it would be damaging for all in the financial sector. But the Bangladesh Bank — the country’s chief financial regulator — was merrily playing the flute as the proverbial Rome burned. Due to the inaction of our regulators Tk 3500 crore is now missing as it has been transferred abroad.
For the sake of restoring sanity to the financial sector we need a strong and effective enquiry into why Bangladesh Bank did nothing. It could not have been possible without the help of corrupt officials who may be part of the BB. Many express frustration that it is futile to expect from this government to have the competence to improve the banking sector. Banking sector has been ruined.
Even more mysteriously how did such a large sum of money get out of the country seemingly right under the noses of the authorities? If someone can transfer Tk 3500 crore out of the country illegally it bodes ill for the ability of the authorities to control cross border transactions of such magnitude that — if it came into the country, could be used to help terrorism.
Not only the banking sector, there is apparently no success of the government in any sector. The government is depending on police for protecting them from the people’s anger. Life of the common people is unbearable and they live in fear of police power. Free election is unthinkable under this government. So the country is heading for a disaster. But the government is blind to see this.
An unusual change was brought to the ownership of four non-banking financial institutions before and after the national election of 2014.The institutions are now in dire financial straits. One is on the verge of closure and the others are unable to return their clients’ money. A certain man cunningly took control of these institutions. He launched many companies, some under fake names, bought huge amount of shares from the stock market and transferred money from the institutions he had grabbed in the guise of loans.
The man, Prasanta Kumar Halder, has even launched companies abroad. A number of Bangladesh Bank officials reportedly assisted him. Everything happened in the knowledge of two regulatory bodies, Bangladesh Bank and the Securities and Exchange Commission (SEC). PK Halder is now a fugitive while the depositors are desperately trying to recover their money. The Anti-Corruption Commission (ACC) filed a case against PK Halder on 8 January on charges of amassing assets worth Tk 2.75 billion.
PK Halder took control of four institutions by purchasing the shares of those companies from share market. Bangladesh Bank somewhat helped in taking over of People’s Leasing and Financial Services (PLFS) and Bangladesh Industrial Finance Company (BIFC). Central bank took action against some former members of board of directors of those two companies for taking loan by flouting rules. Taking this chance, PK Halder purchased shares and took control of these two companies.
How could a single person take control of four financial institutions? Why was there no supervision of the Bangladesh Bank? Why did the authorities not appoint any administrator even after being aware of irregularities? Such financial irregularities are spreading like an infection in the country’s banking sector as no action was taken for such crimes in the past.
The government should take stern action against these crimes as it would be damaging for all in the financial sector. But the Bangladesh Bank — the country’s chief financial regulator — was merrily playing the flute as the proverbial Rome burned. Due to the inaction of our regulators Tk 3500 crore is now missing as it has been transferred abroad.
For the sake of restoring sanity to the financial sector we need a strong and effective enquiry into why Bangladesh Bank did nothing. It could not have been possible without the help of corrupt officials who may be part of the BB. Many express frustration that it is futile to expect from this government to have the competence to improve the banking sector. Banking sector has been ruined.
Even more mysteriously how did such a large sum of money get out of the country seemingly right under the noses of the authorities? If someone can transfer Tk 3500 crore out of the country illegally it bodes ill for the ability of the authorities to control cross border transactions of such magnitude that — if it came into the country, could be used to help terrorism.
Not only the banking sector, there is apparently no success of the government in any sector. The government is depending on police for protecting them from the people’s anger. Life of the common people is unbearable and they live in fear of police power. Free election is unthinkable under this government. So the country is heading for a disaster. But the government is blind to see this.
