THE government is likely to set aside Tk 1500 crore in the upcoming national budget in a bailout fund for scam-hit state-owned banks. The Ministry had to keep the bailout fund on ‘political consideration’ despite opposition from experts, think-tanks and right groups. The government between 2012-2013 and 2016-17 has fed Tk 9,788 crore to the state-owned banks’ vaults that have drained out to the ruling-party blessed loan defaulters. The money put aside in each national budget as bailout fund goes to the bottomless basket and has not improved the health of the banks as the fund is allocated to nurture political men.
Transparency International Bangladesh (TIB) noted that allocating controversial bailout fund in the budget for 2018-19 would give incentives to loan defaulters and masterminds of loan scams. Instead of grilling the loan defaulters, the government entertains them which encourage many to become dishonest as dishonesty has an award. The octogenarian Finance Minister from time to time acts like a crusader against loan defaulters as like in March when he announced the government would not pour money to meet the capital shortfall of banks from national exchequer, but he has now put Tk 1500 crore for the suited criminals who are loan defaulters.
Sonali Bank after Hallmark scam in 2013 was given Tk 3,005 crore in three phases to overcome its severe capital shortfall. Once profitable BASIC Bank was given the highest Tk 3,390 crore in three financial years to meet its capital shortfall caused by shady loans of over Tk 6,000 crore during the tenure of its previous board led by its chairman Sheikh Abdul Hye Bachchu. Janata Bank, facing loan scam over Tk 5,000 funds extended to little known AnonTex Group, received bailout fund of Tk 814 crore. Most of the loan defaulters are directly or indirectly related to the ruling elite.
Why should people pay for the malpractices and blunders committed by the banks’ managements appointed by the government on political consideration? The government should be made accountable for their inaction that encourages loan defaulting and should evade wasting money by pouring money to the banks rather than invest in education, health, and employment generation.
Nobody has the right to waste taxpayers’ money in the black hole of loan scams.
