A news report in The New Nation on Friday said Sonali Bank management has approved a move to write off Tk 2,086 crore default loans to 23 clients including Tk 1700 crore of the Hallmark Group. The bank has also written off big amount of loans last year although this bank and such other public banks are virtually functioning on recapitalization of their resources by budgetary allocation of taxpayers’ money. The practice has thus raised question in our hand about depositors’ money in those banks when rewarding swindlers on the other. Reports said previously Rupashi Bangla branch of the Sonali Bank sanctioned Tk 3,547 crore loan to five business houses from 2010 to 2012 and Hallmark Group alone pocketed Tk 2,686 crore using fictitious business accounts. Later it turned out that several political nominee of the government on Sonali Bank’s board facilitated these loans and particularly a powerful adviser to the Prime Minister used his influence to get the huge loan to Hallmark Group. It was the biggest ever bank swindling but the government appears too keen to rescue the thieves. Some bank employees were arrested but known faces whose names were in media headlines were left untouched. As we see not only Sonali Bank, other public banks like Rupali Bank, Janata Bank, Agrani Bank and BASIC Bank are also victims of huge loan frauds while they are facing acute capital inadequacy. But they are also writing off loans to cover their failure to recover these bad loans or loans made to fictitious clients. They have this money already moved out of the country and put to safety in Swiss banks. On the other hand, the government provided Tk 4,100 crore to those banks in 2013 and again Tk 1500 crore exclusively to Sonali Bank and BASIC Bank in 2014 to overcome their capital shortfall.Meanwhile banks have also provided massive rescheduling of default loans to vested business quarters closer to the government, which included some recent rescheduling for up to 2014 showing that the government is allowing space to the corporate house to go on avoiding repaying. We see these rescheduling and write off are in fact tailor made cases to show the default at lower level which could otherwise stand at over 40 percent according to a news report showing almost half of the depositors’ money is wrong hands. In our view it is the plunderers of public money who are the biggest liability for the government and for saving them from being punished the government is so determined to continue in power.
