Staff Reporter :
Fifteen fictitious business firms have availed Tk 1,031 crore loans from the state-owned BASIC Bank resorting to various forgeries.
The authorities of the bank sanctioned the loan without proper documentation, collateral and credit worthiness of the clients, according to an audit report of Office of the Comptroller and Auditor General (OCAG).
The OCAG detected the loan irregularities while conducting a special audit on the bank from the year 2010 to 2013.
The names of the companies are: Emarald Auto Bricks ( Tk 160.72 crore), Farsi International (Tk 82.21 crore), Shams Trading (Tk 79.58 crore), Profusion Textile Mills ( TK 79.62 crore), Monika Trading International (Tk 79.78 crore), Asian Food Trading and Company (Tk 78.94 crore), Tahmina Denim (Tk 73.06 crore), Surma Steel and Steel Trading ( 67.08 crore), SA Traders ( Tk 64.51 crore), Ocean and Design (Tk 64.48 crore), Agro Balance Fertilizer Industries (Tk 43.20 crore), Prime Jute Industries ( Tk 71.70 crore), Belayet Navigation (Tk 53.81 crore) and Well Tex (Tk 50.23 crore) and West Coast Shipbuilding (Tk 40.60 crore).
The report said that the loan irregularities happened due to utter negligence of the former board of directors of the bank which resorted to various irregularities in both loan sanctioning and disbursement process during the period.
The board of directors of BASIC Bank approved the loans promptly to the clients of the nonexistence companies soon after they had opened accounts. Even, the bank’s board sanctioned loans before the branch sent the proposal to the bank headquarters, it added.
In the report, the former Managing Director (MD) Kazi Faqurul Islam and members of the board of directors of the bank have been held responsible.
Based on the findings of the audit, the OCAG also prepared a report and submitted it to the Ministry of Finance, recommending lawful action against the responsible officials of the bank. The report noted that the amount of loan was mostly provided to the fake companies, so, there is little possibility to recover it .
When asked, a member of the current board of directors told The New Nation yesterday that they would take the report in their cognizance and action would be taken against the corrupt officials of the bank.
Effective steps would also be taken against the culprits who embezzled money from the bank, forging documents and opening fake companies.
Earlier, a central bank investigation found massive loan scams involving around Tk 4,500 crore in its three branches during 2009-2013. The investigation of the central bank (BB) also found that former BASIC Bank Chairman Abdul Hye Bacchu and Managing Director illegally influenced all activities of the state-owned bank, making it ‘pauper’.
The investigation found loan scams in four branches of the state-owned bank, namely Motijheel, Shantinagar, Dilkusha and Gulshan. The amount of loans was availed mostly by fake or nonexistence companies.
Earlier, the government dissolved the seven-member board of BASIC Bank over its role in financial irregularities and later reconstituted the board appointing Alauddin A Majid as the new chairman of BASIC Bank.
BASIC Bank was one of the best performing financial institutions till 2009. But it has been mired in financial irregularities since the previous board assumed office in 2009.
Fifteen fictitious business firms have availed Tk 1,031 crore loans from the state-owned BASIC Bank resorting to various forgeries.
The authorities of the bank sanctioned the loan without proper documentation, collateral and credit worthiness of the clients, according to an audit report of Office of the Comptroller and Auditor General (OCAG).
The OCAG detected the loan irregularities while conducting a special audit on the bank from the year 2010 to 2013.
The names of the companies are: Emarald Auto Bricks ( Tk 160.72 crore), Farsi International (Tk 82.21 crore), Shams Trading (Tk 79.58 crore), Profusion Textile Mills ( TK 79.62 crore), Monika Trading International (Tk 79.78 crore), Asian Food Trading and Company (Tk 78.94 crore), Tahmina Denim (Tk 73.06 crore), Surma Steel and Steel Trading ( 67.08 crore), SA Traders ( Tk 64.51 crore), Ocean and Design (Tk 64.48 crore), Agro Balance Fertilizer Industries (Tk 43.20 crore), Prime Jute Industries ( Tk 71.70 crore), Belayet Navigation (Tk 53.81 crore) and Well Tex (Tk 50.23 crore) and West Coast Shipbuilding (Tk 40.60 crore).
The report said that the loan irregularities happened due to utter negligence of the former board of directors of the bank which resorted to various irregularities in both loan sanctioning and disbursement process during the period.
The board of directors of BASIC Bank approved the loans promptly to the clients of the nonexistence companies soon after they had opened accounts. Even, the bank’s board sanctioned loans before the branch sent the proposal to the bank headquarters, it added.
In the report, the former Managing Director (MD) Kazi Faqurul Islam and members of the board of directors of the bank have been held responsible.
Based on the findings of the audit, the OCAG also prepared a report and submitted it to the Ministry of Finance, recommending lawful action against the responsible officials of the bank. The report noted that the amount of loan was mostly provided to the fake companies, so, there is little possibility to recover it .
When asked, a member of the current board of directors told The New Nation yesterday that they would take the report in their cognizance and action would be taken against the corrupt officials of the bank.
Effective steps would also be taken against the culprits who embezzled money from the bank, forging documents and opening fake companies.
Earlier, a central bank investigation found massive loan scams involving around Tk 4,500 crore in its three branches during 2009-2013. The investigation of the central bank (BB) also found that former BASIC Bank Chairman Abdul Hye Bacchu and Managing Director illegally influenced all activities of the state-owned bank, making it ‘pauper’.
The investigation found loan scams in four branches of the state-owned bank, namely Motijheel, Shantinagar, Dilkusha and Gulshan. The amount of loans was availed mostly by fake or nonexistence companies.
Earlier, the government dissolved the seven-member board of BASIC Bank over its role in financial irregularities and later reconstituted the board appointing Alauddin A Majid as the new chairman of BASIC Bank.
BASIC Bank was one of the best performing financial institutions till 2009. But it has been mired in financial irregularities since the previous board assumed office in 2009.
