IN an apparent belated realization, the Finance Minister AMA Muhith has finally pointed fingers to the politically appointed directors of the state-owned banks for a series of loan scams over the last several years. He acknowledged that there are always some persons appointed by the government on political consideration in the banks.
He went on saying that directors of state-owned banks were found involved in loan scandals and misappropriation of funds. He said that he is planning to prepare a criteria for appointment of directors to avert such unwarranted situations in the future. He also blamed Bangladesh Bank for poor monitoring of the banks.
But critics said these realizations by our octogenarian Finance Minister would not bring any benefit to the ailing state-owned banks inundated by loan scandals, if no action is taken. Otherwise such things would continue to happen and the financial sector would bear the brunt, they said. In a surprising note, newspapers reported that, Kazi Firoz Rashid MP from the Mohajot alliance has directly accused the FM for bank scams. Such kind of allegations from within the government gives a strong signal that something is terribly wrong with the FM.
We believe that a much quicker realization of the real situation at the field by the government could have saved the state-owned banks. In fact, FM’s remarks sound very hollow, when the government could not yet recover a single penny from the Hall-Mark Group since the massive irregularities by the bank management and dishonest officials of Hall-Mark Group were detected in 2012. Even the government has not dissolved the board of directors led by Chairman Sheikh Abdul Hye Bachchu in BASIC Bank despite recommendations by the Bangladesh Bank almost a month ago. Mr. Muhith’s findings would be meaningful only when the errant directors would be brought to book. Another thing is not understandable is why Bangladesh Bank is so much lenient. It is an independent organization. If it works like a party apparatus obeying party leaders. Nationalised Banks have become a looting spot of public money by the party in powers men.
Finance Minister at last come to a right conclusion but is he the person who shall be able to decide and implement, that is the big question. The general impression is ministers do not decide, the PM’s advisers do. Finance Minister should not suffer from illusion of success, he is there to take the blame of failures.
