Dhaka, Bangladesh (BBN)- The central bank of Bangladesh is going to send a detailed investigation report on the BASIC Bank Limited to the Anti-Corruption Commission (ACC) for taking legal action against the main accused behind the scam.
“The central bank will submit the detailed investigation report on the BASIC Bank to the ACC shortly for taking necessary action in this connection,” Bangladesh Bank (BB) executive director SM Moniruzzaman told BBN in Dhaka on Sunday after a meeting with the newly-appointed BASIC Bank Chairman Alauddin A Majid.
BB Governor Atiur Rahman earlier met with BASIC Bank chairman and acting Managing Director of the specialised bank Fazlus Sobhan at the central bank headquarters on the day to review the latest situation in the troubled bank.
The BB executive director also said the ACC is empowered to interrogate and file cases against the accused in the BASIC Bank financial irregularities. “We’ll extend our all cooperation if ACC seeks help to take punitive actions against the person responsible for the state-owned bank scam.”
The central bank asked the top management of BASIC Bank for taking necessary measures to implement 11-point action plan including establishment of good governance through ensuring accountability and transparency for improving financial health of the scam-hit bank.
The BASIC Bank management has also been asked to re-establish credit discipline and expedite the functions of default loan recovery taskforce.
The BB also asked the BASIC Bank to identify and take action against officials, who were cronies of the former chairman and MD.
Sheikh Abdul Hye Bacchu has already resigned from the post of the chairman following allegations of financial irregularities involving BDT 45 billion in the state-owned bank.
Earlier on May 25 last, the central bank fired BASIC Bank MD Kazi Faqurul Islam on the charges of negligence of duty and irregularities apart from the failure to protect the depositors' interests.
The central bank earlier found different types of irregularities by the BASIC Bank in providing loans, which include non-verification of customer's creditworthiness, absence of ‘know your customer (KYC)’ procedures, and extending loans to defaulters.
The BB investigations detected financial irregularities involving around BDT 45 billion of loans in the three branches located at Gulshan, Dilkusha and Shantinagar in Dhaka between 2009 and 2013.
BBN/SSR/AD-14July14-12:30 am (BST)
