Anti-Corruption Commission (ACC) has arrested 70 bank officials of different levels during last six months and a half. But ACC could not yet get hold of several officials involved in huge scams in financial sector. A panic has been generated in the banking sector under these circumstances. On last Thursday two deputy general managers of Janata Bank were arrested in connection with a loan scam of Bismillah Group.
According to ACC, 317 people have been arrested in 193 days by ACC since the new commission was formed under the current ACC Chairman Iqbal Mahmud. 70 bank officials have been arrested and 41 people have been arrested on charges of misappropriating loans. ACC Chairman Iqbal Mahmud said those who have taken money from banks, they will have to pay back the money and those who have issued loans through misuse of power they will have to recover the money.
Recently ACC's power to arrest has been enhanced. ACC has been authorized to arrest anyone at the investigation level. There have been both appreciation and criticism for raids by ACC. Bankers are also in panic. Anis A Khan, Managing Director of Mutual Trust Bank and Chairman of Association of Bankers, Bangladesh (ABB) said that ABB and bankers have informed the top-level government officials have their concern. He further said this sort of intimidation will hinder banking activities and will affect the entire economy too. But ABB has no objection about arresting those who are guilty.
Persons involved in financial sector expressed the opinion that raids by ACC will not be fruitful if the branded corrupt officials of this sector cannot be brought to justice. On the other hand, corrupted people have already got the message that they will have to face the law if they do anything wrong.
Ali Imam Majumder, former cabinet secretary said that a panicky situation is going on for corrupted people but he suggested that ACC needs to be vigilant so that nobody can commit extortion taking advantage of ACC actions. ACC tough on banking sector: ACC arrested eight persons including Agrani Bank's former MD Syed Abdul Hamid for issuing loans illegally. Acting MD Mizanur Rahman Khan was arrested on the same day. He was bailed later on. Moon Group's chairman Mizanur Rahman was also arrested for the same charges.
There are dismissed, retired and in service officials among the arrested bankers. There are cash officers of public and private banks including mid-level officials. Dismissed additional MD of Bangladesh Commerce Bank Muhammad Asaduzzaman, Assistant Vice President (AVP) Iftekhar Hossain, Standard Bank's former AVP Hossain Ahmad, AB bank's former DMD and head of loan department Badrul Haque Khan, Al Arafah Islami Bank's former Senior Vice President Shawkat Islam, Islami Bank's former AVP Enamul Haque, Md. Nuruzzaman, former principal officer of Sonali Bank, Narayanganj Corporate Branch, Ekramul Haque Khan, former manger of Sonali Bank Bhaluka Branch, Farid Ahmad, Manager of Rupali Bank, Nababganj Branch are some of the arrested bankers so far arrested by ACC.
Big shots are out of reach: According to banking and financial sources, bank officials alone cannot issue loans without approval from board of directors where as only bank officers have been arrested for scams related to Hall Mark and Bismillah Group.
Las year ACC filed 56 cases about a four thousand crore taka scam of Basic Bank. Basic Bank's chairman Abdul Hai Bachchu's name was discussed on this issue but his name was not included in the cases. 27 officials of this bank were charged with these cases but no one from the bank's board of directors was sued. Those cases are now being investigated. Total 11 people including 5 bank officials have been arrested at the inquiry level.
Bangladesh Bank's inspection report includes Abdul Hai's responsibility for Basic Bank's scam. Even Finance Minister Abul Maal Abdul Muhith also expressed his dissatisfaction for not including Abdul Hai in the cases. The Parliamentary Committee on Finance Ministry called ACC, but no one from ACC appeared before the committee.
Names of members of Sonali Bank's board of directors were raised several times including former Sonali Bank chairman Kazi Baharul Islam but the charge sheet on Hall Mark scam was submitted excluding their names. Bank officials were charged with Bismillah Group's scam too.
Managing Directors of three state-owned banks are allegedly linked with these scams. Two of them have fled the country whereas another one is on bail. Sonali Bank's biggest loan scam happened during the term of former MD Humayun Kabir. But he retired from service before this scam was reported. He was held mainly responsible for Hall Mark scam by Bangladesh Bank report. He was also charged in the case filed by ACC. Afterwards, neither ACC nor Sonali Bank could trace him. Reportedly he is currently in Canada.
Bangladesh Bank removed Basic Bank's former MD Kazi Fakhrul Islam on 25th May 2014. He has been charged in 48 cases out of total 56 cases filed by ACC in 2015. Relevant sources have informed that he has left for Malaysia to avoid arrest. Khandaker Ibrahim Khaled, former Deputy Governor of Bangladesh Bank has welcomed ACC's drive to arrest those who have mishandled general people's money. He added that these actions by ACC will play important roles to resist corruption in financial sector. But ACC will have to arrest the top-level corrupted people with priority, he further said.
ACC's power to arrest without cases: Now ACC has the power to arrest any suspected person at the investigation level before filing cases. To facilitate this ACC Act 2004 has been amended. The amended law's gazette was published on 21st June. Under the new law, concerned ACC officers can exercise the power of Officer-in-Charge of police for making arrests during investigations.
Iftekharuzzaman, Executive Director of Transparency International Bangladesh (TIB) has said that it has been possible to convey the message no one can avoid the law by committing corruption. People's confidence on ACC will rise in this way. At the same time, there are also chances of misuse of power. Bringing allegations against someone does not always mean the concerned person is guilty. That's why ACC will have to confirm the justification of their actions while arresting alleged people. If ACC cannot prove the arrested persons' guilt in legal process, ACC's activities may come under questions, Iftekharuzzaman commented.
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