In the process of obliteration?

The Hallmark scam that saw swindling of billions of taka out of the country's largest state-owned bank---Sonali Bank (SB) --- six years ago, has been gradually sliding into oblivion.

The SB has not been able to recover even a single penny out of its siphoned-off funds. The masterminds of the scam had planned to swindle Tk. 29-billion through fake letters of credit (LCs), but Tk 4.42 billion out of it could be saved when the plot was unearthed.

The persons accused in the cases involving the Hallmark scandal are yet to get punishment. There is no indication either that any of the criminal cases involving the country's first major bank fraud would be settled soon.

The SB got decrees in 17 cases filed with the Artha Rin Adalat (money loan courts) to take possession and dispose of the assets of Hallmark Group during the 2016-18 period.

During the period, the bank published at least a dozen of auction notices with a view to disposing of the Hallmark assets, but none showed any interest in those. The prospective buyers found the properties to be put under the hammer 'troublesome'.

With little prospect of recovering its money anytime soon, the SB's top management is suggesting that the Hallmark be given another chance to reschedule loans and reopen factories.

Last November, the bank wrote to the finance ministry to hold a meeting with officials of the law ministry and the Anti-Corruption Commission (ACC) to resolve the long-pending issue.

Earlier, Hallmark managing director Tanvir Mahmud also had written to the finance ministry seeking an opportunity to reopen the factories, thus, help him pay back the bank money.

However, a senior official at the financial institutions division said the ministry is not interested in intervening in this issue.

"We've nothing to do with the matter. The Sonali Bank gave the money, and it is solely responsible for recovering it," he told the FE.

Hallmark chairman Jasmine Islam is behind the bar in a case filed by the ACC for not submitting her wealth statement.

Mr Mahmud is also in jail since his arrest in October 2012 in connection with 11 embezzlement cases.

Hallmark's general manager Tushar Ahmed, Sonali Bank general manager (main branch) Mir Mahidur Rahman, two suspended deputy general managers Sheikh Altaf Hossain and M Safiuddin Ahmed are also in jail.

However, among the accused, bankers AKM Azizur Rahman and Atiqur Rahman, in the meanwhile, have died.

Besides, former Sonali Bank managing director Humayun Kabir, one of the key accused, is on the run.

Interestingly, the trial of not a single case filed by the ACC has so far ended.

According to officials, the then Sheraton Hotel branch of Sonali Bank gave Hallmark Tk 29 billion in both funded and non-funded loans during the years 2010-12.

When the fraud was unearthed, the ACC in October 2012 filed 11 cases with Ramna police station against 27 people, seven from Hallmark Group and 20 from SB.

The commission submitted charge sheets in the cases against 25 officials in October 2013.

On February 17 and March 27 in 2016, the senior special judges' court framed charges against the defendants.

The cases were later transferred to the special judges' court-1 of Dhaka, which are now under trial.

In December 2018, the ACC filed a money-laundering case, accusing three Hallmark officials of transferring Tk 135 million to 14 accounts opened with the Dhaka Bank and one account with the Mercantile Bank.

On January 29 this year, it filed another case against six Hallmark and Sonali officials for embezzling Hallmark's non-funded loans of Tk 10.97 million.

An ACC lawyer told the FE that the date for the cases has been postponed several times following defendants' 'illness', absence of witnesses and for a lack of required documents.

He expressed his serious doubt whether the trial of the Hallmark cases would ever be speedy.

Sonali Bank managing director Obayed Ullah Al Masud admitted that although the bank got verdicts in its favour within a short period from the dates of filing the cases, the bank is staying much behind in recovering the money.

About the reasons behind the delay in recovering loans, he said the bank got judgment under section 33(5) of Artha Rin Adalat, but legal complications are still involved with the matter.

"In Bangladesh, you can sell a small property easily, but selling big assets is not that simple. The Hallmark managing director is in jail, and legal complications are there, thus we couldn't recover the money," he told the FE.

But he claimed the bank officials were not sitting idle.

"We've written to the deputy commissioner (DC) of Dhaka to check whether there is any khas land in Hallmark's assets mortgaged with bank loans," Mr Masud said.

"The DC has already engaged land officials to check the matter. Once the khas land, if any, is detected, we'll publish auction notices in newspapers to sell the rest of the Hallmark assets."

However, Mr Masud expressed his doubt whether the proceeds from the sale of all the assets of Hallmark Group would be equivalent to the money the SB lent to this notorious clients.

"We might get a large part of the loans given to Hallmark Group by selling its properties," he noted.

"The value of land does always appreciate while that of machinery depreciates. Maybe we can get higher land price, but the fact is, the price of land has remained static since 2012," he elaborated.

Mr Masud, however, refused to admit that the long delay in recovering the money was because of the failure on the part of the bank's top management.

"You know, selling land is a complex issue, and it takes time. We have huge success where legal matter is not involved," he claimed.

He expects a big breakthrough by the end of 2019.

Dr AB Mirza Azizul Islam, former finance adviser to the caretaker government, said delay in the judicial process to settle financial scam-related cases creates uncertainty in ensuring punishment to the accused persons.

Such sluggish prosecution, thus, comes as an encouragement to unscrupulous people to commit similar crimes, he added.

"If it takes 10-15 years to settle a loan fraud case, defaulters contemplate that they might be able to sneak out of charges or jail at some point of the legal procedure, taking the benefit of delay."

Dr Islam emphasised taking a collaborative initiative by finance ministry, law ministry, comptroller and auditor general, central bank and High Court Division to expedite the trial of such sensational cases.

"Financial crimes like the Hallmark's will continue if the authorities concerned failed to mete out punishment to the perpetrators as soon as possible," he said.

Meanwhile, the Transparency International Bangladesh (TIB) executive director Dr Iftekharuzzaman identified three reasons behind such sloth in the trial of Hallmark cases filed by the ACC.

He said ACC investigators and prosecutors lack skill in inspecting such incidents, and deficiencies have also been observed in the commission's eagerness in disposing of such cases.

Question arises whether outside forces are responsible for an intentional delay in the sensational ACC cases, Dr Zaman added.

"The high-profile Hallmark scam and cases have been a hotly discussed issue in politics, parliament and among the public. So, lingering the trial of such an issue is unacceptable," he said.

Dr Zaman said the ACC must dispose of these sensational cases promptly, which would send a message to society that none can get away with his/her crime.

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