In the last seven years, six big financial scandals swept the country. This has resulted in misappropriation of about Tk 300 billion. It would have been possible to build a Padma Bridge with this amount of money. Members of the public have suffered huge losses due to such scandals. Share market scandals have made thousands of small investors losers. Some bank chairmen and members of board of directors appointed on political consideration cooperated in swindling of funds. They also benefited themselves from such deals. The Anti-Corruption Commission did not take any action against politically influential bank management. There was no trial of these scandals. Those charged were not punished. Cases are hanging for years. Many have been given bail. Some are spending good time in hospitals.
It is believed that absence of good governance in banks led to the financial scandals. No action was taken because people having nexus with the government were associated. Share market scandal for the second time took place a year after this government had taken power in 2009. The chief of an enquiry committee on this scam reported that the investors lost about Tk 150 billion. Thereafter, in 2012, the Hall-Mark scandal of Sonali Bank cost about Tk 40 billion. In the Janata Bank Bismillah group scandal, an amount of Tk 11 billion was misappropriated. Another Tk 45 billion was misappropriated in BASIC Bank scandal in 2013. Tk 41.19 billion was misappropriated in Destiny scandal. Those who are accused in these cases were not punished. Two deputy governors were relieved of their duties. The TIB said those who looted money through different scams have connections with board members of the banks. The board members are mostly politically influential people. Therefore, it is not possible to take action against them. This culture gives protection to the corrupt people. This kind of corruption cannot be controlled without exemplary punishment.
The foreign exchange reserve hacking is now the most-talked-about subject. The governor of the Bangladesh Bank resigned because of this.
Hackers stole $101 million from the central bank's reserve which was kept in the Federal Reserve Bank of New York. Signals of financial transaction agency SWIFT were used in transferring money. Hackers sent 35 signals to transfer money out of which five were effective. They sent the money to the Philippines. Thereafter, a part of the money went into casinos. This is under investigation in the Philippines. The government has appointed a committee to investigate the whole affair.
There were big financial scandals. Money was stolen by opening fake accounts and also given to paper companies. There were collusion between lenders and borrowers under the cover of political influence. The biggest scandal in banking sector took place in Rupasi Bangla branch of Sonali Bank. The Hall-Mark group has taken out Tk 45 billion. So far, bank loan default has amounted to Tk 540 billion. An amount of Tk 370 billion have been written off. Bulk of this money will not be returned. This money is to be deducted from the GDP.
State-owned BASIC bank, known as a good bank, turned bad at a later stage. It gave loans without caring for rules. An amount of Tk 40 billion was taken out as false loans. The Managing Director of the bank was removed and the chairman resigned. A case is pending in the court. By cheating the general customers Destiny and Jubak have swindled Tk 85 billion.
Two big scams happened in the share market during the last 15 years. One happened in 1996 and the other in 2010. The Awami League government was in power when those happened. An enquiry committee was set up at the initiative of the government. The committee submitted its report. Many were accused in the report and 17 cases were filed. Punishment was given in one case. One case is on-going but the future of 15 cases is uncertain. As a result, there is lack of confidence among the investors. The share market is now passing through depression.
There are a number of reasons behind big financial scandals. There is lack of good governance within the financial institutions. There is lack of strict supervision. Moral considerations are absent among the concerned officials. Delay in trial of cases encourages the wrong-doers. Cases relating to share market scandal of 1996 are still going on. Financial scandals take place due to interference of politically influential people and the culprits get away because of this. The guilty has to be tried expeditiously in order to stop such crimes. Competent and honest people are to be appointed in financial institutions instead of politically motivated persons. No interference should be allowed in banking transaction from any quarter.
The writer is an economist and columnist.
© 2024 - All Rights with The Financial Express
