BASIC Bank also got embroiled in hassles over its headquarters building and sought government intervention to get out, besides ongoing investigations into alleged lending irregularities, officials said.
The state-owned bank last Thursday requested the finance ministry to take necessary steps in this connection, a source in the bank said.
Reached over the phone, Senior Secretary at the Financial Institutions Division Md. Eunusur Rahman said the bank's head-office-space complexities are not new. "It is a longtime complexity."
He informed this scribe that they had worked about the state of affairs with the BASIC Bank six months ago. Presently, there is no recent information about the bank. "But, we have asked the bank to furnish some statistics and data."
In April 2010, the then BASIC Bank authorities had signed a third-party deal with Sinku A Zaman for purchasing 12 floors, measuring a total of 51,500-square-foot space of a building, at Tk 810 million. The location is opposite the Senakalyan Bhaban at Motijheel.
Former chairman of the scam-hit bank Sheikh Abdul Hye Bachchu had concluded the deal of his own free will, the sources said.
According to the third-party agreement, the building was to be a 15-floor one. Of the floors, BASIC Bank would get 12. It was decided to be named 'Zaman BASIC Bank Tower'. The 12 floors were supposed to be handed over in March 2013 to the Bank authority. But, the BASIC Bank didn't get any as yet. Currently, Sinku A Zaman lives abroad.
The state-run bank paid Tk 760 million out of Tk 810 million. During the agreement, the bank provided Tk 400 million out of Tk 810 million. Construction activities of the building were started after taking the money. Some Tk 300 million had been provided to the party later in some installments.
The then bank management did not take government approval before purchasing the floors though it is mandatory. In this connection, there are two directions of 1985 and 1998 of the government, a source concerned said.
Earlier, the finance ministry found out that there was no actual validity of the purchase deal. The land of the building is abandoned property. There was a suit pending over the landownership.
Sheikh Abdul Hye Bachchu was made chairman of BASIC Bank in September 2009. The government appointed him on contractual basis for three years. The term was later extended for two years in September 2012.
After his appointment, the bank's performance started deteriorating as Sheikh Bachchu and other directors of the board indulged in "gross irregularities in sanctioning loans in violation of rules and regulations of the Bank Company Act", said sources in the BASIC Bank.
The government dismissed the embroiled board of directors of the bank in 2014.
Some Tk 35 billion in loans had allegedly been illegally distributed from the Gulshan, Dilkusha and Shantinagar branches between 2009 and 2011, according to the Bangladesh Bank findings.
The Anti-Corruption Commission (ACC) summoned the former BASIC Bank chairman for a third time to appear before it Tuesday for interrogation over the alleged loan scam.
Sheikh Bachchu pleads not guilty of the Tk 35 billion loan fraud. He made the remark as ACC investigators questioned him at the anti-graft watchdog's headquarters in Dhaka's Segunbagicha area on December 04 last.
A process is underway for arbitration to resolve the complexities regarding the bank's head office. "We will file misc case. The board of directors of the bank approved the issue," Managing Director of BASIC Bank Limited Muhammad Awal Khan told the FE.
"We gave answer to some queries of the government about the BASIC Bank. We have sought cooperation from the government in resolving head office's 12 floor issue," he added.
The incumbent MD also said they got no floors yet as per the agreement. The party, Sinku A Zaman, claimed more money from the bank. "We did not agree with him. We have said that there is no deal to pay more money."
Available Bangladesh Bank data showed that the BASIC Bank had capital shortfall of Tk 25.23 billion as of September last.
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