Commission soon to settle Jubok issues

The government is set to establish a permanent commission soon to settle the outstanding issues of the Jubo Karmasangsthan Society (Jubok) and its clients, as per the recommendations made by probe body. The proposed commission might be given two years time with adequate authority, manpower and logistic support, a high official in the Ministry of Finance said. "A permanent commission on Jubok issues will be established soon to pay the clients of the unauthorised lending organisation their dues through liquidation of its frozen assets and bank deposits," he said. "The office of the proposed commission will be located somewhere in the capital. But it will be outside of the Bangladesh Bank (BB) premises, where the office of the probe body was housed. The permanent commission will have a chairman and a liquidator," he added. The probe body on Jubok, headed by the former BB governor Dr Mohammad Farash Uddin Ahmed, was established in January 2010. It submitted its report to the government in last December. In the report, it suggested establishment of a permanent commission to refund the deposit that the controversial lender had realised from the clients. According to the report of the inquiry commission, about 275,000 clients of Jubok placed demand to refund Tk 2.10 billion. On the other hand, the property of Jubok is worth above Tk 30 billion, which is more than its liabilities on account of its clients. The proposed commission will outline a strategy on refunding the money to its cheated clients. "The permanent commission will be given adequate authority in selling out the properties of Jubok and outlining a method for paying its cheated clients," the official added. Earlier, the central bank issued a show-cause notice to Jubok in May 2006, following allegations of illegal banking against the non-government organisation (NGO). Later, it ordered Jubok to stop taking all types of deposits from people and disbursement of loans to them. The BB froze all the bank accounts of Jubok, and imposed a restriction on selling out its wealth, mostly lands. The Ministry of Finance last month held a meeting with the representatives of different ministries and agencies, including the Prime Minister's Office, the Ministry of Law, Justice and Parliamentary Affairs, the NGO Affairs Bureau, and the Bangladesh Bank to devise the next course of action.