Govt to bail out scam-ridden BASIC Bank

FE Report | Published: June 30, 2014 00:00:00 | Updated: November 30, 2026 06:01:00

The government is going to bring about further reforms in the BASIC Bank shortly to make the troubled state-owned specialised banking outfit operationally sound and functional, parliament was told Sunday.
Finance Minister AMA Muhith apprised the House of the government move in reply to questions and protests from the lawmakers, in the wake of a row over the bank's management fiasco following lending scams.
Mr. Muhith mentioned that the government had already set an example by taking action against "corrupt" officials of this one and Sonali Bank which also earned such bad repute.
"You will see further reforms in the BASIC Bank very soon," the finance minister told the House.
He was responding to harsh criticisms from some lawmakers during their statements on cut motions against the allocation for the Banking Division in the Appropriations Bill 2014.
Speaking on his cut motion, Tahzeeb Alam Siddiqui (Jhenidah-2) strongly criticised the irregularities in the state-owned banks. He said suspension of officials is not enough--they must be brought under legal action.
"Banks' managements will commit corruption in connivance with political leaders and the public will pay for it, that cannot be," he said.
Tahzeeb proposed that the proposed allocation for the banking sector should not be given. Rather the allocation should go for health sector as the health allocation is only 4.4 per cent.
Md Noman (Laxmipur-2) also proposed to cut the allocation.
Raising his cut motion, Rustom Ali Farazi (Pirojpur-3) alleged without political power's complicity, such irregularities cannot happen. "All of them must get their due."
He also wanted to know who and how stashed huge sums of money into Swiss banks. "If government can find them out, it will be clear who plundered the banking sector."
Besides, Nurul Islam Milan (Comilla-8) proposed that an inquiry committee be formed under supervision of the central bank.
He also said the allocation should be lower than that of previous year in the banking division.
The finance minister took the responsibility while replying to criticisms and promised the lawmakers that the government will take punitive action against all the officials concerned.