Muhith questions BB's jurisdiction

FE Team | Published: August 29, 2012 00:00:00 | Updated: February 01, 2018 00:00:00

FE Report
Finance Minister AMA Muhith Tuesday in Dhaka said Bangladesh Bank has no jurisdiction to send recommendations for reconstitution of the board of directors in the case of a state-owned commercial bank.
"It is not their duty," he told a group of newsmen after attending a workshop on public-private partnership in higher education at the University Grants Commission (UGC) in the city.
Bangladesh Bank (BB) governor Dr Atiur Rahman sent a report on Monday to Finance Minister AMA Muhith pointing out irregularities in loan disbursement by the Sonali Bank, particularly in the case of Hallmark. The governor also requested the finance minister to take 'necessary' decision on the reconstitution of the board of directors of the Sonali Bank.
The central bank sent the report in accordance with clause 46(6) of the Bank Company Act that says that the government shall attach due importance to a report sent by the central bank on the activities of a chairman, a director and chief executive of a bank, appointed or nominated by it (government).
The central bank in the report said the nature of irregularities in the Sonali Bank was very serious and it was not credible that the board of directors of the bank concerned did not notice such massive irregularities involving a sum of Tk 35.47 billion.
The Bangladesh Bank through audits found out that some officials of the Ruposhi Bangla Hotel branch of the bank were involved in an embezzlement of Tk 35.47 billion. The Hallmark Group is alleged to be the beneficiary of Tk 27 billion out of the total amount.
The central bank report also referred to irregularities in loan disbursement in the Agargaon and Gulshan branch of the Sonali Bank.