The Central Bureau of Investigation (CBI) of India on August 02 night arrested the chief executive officer (CEO) of a state-run bank from southern city of Bengalore along with 11 others, allegedly, for taking bribes in exchange for loan extensions to private companies. The arrestees included two directors of Delhi-based private firms.
A CBI statement, released after the arrest, said its investigators had raided 20 places in four cities and found 'incriminating' documents. The CBI men also had recovered cash, jewellery and property papers at the residence of the bank's CEO. The CBI also had laid a trap and recovered Rs.5.0 million paid as bribe to the CEO in question by the loan extension seekers.
The CBI is a pure government agency overseen by the Department of Personnel and Training of the Ministry of Personnel, Public Grievances and Pension. It is not an 'independent, self-governed and neutral' entity like that of the Anti-Corruption Commission (ACC) in Bangladesh. Yet the CBI is dreaded most by criminals and graft-takers for its prompt, decisive and ruthless approach taken during investigations in both graft-related offences and conventional crimes such as murder, kidnapping and terrorist attacks.
The CBI has earned reputation for its impartiality and competence. Even the Indian Supreme Court and its affiliate High Courts often ask the CBI to conduct investigations into matters, relating to petitions filed by aggrieved parties.
One can cite enough of contrasting pictures in Bangladesh where popular perception is that one can easily get away with one's financial crime, no matter how big or serious it is. The usual government agencies that are supposed to look into the white collar crimes do hardly make a move unless asked by someone very powerful in the government.
The recent instances of plunder of funds of a number of state-owned banks by some unscrupulous borrowers, a section of dishonest high bank officials and related members of the board of directors, have been many in number. Though belated, the central bank could detect the financial irregularities of serious nature and brought the same to the notice of the relevant ministry. But necessary actions did not come by.
When the incidents of financial crime were leaked to the press, the authorities concerned seemed very much annoyed with the media people. And they even made their annoyance public. However, when the public criticism gathered pace, some actions, initiated rather unwillingly, did follow.
In the case of Hall-Mark scam of the Sonali Bank, the largest state-owned bank, a few top men of the borrowing company and some mid-level officials were arrested. The board members have, however, gone unscathed.
In a similar scam involving another state-owned bank, the BASIC Bank Ltd, nothing beyond firing of the CEO, putting of some high officials on suspension and dissolution of its board of directors, has happened. Though all accusing fingers were pointed at the chairman of the immediate past board of the BASIC Bank, no action has been taken yet against him.
There could be many more undetected financial irregularities of serious nature within both private and public sector banks. It is not also unlikely that many banks following detection have preferred to hide such crimes for the sake of their public image and reputation. Â
The central bank is better equipped to detect the white collar crimes committed in the banks and other financial institutions under its supervision. It has a Financial Intelligence Unit (FIU) but it basically deals with money laundering issues.
There is no denying that no borrower can take undue benefit out of a bank or a financial institution without the help of its official/s. Even in some cases, some key members of the board of directors who are in a position to call the shots, would have to give, expressed or tacit, support, if any delinquent wants to siphon off money out of the bank or financial institution. And the official/s concerned would not extent such support without his/her/ their personal gains, financial or otherwise.
Here comes the role of the ACC. The key functions of the so-called independent ACC should be to smell foul play with money, be it of the government offices or banks, and to lay trap in order to catch hold of the offenders concerned. But it is often found engaged in chasing the takers of petty bribes, thought its aim should be to catch big fish. Unfortunately, it has not come up with a single such case until now, despite enjoying all the powers. The anti-graft body must be suffering from some serious drawbacks, possibly inflicted on it from the outside.
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Of financial crimes and toothless tigers
Shamsul Huq Zahid | Published: August 06, 2014 00:00:00 | Updated: November 30, 2024 06:01:00
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