Probe into Basic Bank MD's irregularities to continue

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The authority of Bangladesh Small Industries and Commerce (BASIC) Bank Limited has decided to continue its investigation into alleged financial irregularities committed by its immediate past managing director (MD) and some other officials of the bank.

The decision was taken at a board meeting held in the city on Wednesday last with its Chairman and Secretary of the Ministry of Industries Nurul Amin in the chair, sources concerned said.

During the meeting, MD of BASIC Bank A. H. Ekbal Hossain was forced to resign from his post when the board concluded that the MD had misused power and acted beyond his authority to cause damage to the interest of the bank.

However, the removal of the Basic Bank MD has created resentment among the country's top bankers, who have alleged that the forcible removal was done in violation of existing rules.

The board decided that the on-going investigation will continue and appropriate legal action will be taken against the former MD and other officials' if found to be involved in the financial irregularities', the sources confirmed.

The board earlier constituted a three-member audit committee, headed by Chairman BSCIC and Director of the bank Mohammad Mahbubur Rahman, to probe into allegations received from a number of persons against some senior executives including the MD of the bank.

The committee recommended that the bank should carry out an extensive audit of the bank accounts under the overall supervision of the audit committee.

The committee found at least three financial irregularities and recommended further investigation by appropriate authorities like the central bank and the national board of revenue (NBR) to find out the nature of irregularities.

Besides, the committee also detected some other financial irregularities involving a sum of about Tk 2.0 billion.

The BASIC Bank Limited, a state-owned commercial bank, mainly makes investment in small and cottage industries.