Saudi prince suggests management steps, but keeps mum on final deal

FE Team | Published: July 03, 2007 00:00:00 | Updated: February 01, 2018 00:00:00

Shakhawat Hossain
The Saudi prince, buyer-designate of the largely state-owned Rupali Bank, has empowered the existing bank management for taking appropriate measures including temporary recruitment to continue the smooth banking operation.
On behalf of Prince Bandar Bin Mohammad Bin Abdulrahman Al-Saud his senior adviser Sir Frank Peters communicated the information to the Privatisation Commission (PC) and the bank management through a letter last week.
"His Royal Highness has commanded me, therefore, to empower you, with the knowledge of the Finance Ministry of the Government of Bangladesh, to engage whatever staff you may require on a temporary basis to ensure the continued smooth running of the existing banking operations," said the letter.
Such response from the Saudi prince office is being seen by the PC officials as a positive development to clear the recent confusion about handing over process of the country's largely state owned bank.
The PC officials have, however, refused to comment on the legitimacy of the Saudi prince's office in empowering the existing management for taking essential steps.
The Saudi prince, who is in the last leg of negotiation with the Privatisation Commission (PC) to take over about 95 per cent share at around US$ 450 million, conveyed the decision following queries by the bank management on running the day-to-day affairs, source said.
The Rupali management is facing difficulty in running their business, especially in the rural areas for the delay in taking over the management by the Saudi prince, which was due in last May.
"It is the expressed wish of His Royal Highness that the business of Rupali Bank proceeds uninterrupted and the depositors are not inconvenienced in any way, due to his taking over the bank, which is imminent," said the letter.
According to the letter, the Saudi prince is aware of the problems the Rupali management facing day-by-day and desired to offer assistance in surmounting those problems.
He has suggested the existing Rupali management re-engaging the members of the bank who have recently retired on three-to-six monthly contracts until replacement can be found.
Last week's response by the Saudi prince, who was in Germany for medical treatment when the letter was received here, has cleared the confusion over the bank's handing over process.
The 67 per cent share of Rupali was put on sale in 2004 as per deal between the government and International Monetary Fund (IMF).
The PC has selected the Saudi prince office as the most successful bidder.
The government agreed to sell out remaining 23 per cent share of the bank to same bidder when the Saudi prince office showed interest to buy those in the last year.