Prof Abu Ahmed speaks as the chief guest at a ‘client gathering’ organised by the Customer Forum to protect Sharia-based Islamic Banking system, at a city hotel on Saturday. Story on page 8 Clients of Islami Bank Bangladesh PLC on Saturday called upon the authorities concerned to reconstitute the bank's board of directors by reinstating the directors who originally established the Shariah-based bank in the country.
They condemned the bank's takeover under the direct patronisation of the interim government leading to significant financial losses, and demanded recovery of the funds allegedly misappropriated by S Alam Group and bringing the people responsible for it to justice.
The bank's customers, mostly businessmen, put forward their demands as they gathered at a meeting at a city hotel.
Chaired by Abdul Haque, a former FBCCI director and a leading businessman in the automobile sector, the gathering was attended, among others, by renowned economist and educationist Professor Abu Ahmed and a former government secretary and past chairman of the National Board of Revenue (NBR) Mohammad Abdul Majid.
The meeting formed a 15-member customer forum with Mr. Abdul Haque as its convener. The forum aims at protecting the customers' interest and acts as a watchdog to ensure the bank's proper management.
Addressing the event as chief guest, Prof Abu Ahmed emphasised on restoring discipline in the Islami Bank, urging its customers to raise their voice against the recent change in the bank board.
He also stressed that individuals with strong Islamic ethos should be involved in the management and operations of the Sharia-based banks.
Prof Ahmed said foreign investors who initially joined the bank shared this goal. However, when they witnessed the wrongful takeover of the bank and its departure from the Islamic principles, they too withdrew their support.
He urged the governor to reconstitute the board of the Islamic Bank with qualified and efficient individuals, specifically those who were on the board before 2017 and those who embody Islamic values.
"To restore customer trust, it is essential to ensure the safety of deposits. If the customers see that their deposits are secure, they will begin investing in the Islamic banks again, regardless of the profit margins," he added.
Former NBR chairman Abdul Majid said that severe damage was inflicted on the country's SME sector and overall economy due to the forced takeover of Islami Bank and the consequent financial losses.
He noted that the rate of remittance receipts had also dropped significantly.
Mr Majid underscored that their demand for holding the S Alam Group accountable for the alleged embezzlement of funds should be met.
Customers from across the country took part in the meeting and expressed concern that letters of credit (LCs) opened by the Islami Bank are not well accepted by other banks at present which they described as alarming. They stressed the need for addressing the problem.
They also recalled a time when a mention of the Islami Bank was enough for LCs acceptance without any question.
They criticised current chairman Obayed Ullah Al Masud, alleging that he is experienced in interest-based banking and is, therefore, unfit to lead a Sharia-based bank.
They also accused him of being a beneficiary of the immediate past government and a paid agent of S Alam.
The customers pointed out that nearly 100 million people in the country are directly or indirectly connected to the Islamic banks, with around 8 million expatriates from the Middle East sending remittances through these banks.
The speakers called for the rescheduling of bank loans for over a 10-year period for the customers who suffered financial losses in recent years.
They also proposed to select directors from among the bank's customers.
In a memorandum to the Bangladesh Bank Governor, the customers argued that the bank is safe only in the hands of those who originally established it.
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