Muhith under fire over loan scandals in banking sector

Opposition leaders and some lawmakers from the ruling party came down hard on Finance Minister AMA Muhith over the loan scandals and mismanagement that plagued the banking sector amid discussions on budget in the Jatiya Sangsad, reports bdnews24.com.

Most of the lawmakers criticised the finance minister on Sunday during a discussion session on the supplementary budget.

Prof Ali Ashraf, a lawmaker of the ruling Awami League, said the banking sector may collapse if they are not brought under a proper system of rules.

He urged the minister to take necessary action against loan scams and money laundering.

"The investors will not be attracted to the bank if you cannot prevent them from looting," he added.

He said the people could regain their confidence if the finance minister can nab the loan defaulters.

Independent MP Rustam Ali Farazi remarked that the people are afraid of depositing money in banks.

Even though people come to banks for security, they now have to take risks when banks launder money, he said.

"They are laundering money in the name of giving loans. Millions and billions of money are being sent abroad. Many of us know who are the defaulters," he added.

Criticising the reduction of corporate tax rates of banks, insurance and other financial institutions, Farazi said parliament had given Mr Muhith another chance but he spoiled it.

"What could be done to recover the defaulted money? There is no need to leave it to a future government, you can form a commission," he said referring to the finance minister.

"In India, state-owned banks provide money to the government. But in our country we are providing capital to them. I do not know how they can make this possible, but it cannot do."

Jatiya Party leader Kazi Firoz Rashid said: "Power never lasts forever. May Allah judge all of you."

He said such looting had never occurred in Bangladesh.

He asked the minister to answer for why he permitted 'the robbers' to take control and gave them the protection to rob the money.

"Bank owners never cast votes for you, but you never think about people," he said.