Banks holding back unused safety net programme fund
Monday, 20 October 2008
FE Report
A large sum of unused government money meant for disbursement as allowances among distressed senior citizens, women, retarded persons and freedom fighters across the country has been lying with banks for years together.
The ministries concerned-the ministry of social welfare and the ministry of women and children affairs-is not aware of the total size of the unused fund. However, they estimate it to be over Tk 2.0 billion.
Allegations have it the banks concerned instead of refunding the unused fund to the government are utilizing the same for their own benefit. The major part of the unused fund, allegedly, is being held back by the country's largest state-owned bank.
The national committee on stipend for disabled students at the ministry of social welfare discussed the issue at its meeting held last month, according to sources. A high official of the largest state-owned bank, who was present at the meeting, was told to take necessary measures to estimate and refund the actual amount of unused fund to the ministries concerned.
Last fiscal, the allocation under the social safety net programme was more than Tk 114.67 billion, representing 13.32 per cent of the total budget. Some 11.3 million people were supposed to be covered directly by the programme, according to the official economic survey.
However, a senior official of the largest state-owned commercial bank said the amount would not be as high as stated in the meeting.
But he could not give any figure. "It is difficult to get the estimate on the actual unused amount from more than 800 branches of the bank across the country immediately," he said.
He said the bank has already instructed the branches to send back the unused funds to the ministries immediately.
A large sum of unused government money meant for disbursement as allowances among distressed senior citizens, women, retarded persons and freedom fighters across the country has been lying with banks for years together.
The ministries concerned-the ministry of social welfare and the ministry of women and children affairs-is not aware of the total size of the unused fund. However, they estimate it to be over Tk 2.0 billion.
Allegations have it the banks concerned instead of refunding the unused fund to the government are utilizing the same for their own benefit. The major part of the unused fund, allegedly, is being held back by the country's largest state-owned bank.
The national committee on stipend for disabled students at the ministry of social welfare discussed the issue at its meeting held last month, according to sources. A high official of the largest state-owned bank, who was present at the meeting, was told to take necessary measures to estimate and refund the actual amount of unused fund to the ministries concerned.
Last fiscal, the allocation under the social safety net programme was more than Tk 114.67 billion, representing 13.32 per cent of the total budget. Some 11.3 million people were supposed to be covered directly by the programme, according to the official economic survey.
However, a senior official of the largest state-owned commercial bank said the amount would not be as high as stated in the meeting.
But he could not give any figure. "It is difficult to get the estimate on the actual unused amount from more than 800 branches of the bank across the country immediately," he said.
He said the bank has already instructed the branches to send back the unused funds to the ministries immediately.