BASIC Bank MD removed for \\\'negligence of duty\\\'

The Bangladesh Bank (BB) ordered Sunday the removal of Managing Director (MD) Kazi Faqurul Islam from the post of MD of BASIC Bank Limited on the charges of negligence of duty and irregularities apart from the failure to protect the depositors' interests.
The BB officials said Faqurul has been barred from holding the post of the state-run BASIC Bank's MD as well as taking employment, directly or indirectly, at any bank or financial institution for a period of two years.  
 "We've taken the action against the MD to ensure good governance in the country's banking sector," Deputy Governor of the BB SK Sur Chowdhury told the FE.
He also said the central bank has taken the decision to protect the interest of the depositors and prevent recurrence of such financial irregularities in the banking sector.
BB Governor Atiur Rahman issued the order on the day as per recommendations of the central bank standing committee.
"We've already sent the order to the BASIC Bank Limited Sunday evening for taking necessary action," another BB official said.
He also said the concerned department of BB has also sent the copy of order to the secretary of bank and Financial Institutions Division of the Finance Ministry and the chairman of BASIC Bank Limited for taking necessary action in this connection.
The central bank had brought serious charges against the removed MD of the state-run specialised bank concerning gross violation of banking rules in different areas including sanctioning a loan amounting to Tk 500 million at its Gulshan branch in 2012.
Earlier on April 6 last, the central bank standing committee was revived after more than two years under Section 48 (1) of the Banking Companies Act-1991.
The central bank earlier issued a show-cause notice to the BASIC Bank MD in line with its senior management team's decision under Clause 46 of the Banking Companies Act, which gives the central bank the authority to remove an MD, if his/her activities prove harmful to the depositors.
The Act also says that in such a case BB must give the MD a reasonable time for self-defence.
On May 19 last, the four-member standing committee, headed by BB Deputy Governor Nazneen Sultana, heard the MD's position regarding his alleged involvement in diffrent irregularities along with failure to protect the depositors' interests.
If the removed MD is aggrieved by the action of the central bank, issued under Section-46 the Banking Companies Act-1991, he may appeal to the Board of Directors of Bangladesh Bank against the order.