'It was not a loan, but forgery'
Friday, 28 September 2012
FE Report
Another former director of Sonali Bank (SB) denied involvement of SB board of directors in the Hallmark loan scam, claiming that the then general manager of the Ruposhi Bangla branch himself had allowed the financial irregularities to take place.
Kashem Humayun, the then director of the country's largest bank, also termed the much-talked about Hallmark loan a forgery, saying that it was done through inland bill purchase (IBP) ignoring the country's existing banking rules.
He said the state-owned commercial bank has paid-up capital of Tk 10 billion and according to the guidelines of Bangladesh Bank no bank can give loan of more than 30 per cent of the paid-up capital.
"So, Sonali Bank can give loan of maximum Tk 3 billion. But the Hallmark Group took away Tk 4.80 billion in a single day from the branch. It was not a loan, it was an incident of forgery," Mr Kashem told the reporters Thursday after being interrogated by investigators of Anti Corruption Commission (ACC).
The Commission as part of its ongoing investigation into the loan scam involving the bank and Hall-Mark Group questioned three directors of Sonali Bank on the day. The directors facing interrogation include Kashem Humayun, Shahidullah Mia and Saimum Sarwar Komol
The ACC was supposed to quiz five Sonali Bank directors. Chairman of the board Kazi Baharul Islam could not be interrogated because of his illness and Managing Director of the state-owned bank Pradip Kumar Dutta said they have already informed the ACC about their findings on the loan scam.
Mr Kashem said the directors have no jurisdiction to intervene in regular banking transaction and they have also nothing to do if the management does not provide information to them.
"So far my knowledge goes, no document regarding the particular loan scandal was placed before us," he said.
Citing central bank regulations, the then director Kashem who completed his tenure on September 8 last year said each branch of any bank needs to conduct audit twice a year and no one cannot hold the post of branch manager more than three years.
"The Ruposhi Bangla branch of the bank violated both the regulations, which are the key factors to prevent such kind of financial irregularities," he said.
According to the interrogated directors, audit was not carried out at the particular branch for the last one and a half years and the general manager of the branch remained in his position for nearly five years before the loan scandal surfaced.
ACC Commissioner Mohammad Sahabuddin said their investigators are now scrutinising the statements of the interrogated persons.
He said the commission will file the much-awaited forgery case based on the findings of the ACC inquiry team. "Legal action will be taken against board members if we find any negligence in their supervision," he said.
A Bangladesh Bank investigation found that the Hotel Ruposhi Bangla branch of the Sonali Bank had lent Hall-Mark Group and five other companies Tk 35.47 billion on forged documents.
Of the sum, Hall-Mark alone took Tk 26.68 billion.
Another former director of Sonali Bank (SB) denied involvement of SB board of directors in the Hallmark loan scam, claiming that the then general manager of the Ruposhi Bangla branch himself had allowed the financial irregularities to take place.
Kashem Humayun, the then director of the country's largest bank, also termed the much-talked about Hallmark loan a forgery, saying that it was done through inland bill purchase (IBP) ignoring the country's existing banking rules.
He said the state-owned commercial bank has paid-up capital of Tk 10 billion and according to the guidelines of Bangladesh Bank no bank can give loan of more than 30 per cent of the paid-up capital.
"So, Sonali Bank can give loan of maximum Tk 3 billion. But the Hallmark Group took away Tk 4.80 billion in a single day from the branch. It was not a loan, it was an incident of forgery," Mr Kashem told the reporters Thursday after being interrogated by investigators of Anti Corruption Commission (ACC).
The Commission as part of its ongoing investigation into the loan scam involving the bank and Hall-Mark Group questioned three directors of Sonali Bank on the day. The directors facing interrogation include Kashem Humayun, Shahidullah Mia and Saimum Sarwar Komol
The ACC was supposed to quiz five Sonali Bank directors. Chairman of the board Kazi Baharul Islam could not be interrogated because of his illness and Managing Director of the state-owned bank Pradip Kumar Dutta said they have already informed the ACC about their findings on the loan scam.
Mr Kashem said the directors have no jurisdiction to intervene in regular banking transaction and they have also nothing to do if the management does not provide information to them.
"So far my knowledge goes, no document regarding the particular loan scandal was placed before us," he said.
Citing central bank regulations, the then director Kashem who completed his tenure on September 8 last year said each branch of any bank needs to conduct audit twice a year and no one cannot hold the post of branch manager more than three years.
"The Ruposhi Bangla branch of the bank violated both the regulations, which are the key factors to prevent such kind of financial irregularities," he said.
According to the interrogated directors, audit was not carried out at the particular branch for the last one and a half years and the general manager of the branch remained in his position for nearly five years before the loan scandal surfaced.
ACC Commissioner Mohammad Sahabuddin said their investigators are now scrutinising the statements of the interrogated persons.
He said the commission will file the much-awaited forgery case based on the findings of the ACC inquiry team. "Legal action will be taken against board members if we find any negligence in their supervision," he said.
A Bangladesh Bank investigation found that the Hotel Ruposhi Bangla branch of the Sonali Bank had lent Hall-Mark Group and five other companies Tk 35.47 billion on forged documents.
Of the sum, Hall-Mark alone took Tk 26.68 billion.