Bangladesh: Govt reconstitutes scam-hit BASIC Bank board

Dhaka, July 8 (New Age): The government on Monday appointed four directors to constitute the board of directors of the scam-hit Bangladesh Small Industries and Commerce Bank Limited. They newly appointed directors are : Hasan Mahmood FCA, former managing director of Bangladesh House Building Finance Corporation Raihana Anisa Yusuf Ali, banks and financial institutions division joint secretary Mamun Al Rashid and Dhaka University Professor of the department of Accounting and Information System Mujib Ahmed. A circular by the banks and financial institutions division said they were appointed to bring professionalism and dynamism into the bank’s management. Officials said two more directors will be appointed to the seven-member board of directors soon. Earlier, the government dissolved the board of directors of the BASIC Bank Limited after resignation of its controversial chairman Sheikh Abdul Hai Bachchu. It appointed Bangladesh Krishi Bank chairman Alauddin A Majid as the new chairman of BASIC Bank on Sunday and relieved him from the Krishi Bank. Alauddin A Majid held a meeting with the bank’s staff on Monday at its headquarter in the city. Briefing reporters after the meeting, he said that they would take initiative to recover the loans and improve the financial health of the bank. He noted that it would take time to see any improvement. There were anomalies worth more than Tk 4,500 crore in the transaction of the Basic Bank in recent years and the Bangladesh Bank asked the finance ministry to dissolve the BASIC Bank board of directors a couple of months ago. Loan scams in the BASIC Bank – a specialised bank once touted as one of the best-run public sector banks – was first detected in November 2012. Abdul Hai Bachchu, who was appointed chairman in 2009, was rewarded with reappointment in 2012. In June, the BB fired BASIC Bank managing director Kazi Faqurul Islam for his involvement in the loan scam. The default loans of BASIC Bank soared to Tk 2,557 crore last March from Tk 1,417 crore in February. Alauddin A Majid said, ‘I have already asked the senior management to provide data and information about the latest financial situation of the bank. After getting the data, I will take decision what type of strategy will be taken to improve the bank’s financial health’. He said that he had earlier gathered experience as managing director of the Basic Bank and that knowledge would help him to improve the bank’s health. He said that he had already asked the senior officials of BASIC Bank not to play ‘blame game’ about the irregularities. He said, ‘I will not allow the external interference on the activities of the board of directors and the management. The board and the management will take final decision about the bank’s operation.’ He said that the board would take decision in the quickest possible time to appoint a new managing director and chief executive officer for the bank. BASIC Bank acting managing director Fazlus Sobhan, deputy managing director Kanak Kumar Purkayastha and other senior officials of the bank attended the briefing.