The BASIC Bank was collectively plundered by the Prime Minister's Office, Ministry of Finance, Bangladesh Bank, and its Board of Directors.
Sheikh Abdul Hye Bacchu, a favourite of the former Prime Minister's family and then-chairman of BASIC Bank, led this looting. At that time, the board included secretaries, the then Director General of the Prime Minister's Office, former Director General, former Customs Commissioner, and Awami League leaders. The court has summoned three investigating officers for excluding Bacchu's board from the loan scam cases.
According to analysts, Abdul Hye Bacchu was not alone in looting BASIC Bank; the entire board was involved. The government should audit the assets of all board members, including the then Managing Director, to bring them under trial. The looting began with the appointment of Sheikh Abdul Hye Bacchu. Despite awareness of the ongoing plundering, his tenure was extended.
During Bacchu's tenure from 2009 to 2014, unprecedented irregularities led to the embezzlement of Tk4,500 crore. As a result, 64% of the bank's loans have been defaulted. Over the past decade, the bank has incurred losses amounting to Tk4,230 crore.
On 10 September 2009, former Member of Parliament Sheikh Abdul Hye, known as Bacchu, was appointed Chairman of BASIC Bank and joined on 5 October. Government officials appointed as directors included Acting Secretary of the Ministry of Women and Children Affairs Razia Begum, Chairman of Bangladesh Small and Cottage Industries Corporation (BSCIC) Md. Siddiqur Rahman, Fakhrul Islam, and Shyam Sunder Sikder. After Siddiqur Rahman's death, Khairul Anam joined a board meeting as Acting Chairman of BSCIC. Other directors included Joint Secretary of the Finance Division Bijoy Bhattacharya, Joint Secretary of the Financial Institutions Division Kamrun Nahar Ahmed, former Additional Secretary AKM Rezaur Rahman, Director General of the Prime Minister's Office Nilufar Ahmed, Shubhashish Bose, and former Customs Commissioner Sakhawat Hossain. Private representatives included President of Chandpur Chamber of Commerce and Industry Jahangir Akhand Selim, Chairman of the Department of Information and Accounting Management at Islamic University, Kushtia, Professor Dr. Kazi Akhtar Hossain, Managing Director of ARS Lube Bangladesh Md. Anwarul Islam, Partner of Chartered Accountants firm Islam Aftab Kamrul & Co. AKM Kamrul Islam, and Assistant Editor Anis Ahmed of Awami League's mouthpiece Uttaran.
Razia Begum and Siddiqur Rahman died in a road accident in Manikganj on 31 July 2010, while en route to inaugurate a BASIC Bank branch in Tungipara, Gopalganj. Amid widespread criticism, Abdul Hye Bacchu resigned on 5 July 2014.
During this period, AKM Sajedur Rahman served as Managing Director (MD) from 23 July 2008, to 25 December 2010. Sheikh Manjur Morshed held the position from 26 December 2010, to 8 June 2011, followed by Kazi Fakhrul Islam, who was removed by Bangladesh Bank on 25 May 2014.
Many government officials appointed as directors during Bacchu's tenure were later promoted to senior secretary or secretary positions and assigned to important roles. For instance, former Secretary Shyam Sunder Sikder became Chairman of the Bangladesh Telecommunication Regulatory Commission (BTRC), and Shubhashish Bose became Chairman of the Export Promotion Bureau (EPB) and later Senior Secretary of the Ministry of Commerce. Most of these board members are now reportedly living comfortably abroad.
Analysts believe that not only Abdul Hye Bacchu but also the board he led, along with the Managing Director, were involved in the looting of BASIC Bank. They recommend auditing the assets acquired through the plundering and bringing all involved to justice. Notably, only two directors protested against the looting: Chartered Accountant Kamrul Islam and former Additional Secretary AKM Rezaur Rahman. In July 2013, Rezaur Rahman sent a letter to the Ministry of Finance highlighting Bacchu's irregularities and corruption. Subsequently, the Bacchu syndicate barred Rezaur Rahman and Kamrul Islam from entering BASIC Bank.
Policy Exchange Bangladesh Chairman M Masrur Riaz stated that a nexus of politicians, the Financial Institutions Division of the Ministry of Finance, Bangladesh Bank, businessmen, the board of directors, and management collectively looted the bank. He emphasized that Bachchu was part of a broader cycle of plundering in the banking sector and called for collective accountability.
Dr. Mustafa K. Mujeri, former Director General of the Bangladesh Institute of Development Studies (BIDS), stated that Sheikh Abdul Hye Bacchu, as chairman, was a major offender, without any doubt. He added that the board members and bank management, especially senior officials including the managing director, executed the embezzlement activities. Dr. Mujeri further mentioned that Bangladesh Bank, as the supervisory authority, also bears responsibility, as they allowed the embezzlement to occur without taking any action. The bank was looted illegally, and those who facilitated Bacchu's theft are also culpable. Bangladesh Bank, the Ministry of Finance, and the government are all implicated in this embezzlement. The Financial Institutions Division was supposed to oversee this matter. Therefore, none of the relevant parties, including the Ministry of Finance, the government, and Bangladesh Bank, can evade responsibility for this crime. Everyone is guilty due to their failure to perform their duties. All those involved in the BASIC Bank embezzlement have unlawfully benefited, and thus, they all should be brought to justice.
Meanwhile, a Dhaka court has summoned three investigation officers of 16 corruption cases filed over the BASIC Bank loan scams, seeking explanations over some flaws in the probes. The summoned officials are Anti-Corruption Commission (ACC) Director Mohammad Morshed Alam, Deputy Director Mohammad Ibrahim, and Sirajul Haque. These three officers investigated the cases and submitted charge sheets.
Source: Bangladesh Pratidin
BDST: 1244 HRS, JAN 05, 2024
