BB looks to ACC action

The central bank is relying on the Anti-Corruption Commission to sue Sheikh Abdul Hye Bacchu, chairman of the recently dissolved BASIC Bank board, for huge financial irregularities in the state-run bank.  
“The last time the ACC took reports on BASIC Bank was in the middle of last year. We now have more detailed reports, which we are willing to give to the commission for further investigation,” SM Moniruzzaman, executive director of Bangladesh Bank, told a press briefing yesterday.
“An in-depth investigation [by the ACC] can find out the main culprit," he said, adding that only documentary evidence and witnesses can help catch the wrongdoers.
Replying to a query, he said the memorandum of understanding between the BB and the BASIC Bank could not stop the ACC from probing the corruption.
The central bank organised the briefing at its office at very short notice. It said the bank wanted to inform the media about the outcome of the meeting between BB Governor Atiur Rahman and the newly appointed chairman of BASIC Bank, Alauddin A Majid.
The governor asked the new chairman to bring back discipline in the bank and take action against the corrupt officials, who were close aides to former chairman Bacchu and former managing director Kazi Faqurul Islam.
Asked about possible action against Bacchu, who arbitrarily made decisions and granted hundreds of crores in loans to false and non-existent companies, Moniruzzaman said, “Bangladesh Bank has little to do with the boards of state-run banks. It [the BB] cannot punish or file any criminal case against the board under the banking laws."
The BB official said there was no question of making scapegoats of officials who aided Bacchu.
“Under the law, officials are responsible as a bank cannot disburse a single penny without the signature of the managing director or other officials concerned,” he said.
“In the eyes of the laws, they [who helped Bacchu in the irregularities] were responsible.”
On why the MD was removed nearly two years after the detection of gross financial irregularities in the bank, the BB official said the central bank was not empowered to remove an MD under the previous banking law.
“But we made no delay in updating the government in this regard,” he said.  
The governor also ordered the BASIC Bank chairman to strengthen the taskforce formed to recover loans and inform the board about the updates at every board meeting.