BB removes 5 directors of Uttara Finance

Bangladesh Bank yesterday removed five directors of Uttara Finance and Investments Ltd (UFIL) in order to reconstruct the board of directors of the non-bank.

The central bank sent separate letters to the five directors of the non-bank financial institution (NBFI), informing them of their removal from the board.

In the letters, Bangladesh Bank said the directors had been involved in activities that were detrimental to the NBFI and the interest of its depositors.

The five directors are: UFIL Chairman Rashidul Hasan, Vice Chairman Matiur Rahman and three other directors -- Kazi Imdad Hossain, Zakia Rahman, and Nayeemur Rahman.

A central bank official said they found proof of delinquency among the directors, which is why they were removed from the board.

The central bank carried out an investigation in 2020 and found that irregularities involving Tk 5,100 crore were committed by the board and management of the NBFI.

The irregularities were perpetrated during the disbursement of loans and mobilisation of deposits.

The central bank later asked the NBFI to hire a chartered accountant firm to investigate the anomalies in detail.

The chartered accountant firm also found similar evidence of financial scams, where the NBFI's directors were involved.

The central bank on June 23 removed the managing director of UFIL, SM Shamsul Arefin, for his alleged involvement in the financial irregularities.