In a striking case of alleged financial misconduct, the Chief Executive Officer (CEO) of Gazipur Zila Parishad has withdrawn Tk62 crore from fixed deposit receipts (FDRs) and kept the funds under his own control without informing higher authorities or securing required approvals.
Md Nazrul Islam, who joined as CEO on 16 December last year, reportedly encashed multiple FDRs across 14 banks on 16 April and converted them into pay orders in favour of the Zila Parishad. The move, carried out in a single day, has raised serious concerns over violations of government financial regulations.
According to findings, the Zila Parishad holds over Tk62 crore in FDRs with various banks, the interest from which is used for salaries and operational expenses. Premature encashment typically results in a loss of interest income.
Government guidelines issued by the Local Government Division in 2012 clearly state that FDRs cannot be broken without prior approval from the ministry. The rules also prohibit opening new bank accounts or transferring funds outside designated accounts. Any violation may result in personal liability for the officers involved.
Despite these provisions, the CEO acted unilaterally. He has since stated that the funds would be redeposited into new accounts—though such action is also not permitted without approval.
When contacted, Nazrul Islam admitted there had been irregularities but argued that the decision was taken in the organisation’s interest. He claimed that some banks offered lower returns and that the funds were being shifted to more favourable institutions. He also said the initiative was taken with the knowledge of the Zila Parishad administrator and that the funds were secured through account payee instruments.
However, Administrator Barrister Dr Chowdhury Ishraq Ahmed Siddiqui denied giving any such consent and said he became aware of the matter later. He added that an investigation would be conducted and that responsibility would lie with the CEO.
A Joint Secretary of the Local Government Division, Dr Md Monirul Islam, said encashment of FDRs without prior approval is not allowed. “Rules are clearly outlined, and violations are subject to action,” he said, noting that exceptions may only be made under special consideration.
Officials say no such approval was sought in this case. As a result, a large sum of public money now remains in the form of pay orders under the CEO’s control—an arrangement experts describe as both irregular and risky.
Concerns have also been raised that the Zila Parishad may lose significant interest income and that holding such funds in this manner could expose them to further risks.
Courtesy:Kaler Kantho
Bd-pratidin English/ ANI
