The Prime Minister's Office, Ministry of Finance, Bangladesh Bank and its board of directors collectively looted BASIC Bank. Abdul Hye Bacchu, the chairman of BASIC Bank and a favorite of the former Prime Minister’s family, led this looting. At that time, the bank’s board included secretaries, the then Director General of the Prime Minister’s Office, former Customs Commissioners, and leaders of the Awami League. A court has summoned three investigating officers who excluded the Bacchu-led board of BASIC Bank from loan scam cases.
Analysts believe that Abdul Hye Bacchu was not alone in the looting of BASIC Bank. The entire board was involved. Experts suggest that the government should audit the assets of all board members, including the then managing director, and bring them under trial.
The looting at BASIC Bank began after Sheikh Abdul Hye Bacchu joined as chairman. Despite evidence of looting, his tenure was extended. During his tenure from 2009 to 2014, unprecedented irregularities resulted in the embezzlement of BDT 4,500 crore. As a result, 64% of the bank’s loans are now classified as defaulted. Over the past 10 years, the bank has incurred a loss of BDT 4,230 crore.
According to BASIC Bank sources, on September 10, 2009, former Member of Parliament Sheikh Abdul Hye Bacchu was appointed as the chairman of the bank and joined on October 5. At that time, among government officials, acting secretary of the Ministry of Women and Children Affairs Razia Begum and BSCIC chairman Md. Siddiqur Rahman were appointed as directors, along with Fakhrul Islam and Shyam Sunder Sikder. After Siddiqur Rahman’s death, Khairul Anam attended the 276th board meeting as the acting chairman of BSCIC. Other directors included joint secretary of the finance ministry Bijoy Bhattacharya, joint secretary of the Financial Institutions Division of the Ministry of Finance Kamrunnahar Ahmed, former additional secretary AKM Rezaur Rahman, and former customs commissioner Shakhawat Hossain. Two director generals (DG) of the Prime Minister's Office Subhashish Basu and Nilufar Ahmed were also appointed as directors.
Representatives from the private sector were also appointed as directors. President of Chandpur Chamber of Commerce and Industry Jahangir Akhand Selim, then chairman of the Department of Accounting and Information System at Kushtia Islamic University Dr. Kazi Akhtar Hossain, managing director of ARS Louvre Bangladesh Md. Anwarul Islam, chartered accountant Kamrul Islam, and the assistant editor of Awami League's mouthpiece monthly Uttaran magazine Anis Ahmed were also appointed as directors. Razia Begum and Siddiqur Rahman died in a road accident on July 31, 2010, while heading to Tungipara, Gopalganj, for the inauguration of a branch of BASIC Bank. Following widespread criticism, Abdul Hye Bacchu resigned on July 5, 2014. During this period, AKM Sajedur Rahman, Sheikh Monzur Morshed, and Kazi Fakhrul Islam served as the bank’s managing directors (MDs). AKM Sajedur Rahman served from July 23, 2008, to December 25, 2010. Sheikh Monzur Morshed served from December 26, 2010, to June 8, 2011, followed by Kazi Fakhrul Islam, who was removed by Bangladesh Bank on May 25, 2014. Most government officials who served as directors during Bachchu’s tenure were later promoted to senior secretary, secretary, and other significant positions. Shyam Sunder Sikder, one of the directors, later became chairman of the Bangladesh Telecommunication Regulatory Commission (BTRC). Subhashish Bose became chairman of the Export Promotion Bureau (EPB) and later senior secretary of the Ministry of Commerce. Many of the directors now live comfortably abroad.
Since government officials appointed as BASIC Bank directors later received promotions and other benefits, analysts believe Abdul Hye Bacchu was not alone—his board of directors and MDs were also complicit in the looting. Experts recommend investigating their illegally acquired assets and bringing them to justice. Among the directors, only two opposed the looting. They are Kamrul Islam and former AKM Rezaur Rahman. Rezaur Rahman wrote a letter to the Ministry of Finance in July 2013, highlighting Bacchu’s irregularities and corruption. Consequently, Bacchu’s syndicate barred both Rezaur Rahman and Kamrul Islam from entering BASIC Bank.
Regarding this issue, Policy Exchange Bangladesh Chairman M. Masrur Reaz stated that politicians, the Ministry of Finance, Bangladesh Bank, businessmen, and Basic Bank’s board of directors collectively looted BASIC Bank. He emphasized the need to hold all responsible parties accountable.
Mustafa K Mujeri, former Director General of the Bangladesh Institute of Development Studies (BIDS), told Bangladesh Pratidin, “Sheikh Abdul Hye Bacchu, as chairman, was undoubtedly a major offender. At the same time, the board members, management, and MDs were also involved in implementing the looting scheme.”
He further added, “As the regulatory authority, Bangladesh Bank is also responsible. It’s because Bangladesh Bank allowed this to happen as they took no action against it. The bank(Basic Bank) was looted illegally. Those who opened the door for Baccchu to loot are also responsible. Bangladesh Bank, the Ministry of Finance, and the government were involved in this looting. The Financial Institutions Division was supposed to oversee the operations. Therefore, none of them—the Ministry of Finance, the government, Bangladesh Bank, or other relevant authorities—can evade responsibility for this crime. Everyone is guilty as all of them failed to perform their respective duties. Those involved in the looting of BASIC Bank have unlawfully benefited from it. Hence, all of them should be brought to justice."
Meanwhile, the court has summoned three investigating officers in connection with 16 corruption cases related to the loan scandal of BASIC Bank. The allegation against them is that they submitted flawed reports to the court. These reports were prepared by excluding members of the bank's board, especially those who were government officials serving as board members. Judge Abul Kashem of Dhaka Special Judge Court-1 issued this order last Thursday. In the order, the court sought an explanation regarding whether the bank's board of directors was involved in the corruption. The summoned officials are Anti-Corruption Commission (ACC) director Mohammad Morshed Alam, and deputy directors Mohammad Ibrahim and Md Sirajul Haque.
Translated By Rafid
