FARMERS BANK

ACC bans foreign trip by ex-audit committee chair

Staff Correspondent | Published: 00:27, Feb 14,2018 | Updated: 00:52, Feb 14,2018

 
 

The Anti-Corruption Commission on Tuesday imposed a ban on foreign trip by former Farmers Bank Ltd audit committee chairman Md Babul Chisty as an inquiry into allegation of money laundering from the bank was under way.
Commission’s deputy director M Samsul Alam sent a letter asking Special Branch of police special superintendent (immigration) to take necessary action in this regard, said a director.
He said that the commission initiated the inquiry in July 2017 and already collected some documents from the bank and the central bank.
Ruling Awami League lawmaker Muhiuddin Khan Alamgir, also former chairman of the scam-hit Farmers Bank, on Monday urged the speaker in Jatiya Sangsad to issue a ruling asking the Bangladesh Bank governor not to give information to reporters about disbursement of loans by private commercial banks.
On November 27, 2017, Muhiuddin resigned as the Farmers Bank chairman after the central bank had asked him to quit because of severe liquidity crisis caused by unbridled corruption and misappropriation of funds.
Farmers Bank, which was given license in 2013 reportedly on political consideration, cannot return fund to depositors.
The commission also conducting inquiry into alleged irregularities in lending Tk 171 crore by the bank’s managing director and other directors.
The commission official said that of the amount, Tk 135 crore from Gulshan branch and Tk 36 crore from Motijheel branch were embezzled in the name of loans.
The commission launched the inquiry on December 28, 2016 following an internal inspection report of the Bangladesh Bank.
In January 2016, three central bank probe teams found other irregularities in Farmers Bank’s lending operations including extending fresh loans against forged documents to borrowers concealing their defaulted loans of Tk 400 crore.
The central bank found that these irregularities took place at Gulshan, Motijheel and Shyampur branches between September and November in 2015. 

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