BB asks BSEC to ban BIFC share transfer by Mannan

Mostafizur Rahman | Published: 00:00, Mar 07,2019 | Updated: 22:49, Mar 06,2019

 
 

Major (retd) Abdul Mannan

Bangladesh Bank has requested Bangladesh Securities and Exchange Commission to impose a ban on Bangladesh Industrial Finance Company founding chairman Major (retd) Abdul Mannan and people connected with him from transferring shares of the company.
The BB move came following an Anti-Corruption Commission advice asking the central bank to impose the ban until Mannan pays Tk 397.78 crore in outstanding loans (excluding interest) to BIFC, a company listed with Dhaka Stock Exchange.
Mannan, a member of parliament, is the secretary general of Bikalpa Dhara Bangladesh, an ally of ruling party Awami League.
Officials of BB and BSEC said that the central bank on February 26 sent a letter to the stock market regulator in this regard.
A BB official said that ACC on February 10 sent a letter to the central bank advising it to ban BIFC share transactions by Mannan and people connected with him
as Mannan was dillydallying in paying Tk 397.78 crore in outstanding loans to BIFC.
The letter said an investigation conducted by ACC found that Mannan and 75 organisations, in which he had interest, had taken Tk 517.61 crore in loans from BIFC.
After the ACC investigation, Mannan accepted the liability of the loans and paid Tk 119.83 crore of the received loans, it said.
Although Mannan promised to return the rest Tk 397.78 crore, which excludes interest, he is yet to pay back the money, it said.
Therefore, ACC feels the necessity of imposing ban on BIFC share transfer by Mannan and people close to and connected with him, ACC said.
BB officials said as BSEC deals with the share transfer of any company, the central bank made the request to the stock market regulator to take necessary steps against Mannan.
BB officials said Mannan, the former chairman of BIFC, took the loans from the non-bank financial institution through fraudulence means.
The loans received by Mannan and companies linked with him are more than 60 per cent of BFIC’s outstanding loans, they said.
The classified loans of BIFC, which is struggling to survive, stood at Tk 608.85 crore, according to the news disseminated by the company on DSE web site.
According to the news disseminated by the company on May, 2018, as per Bangladesh Bank special inspection report dated June 24, 2015, about Tk 518 crore was sanctioned and disbursed in favour of different borrowers in highly irregular and fraudulent ways.
They (BB team) also detected that ultimate beneficiary of these loans were Major (retd) Abdul Mannan, chairman Sunman Group and former chairman of BIFC, it said.
As per the audited report for the year ended on December 31, 2017, the total loans, advances and lease amount of BIFC was Tk 837.60 crore out of which classified amount was Tk 798.33 crore (95.31 per cent), the company said in its post on the DSE web site.
Bad loans/leases amount of borrowers related to Sunman Group was Tk 621 crore, which is 77.79 per cent of the total classified loan amount, it said.
Of the shareholding position of BIFC, a ‘Z’ category company, sponsor-directors holds 37 per cent shares, institutions 46.18 per cent and general public the rest 16.82 per cent of the company.
Mannan could not be reached over phone as he was aboard.

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