Post-audit asset value of PLFS Tk 1,811cr

Staff Correspondent | Published: 21:45, Mar 12,2020


Post-audit asset value of scam-hit People’s Leasing and Financial Services Limited has increased by Tk 839 crore from the initial assessment.

Acnabin Chartered Accountants, the special auditor of out-of-operation People’s Leasing and Financial Services, in its special audit report stated that the assets of the non-bank financial institution had increased to Tk 1,811 crore from an earlier estimation of Tk 972 crore.

Although the special audit ascertained the assets of the entity, but how much of it could be recovered from the defaulters is yet to be determined.

The payment to depositors depends on the recovery of the defaulted loans.

Assets of PLFS are mainly the loans and advances it had disbursed.

Even after the significant increase in asset value, the amount would be inadequate to clear Tk 2,036 crore claims of the PLFS’ depositors.

The deposits in PLFS include Tk 700 crore from individuals and Tk 1,300 crore from different banks and NBFIs.

At a press briefing in July last year, Bangladesh Bank executive director and spokesperson Md Serajul Islam said that the depositors of People’s Leasing must not be panicked in apprehension that they would not get back their money.

Then, he also mentioned that the assets of the entity were still higher than the deposits PLFS had received from different institutions and individuals.

The finance ministry on June 26 last year allowed the BB to go for liquidation of PLFS due to the entity’s failure in repaying depositors’ money following massive irregularities in loan disbursement.

Following a court instruction, the BB appointed its deputy general manager Asaduzzaman as PLFS liquidator and Acnabin Chartered Accountants as special auditor as part of the liquidation.

After the government’s approval on the liquidation, the PLFS’ depositors urged the government high ups including finance minister AHM Mustafa Kamal and BB governor Fazle Kabir to clear their dues by December, 2019.

Although both of them assured the depositors of the repayment, none of the depositors is yet to get back money even after three months of the expiry of the deadline.

On March 10, the BB submitted the audit report to court.

The court on the day also instructed the central bank to name the directors who were in the PLFS’s board in last 16 years.

Asaduzzaman said that the court would deliver order on the recovery of defaulted loans and he would comply with it.

So far, PLFS has received Tk 15 crore from its borrowers.

Meanwhile, former director of PLFS Alamgir Shamsul Alamin and two other groups have engaged in talks with the government to take over PLFS.

Alamgir had been a director of PLFS until 2015.

Alamgir, also the president of Real Estate and Housing Association of Bangladesh, told New Age that they were in talks with the BB but the talks were at the initial stage.

It would take time to reach an understanding, he added.

Earlier, the BB removed its previous board of directors based on an inspection on June 9, 2015.

Of the defaulted loans, Tk 570 crore was swindled by the entity’s directors.

People’s Leasing, a listed company, floated its shares on the Dhaka and Chittagong stock exchanges in 2005.

General shareholders hold 68 per cent of the entity’s shares, 23 per cent is held by its sponsor directors and the rest 9 per cent by institutional investors.

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