Farmers Bank Scam

ACC prosecutes Mahbubul, 5 others

Staff Correspondent | Published: 00:32, Jul 22,2020


The Anti-Corruption Commission on Tuesday prosecuted former audit committee chairman of erstwhile Farmers Bank Ltd, now renamed as Padma Bank, Mahbubul Haque Chisty and five others on charge of embezzling Tk 63 crore.

The five others are Mahbubul’s son and Bakshiganj Jute Spinners Ltd managing director M Rashedul Haque Chishty, Padma Bank’s suspended executive vice-president Mohammad Jahangir Alam Majumder, Al-Farooq Bags Ltd chairman Chowdhury Al Farooq, its managing director Redwanul Kabir Chowdhury and director Kabir Chowdhury.

The commission’s deputy assistant director M Shajhan Miraj filed the case with its integrated district office for Dhaka-1, said its director for public relations Pranab Kumar Bhattacharjee. According to ACC findings, the six people jointly took loan of Tk 40.79 crore from Farmers Bank’s Motijheel branch violating rules and embezzled the money.

The money stood at Tk 62.96 crore along with interest on December 31, 2019.

The commission has already filed six cases against Mahbubul, his son and some other Farmers Bank officials on fraud charges.

On November 28, 2017, former home minister of the Awami League government Muhiuddin Khan Alamgir resigned as the chairman of the board of directors and executive committee of the bank.

At the same time, the bank’s audit committee chairman Mahbubul Haque Chisty also resigned. The resignations came amid a liquidity crisis and a fall in the financial indices of the bank.

In February 2018, Farmers Bank, which was awarded licence in 2013 allegedly on political consideration, sought bail-out fund of Tk 1,100 crore to overcome the crisis caused by aggressive banking, loan irregularities, gross mismanagement and undue interference by the previous board of directors.

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