PLFS Liquidation

Auditor seeks three more months to complete task

Staff Correspondent | Published: 23:33, Jan 12,2020

 
 

Acnabin Chartered Accountants, an audit firm appointed to conduct a special audit in People’s Leasing and Financial Services (PLFS) Limited, has sought three more months to complete its task.

A Bangladesh Bank official said that the central bank would now place the time extension plea before court for approval.

The extent of the task is the reason for Acnabin’s plea for more time, he said.

In November, 2019, the BB issued a letter to the chartered accountancy firm to complete the auditing of People’s Leasing by December of the year as many of its depositors were in dire need of money.

On August 25, the BB appointed Acnabin Chartered Accountants to conduct a special audit in the PLFS as per a regulatory requirement.

The audit would cover activities of the entity for the period between September, 2015 and 2019.

The PLFS has received around Tk 10 crore from its borrowers in six months since the government’s approval for the liquidation of the ailing non-bank financial institution.

The borrowers of PLFS have provided the amount voluntarily as the liquidator, appointed by court, is yet to launch a drive for the recovery of defaulted loans.

Of the Tk 1,131 crore outstanding loans of PLFS, Tk 748 crore or 66.14 per cent of the total loans has become non-performing loans.

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

As per the procedure, the liquidator appointed to PLFS, BB deputy general manager Md Asaduzzaman Khan, will be allowed to claim the entire outstanding amount in full from the borrowers.

The liquidator is supposed to take approval from court if any borrower wants to settle the dispute by paying lower amount.

Earlier Asaduzzaman said, ‘Measures would be taken for the recovery of defaulted loans once the audit is completed.’

‘Measures cannot be taken to recover money from any borrower unless we know the exact claim of PLFS to the defaulters,’ he said. To conduct day-to-day liquidation function, the liquidator has appointed 20 persons to the PLFS.

Once the audit report is submitted by the auditor, an extensive recovery drive would be launched to recover the money, Asaduzzaman said. PLFS depositors met finance minister AHM Mustafa Kamal and BB governor Fazle Kabir and demanded payment of their money that they kept with the PLFS by December last year.

Neither the finance minister nor the BB governor specified any deadline for repayment of money but assured them of quick payment of their money.

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