NO HEADWAY in the investigation of scams in the state-owned BASIC Bank in seven years by the Anti-Corruption Commission speaks volume of the absence of will needed to discipline the banking sector. There have also been allegations of embezzlement and shady loan approval by top officials in other state-owned banks. But, there have hardly been any prosecution. It is heartening that the High Court has repeatedly intervened and asked the authorities concerned to take steps to save the banking sector. The court on November 9 once again expressed its disappointment and censured the Anti-Corruption Commission for its failure to complete the investigation of any of the 61 cases filed seven years ago over the misappropriation of more than Tk 4,000 crore from BASIC Bank branches. The court also asked the commission to report by November 21 on the progress of the investigation of the cases. In April 2021, the court said that the commission’s utter failure to complete the investigation was tantamount to flouting court orders. The court also reprimanded the commission for not prosecuting and arresting main perpetrators — former BASIC Bank chairman Sheikh Abdul Hye Bacchu, his associates and the bank’s board of directors.
The commission filed cases against 153 junior officers in 2015 over a series of defalcations that made the once profit-making BASIC Bank almost bankrupt. But the bank’s former chairman faced no prosecution in any of the cases although the chairman’s involvement was found in investigations by the Bangladesh Bank and the Office of the Comptroller and Auditor General. In 2009–2012, when Abdul Hye was chairman of the bank, it extended Tk 6,000 crore in loans to entities that existed only on paper. Reports on the illegal accumulation of wealth, including the purchase of a house in the capital for Tk 110 crore, by the former chairman also made the headlines many times, but no action has so far been taken. On June 30, 2015, the finance minister told the parliament that action could not be taken against the former BASIC Bank chairman because of some ruling Awami League leaders. Even the commission lawyer on November 9 said that he had felt embarrassed at the commission’s refusal to arrest the former chairman despite repeated queries from the court. All this shows that some powerful quarters in the government have been pro-active in saving the perpetrators than in saving the economy. Such practice has added to the economic crisis that the country faces today.
The government must recognise that taking out external loans and bailing out failing banks will not save the economy but will add to the crisis and people’s burden. It must address the issue of financial scams and bring the perpetrators to justice. It is also expected that the court would continue to intervene in issues of financial scams and hold the authorities tasked with prosecuting the perpetrators accountable whenever they fail. The court should also draw contempt of court proceedings against entities for such repeated failures.
