Recovering bad loans is top priority: new BASIC Bank chair
No stone will be left unturned to recover the Tk 7,689 crore default loans and persons mixed up in scams will be exposed, said the newly appointed chairman of BASIC Bank.
"These are public money and can not be embezzled or swindled in this manner. Everyone responsible will be taken to book," Prof Abul Hashem told The Daily Star yesterday.
On Monday, the FINANCE INSTITUTIONS Division of the finance ministry sent a letter to BASIC Bank's Managing Director Rafiqul Alam to take necessary steps to appoint Prof Hashem as the chairman of the lending company for three years.
Prof Hashem has asked Alam to submit an assessment report so that he can have a look at the existing business status of the lender.
"As the federal government has appointed me, I've full confidence that they will help me in turning the bank right into a stable condition," he said.
Once a successful bank, it came on the verge of collapse during former chairman Sheikh Abdul Hye Bachhu's six years' tenure running from 2009 to 2014.
During his stint, about Tk 3,500 crore was swindled through irregularities and fraud.
The Anti-Corruption Commission has filed five dozen cases against those involved in the fraud.
A study report of the Bangladesh Bank uncovered the involvement of the board members, including Bachchu in the irregularities and fraud.
Alauddin A Majid, a former managing director of Basic Bank, took over as the chairman following the departure of Bachchu. Yet, he had not been able to improve the condition of the lender in six years.
The lender incurred a loss of Tk 326 crore in 2019.
Prof Hashem, also the vice-chancellor of Anwer Khan Modern University, said it would take some time to place the bank in the right direction.
"I will raise the revenue of the bank and introduce cost-cutting measures."
BASIC Bank's 52 % of disbursed loans fell into default category. Prof Hashem plans to divide the default loans into two categories.
"Some will fall in an organization whose companies are really in a bad form and as a result, they defaulted. They'll be treated with flexibility."
But those who deliberately took away public money through forged documents will be brought under the book, he said.
"They did not take the amount of money by breaking vaults. Rather, some persons from the lender helped them do so. They'll also be held accountable."
