Finance Minister AMA Muhith, who once pitched for appointing political figures for top bank jobs, now says he prefers “experienced bankers” for heading state-run banks in the backdrop of financial scams.
This is why former banker Siraj Uddin Ahmed Chowdhury has been appointed as the new chairman to the Janata Bank, he told bdnews24.com on Thursday.
“We’ve seen that political appointments at banks in the past have failed,” he said. “That’s why seasoned bankers will be appointed to the boards of state-run and scheduled banks.”
Muhith recalled Alauddin A Majid’s appointment as specialised BASIC Bank chairman in July.
The minister had defended appointing political figures to state-run banks during the Awami League’s last term amid criticisms.
A slew of financial scams were reported at many of those banks.
BASIC Bank’s former chairman Sheikh Abdul Hye Bachchu, accused of loan irregularities amounting to over Tk 40 billion, stepped down in May this year.
Irregularities of Bachchu, appointed on political considerations, were reported in the media prior to that.
The Bangladesh Bank had recommended the finance ministry to dissolve BASIC’s board after it found proofs of financial irregularities.
Bachchu resigned after that and the bank’s board, too, was dissolved.
Fingers were pointed at politically appointed Sonali Bank’s board for its alleged connection with the much-talked-about Hall-Mark scam.
The finance ministry had dissolved the board as per the central bank’s suggestion.
‘We need experienced bankers’
SA Chowdhury, a professional banker, has succeeded the academician Abul Barakat as the chairman of Janata Bank.
Asked about SA Chowdhury’s involvement in a controversy during his Sonali Bank term, the finance minister said he was well aware of it.
“He went to inspect an investor’s project in a helicopter rented by that investor. He realised it was wrong and apologised for it,” Muhith said.
“We need good, experienced bankers on the boards. SA Chowdhury is a good banker. That’s why we’ve put him in Janata Bank,” he said.
Outgoing chairman Barakat has levelled several allegations at the finance minister, who has dismissed him as being angry over not getting a reappointment.
On Thursday Muhith avoided the topic again.
The Bank and Financial Institutions Division on Wednesday issued a gazette appointing Chowdhury the Janata Bank chairman, but did not mention his tenure.
Chowdhury has also served as the Janata Bank MD and the MD of Bangladesh Commerce Bank Limited.
Alauddin A Majid, who was appointed as the BASIC Bank chairman, was once the MD of BASIC for six years starting from 1996. After that he had been serving as the chairman of Bangladesh Krishi Bank.
Source: Bd news24
