It is quite mysterious, why Basic Bank former Chairman, Abdul Hye Bachchu has not yet been arrested despite High Court directives to nab him following the report of Bangladesh Bank on his corruption.
According to the Bangladesh Bank report, Abdul Hye Bachchu had squandered thousands of crores of taka in the name of granting loans to different bank clients. Instead of calling formal board meetings he used to call members to his room and ask them to sign loan documents. He granted loans in favour of some shoddy organisations.
According to the Anti-Corruption Commission (ACC), after Bachchu was made Chairman of the Basic Bank Ltd on December 10 in 2009 the government formed a new Board of Directors. But Bachchu did not bother about any of the directors in the loan sanctioning process.
ACC sources said Bachchu had approved loans worth thousands of crores of takas in the absence of any of the board members. He had even forced one of the directors to resign. At one stage, that director filed a recommendation to the Ministry of Finance regarding the removal of Bachchu as Chairman of the Basic Bank.
Ibrahim Khaled, former Deputy Governor of Bangladesh Bank, said, “Bachchu had forced every managing director of the Basic Bank Ltd to resign.”
“Once Bachchu showed that a meeting of the Board of Directors had been held. But actually, it was false as no meeting was held,” said Ibrahim Khaled while continuing, “Bachchu had approved loans of around Tk 200 crore in that fake meeting.”
Experts say, unless action is taken against Bachchu, the ACC will face questions over its role.
Dr. Iftekharuzzaman, Executive Director of Transparency International, Bangladesh (TIB), said, the amount of money embezzled through corruption by Bachchu is huge.
“Until Bachchu’s corruption is considered seriously, the role of the ACC will be questioned,” said the TIB boss.
A report of the Bangladesh Bank said that the amount of loan approved by Basic Bank Ltd in 2008 was Tk 2,700 crore. The amount reached Tk 9,373 crore in 2013. Of the amount, loan of Tk 6,673 crore was approved through violation of rules.
The issue of Basic Bank scam has come to the limelight again as legal action has not been taken against Abdul Hye Bachchu, the key suspect and former chairman of the bank.
Parliament Member, Fazle Noor Taposh, also asked the ACC to take legal steps against Bachchu for his corruption. He also asked the ACC chairman to resign if he fails to do his duty.
Like MP Taposh, and TIB officials, many experts termed the position of the ACC totally unethical and against the principles of equality. This lone example raises questions over the government’s drive against corruption.
They said, the ACC cannot evade its responsibilities. It is a matter of concern that the incident of Basic Bank scam has depicted the ACC as an actor of ‘pick and choose’ policy.
The ACC has so far filed a total of 61 cases in connection with the Basic Bank scam. Businessmen and bankers allegedly involved in the incident have been arrested and are now in jail. But the former chairman is the only exception. He is merely interrogated.
The name of Abdul Hye Bachchu was found in the reports of Bangladesh Bank, the parliamentary standing committee and the audit. It was primarily confirmed that he was the key suspect. The ACC secretary, however, said that the ACC investigation officers could not trace the cash. The claim is unexpected and unacceptable. This is a challenge against the reports of Bangladesh Bank and the parliamentary standing committee. It is sad that the ACC casually organised a press conference. It could not disclose the progress of the case.
Experts say that the ACC should follow a standard in ensuring accountability. An ACC lawyer claimed a total of Tk 20 billion was recovered in connection with the Basic Bank scam. It is natural to ask who has given the AC authority to recover the money. There are many state agencies to do the job. The story of money recovery is to some extent to talk in favour of looters. ACC’s self-contradictory and discriminatory policy must end.
In July 2017, the High Court ordered the ACC to look into the alleged involvement of Bacchu and other directors in the scam. Disappointed at the sluggish probe and the ACC’s failure to catch the big fish, the HC, during a hearing last year, said, “We have to cover our faces in shame.” In line with the directive, Bacchuwas quizzed five times. The Commission also questioned all the directors of the then Board.
The central bank, in its probe report, detailed how borrowers embezzled money from the state lender through fake companies and suspicious accounts. The 47-page report, which includes a list of borrowers, gives a detailed account of how the loans were approved and then withdrawn in clear violation of bank rules.
The report said, BASIC Bank’s board and its credit committee at the headquarters ignored the negative observations from the bank’s branches on a number of loan proposals, and approved those without following due diligence. The report was sent to the ACC in 2014.
