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Sonali Bank Scam- Mismanagement in Banking Sector September 6, 2012

Posted by bdoza in BANGLADESH, ECONOMY.
Tags: , ,

Hallmark group, a virtually unknown company has been given more than 3.5 crore loan from Sonali Bank. The disbursement raised questions about its legality. It is found that the company doesn’t deserve the loan, had no adequate collateral,the owner had little credibility and still the company got an amount that the bank can’t lend. It is found that not only bank managers, but the board of management are also involved with the scam. It is thought that there is lapse in the monitoring of Bangladesh Bank. The Ministry of Finance also had its lapses.

The Bank Management has dismissed and suspended dozens of its officials and are trying to get back the money. Finance Minster has said that 50% of the money could be collected back.
The incident has created a stir in the media and in the public mind. People are confused seeing Finance Minister preventing Bangladesh Bank dissolving the Board management of Sonali Bank. People become more confused when Finance Minister told that Tk. 4000 crore is not a big amount in comparison to 40000 crore of money of loan transaction! He also asked Media not to make noise over the scam otherwise it will be difficult to collect the remaining amount of money.

The situation is in real contrast to Grameen Bank where an effective and innocent Board Management is taken over by the Government.

The opposition is demanding the resignation of Finance Minister. The Members of Parliament have also criticize loose talks of he Finance Minister.
The scam indicates absolute mismanagement of banking sector and if the Government couldn’t take convincing action against the offenders, then the Government will have to pay the price polically.

An ordinary citizen

Courtesy: The cartoon is from Daily Star.