Farmers Bank Scam: News reports imaginary | The Daily Star
12:00 AM, February 13, 2018 / LAST MODIFIED: 12:00 AM, February 13, 2018

Farmers Bank Scam: News reports imaginary

Says ex-chairman MK Alamgir

Media reports on loan scam in Farmers Bank are based on imagination, former chairman of the bank Muhiuddin Khan Alamgir told parliament yesterday.  

Ruling Awami League lawmaker Muhiuddin also denied all allegations of irregularities against him in disbursing loans when he was the bank chairman.

“Three newspapers of Dhaka in the last three days have published false news against me with an ill motive. They first said I have taken commission in disbursing loans when I was the chairman of the bank. I never heard such a lie in 77 years of my life,” he said while speaking on a point of order.

He also called upon Speaker Shirin Sharmin Chaudhury, who was presiding over the sitting, to take necessary measures so that Bangladesh Bank could not reveal private commercial bank's loan disbursement information before the media.

Amid widespread criticism in financial scams of Farmers Bank, established around four years ago, Muhiuddin on November 27 last year resigned from its board after Bangladesh Bank had asked him to quit.

Non-performing loans at the bank increased significantly in recent months as the board continued to sanction and disburse loans in breach of the banking rules.

Between September and November in 2015, the BB conducted special inspections at the bank's three branches in the city's Gulshan, Motijheel and Shyampur, and found a gross violation of the banking rules in disbursing loans of around Tk 400 crore.

Some directors of the bank were allegedly involved in sanctioning loans, violating the credit rules.

The Farmers Bank doesn't have the capacity to pay back the depositors' money and refund the credit taken from other banks, the BB report mentioned.

Muhiuddin, also chairman of the parliamentary standing committee on Public Accounts, said he was a managing director of Bangladesh Shilpa Bank and presidents of BASIC Bank Ltd and Bangladesh Shilpa Rin Sangstha. But nobody could raise allegations of corruption or irregularities against him.

Pointing to media reports on the loan scam, he said Farmers Bank did not sanction any loan without proper approval.

He also said an observer of Bangladesh Bank is in the governing body of Farmers Bank. The body is aware of the loan disbursement.

He sought the speaker's interference so that media could not make any imaginary report on the financial sector. This type of report would have a negative impact on the sector, he said.

He said Farmers Bank had appointed quality officials and staffers in the bank following necessary rules.

Muhiuddin said in the media reports, it was mentioned that they got information on Farmers Bank from Bangladesh Bank. But according to the BB order, nobody could provide private bank's information to the media.

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