Janata Bank seeks legal action against ex-MD over Tk 51b loan scam

Golam Mowla
Published : 04:00, Aug 10, 2018 | Updated : 04:00, Aug 10, 2018

Logo of Janata Bank LimitedThe board of state-owned Janata Bank has asked the finance ministry to initiate legal measures against four of its former top officials over Tk 51.3 billion loan scam, sources said.
Former Janata Bank managing director Abdus Salam and three deputy-MDs were found involved in disbursing the loans to Crescent Group.
The board also took a hard stance against the officials who are involved in irregularities and fraudulence after the board sat on Wednesday (Aug 8) with its Chairman Luna Shamsuddoha in the chair.
Bangla Tribune could not reach Janata’s chairman, current MD Abdus Salam Azad as well as its former MD Salam for comments.
Former Bangladesh Bank deputy governor Khandaker Ibrahim Khaled thinks that dishonest MDs are responsible for the collapse of the sate-owned banks.
“Removing these officials as well as taking legal actions against them will reduce tendency to commit crimes in banks,” said Khaled.
Earlier, a probe committee formed by the bank’s board found that the Crescent Group managed to take away as much as Tk 51.3 billion from the bank with the help of its top officials between 2013 and March 2018.
The committee brought the allegation of showing utmost negligence against former MD Abdus Salam and three DMDs, who violated banking rules and regulations and issued loans to Crescent Group illegally bypassing the board.
Abdus Salam served as Janta MD from Oct 2014 to Oct 2018.
The committee found that large amounts of loans were disbursed in favour of Crescent Group from three branches of Janata Banks – Imamganj, Dilkusha, Mohammadpur branches without informing the board as well as the central banks’ approval.
The board sought explanation from former MD Abdus Salam and former DMDs Zakir Hossain and Ismail Hossain after the board committee unveiled its report.
Former MD Abdus Salam responded to the committee, which the board did not accept, according to bank sources.
A Bangladesh Bank's investigation found that Crescent Group used fake Foreign Documentary Bill Purchase (FDBP) to export overseas.