Biman Bangladesh Airlines’ Chief Financial Officer (CFO) Md Naoshad Hossain is facing allegations of financial irregularities, including mishandling funds, promoting unqualified staff for personal benefit, and violating established protocols for managing the national flag carrier's finances.
These allegations have triggered calls for his removal and a formal investigation.
Reports indicate that Naoshad contravened Biman’s regulations by depositing significant amounts of the airline’s revenue in private banks rather than in state-owned institutions, where funds are required to be kept.
Banks involved in these deposits reportedly include South-Bangla Bank, NRB Bank, and Farmers Bank.
Sources claim that these actions were not sanctioned by Biman’s financial policies and resulted in substantial revenue losses for the airline.
Additionally, Naoshad is accused of an attempted $500,000 overseas transfer to a foreign account, which went awry due to his error.
The transfer, processed through American Express Bank, has yet to be recovered, and the issue remains unresolved, raising further concerns about the CFO's financial judgment.
According to a Biman official, who requested anonymity, Naoshad assumed control over Biman’s funds management, despite the presence of a dedicated officer, allegedly to benefit his relatives employed at various private banks.
Furthermore, he is accused of placing Biman’s funds in high-risk banks at lower-than-standard interest rates, without necessary approvals.
Standard interest rates for fixed deposits at state-owned banks are around 9.5%, while Naoshad’s deposits in private banks reportedly earn only 3-4%.
Documents reveal that under Naoshad’s management, a total of Tk472 crore was deposited in private banks.
This includes allocations of Tk10 crore in South-Bangla Bank, Tk161 crore in NRB Commercial Bank, Tk200 crore in Agrani Bank, Tk81 crore in BRAC Bank, Tk10 crore in Standard Bank, and Tk10 crore in Farmers Bank.
A significant portion of these deposits, notably Tk10 crore in Farmers Bank, may be lost entirely due to the bank’s bankruptcy.
Naoshad received a transfer order from the Ministry on 11 July 2024.
However, to conceal the mentioned misconduct and eliminate evidence, he attempted to delay the transfer.
With the help of his batchmate and friend, former Biman MD and CEO Mohammad Zahidul Islam Bhuiyan (who has since been dismissed from Biman), he recommended an additional three-month extension.
However, due to the sudden transfer of Zahidul Islam Bhuiyan, this recommendation could not be fully implemented, leaving Naoshad in a difficult situation.
Subsequently, he lobbied through various means and secured an additional two-year extension.
It should be noted Chairman is reportedly unaware of Naoshad 's misconduct over the past three years.
Observers suspect this may suppress information regarding unresolved issues, including the missing $500,000.
When contacted for comment, Naoshad provided a copy of a response he had previously sent to another newspaper.
He explained that his reply remains the same, as the allegations are identical. Naoshad stated, "I always fight against corruption."
Regarding the issue of depositing funds in private banks, he clarified that as a state-owned company, Biman is not legally bound to keep its funds exclusively in “state-run banks.”
He added, “Such remarks are made without proper knowledge of Biman’s rules and policies. This requirement applies only to the Pension Fund and Provident Fund.
The accounts at NRB and SBAC were opened with the permission of the MD & CEO for specific purposes.”
Naoshad also noted that Biman’s Pension Fund was placed as a fixed deposit in Farmers Bank on 13 March 2017—well before the current CFO’s tenure. He said Biman’s board examined these matters and found no irregularities.
On the allegation of irregularities involving a $500,000 transfer, Naoshad explained that the money transfer file was initiated by the Manager of Cash and, after being recommended by the GM of Finance & Accounts, was approved by the director of finance.
He added, “Since this was not an expenditure and no expenses were involved, the Director of Finance is authorized to transfer US dollars from Biman’s Sonali Bank forex account to the London USD account.”
However, the transaction was not completed, so the funds never reached Biman’s London branch due to Sonali Bank’s failure to scrutinise invoices properly. He described this as a failure on Sonali Bank’s part to fulfill its role as a professional banker.
Regarding his potential transfer, Naoshad stated that Biman has not released him, and it is within the management’s discretion to either release or retain him.
He emphasised that this internal matter should not be a topic for public news.
Biman’s Anti-Discrimination Office is reportedly preparing to submit a formal complaint detailing Naoshad’s alleged actions and their negative impact on Biman’s financial health.
There are also allegations that Naoshad sought to promote Abu Said Md Monzur Imam, a general manager at Revenue and FMIS, to director despite his lack of qualifications, raising concerns over favoritism and the organization’s managerial integrity.
Efforts to reach Biman’s chairman for comments were unsuccessful, as his phone was found to be switched off.
Within Biman, there is significant dissatisfaction with Naoshad’s handling of financial matters, with officials from multiple departments appealing to Managing Director Dr Md Shafiqur Rahman for his immediate removal.
Sources indicate that officials across nearly all departments have voiced concerns, calling for an urgent investigation into Naoshad’s management practices to safeguard Biman’s financial integrity.
