Abdul Awal Mintoo, former president of the FBCCI and chairman of National Bank, criticised the practice of freezing bank accounts of businesses during political transitions.
“This isn’t the first time. We’ve seen bank accounts frozen during power shifts before. I do not support freezing businessmen’s bank accounts in the context of political change," he said while speaking at a dialogue with members of the Economic Reporters’ Forum (ERF) at the ERF office in Bijoynagar, Dhaka on Monday (9 December).
Responding to a question about the closure of certain entities under the Beximco Group, Mintoo said, “If a businessman is corrupt, he should face justice. However, why shut down their businesses? Closing an enterprise renders its employees jobless, pushing their families into hardship.”
The event, organised by ERF, was presided over by its president, Refayet Ullah Mirdha.
On Sunday, Dr Fahmida Khatun, executive director of the Centre for Policy Dialogue (CPD), pointed out that Bangladesh Bank had recently provided special liquidity support amounting to Tk22,500 crore to six weak banks through direct loans—a move she deemed inappropriate.
Dr Khatun remarked, “Printing money to inject liquidity into these banks isn’t a sustainable solution. Licensing of financial institutions influenced by political motives has led to malpractices and embezzlement of depositors’ funds.”
Addressing the state of the banking sector, Mintoo said, “Some economists have become a problem for the country. They talk excessively. If their rhetoric isn’t curtailed, they will become a major obstacle for Bangladesh. Have these individuals ever built a single organisation or provided employment to anyone?”
Mintoo noted, “Inflation causes imbalances across the economy. Import expenditures have risen disproportionately, disrupting demand and supply dynamics.”
Highlighting past governance failures, he stated, “The previous regime institutionalised autocracy, cronyism, and nepotism. Public welfare-oriented organisations were politicised, undermining their functionality and destroying market systems.”
Mintoo alleged that laws and policies were often crafted to legitimise plundering.
He remarked, “Whether in mega projects or loan write-offs, the legal framework was manipulated to serve corrupt interests, with enforcement entrusted to equally corrupt party officials.”
He further argued that rewarding corrupt officials with repeated reappointments destabilised politics and macroeconomic management. “Bangladesh Bank has functioned as a partisan institution under the guise of a central bank, exacerbating deficits across sectors,” he said.
Mintoo criticised the country’s investment strategies, stating that infrastructure projects lacked alignment with future revenue generation and expenditure.
He said, “Unplanned investments have driven inflation, while foreign loans with high interest rates have jeopardised the economy.”
Accusing vested interests of maintaining a status quo to protect their agendas, Mintoo stressed the need for political reform as a prerequisite to addressing socioeconomic disparities.
He concluded, “True economic development begins with reforming governance structures to bridge the gap between the rich and the poor.”
