An audit is being conducted to determine the extent of loan misappropriation by a group of dishonest businessmen and influential individuals during the tenure of the recently resigned Sheikh Hasina government, Chief Adviser Dr Muhammad Yunus said on Wednesday.
In a press release issued by the Chief Advisor’s press wing today, it was revealed that these individuals have embezzled significant sums of money from the banking sector through widespread corruption and fraud, often using fake names or aliases. The exact amount of the embezzled funds, which is believed to be in the hundreds of billions of taka, is currently being calculated.
While the press release did not disclose the names of the individuals involved, it emphasised that reform initiatives have already begun within the banks and financial institutions implicated in these acts of corruption and money laundering.
The Chief Advisor’s office highlighted the government's firm stance on bringing these embezzlers to justice. It was stated that new management teams at the banks, in collaboration with the Bangladesh Financial Intelligence Unit (BFIU), the Criminal Investigation Department (CID), and the Anti-Corruption Commission (ACC), have started efforts to recover the misappropriated funds by seizing local assets and repatriating the laundered money from abroad. The government has also begun seeking assistance from various international organizations to facilitate the recovery of these assets.
The press release further mentioned plans to establish a Banking Commission soon. This commission will conduct investigations into each affected bank, reveal the true extent of the irregularities, and formulate a viable roadmap within six months to restructure the banks.
The release noted that the ultimate goal of Bangladesh Bank and the government is to build a robust banking sector that complies with all international standards. However, achieving this will require time, international technical assistance, and financial resources. The government is committed to acquiring the necessary domestic and foreign assets of the embezzlers and using them to reorganize the banks.
Reconstructing the banks and implementing structural reforms in the financial sector will take time. Nonetheless, the government remains steadfast in its determination to bring Bangladesh's financial sector up to international standards.
