Amid the ongoing discussion and criticism surrounding the allegations of loan default surrounding the newly appointed chairman of Islami Bank Bangladesh, Md Khurshid Alam, the Bangladesh Bank has given an official explanation on this matter.
The central bank says that Khurshid Alam is not a loan defaulter personally; rather, the loan taken in the name of an organization owned by his wife has defaulted.
Bangladesh Bank Spokesperson and Executive Director Arif Hossain Khan told reporters on Tuesday (June 2).
He said that the central bank's investigation has shown that an organization, one of the joint owners of which is Khurshid Alam's wife, had taken a loan of about Tk3 crore from First Security Islami Bank. Later, that loan became defaulted.
However, it is not correct to call Khurshid Alam a loan defaulter personally for this reason.
Arif Hossain Khan said: “The company owned by Khurshid Alam’s wife has defaulted on its loans. But Khurshid Alam himself is not a borrower and is not a loan defaulter personally. These two issues need to be looked at separately.”
An old incident from Khurshid Alam’s career has also recently come under discussion. It was alleged that he was involved in the embezzlement of Tk54 lakh while serving as general manager of Bangladesh Bank’s Rangpur office.
After investigating this allegation, the Human Resources Department of Bangladesh Bank issued an office order on February 11, 2018. The order stated that the allegations made against him on April 3, 2017 were proven.
In view of this, his two annual salary increments were suspended as per Section 44(1)(b) of Bangladesh Bank Staff Regulations-2003.
However, the central bank is currently giving a different explanation on this matter.
A spokesperson for Bangladesh Bank said that incorrect information was presented against Khurshid Alam at that time. Later, a review of the matter revealed that the punishment given against him was not appropriate.
That is why he was later promoted to the post of executive director and later deputy governor.
Bangladesh Bank has also clarified its position regarding the ongoing debate and movement regarding the appointment of Khurshid Alam as the chairman of Islami Bank.
Arif Hossain Khan said that they consider the decision taken by the central bank to be correct in the matter of appointing the chairman. There is no question of changing that decision in the face of any kind of movement, pressure or demands.
In his words, “If a decision is changed today due to the movement of one party, then in the future another party will make a bigger movement and demand a change in another decision. No institution can be run like this.”
