• Thursday, Nov 14, 2019
  • Last Update : 12:24 pm

BASIC Bank loan scam: ACC finds no proof of Bachchu’s involvement

  • Published at 12:17 am October 16th, 2019
Anti Corruption Commission
File photo of the Anti Corruption Commission building Mehedi Hasan/Dhaka Tribune

The bank was hit by scandal when a Bangladesh Bank report revealed that Tk5,000 crore had been swindled from BASIC Bank through loan fraud during  Bachchu’s four-year tenure

The Anti-Corruption Commission (ACC) has said it did not find proof of former BASIC Bank chairman Sheikh Abdul Hye Bachchu’s involvement in the BASIC Bank loan scam during his four-year tenure.

“We do not want to submit a half-done charge sheet. No specific allegations were found against Bachchu,” ACC Secretary Mohammad Delwar Bakht told media on Monday.

He added that since the allegations against Bachchu were not proven, the commission is yet to order a charge sheet.

In 2009, the government appointed Bachchu as chairman and Kazi Fakhrul Islam as managing director of BASIC Bank.

The bank was hit by scandal when a Bangladesh Bank report revealed that Tk5,000 crore had been swindled from BASIC Bank through loan fraud during  Bachchu’s four-year tenure

The central bank served a show cause notice to Kazi Fakhrul in March, 2014, and issued a letter to the Finance Ministry to dissolve Basic Bank’s board of directors in April the same year.  Bachchu resigned from his post soon afterwards.

In July the same year, Bangladesh Bank forwarded a detailed report to the ACC, where it said Bachchu’s involvement had been found.

BASIC Bank is accused of giving loans without collateral, using false documents, fictitious names and organizations, in violation of rules and regulations.

The ACC opened investigations into the state-run bank after allegations surfaced that billions in loans were illegally released from the Gulshan, Dilkusha and Shantinagar branches from 2009-2012, when Bachchu was heading the bank.

The ACC prosecuted 26 officers of the bank and 130 others in 56 cases in September 2015, on charges of helping several businesses secure loans through forgery.

Neither Bachchu nor any member of the bank's board of directors were named in the cases.