Monday, February 18, 2019 | ePaper

Tk 2,805 cr siphoned off from JBL branch

BB suspends AD license over FDB purchase irregularities

  • Print
Kazi Zahidul Hasan  :
The central bank has suspended authorized dealer (AD) license of Janata Bank Limited's (JBL) Imamganj Branch due to irregularities in foreign documentary bill (FDB) purchase, especially from the Crescent Group.
Officials said, the suspension order has been issued through a letter to the Bank's Managing Director and Chief Executive Officer recently,     
"The license has been suspended as the branch failed to bring down the net open position (NOP) despite repeated warnings by the central bank. The NOP of the branch exceeded the permissible level due to irregularities in FDP purchase," a Bangladesh Bank (BB) official told The New Nation yesterday, asking not to be named.
He said the central bank has asked the bank authorities to determine the FDB liabilities (both settled and unsettled) of the Imamganj Branch and transfer them to another nominated AD branch of the bank immediately.
"Massive irregularities were found in FDP purchase from Crescent Group and it in tern helped the company to siphon off Tk 2,805 crore from the branch.
He said even the companies of the Group--Crescent Leather Products Limited, Rupali Composite Leatherwear Limited and Remix Footwear Limited--availed Tk 408.23 crore export subsidies against these bills causing drainage to the government funds.
Bangladesh Financial Intelligence Unit (BFIU), the anti-money-laundering arm of the central bank, exposed the major export fraud recently while conducting an investigation in the branch located in the old part of Dhaka city.
 "The subsidy was provided to the companies even if 653 overdue export bills violating the central bank's directive stated in its Foreign Exchange (FE) circular related to export subsidy," the BB official said.  
He further said all these violations forced the central bank to suspend the AD license (No-ECP 20/601/72) of the branch issued on April 12, 1972.
BB earlier deducted Tk 408.23 crore from Janata Bank's reserve account with it in connection with Crescent Group's export subsidy scam.
M A Kader, a prominent businessman in the country's leather industry, owns the Crescent Group.
Referring to the investigation report of BFIU, the central bank official said the companies of Crescent Group had not export anything, but availed themselves of the subsidy benefits providing fake documents.
Abdus Salam Azad, Managing Director of Janata Bank, could not be reached for comment. 

More News For this Category

Tri-nation motor peace rally arrives in BD

UNB, Dhaka :A tri-nation motor rally, marking the 150th birth anniversary of Mahatma Gandhi, arrived in Bangladesh on Sunday to spread the message of peace and non-violence.The motor rally,

Macron condemns anti-Semitic abuse at 'yellow vest' protest

Al Jazeera News :French President Emmanuel Macron has condemned anti-Semitic abuse directed towards a prominent intellectual by "yellow vest" protesters on Saturday."These abuses are the absolute negation of what

PM visits Int'l Defence Exhibition in UAE

UNB, Abu Dhabi :Prime Minister Sheikh Hasina on Sunday visited the 5-day International Defence Exhibition (IDEX) organised by United Arab Emirates (UAE) at the Abu Dhabi National Exhibition Centre.Crown

Defer Ducsu polls by 3 months, demands JCD

UNB, Dhaka :Jatiyatabadi Chhatra Dal (JCD), the student wing of BNP, on Sunday demanded that the elections to Dhaka University Central Students' Union (Ducsu) be deferred by at least

Prime Minister Sheikh Hasina with heads of govt attending the International Defence Exhibition at Abu Dhabi on Sunday.

Prime Minister Sheikh Hasina with heads of govt attending the International Defence Exhibition at Abu Dhabi on Sunday.

.

Nine burnt to death in Ctg slum fire

Nine burnt to death in Ctg slum fire

Staff Reporter :At least nine persons, including four of a family, were burnt to death as more than 200 shanties were gutted in a slum fire in Chaktai area

 Heavy rain damages stalls and books

Heavy rain damages stalls and books

Rayhanul Islam :Ekushey Book Fair experienced colossal damage of thousands of books as an unexpected heavy rainfall flooded the fair premises on Sunday morning.Many stalls remained closed, while the

8 more killed in road crashes

8 more killed in road crashes

Staff Reporter :At least eight more persons including five in Cumilla were killed and 20 others critically injured in separate road crashes across the country on Sunday. In Cumilla,

Another spell of gas crisis in Dhaka Tuesday

Staff Reporter :Another spell of gas crisis is likely to be due from Tuesday evening for parts of Dhaka city due to the ongoing construction of metro rail.For such,

HC defers hearing on writ seeking compensation

Staff Reporter :The High Court (HC) on Sunday deferred hearing on the writ petition filed seeking directive upon the government to give adequate compensation to the family members of