রবিবার, ১১ নভেম্বর, ২০১২

Muhith defends political appointment at state banks

 
Finance Minister AMA Muhith
Finance Minister AMA Muhith on Sunday defended appointment of political persons as the board of directors of the state-run commercial banks (SCBs) although such appointments are blamed for loan irregularities.
"Politicians do business, set up industries and also promote education. So, some of them might be given places at the boards," he told reporters after a bilateral meeting with a Turkish delegation at the Economic Relations Division in the city.
The tenure of the SCBs board expired in the first week of September this year but the government could not appoint board directors due to intense lobbying from vested quarters, said a finance ministry official.
Muhith also said the government has picked directors from other professionals such as teaching and banking. "It is a combination. It is not all about politically appointed directors."
It would take until middle of the next week to appoint directors of the state-run commercial banks, he said.
Officials in the finance ministry's banking division said they are clueless about who get the appointment as SCB board directors, as the finance minister has not given them any list of selected persons for the posts.
Meanwhile, powerful vested interests are lobbying for the posts of board directors at the banks that have been plagued by irregularities due to interference from some outgoing directors with political affiliation.
There are allegations that some of the directors take commissions from business firms as well as individuals for helping them get loans from state-owned banks, said a finance ministry official.
Some former SOCB directors have been lobbying government high-ups to get appointed once again. Besides, people with political affiliation are pursuing the same purpose, said sources at the finance ministry and the Prime Minister's Office.
The present government appointed some former leaders of Jubo League and Chhatra League, two associate organisations of the ruling Awami League, as SCB board directors after coming to power in 2009.
In September, a central bank report said the overall control system of state-owned banks has broken down for weak internal monitoring.
It said a number of big corruption scams, including that of Hall-Mark, have been detected in SCBs in the recent times.
A central bank official alleged that some board members are also involved with it and the BB informed the finance ministry about this.

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