BB removes International Leasing MD over irregularities

Bangladesh Bank (BB) has removed Mohammad Imdadul Islam, managing director of International Leasing and Financial Services Limited, over irregularities and concealment of information.

The central bank sent a letter in this regard to the chairman of the board of directors of the leasing company on Monday and instructed its board to take the necessary steps.

In a letter issued on January 25, the central bank asked Islam to explain why action should not be taken against him for alleged misconduct, including falsification of board meeting minutes and violation of human resources policies.

The regulator also cited his role in dismissing five officials, including the chief financial officer, on January 1 this year in breach of internal policies and regulatory guidelines.

Bangladesh Bank said the explanation submitted by Islam on January 28 was found to be unsatisfactory.

The central bank’s investigation also reviewed his previous tenure as managing director and CEO of GSP Finance Company (Bangladesh) Limited, where multiple irregularities were identified.

These included showing a Tk 49.9 crore loan to Keya Cosmetics Ltd as unclassified without prior approval from the central bank, which significantly reduced GSP Finance’s classified loan ratio.

He was also found to have restructured loan facilities of a subsidiary in violation of regulatory circulars, leading to a financial penalty under the Financial Institutions Act, 1993.

In addition, the regulator alleged that excess penal interest was imposed on a loan account of Dorin Hotels & Resorts Ltd during the Covid period, despite repeated instructions to comply with regulatory directives.

According to Bangladesh Bank, Islam failed to disclose these issues in his application and affidavit when seeking appointment as managing director of International Leasing.

“Considering his involvement in the irregularities and submission of a false affidavit, he has been removed from the post under Section 19 of the Finance Company Act, 2023,” the central bank said.

The regulator also advised the leasing company to appoint a qualified senior official as acting managing director in line with existing guidelines.