Check corruption in public sector banks
Speakers urge govt
Speakers at a workshop here urged the government to take steps for reducing corruption in state-owned commercial banks (SCBs) and easing the loaning system to develop the industrial sector.
International Business Forum of Bangladesh (IBFB) organised the advocacy workshop on 'Industrial credit and corruption in SCBs' at Hotel Agrabad in Chittagong city on Thursday evening.
Bangladesh Krishi Bank Chairman Khondkar Ibrahim Khaled presented a keynote paper titled 'Reducing corruption in accessing industrial credit' at the workshop chaired by IBFB President Mahmudul Islam Chowdhury.
Khaled in the paper identified that the government's undue pressure, political influence over loan sanction, lack of skills and honesty of the SCB officials, and inadequate measures to punish corrupt trade union leaders are the main reasons behind the corruption in accessing credit from SCBs.
He recommended a two-stage process for nominating and selecting the directors, recruiting efficient officials, and restructuring the salary structure in this regard.
According to him, the central bank can list three persons for each post, out of which the government will nominate one director.
Khaled also suggested appointing general manager (GM), managing director (MD), deputy MD (DMD) and additional MD (AMD) by recruitment from the open market.
Industries Minister Dilip Barua in his speech at the programme said the SCBs alone should not be blamed for corruption since corruption is a ''result'' and ''by-product'' of comprehensive socio-economic situation.
He blamed a section of politicians for exploiting politics and institutionalising corruption in every sector in the country.
He pointed out and admitted the shortcomings of the SCBs including their ineffective management.
The minister said the SCBs' management board members have limited power to take decision while the managing directors have to carry out the order from higher authority in disbursing loans.
Barua emphasised restructuring the loan schedules and bringing down the interest rates to a single-digit figure to promote more investment in the industrial sector.
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