Editorial
Govt. inaction on Hall-Mark fraud
Restore badly shaken public confidence in NCBs
The Hall-Mark scam involving various branches of state-owned Sonali Bank to the tune of Tk3,547 crore has been quite an eye-opener. First of its kind, it has rocked the state-owned banking system with reports of Tk100cr. to 200cr being siphoned off on the sides.
This gives rise to some fundamental issues. First of all, the missing cash should be recovered with due diligence and restored to the bank. Secondly, legal proceedings should be drawn on the corrupt and involved officials. The only fringe-touching thing we have heard in this connection is the finance minister's assertion that none would be allowed to flee.
A writ petition by a lawyer has sought High Court directive to take steps in recovery of embezzled funds. Is the individual only to initiate a process? It seems the government has washed its hands of responsibilities in taking appropriate measures to recover the money, if necessary, by freezing and seizure of assets and to punish the culprits through due process of law. The response strategy should also include streamlining lending procedures by plugging loopholes. By leaving the matter in the hands of the ACC, the government is perceived to be only strengthening the impression of dithering, which may help consign the matter on to a back burner.
The issue is that of public trust in an important government bank. Investigation till date reveals deficiencies in regulatory role of Bangladesh Bank (BB) over the NCBs. If BB is found lacking in authority in going after such cases of massive graft in state-owned banks, then it must be adequately empowered to do so. Furthermore, scrutiny has revealed that the central bank needs to strengthen its overall monitoring role. We have no inkling whatsoever that any such move has got underway. It cannot be stressed enough that continued government foot-dragging on the Hall-Mark case could put across a very negative signal about management of financial institutions in our country.
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