BB seeks explanation from Janata MD

Bangladesh Bank has sought explanation from Janata Bank Managing Director Md Abdus Salam Azad for extending loan rescheduling facilities to two companies, including the notorious AnonTex Group, by breaching rules.

He has been asked to give explanation within seven working days, according to a letter sent to Azad on February 4.

Janata has given Tk 1,743.84 crore loan rescheduling facilities against seven companies of AnonTex Group, according to the letter of the banking regulator.

Besides, the bank also gave rescheduling facilities to Dragon Sweater for 10 years without collateral.

Earlier, the central bank probe body had recommended its higher-ups take punitive measure against Azad for his alleged involvement in the AnonTex Group loan scandal.

Between 2007 and 2014, the state-run bank disbursed a large amount of loans to 22 companies of AnonTex Group by breaching the banking rules and regulators -- and the probe body found direct involvement of Azad in the transgression. The companies opened 20 accounts with the corporate branch and the rest with local office of the lender, according to an investigation carried out by the central bank inspection team.

“Azad served as a manager of the corporate branch for a good portion of the time during the mentioned years. And he gave scope to the concerns of AnnonTex Group to swindle the amount,” the probe report said.

He was the manager of the branch from November 2011 to August 2013.

The investigation of the banking watchdog also found that AnonTex Group took the fund by showing 15 projects. Nine of the projects were yet to be set up.

The companies published false tender notices to set up the projects and laundered money abroad in the name of import of capital machineries.

According to the credit proposal of the companies, the group kept 56 acres land of worth Tk 677 crore.

As of September last year, the total outstanding loans of AnonTex Group stood at Tk 5,768.52 crore -- and a major portion of the sum has already turned defaults.

In many of the cases, the accounts of the group were opened hurriedly and the loans were disbursed to them just as quickly -- without following banking norms.

Azad was appointed MD of Janata Bank in December last year.

The probe body has already submitted its recommendations to the central bank higher-ups to take further action to this end.

The central bank earlier removed Abdul Hamid and Kazi Fakhrul Islam from the post of managing directors of Agrani and BASIC respectively after it found their involvement in loan scams.

Azad did not respond to The Daily Star’s request for comment. At the time of writing, he neither answered his phone nor replied to text messages from the correspondent.