HC asks for probe reports on BASIC Bank loan scam

The High Court today directed the Anti-Corruption Commission and Bangladesh Bank to submit probe reports on BASIC Bank loan scam.

The ACC will have to submit its report in seven days while the central bank in four weeks, according to the court order.

The court also asked the authorities of the state-owned bank to place its documents on the decisions taken by its board of directors for allocating loan to different institutions.

The HC bench of Justice Md Ruhul Quddus and Justice Mahmudul Haque came up with the order at a hearing on a writ petition seeking further investigation into the loan scam, ZI Khan Panna, a counsel for the petitioner, told The Daily Star.

Harun-or-Rashid of Noakhali moved the petition on November 12 last year, saying that 57 cases have been filed over the BASIC Bank loan scam, but Bacchu and the board members who are responsible for the scam were not implicated in any of the lawsuits.

He prayed to the court to direct the ACC to implicate them in the cases.

According to a Bangladesh Bank enquiry, about Tk 4,500 crore was swindled out from BASIC Bank in the last six years.

The bank lent around Tk 5,500 crore during Bacchu's tenure between 2009 and 2013, most of which were approved and disbursed on inadequate documents and inflated mortgages.

Of the amount, Tk 4,500 crore turned bad, throwing the once best state-owned bank into trouble.