UCB auditing activities of previous board, management

United Commercial Bank (UCB) is currently running a forensic audit to look into the role played by the previous board of directors and management committee, its new chairman, Sharif Zahir, said in a press conference yesterday.

A forensic audit is an examination of a firm's or individual's finances to derive evidence that can be used in a court of law or legal proceeding, according to investopedia.com.

"In each case, we are taking note of the role played by the previous management and board," he said in response to a question during the press conference at the UCB head office in Dhaka.

Running for more than four decades, the private commercial lender had its board reconstituted by the Bangladesh Bank on August 27. A few days later, its managing director, Arif Quadri, resigned.

Since 2018, the bank has been heavily influenced by the previous board members, specifically former land minister Saifuzzaman Chowdhury Javed and his family.

Having apparently gone into hiding since the fall of the Awami League government on August 5, these board members are alleged to have used the bank to illegally make personal gains at home and abroad.

The UCB is one of the first lenders which appointed auditors after the central bank reconstituted their boards following the fall of the previous government, said UCB Chairman Sharif Zahir.

The audit found an instance where some decisions were taken without any management report being filed, even though the reports are mandatory, he said.

Many things have also been approved in board meetings ignoring management reports and advisory councils, he added.

Unfortunately, the bank was run by the previous board of directors and the management could do nothing about it, he said.

The audit will unearth all malpractices and none of those involved will be able to get off scot-free as legal steps will be taken against them, he said.

"Now, we are bringing transparency and there is no liquidity crisis in the bank," assured Zahir.

At the press conference, the bank also launched a new range of products for both deposit and loan packages in alignment with the "Three Zeroes" vision of Prof Muhammad Yunus, chief adviser of the interim government.

The "Three Zeros" vision provides a socially inclusive approach to attaining zero poverty, zero unemployment and zero net carbon emissions.

In tune with this, the deposit products are Somota, Swadhin and Sabuj Sonchoy while the loan products are UCB Progoti, UCB Shuchona and UCB Shobuj Shomriddhi.

As a responsible entity, the UCB is committed to introducing sustainable banking solutions and relevant products so that the world becomes a bit more liveable for all, Zahir said.

"Inspired by the vision of Three Zeroes, we are rolling out new products designed to enable the people with easy and beneficial banking services," he said.

"These products will not only add value to the customers' banking experience, but also help achieve a world of Three Zeroes," he added.  The bank's new managing director, Mohammad Mamdudur Rashid, was present at the event, which was attended by Abdul Hai Khan, executive vice chairman of Grameen Trust, as a special guest.