Court orders further probe into BASIC loan scam, ACC slow to begin
Although the court gave 120 days for this process, the ACC has so far assigned officers to only 32 cases, with the rest yet to begin
Highlights:
- 59 cases lodged over Tk3,500 crore loan scams
- Court orders reinvestigation in 54
- Court gave ACC 120 days
- ACC so far assigned officers to only 32 cases
- ACC's chargesheets did not include all board members
- Main accused, former chairman Bacchu still at large
- ACC's investigation began in 2010
The court has directed the Anti-Corruption Commission (ACC) to carry out further investigation into the BASIC Bank loan scam – ongoing for a decade and a half – saying it is incomplete.
Although the court gave 120 days for this process, the ACC has so far assigned officers to only 32 cases, with the rest yet to begin.
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The court issued the directive because the ACC's chargesheets did not include all board members who had unanimously approved the loans, implicated some officers who had opposed loan proposals, and listed some from the same department as accused while others were made witnesses.
Discussions with ACC officials and lawyers revealed that out of 59 cases, the court has ordered reinvestigation in around 54 since February.
The ACC began its inquiry in 2010 into allegations of Tk3,500 crore loan scams at BASIC Bank. Investigations, however, moved slowly as many of the accused were close to the ruling Awami League.
Five years later, in 2015, ACC filed the first case, eventually lodging 59 cases in total. But the board of directors was never implicated. The probe reports were also riddled with loopholes.
Investigations stalled again until, facing criticism, the ACC in 2023 filed chargesheets in 58 cases naming only former chairman of the bank Sheikh Abdul Hai Bacchu but excluding other board members.
Even after the Awami League's fall from power, Bacchu remains untouched. Despite an arrest warrant issued against him last September, ACC officials admit they do not know his whereabouts. The commission is now conducting a court-directed reinvestigation of the case.
Because of errors and flaws in these chargesheets, the court in February this year, for the first time, ordered further investigation.
The fresh probe is expected to implicate other board members as well. Analysts, however, warn that discrepancies across the inquiry, investigation, and reinvestigation reports could undermine the credibility of the entire process.
Moidul Islam, former ACC director general, told The Business Standard, "The ACC's inquiry process is supposed to gather all information just like an investigation. That should have included the board of directors and all relevant people. This was the failure of both the investigating officers and the commission.
"After such a long probe, they filed a questionable chargesheet. Any flaws in the FIR should have been reflected in the chargesheet. How did the commission approve it? The ACC officials responsible for negligence in this case should be held accountable to set an example. Bangladesh Bank too failed to monitor as it was supposed to."
Although the loans were unanimously approved at board meetings, no director was initially made an accused. No board member even recorded a note of dissent. Later, only chairman Bacchu was charged, while officials who had opposed the loan proposals were made the accused. In some cases, people from the same department were charged while others were listed as witnesses. After reviewing these chargesheets, the court ordered reinvestigation in 54 cases so far, instructing the ACC to submit reports within 120 days.
In 2009, the government reconstituted the BASIC Bank board, appointing former Jatiya Party MP Bacchu as chairman. Other directors included senior officials from the Prime Minister's Office, education and finance ministries, and private sector representatives.
Bacchu served as chairman until 2014, during which thousands of crores of taka were allegedly embezzled through irregular loans at the bank's Dilkusha, Gulshan, and Shantinagar branches. Loans were reportedly disbursed without collateral, based on forged documents, and without proper verification.
An ACC official, requesting anonymity, said investigators may have refrained from implicating the board earlier due to pressure from state authorities and ACC's senior leadership. "They will now be brought onto the accused list during reinvestigation," he said.
When contacted, an ACC director said investigating officers have been assigned to around 32 cases so far. "If evidence emerges against any board members or Bangladesh Bank officials, they will certainly be charged," he said.
Asked why the process is being delayed, he explained, "The 120-day deadline is counted from the start of investigation, not from the date of the court order. After receiving the directive, we had to complete several procedures before assigning officers. Investigations have begun gradually since May, and we hope to complete them within the 120 working days."
