BB finds anomalies in Tk83cr stimulus loans disbursal by IFIC
The Bangladesh Bank has found irregularities in disbursing Tk83 crore loans by private lender IFIC Bank under the stimulus package, which the government provided as part of its effort to keep the economy operational during the Covid-19 pandemic.
A central bank inspection team unearthed the scam, which took place in three branches – Motijheel's Federation branch, Gulshan branch, Narayanganj branch – of the commercial bank.
The disbursed amount was misused, the BB team found.
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It identified that the Federation branch on 24 February last year lended Tk13.5 crore to the Anwar Cement Limited for increasing its working capital. However, the company used the money to repay its previous loans, breaking the central bank's rule.
The bank regulator earlier declared that no entity would be allowed to use the low-interest fund for repaying its previous loans.
The BB inspection report said the loan recipient Anwar Cement, on the same day, transferred Tk1 crore to its another account with NCC Bank, Tk1.60 crore to sister concern Anwar Ispat's account with Trust Bank, and Tk11.13 crore to other accounts with several other banks to repay the previous loans.
The Gulshan branch disbursed Tk10 crore to SQ Sales Limited, and Tk5 crore to Sonia and Sweaters Limited for working capital purposes. These two companies also used the money in repaying loans.
Although Sonia and Sweaters received the loan on a condition of paying workers' wages, the BB inspection team did not find evidence of using the money for the purpose. Besides, it could not be confirmed about the proper uses of the loans to Uttara Spinning Mills, Uttara Rotos, Bango Millers, Banga Building Materials, Durable Plastic Limited.
Similar incidents occured in the case of Narayanganj branch of IFIC Bank.
When contacted, Bangladesh Bank Executive Director Md Serajul Islam told The Business Standard that the inspection team found irregularities of several banks in disbursing the stimulus package.
"We will take actions against the corrupted banks," he said, adding that they (the banks) would not get the government subsidy against the interests of the disbursed loans.
IFIC Managing Director and Chief Executive Officer Shah A Sarwar could not be reached for comment. Meanwhile, a senior IFIC official, seeking anonymity, told TBS that they answered the questions of the inspection team.
"I cannot say anymore," he added.
Bank analysts said the stimulus package had not been utilised in a proper way.
"Several banks made huge irregularities in disbursing the Covid-19 stimulus loans. Several large-scale borrowers used the low-interest fund for repaying their previous debts. As a result, the fund was misused," said Salehuddin Ahmed, a former governor of the central bank.
He suggested that the Bangladesh Bank enhance its monitoring over the lenders to ensure a proper use of the government fund.
