National Bank seeks to appoint Abu Jafar as MD amid ACC probe
According to Bangladesh Bank regulations, a person who has been convicted cannot be appointed as a bank's managing director.
Amid an Anti-Corruption Commission (ACC) probe into financial irregularities against Md Mohammad Abu Jafar, the board of National Bank has applied to Bangladesh Bank for approval to appoint him as the bank's managing director (MD). The Business Standard has obtained a copy of the application.
Abu Jafar recently appeared for an interview at Bangladesh Bank for the MD position. However, the central bank has yet to make a final decision on his appointment.
According to Bangladesh Bank regulations, a person who has been convicted cannot be appointed as a bank's managing director.
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A senior official of the central bank said that Abu Jafar is not convicted, and the allegations have yet to be proved. So Bangladesh Bank can approve his appointment if he is eligible for the post. After appointing him as a managing director, if ACC convicts him, then he will not continue as an MD.
Abu Jafar previously served as managing director of Premier Bank before the bank terminated him earlier this year. The ACC is investigating allegations against him involving embezzlement, corruption and money laundering.
According to a letter issued by Premier Bank's head office, the bank terminated Abu Jafar's employment in February this year after obtaining approval from the central bank.
The MD position at the financially troubled National Bank has remained vacant since Adil Chowdhury resigned in July this year as the MD.
According to sources familiar with the matter, there had been disagreements within the bank's board over the appointment of an MD. While a section of the directors wanted Adil Chowdhury to remain in the position, another group opposed him, leading to disagreements on the board. He reportedly resigned before the end of his term as a result.
Attempts to contact Abu Jafar by mobile phone were unsuccessful, as he did not answer the calls.
Multiple attempts by TBS to get a comment from National Bank Chairman Melita Mehjabin were unsuccessful as she did not respond to calls and texts.
The Bangladesh Bank board that interviewed Abu Jafar for the MD position comprised a deputy governor, an executive director, a director of the Banking Regulation and Policy Department, and an executive director from a department related to banking policy.
The National Bank board has proposed appointing Abu Jafar as MD for three years. It has also sought Bangladesh Bank's approval to set his monthly salary at Tk12 lakh.
