DHAKA, 23 April 2006 — It is unfortunate that recently a section of the press in Bangladesh has started a campaign against the biggest private sector bank in the country — the Islami Bank Bangladesh Ltd. (IBBL).
The pretext was the finding of checkbooks of IBBL (of a branch of the bank in Sylhet) in the hideout of Abdur Rahman, a terrorist leader connected with series of bomb blasts in Bangladesh.
Most of these newspapers intentionally suppressed the fact that checkbooks of two other banks, one in the government sector and the other in the private sector, were also found in the same house.
Islami Bank has clarified the matter already as follows: “Some newspapers and television channels published news about IBBL in connection with the finding of a checkbook of a deposit client of IBBL at Suryadighal Bari, the hideout of Abdur Rahman. We feel it necessary to explain this matter to relieve misunderstanding among the people.
“The fact is: Some Saidur Rahman opened an account abiding by all banking procedures at Laldighirpar Branch of IBBL on Feb. 27.2. 1999. Abu Walid Chowdhury, the then assistant officer of the branch (presently manager of Biswanath Branch) signed the account opening form as the introducer of that account. Currently there has been no transaction in his account. The account was reactivated by the written application of Saidur Rahman. A total amount of taka 450,000 (less than $6,000) was transferred to the account with 8 different telex transfers from the Gazipur and Savar branches of the bank. After getting the checkbook of the client from the hideout of Abdur Rahman, the bank immediately sent audit and inspection teams to the said branches and found a few lapses in issuing the telex transfers. The Bangladesh Bank was immediately informed and administrative action was taken against the responsible officials.
Bangladesh Bank also investigated the matter and issued a show cause notice asking for an explanation about the lapses. IBBL will reply to the letter with an explanation in a timely manner.
“We want to announce clearly that IBBL does not support terrorist activities, let alone involvement in such activities, and is not operating as the source of terror funding or financing. IBBL as a scheduled bank is operated following rules and procedures of Bangladesh Bank.”
Md. Ataur Rahman, senior vice president, IBBL, public relations department, 40, Dilkusha Commercial Area, Dhaka-1000, Bangladesh.
Even after clarification, this section of press has continued with propaganda against IBBL which can have disastrous consequences for the banking sector, share market and the economy.
I give below as example some of the news items below.
1. The heading of daily Jugantar, dated March 30, 2006, was “Islami Bank in bad shape due to Jamaat connection, price of share has further declined.” Jugantar unnecessarily brought in Jamaat connection. It also does not care that it is dangerous to weaken confidence in a bank that is one of the strongest of the country.
2. The same paper on March 29, 2006, gave a same type of heading. It also said in its report on Islami Bank. “It is understood that there are hundreds of accounts of the terrorists by name or by anonymous names in Islami Bank”. If the paper knows why they do not give this information to the Central Bank?
The paper also quoted a reliable Central Bank source saying that the Central Bank will soon take action against the Islami Bank.
I am not sure that the source has been properly quoted. I know as a former central banker that it does not disclose any information which harms a financial institution.
However I also do not understand why the Bangladesh Bank is not denying such premature disclosure and not clarifying the issue so that the financial system is not affected. It is the duty of the Central Bank to protect the integrity of the financial system.
I also think it is time to amend the Banking Act, including a section in it saying that damaging confidence on a bank or financial institution or the financial system is a grave offense liable to serious punishment.
3. The daily Janokhantho on March 29, 2006, reported 150 terrorist accounts in Islami Bank. I have no further comment on this.
4. A report in Janokhantho on March 24, 2006, said that some political leaders of a leftist party had demanded a ban on the Islami Bank. However, I find them silent on the fate of 17 other banks under investigation by Bangladesh Bank on terror financing as reported by the Amar Desh daily on March 29, 2006.
This shows the nature of the orchestrated campaign against the Islami Bank by elements opposed to Islam and Islamic institutions. It is not an isolated affair. It is the old disease of Islamophobia which finds fault with anything Islamic. I can only hope that the people of Bangladesh and their friends will understand this phenomenon.
(Shah Abdul Hannan is the former banking secretary in the Finance Ministry of the government of Bangladesh.)