Home Today's Paper Most Popular Video Gallery Photo Gallery
Subscription Blog Signin Register
Wednesday, May 23, 2018 05:16:18 PM
Follow Us On: Facebook Twitter Twitter Twitter Twitter

Connected lending by BIFC

It’s a smear campaign, says Major Mannan

photo by

Share your thought
Post a comment »
Read all () »

Special Correspondent :
Chairman of Sunman Group Major (Retd) Abdul Mannan has dismissed the media report of connected lending by Bangladesh Industrial Finance Company (BIFC) Limited saying a vested quarter has launched a smear campaign to undermine credibility of the financial institution that he founded in February 1998.
He is holding 15 percent stake of the joint venture leasing and financing company that was listed with the stock market in 2006.  
."The reports about the connected lending involving me and my family are false, baseless and misleading," Major Mannan, a former chairman of BIFC, told The New Nation yesterday.
He said the news report on BIFC is based on misinformation supplied by the vested quarter. "It is unfortunate that several media houses did not publish my rejoinder protesting the news items. It simply exposes the stories were false and motivated, and it has buried the real stories of the loans.
He said, the real fact is that BIFC has disbursed Tk 1,063 crore loans (lease finance) to several hundreds business firms up to December 2015. The management of the company sanctioned the loans after assessing their creditworthiness and collaterals. But the then management has failed to recover the outstanding loans due to their inefficiency and mismanagement. They, however, prepared window-dressed balance sheets to show the recovery of the loans and profits.  Even they created paper loans to take financial benefit keeping the board in dark.
Businessman-cum-politician Abdul Mannan said, "I founded the non-bank financial institution with the assistance of two foreign firms, based in the USA and Hong Kong, and local entrepreneurs and companies to provide financial services to business firms and people. This financial organization has been doing businesses well for years with reputation. It granted loans to several hundred business firms following the existing law." 
But problem began when a vested quarter acquired five percent share of the company from stock market. After holding the shares, they hold two posts of directors as per the directive of Bangladesh Bank.
"Their appointments did not follow the rules and regulations," he added.   The quarter later established their supremacy in the board and raised various false allegations against other directors who held 95 per cent shares of the company. They are actually trying to grab the company applying various tactics and showing artificial crisis. The sponsor directors are now in fear to lose their ownership of the company due to the malpractice of the evil forces.  Investment of thousands of shareholders is now at risk for their illegal activities also.
"It gives wrong signal to potential foreign investors willing to make investment here in various ventures. The Bangladeshi financial institutions will also lose their reputation in world market," he added.
Different media outlets earlier quoted a Bangladesh Bank (BB) report saying that over 40 business firms linked with Major (Retd) Abdul Mannan, his family members and relatives took Tk 518 crore loans from the BIFC using his influence.
However, loans were disbursed without credit worthiness assessment and collaterals, according to the reports.
In this regard, Abdul Mannan, General Secretary of Bikalpodhara Bangladesh, said, "My attention was drawn to the Audit report of Bangladesh Bank 2015. The surprising thing is that BB demanded explanation from the chairman for an outstanding amount of Tk 394.29 crore of 42 business firms out of several hundred. The BB report stated that these business firms and entities are linked with my family members and me.  
"It is an incomplete report that shielded real facts. My family, me, and even my relatives have no link with the aforesaid companies. I like to say further that I do not know many of the companies, which borrowed from the BIFC. Besides, I realised Tk 120 crore, apart from Tk. 81 crore earlier collected that left the total unrealised loan at Tk 193 crore only.
Referring to media reports of nearly Tk 800 classified loans at the BFIC, he said, "Such loans piled up not in a day ….It took many years."
Both BIFC management and BB are responsible for the situation.
He also said if the central bank had properly supervised the affairs of the company, it might not come to the present situation. "Being a regulator BB is not functioning properly, which is often inviting danger to financial institutions as well as the country banking sector," he observed. He said the worst could happen that BB gave the control of BIFC to 9 directors who are non-stakeholders. They misused over Tk 220 crore in last two years without servicing the BIFC's bank loan and depositor's liabilities. Also BB had no good reason to dismiss the stakeholder director when there was a BB observer in the board.
The non-stakeholder directors' board could have done the servicing of Tk 600 crore. BIFC total loan and deposit liability with proper use of Tk 220 crore (Tk 120 crore recovered by Major Mannan and Tk 100 crore recovered from other borrowers).
After having misused all the recovered money, the non-stakeholder board members want to grab all the shares of sponsors (both the foreign & local investors) with the fake claim of BIFC's insolvency.
Abdul Mannan, however, urged the BB authorities to take appropriate measure to prevent illegal acts in BIFC by the vested group, which is now trying to take hold of the leasing company.
He also urged the people not to respond irrationally to false media reports.  When asked, BB spokesperson Debashish Chakraborty said the central bank is closely watching the activities of the financial institution.  He, however, declined to make further comment in this regard. 

Add Rate

News Archive

Inside The New Nation

Back Page »

Honest earning

Abdul Muqit Chowdhury :The acceptance of fasting or any prayer to Allah depends on lawful honest earning. The persons, related with trade and commerce, thus, should evaluate their earnings and background of economic relations in the society. This is very much applicable particularly in the month of Ramzan. Jakat and ...

Editorial »

Attitude is that supporters of government must enjoy all the benefits conceivable

THE day before yesterday, the Cabinet approved a draft of the Government Telephone, Cellular and Internet Policy-2018 raising the mobile phone allowance for ministers and secretaries to Tk 75,000 from Tk 15,000. The draft also introduced a number of changes to the existing policy framed in 2004.After a certain period ...

City »

Ship Tajuddin of Bangladesh Coast Guard left for India in a goodwill visit from Patenga in Chittogram yesterday.

Sports »

Zia finishes at 13th position in Kolkata Open Chess

GM Ziaur Rahman Zia finished at 13th position in the 3rd Kolkata International Open Grandmasters Chess tournament which was held in Kolkata, India. GM Zia bagged 6.5 points out of 9 games and tied for 7th to 18th places, in tie-breaking system GM Zia became 13th. In the 9th or ...

Football »

Montreal Impact's Saphir Taider (right) challenges L.A. Galaxy's Perry Kitchen during first-half MLS soccer game action in Montreal on Monday.

International »

Erdogan hints Turkey may ban some Israeli goods because of Gaza violence

Reuters, Istanbul :President Tayyip Erdogan has hinted that Turkey might consider imposing a ban on imports of some Israeli goods over the killing of Palestinian protesters by Israeli forces on the Gaza border, media reported on Tuesday.Erdogan, who is campaigning for re-election in June, last week hosted Muslim leaders who ...

International »

Syrian army, police celebrate recapturing all of Damascus

AP, Beirut :Syrian state TV says the military and police forces are celebrating recapturing the last neighborhoods in Damascus that were held by the rebels and the Islamic State group.Al-Ikhbariya TV broadcast footage of a ceremonial police motorcade entering the Hajar al-Aswad neighborhood with sirens blaring on Tuesday, a day ...

Business & Economy »

Hafizur Rahman, Chairman of Runner Group, receiving the 'President's Industrial Development Award-2016' from the President Md Abdul Hamid at Osmani Memorial Auditorium on Tuesday.

Entertainment »

Deepika Padukone creates ripples internationally

Bollywood’s leading lady Deepika Padukone has been creating waves not just in India but also internationally. Deepika Padukone was seen setting the red carpet on fire at MET Gala and Cannes leaving fashion police raving across boundaries. Recently, she grabbed eyeballs with her dazzling appearance at the MET Gala as ...

Entertainment »

The cast of Bharat gets bigger with Tabu

After announcing the addition of Disha Patani to the ensemble cast of Salman Khan starrer Bharat, the makers announce Tabu joining the cast. Director Ali Abbas Zafar has been a fan of the celebrated actor and always wished to work with her. Details of Tabu’s character have been kept under ...

Editorial »

Political leadership needed to bring discipline in transport sector

ALTHOUGH the country witnessed a significant urban growth in the last few decades, there was an absence of proper planning and institutions in the urban transport sector, causing indiscipline and mismanagement there, experts and activists mentioned in a roundtable on Saturday to press political parties to incorporate plans in their ...

Sports »

Elina Svitolina retains Italian Open with straight-sets win over Simona Halep

Internet :The world No 1, Simona Halep, collapsed spectacularly in her rematch with Elina Svitolina to hand the Ukrainian a second Italian Open title.It took the fourth seed just over an hour to dispose of her wounded foe, 6-0, 6-4, her fourth win over Halep in six meetings. Last year ...

Football »

Santos team captain Carlos Izquierdoz kisses the trophy after winning the Mexican soccer league championship against Toluca at Nemesio Diez stadium in Toluca, Mexico on Sunday.

Entertainment »

Priyanka Chopra pens heartfelt note for friend Meghan Markle

Actor Priyanka Chopra, who was among the guests invited at the Royal wedding, penned a heartfelt note for her friend Meghan Markle and said it was an emotional moment for her to see the couple exchange their wedding vows at the Windsor Castle. Priyanka took to Instagram on Saturday night ...

City »

Bangladesh Awami Muktijoddha Projanma League formed a human chain in front of the Jatiya Press Club on Monday protesting killings of Palestinians in Gaza.

Items that you save may be read at any time on your computer, iPad, iPhone or Android devices.
Are you new to our website? Do you have already an account at our website?
Create An Account Log in here
Email this news to a friend or like someone
Write a comment to this news