Home Today's Paper Most Popular Video Gallery Photo Gallery
Subscription Blog Signin Register
Logo
Saturday, February 16, 2019 08:30:33 PM
Follow Us On: Facebook Twitter Twitter Twitter Twitter

Commentary

Money was not hacked but outright stolen

By Editorial Desk
11th-Mar-2016       
Comments
Share your thought
Post a comment »
Read all () »

Bangladesh has become a country too easy for plundering money from banks. The planners were trying to heist about one billion US dollars from the Central Bank of Bangladesh. Bangladesh Bank sources claim that transfer of $870 could not be executed from New York Federal Reserve Bank.  
A spokes-woman for the New York Federal Reserve Bank reiterated on Tuesday that the bank had no evidence of breach of its system. The payment instructions were fully authenticated by SWIFT messaging system in accordance with the standard authentication protocols (by Bangladesh Bank). She said further that the Fed has been working with the central bank to provide assistance as appropriate. This makes it clear that the standard instruction was sent from Bangladesh Bank. It was not a case of hacking but outright stealing.   
The episode of theft from the central bank's deposits with the US Federal Reserve Bank is turning out to be a murky, intricate story, one that traversed at least four countries and involved a host of people -- from higher-ups of a bank to casino officials. The $81 million in inward remittance was deposited with five bank accounts of the Rizal Commercial Banking Corp (RCBC), which were found to have been opened against documentation belonging to fictitious identities, as per the report.
It is difficult to comprehend how the hackers could have transmitted such a huge amount of money from Bangladesh in the first place. It is not possible to simply google up the commands which are needed to transfer funds from one central bank to the other — so inside knowledge of the command codes are needed. It is common sense to realize that since only the computers from inside the Bangladesh Bank could actually authorize the commands even if one hacked into the system and stole the passwords it would not be possible as three different officials of the Bangladesh Bank are needed to complete any such transfer of funds.
The problem, it seems, is the way Bangladesh's banking sector is organized. There are broadly two types of banks: private banks, which are overseen by the central bank, and state-run commercial banks, which fall directly under the aegis of the Finance Ministry. While private banks have had their share of loan defaulters (sometimes those who sit on the boards of these banks), it is overwhelmingly the state-run banks that have allowed bad loans to multiply to an unsustainable degree. The international standard for loan defaults is currently at about 2 to 3 percent. In Bangladesh, it is over 12 percent. In a recent study conducted by the Bangladesh Institute of Bank Management, the percentage of nonperforming loans in state-run banks is as high as 29 percent. While this is a much better situation compared to 1994 when the rates of repayment were as low as 16-30 percent, by international  standards it still remains abysmal.
The situation is only getting worse. The Governor of Bangladesh Bank Dr Atiur Rahman has no reputation as a competent banker. Not only that he remains busy with political propaganda of success. We have a Finance Minister who is too happy to be in position and plundering of money does not bother him. When thousand of crores taka were plundered from nationalised banks, his reaction was nothing to worry. The government should be awarded for choosing incompetent persons for high positions of responsibility. Nobody feels any accountability.  
The World Bank's 2013 Bangladesh Development Update states that "weak internal controls, poor corporate governance, and slackening of credit standards resulted in irregularities in loan approvals," which caused state-run commercial banks to classify more than half a billion dollars' worth of loans as "nonperforming." In the past six years, the four major state-run banks have seen sharp spikes in defaulted loans; the total amount of credit in default held by these four banks is about $2.45 billion (not including nearly $2 billion already written off).
But we see no concrete action being taken against the authorities who were in charge of the major default banks in Bangladesh — BASIC Bank and Sonali Bank, or indeed even any steps to recover the money stolen, even though Bangladesh Bank found the then Chairman of BASIC Bank complicit in the embezzlement. In the case of Sonali Bank it failed to recover even one penny out of the Tk 3600 crore given to the Hallmark group — even though its CEO remains behind bars — hardly a severe punishment. Rather the government paid the state-owned banks about Tk 5000 crore taken from the hard earned tax-payers money to these banks to make them solvent — a colossal wastage of public funds.
Punishing junior officials will be a bluff and that is the reason why all sorts of stealing of public money have been carrying on. The real culprits are politically protected and enjoy impunity. So we do not expect the government is in a position to improve the corruption situation that is going on in public life or punish the real ones involved in stealing. If one is politically loyal he has nothing to fear.
We need sensible people in important positions to do the sensible things. But sycophants have all the impunity and they are everywhere. We can only pray.

Tariff
Add Rate

News Archive

Inside The New Nation

Editorial »

Save the Sunderbans to save the Royal Bengal Tigers


FOR the constant rise in sea levels and rapid climate change, the famous Royal Bengal Tigers of the Sunderbans could be disappeared within 50 years, especially from the Bangladesh part, according to a new study published recently in the journal Science of The Total Environment. A team of Bangladeshi and ...

City »

Members of RAB-2 nabbed one on Friday from Narayanganj for taking money from government officials from different areas in the country impersonating Anti-Corruption Commission official.


.

Cricket »

Feels like it`s a blessing to just be playing again: Steyn


Agency :Dale Steyn, the South African mainstay, continued to impress on his comeback trail, as he bowled at high pace and picked up four wickets over a long spell on Day 2 of the first Test of the two-match series versus Sri Lanka in Durban.The veteran fast bowler bowled at ...

Entertainment »

Shanta Jahan feels comfortable in hosting


Sheikh Arif Bulbon :Popular host of present time Shanta Jahan has to be engaged with hosting round the year in and outside the country in different stage shows and TV programmes. Besides hosting, she has more identities. She is also a model and TV actress. But she always feels comfortable ...

International »

Trump heavier, but in ‘very good health’: Doctor


AFP, Washington :President Donald Trump is a little heavier than last year and needs a higher dose of cholesterol medicine, but remains in "very good health," his official doctor said Thursday.The presidential physician, Sean Conley, said Trump, 72, passed his medical exam last week with flying colors."It is my determination ...

Cricket »

It was difficult to hit through the line of the ball in Napier: Guptill


Martin Guptill is happy to work his way through the travails of a slow Napier pitch and score an ODI hundred, which helped New Zealand beat Bangladesh by eight wickets in the opening game of the three-match series. The hosts had notably lost the ODI against India here couple of ...

International »

Taliban announces surprise talks with US in Pakistan


PTI, Islamabad :The Taliban said Wednesday that its negotiators would meet US envoys for talks this month in Islamabad, and also sit down with Pakistan Prime Minister Imran Khan to discuss Afghanistan.While Islamabad did not immediately confirm the talks, Washington said it had "noted" the announcement, which comes after weeks ...

International »

Judge finds Manafort lied to investigators in Russia probe


AP, Washington :Former Trump campaign chairman Paul Manafort intentionally lied to investigators and a federal grand jury in the special counsel's Russia probe, a judge ruled Wednesday.U.S. District Judge Amy Berman Jackson's decision was another loss for Manafort, a once-wealthy political consultant who rose to lead Donald Trump's 2016 campaign ...

Editorial »

Myanmar`s provocation: Dhaka should deal with the issue delicately


YET again Myanmar has shown Saint Martin's Island of Bangladesh as of its part in the official map. Protesting it, Dhaka on Thursday summoned Myanmar Chargé d'affaires and handed over a strongly worded protest note also expressing serious dissatisfaction over repeating such false claim, and demanded immediate corrective measures. Director ...

City »

40 personnel receives Coastguard awards


Staff Reporter  :A total of 40 personnel of Bangladesh Coastguard have been awarded for the prestigious 'Bangladesh Coastguard Award', 'President Coastguard Award', 'Bangladesh Coastguard (service) Award' and 'President Coastguard (service) Award' this year for best performance in their duties. Home Minister Asaduzzaman Khan Kamal handed over the awards to them ...

Entertainment »

Adah hits bull`s eye with her gun for Valentine`s Day and the video goes viral


Did you know Adah Sharma is a trained sharp shooter? The Commando 2 actress shared a Valentine’s Day video breaking hearts, shooting them and didn’t miss even one target. Check out how with ease she picks up 5kg rifles and hits all 5 targets in less than a minute, with ...

Editorial »

None should create abnormal situation in apparel sector


AROUND 11,000 apparel workers of 99 factories in Dhaka, Ashulia, Savar, Gazipur and Narayanganj have so far been fired and 3,500 others have been implicated in 34 cases for their participation in the movement held in January demanding proportionately wage hike, according to the IndustriAll Bangladesh Council (IBC), a platform ...

Football »

Sala's body to be returned to Argentina on Friday


Argentine footballer Emiliano Sala's body is to be returned to Argentina on Friday, the mayor of his hometown of Progreso, Julio Muller, told AFP Tuesday.Sala's body was recovered from plane wreckage in the English Channel last week. He was flying to his new team, English Premier League side Cardiff City, ...

Cricket »

BD lose to NZ in 1st ODI


Sports Reporter :Bangladesh lost to New Zealand by eight wickets in the first One Day International (ODI) match at Napier in New Zealand on Wednesday.Electing to bat first, Bangladesh scored 232 off 48.5 overs.In reply, New Zealand reached the winning target making 233 for the loss of two wickets when ...

International »

Trump says not `happy` with border deal but shutdown unlikely


President Donald Trump indicated Tuesday that he will walk back his threat to shut the government even if he does not get all the money he has demanded for building a wall along the US-Mexican border.Although Trump left enough wiggle room to keep the country guessing, he appeared to be ...

 
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
Email:
Write a comment to this news