The way bank accounts being frozen not legal: Abdul Awal Mintoo

Abdul Awal Mintoo speaks about the ongoing situation of business, and economy in the country, and the way forward at the Economic Reporters’ Forum (ERF) in Dhaka on 9 December 2024
Prothom Alo

The way the bank accounts of various people were frozen recently was not legal, one of the top businesspersons and former president of Federation of Business and Chamber of Commerce Industries (FBCCI) Abdul Awal Mintoo said Monday.

He further said that personally he does not like the process of freezing bank accounts outside of the process involving the court.

Abdul Awal Mintoo was responding to various questions after speaking about the ongoing situation of business, and economy in the country, and the way forward at the Economic Reporters’ Forum (ERF) in the city’s Paltan area.

ERF president Refayet Ullah Mirdha, general secretary Abul Kashem and other members of the forum were present there.

The Bangladesh Financial Intelligence Unit (BFIU) has ordered freezing bank accounts of several former ministers, MPs and traders following the fall of the Awami League government on 5 August.

Speaking about this, Abdul Awal Mintoo said, “I myself also don’t like freezing (bank accounts) unfairly. What is happening right now is, bank accounts of a person are being frozen at whim; this is not a legally valid practice. It should be done through the court. Those could be frozen following due process and investigation if there is appropriate evidence. Even my bank accounts could be frozen, there is no objection to that; but whatever is done should be done following due legal process.”

Recently an advisory council meeting of the interim government decided to sell ownership of 16 apparel companies of the Beximco Group. Besides, it has been said that some more companies of this business conglomerate could be closed.

Asked about this, Abdul Awal Mintoo said, “Who would sell and why? A business firm or an organisation is neither ethical nor unethical. If the people who run those organisations are found to be unethical, they should be tried. I won’t say anything in this regard. Let the owners face the punishment, but no establishment should be shut. I hope the interim government won’t take any such decision regarding any firm where thousands of people work.”

He was also asked a question on the trade relations between Bangladesh and India. He said, “It cannot be denied that currently our relation with India is strained. The reason is, for a long time, forgetting the people of Bangladesh, India maintained friendship with one party. That government is no more in power now, this is hard for India to accept. The police of this incumbent interim government is - first you properly recognise in principle 5 August; then we will move towards the future. I also think, think is proper thinking.”

Mentioning India as a large neighbouring country, this business leader further stated that the bilateral relation between the two countries should be good. But at the same time, dignity must be maintained.

Abdul Awal Mintoo also spoke about contractionary monetary policy and investment situation. He expressed that the step to curb inflation only by raising the interest rate is harming other bases of the economy. For example, he said, the number of LCs opening will come down if the flow of money is curbed by raising the interest rate. This will affect the supply of products. That means, the inflation rate will be triggered due to supply crunch. Such inflation stays for a long time, he remarked.

That is why the government has to think about investment and employment alongside trying to control the inflation rate, Mintoo said.

The former FBCCI president, however, thinks the economic situation is getting better gradually than before.

“But the problems in the banking sector will not be solved in a day. The government has been trying to recover the defaulted loans and bring back the trust of the consumers. As a result, the banks that are said to be weak are doing better,” he said.

Abdul Awal Mintoo mentioned that a democratic government is necessary for a complete improvement of the situation.

He expressed, an adviser said that they are in charge but do not have the authority. This is a very dangerous statement. A democratic government is accountable to the people. That is why, announcing at least a roadmap to the election is important.

Also a leader of the Bangladesh Nationalist Party (BNP), Mintoo said there is no necessity for reforming every sector now. They could initiate organisational reforms right now. And, they could come with a proposal regarding constitutional reforms based on a consensus. As a result, whoever forms the government in the future could carry out those reforms, he added.