Repeated chaos at Bangladesh Bank due to lack of punishment

Incidents of creating chaos, protests, and mobs inside Bangladesh Bank to press demands have occurred before. But except for one instance, no action was taken in any case. Political patronage from the ruling party is the main reason. As a result, such incidents have continued and their intensity has increased.

Most recently, last Wednesday, a mob was formed and the adviser to the Governor of Bangladesh Bank, Ahsan Ullah, was forced out. An additional director of the central bank named Towhidul Islam even led the act of grabbing the adviser by the collar and putting him into a car. Earlier, when reports of a change in the Governor were circulated and tensions escalated, Ahsan H Mansur left Bangladesh Bank.

For reasons of public interest and national security, Bangladesh Bank is considered a nationally important installation or “Key Point Installation (KPI).” All over the world, gatherings and assemblies are not allowed inside central banks. Even in November last year, fearing that security might be disrupted, Bangladesh Bank stopped five types of services for the general public. These include the sale of savings certificates and prize bonds, exchange of torn and damaged notes, etc.

In this regard, Bangladesh Bank said in a press release, “Considering the security aspect as a KPI institution, Bangladesh Bank has decided to discontinue these customer-related services.” Yet for years, a section of employees and officials of the central bank have continued to create disorder through protests and the formation of mobs inside this very institution.

At Bangladesh Bank, there are now many associations and clubs for various types of movements and the raising of demands. Officials and employees organise movements under the banners of these associations on different issues related to Bangladesh Bank. A section of them led the recent incidents.

Information shows that there are a total of nine clubs and associations of officers and employees at Bangladesh Bank. Among them, for assistant directors and above there is the Bangladesh Bank Officers’ Welfare Council. For cash officers, there is the Officers’ Association. In addition, for all categories of officers and employees there is the Bangladesh Bank Club. Elections of these associations are held every year or once every two years.

There are also the Yellow, Green, and Blue groups. These are primarily run by officials aligned with political parties. The Blue group is run by officials aligned with the Awami League, the Green group by officials aligned with the BNP. The Yellow group includes officials aligned not only with Jamaat but also with the BNP and the Awami League. They contest elections of the Officers’ Welfare Council, Officers’ Association, and the Club under their respective group banners. In addition, for employees there is the Jatiyatabadi Forum. There are also the Bangabandhu Parishad and the Zia Parishad.

The example of harassing a central bank governor was first set in Bangladesh in 1996. At that time, the Awami League had just come to power. The Governor of Bangladesh Bank was Khorshed Alam. He had assumed the post of Governor on 20 December 1992. The then BNP government had appointed him.

Just one month before the end of Khorshed Alam’s tenure, on 21 November 1996, his appointment was cancelled. It was said at the time that he had been dismissed. On the same day, Lutfar Rahman Sarkar was appointed Governor.

According to a report published in the daily Ittefaq on 22 November, from the morning of 21 November, Khorshed Alam had been surrounded by officers and employees of Bangladesh Bank. Slogans were raised against him. Their allegation was that Khorshed Alam had promised to resolve irregularities related to salaries but had done nothing in that regard.

Around 11 a.m., when Lutfar Rahman Sarkar came to take charge, the former Governor was still confined. Although officers and employees welcomed the new Governor, they declared that they would not allow the former Governor to leave the Bangladesh Bank building. According to Ittefaq, “Lutfar Rahman Sarkar at that time requested that no obstacle be created in allowing the distressed former Governor to leave the office safely.” Only after assurances that the new Governor would look into the complaints was the former Governor able to depart.

On the same day, then Finance Minister Shah AMS Kibria held a press conference at the Ministry of Finance. When questioned about the sudden removal of the Governor, the Finance Minister said, “It is not correct to say that the Governor has been changed suddenly. The government has taken this decision in the interest of the country and the nation.”

Former Finance Adviser Salehuddin Ahmed was Governor of Bangladesh Bank from 30 April 2005 to 1 May 2009. He had his last office day on 30 April. The following day, the daily Janakantha published a report with the headline: “Dr. Salehuddin Caught in Unruly Behavior at Farewell.” The report stated, “By 4:30 p.m., the General Secretary of the Bangladesh Bank Officers’ Welfare Association, Shahadat Hossain Khan, Assistant Director Mizanur Rahman, and the CBA General Secretary Manjurul Haque Manju positioned themselves with people on the fourth floor of the main building, where the Governor’s office is located. They prepared to detain the Governor to press their demands and entered the Governor’s room demanding increments for all. At one point, calling in the Deputy Governors and Executive Directors, the outgoing Governor recommended one increment each for third- and fourth-class employees. However, because he did not recommend increments for officers, the leaders of the Officers’ Welfare Association became angry. At their instigation, more than a hundred officers and employees gathered downstairs in the bank. They positioned themselves at the exit gate. After 5 p.m., seeing the crowd at the exit gate, the outgoing Governor went down and left through the entrance gate on the other side.”

So far in the country’s history, action for unruly behaviour at Bangladesh Bank has been taken only once. At that time, Fakhruddin Ahmed was the Governor of Bangladesh Bank. On 28 October 2003, leaders of a government-backed union confined the central bank Governor for one hour. Their demand was that 100 officers be promoted to assistant director within one day. At that time, the BNP government was in power. According to a report published in Prothom Alo on 29 October, “Under the leadership of the government-backed Bangladesh Bank Jatiyatabadi Employees’ Association (elected CBA), 400–500 officers and employees carried out this program. During this time, they chanted various slogans and hurled abuses against the Governor. At one point, 40–50 protesters forcibly entered the Governor’s room.”

In this incident, on 30 October itself, 10 people were dismissed from service. Among them were the President and General Secretary of the BNP-aligned Officers’ Welfare Association and the President and General Secretary of the CBA. Since all those dismissed were BNP leaders and activists, a section of the government had tried to be lenient. But Governor Fakhruddin Ahmed received support from the top level of the party. In this single incident, the mob actors did not receive political patronage. Apart from this, there is no other example of punishment for unruly behaviour at the central bank.

There is another famous incident of unruly behaviour at the central bank. On 27 July 1997, the widely discussed Beximco Group’s two brother proprietors, Sohel F Rahman and Salman F Rahman, met Governor Lutfar Rahman Sarkar and scolded him. At that time, the late Khondkar Ibrahim Khaled was Deputy Governor of Bangladesh Bank. In an interview with Prothom Alo in 2020, he said that Salman F Rahman had grabbed the Governor by the collar. Although the incident generated wide discussion, the two brothers received no punishment. They were close associates of the then Prime Minister Sheikh Hasina.

During Lutfar Rahman Sarkar’s tenure, on 19 January 1998, leaders of the Bangladesh Bank Employees’ Association, which had lost in the CBA election supported by the ruling Awami League, assaulted a General Manager (GM) to prevent their transfers. That GM, fearing for his life, took refuge in the Governor’s room. The leaders of the Employees’ Association entered there as well and abused the Governor. In this incident, Bangladesh Bank suspended eight people and declared trade unions banned at Bangladesh Bank. At that time, a task force formed under the leadership of Deputy Governor Khondkar Ibrahim Khaled recommended banning trade unions in Bangladesh Bank and in all banks. But since all the accused were leaders and activists of the ruling Awami League, they returned to their jobs, trade unions were reinstated, and the task force report was shelved.

After the fall of Sheikh Hasina, ‘mob’ violence gained a new dimension. It began at the Secretariat and Bangladesh Bank. On 7 August 2024, a group of Bangladesh Bank officials marched demanding the resignation of the central bank Governor, four Deputy Governors, an adviser, and the head of the Financial Intelligence Unit. Later, they forced one Deputy Governor to sign on blank paper and persuaded four more top officials to ‘agree to resign.’

After that, the interim government appointed economist Ahsan H Mansur as the new Governor. New Deputy Governors were also appointed.

On the overall issue, former Chief Economist of Bangladesh Bank Mustafa K Mujeri told Prothom Alo that such protests and movements in an institution like Bangladesh Bank have tarnished the country’s image. It is not known whether such incidents have occurred at any central bank in the world. Therefore, this is a rare event. Governments have changed in various countries through political protests, but central banks have remained outside such actions.

Mustafa K Mujeri further said that as a result, the image of Bangladesh Bank has also been damaged. Such incidents are occurring repeatedly. But there is little news of meaningful action against anyone. The new government and the new Governor must view the matter seriously. Proper punishment must be given. Otherwise, such incidents will occur repeatedly. There will be no escape from this mob.