BDB's Mannan alone destroys BIFC

Retired army major Abdul Mannan has ruined non-bank financial institution Bangladesh Industrial Finance Company (BIFC) by not repaying loans taken through forgery, confirm authorities, Bangladesh Bank and audit reports.

However, no such action was taken against Mannan, a former state minister, and currently secretary general of the Bikalpa Dhara Bangladesh, which refrained from joining an opposition alliance formed recently.

BIFC, of which Manna is a founding chairman, took money from depositors and the company took loans from banks and financial organisations.

More than one reports show Mannan’s companies owned 62 per cent share of BIFC and his companies took around 80 per cent of the loans disbursed.

As the loans were not recovered, the BIFC is now virtually non-functional and it is unable to return the depositors’ money. Others are not interested in making transactions with it.

The depositors are now crowding at the BIFC office for money, while banks and financial organisations are sending letters asking for money.

“Abdul Mannan repeatedly pledged to repay the loans but didn’t comply with. We are unable to pay our clients and depositors,” BIFC acting managing director Mostafa Bilal told Prothom Alo.

Mannan’s wife Umme Kulsum Mannan was then BIFC chairman when loans were disbursed, the BIFC annual report says. Sunman Group owned by Mannan did not repay any amount after 2014.

According to the latest estimate, some Tk 6.21 billon out of Tk 8.37 is outstanding with the companies of Mannan. If the interest is counted, the amount will stand at Tk 12 billion.

Bangladesh Bank inspection also confirmed loan forgery by Mannan.

On 1 July 2015, BIFC's the then chairman, Umme Kulsum, sent a letter to the central bank and admitted that the company and its directors are liable for the loans.

In a letter to the governor of Bangladesh Bank, Mannan assured him of the repayment.

In 2015, the BB asked the Anti-Corruption Commission and the Criminal Investigation Department (CID) to take action against those who are involved in this case.

At that time, the BB removed Umme Kulsum and her two daughters as directors of the BIFC.

“I'm taking responsibility to pay back all dues. An amount of Tk 1 billion has already been paid and Tk 1 billion will be paid,” said Mannan in a letter to the BB governor dated 24 March 2016.

He also requested the governor to withdraw the letter submitted to the ACC. He once paid Tk 1 billion, but no more continued the repayment.

The central bank sent a letter to the finance ministry seeking abolishing of the BIFC. But the ministry did not take any decision in this regard.

Association of Bankers, Bangladesh, chairman Syed Mahbubur Rahman said, “It is unfortunate that a BB approved financial institution is unable to return money to banks and depositors. Now the banks will be cautious in granting loans. Depositors lose confidence in the organisation.”

He also said a decision has to be taken soon as the matter has a negative impact on the financial sector.

BB executive director and spokesman Sirajul Islam said, “Entrepreneurs have ruined the organisation. Steps are being taken against those who are involved.”

Abdul Mannan was not available for comments. His cell phone was found switched off once a text message was sent.

Government agencies mysteriously refrained from taking any actions against Mannan for financial irregularities and loan default.

The central bank asked the ACC to take action, but there is no progress.

According to quarters concerned, Mannan was out of reach for his 'links' with the influential quarters. Sometimes certain steps are taken at a certain state, it comes to a halt later for reasons unknown.

The ACC summoned him on 27 September.

It was the time when his BDB was in talks with the opposition BNP and Kamal Hossain-led unity process to form an opposition coalition. The anti-government 'Naitonal Unity Front' was eventually launched without the BDB, in which Mannan is a key player alongside former president Badruddoza Chowdhury and his son Mahi B Chowdhury.

However, Mannan applied to the ACC seeking time saying he is undergoing treatment in Singapore.

At the end of last year, CID sued Mannan. There is no progress in the case.

Speaking to Prothom Alo ACC deputy director (public relations) Pranab Kumar Bhattacharya said the commission is working on the matter. He was summoned but sought time saying that he is ill.

Bangladesh Bank former deputy governor Ibrahim Khaled said if someone is influential politically and financially, he or she is spared despite committing big crimes.

This indicates an absence of good governance, added Ibrahim Khaled.

*This report, originally published in Prothom Alo print edition, has been rewritten in English by Rabiul Islam.