JS body unhappy with Bangladesh Bank over gold scam

Public hearing to settle insurance claims


FE Report | Published: August 02, 2018 09:54:21 | Updated: August 02, 2018 14:03:33


Picture used for illustrative purpose only — Collected

The parliamentary watchdog on finance ministry has expressed discontent with the central bank regarding the gold stored in its vault.

The issue has maligned the government's image, it said on Wednesday.

The Jatiya Sangsad (JS) panel has asked the Bangladesh Bank (BB) to be more careful in dealing with matters.

The members of the committee made the observations at the 25th meeting at the parliament complex with its chairman Abdur Razzaq in the chair.

Sources said the issue was discussed at the meeting, although it was not on the agenda.

The BB claimed the gold is okay and the newspaper reports were exaggerated.

The representatives of the National Board of Revenue (NBR) present at the meeting made no comments.

Talking to the media, Mr Razzaq said the BB claimed the quantity of gold in its vault is alright. The security system is sophisticated with 42 closed-circuit cameras.

But there is difference between the measurements, he said, asking: "Then why did such information come to the media?"

The committee also expressed its dissatisfaction at the little progress in revenue earnings.

A report of the finance ministry submitted to the committee stated that Bangladesh ranks the world's lowest in terms of revenue earnings against GDP.

There was no progress in this regard over the past decade, with 10.3 per cent revenue on average.

The rate is 19.7 per cent in India, 19.6 per cent in Nepal, 14.3 per cent in Pakistan and 13.1 per cent in Sri Lanka.

In the developed countries, the rate of revenue earnings against GDP is 35.8 per cent on an average.

The committee recommended expanding the VAT-tax net by undertaking pilot projects in the light of the experience from other countries.

Mr Razzaq said the NBR's explanation in this regard is unacceptable.

The finance minister has failed to play his due role in this case, he added.

The parliamentary panel has received as many as 400 complaints regarding the unsettled insurance claims.

The complaints were submitted in response to the advertisements put in the newspapers on its behalf.

Mt Razzaq said it will hold a public hearing to settle the claims and recommend taking necessary action against the culprit companies and persons.

Meeting sources said insurers do not settle the clients' claims on various excuses.

The image of the companies is getting tainted while those are losing client confidence.

The victims do not get any remedy by complaining to the Insurance Development and Regulatory Authority (IDRA).

Meeting sources said the BB informed the committee that there is no liquidity crisis in the banks.

Some problems arose in the past due to mismanagement which no more exists, the regulator argued.

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