TIB blasts central bank consent allowing Padma Bank to conceal losses


FE REPORT | Published: January 09, 2022 10:23:11


TIB blasts central bank consent allowing Padma Bank to conceal losses

Transparency International Bangladesh (TIB) on Saturday expressed its deep concern as the central bank of Bangladesh has provided unethical facility to scam-hit Padma Bank while preparing its financial statement for receiving a foreign loan.

The TIB said the central bank has given its consent on the new financial statement allowing to conceal accumulated losses of the private commercial bank.

Such type of approval will erode trustworthiness of the central bank and will tarnish the country's image abroad, the TIB observed.

Besides, this will have negative impact on the banking sector and will affect bringing discipline and ensuring good governance in the financial sector as well.

The Padma Bank, formerly Farmers Bank, has been trying to attract US$700 million worth of FDI. It has also appointed lobby firm DelMorgan for assisting in attracting the FDI.

The TIB in a press release said as per the condition/requirement of the consultancy firm the bank should have shown profit in its financial statement.

The bank has been incurring losses for years. For this reason it needs to prepare separate accounts to meet the requirement of the consultancy firm. And Bangladesh Bank (BB) has given its consent on the new accounts.

"The government and the central bank have already given many supports to the bank to rebound but no result," said Dr Iftekharuzzaman, executive director at the TIB.

"Such type of assistance by the BB will encourage money heist," he added.

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