The Institute of Cost and Management Accountants of Bangladesh (ICMAB) has awarded the best corporate institutions to encourage them in carrying out their activities and publishing their reports in a more informative, transparent and accountable manner.

‘The ICMAB Best Corporate Award-2011’ was distributed among the winners in five categories -- banking, financial institutions, insurance, pharmaceuticals and telecommunications sector.

Finance Minister AMA Muhith distributed crests among the representatives of the winning institutions as chief guest at a city hotel Monday evening.

The ICMAB has been giving this ‘Best Corporate Award’ since 2007.

Speaking on the occasion, the finance minister said the ICMAB members including the freelancers are working as watchdogs. He hoped that all of the ICMAB members would contribute to three major tasks – will teach and produce cost and management accounts, will continue to train their members and will maintain standards.

Terming the role of corporate governance vital, Muhith hoped that both the ICMAB and the Institute of Chartered Accountants of Bangladesh (ICAB) have complimentary roles to perform.

Zahir Uddin Ahmed, president of ICMAB, said in today’s corporate world, the business ownership has been separated from the management.

“Management can be better even if the owners are not good”, he added.

He also said many problems arise while allocating limited wealth to all. By ensuring good corporate governance, wealth only can be allocated in term of equality and responsibility.

He said the award is a recognition to a firm for improvement in its good corporate governance and let people know who they are.

Muzaffar Ahmed, president of the award committee, said the corporations have been selected for their good performance in term of regulatory compliance, liquidity and capital management, profitability, corporate social responsibility, disclosure, risk management, market share, contribution to the national economy.

He said they have only considered those institutions that provided more information than the published information.

ICMAB has introduced the award in 2007 with a view to creating competition among the national institutions to march forward to achieve a place where these corporate can be compared with similar global international organisations and encouraging the corporate world to act more responsibly.

This year, 23 corporate bodies were awarded for their best performance. Janata Bank received first prize among the state-owned commercial banks while Agrani Bank stood second and Rupali Bank secured the third position.

Under the Private Commercial Bank category (traditional operation), Prime Bank Ltd secured the first place for their performance while National Bank Ltd became second and Eastern Bank Ltd secured the third position.

Standard Chartered Bank was awarded first prize under foreign commercial bank category while The Hongkong & Sanghai Banking Corporation Ltd (HSBC) secured second position and Commercial Bank of Ceylon PLC became third.

Under private commercial bank (Islami Operation) category, Islami Bank Bangladesh Bank Ltd got the first prize while Export Import Bank of Bangladesh Ltd became second and Shahjalal Islami Bank was third.

Among the non-banking financial institutions, IDLC finance Ltd received the first award for their performance while LangkaBangla Finance Ltd stood second and Prime Finance and Investment Ltd became third.

In general insurance category, Green Delta Insurance Company Ltd received first prize while Reliance Insurance Ltd stood second and Pioneer Insurance Company Ltd was awarded with the third trophy.

Square Pharmaceuticals Ltd received best corporate award under pharmaceutical category while Beximco Pharmaceuticals Ltd became second and GlaxoSmithKline Bangladesh Ltd secured the third position.

In the telecommunication sector, Grameenphone Ltd won the best corporate award while ORASCOM Telecom Bangladesh Ltd (Banglalink) got the second best award.

Source: The Daily Sun/ Bangladesh/ 14th Dec 2011

Bangladesh Bank governor Dr Atiur Rahman leaves for Delhi on Wednesday morning to attend a two-day high-level UN policy dialogue, beginning on Thursday.

Economic and Social Commission for Asia and the Pacific (ESCAP) of The United Nations will arrange the dialogue in New Delhi on ‘Development Challenges facing by the South and Southwest Asia’.

Nobel laureate Dr Amartya Sen, leading economists, researchers and policymakers of nine countries, will take part in the event, General Manager of Bangladesh Bank’s Governor’s Secretariat AFM Asaduzzaman said.

The central bank governor is expected to return home on December 17.

Source: The Daily Sun/ Bangladesh/ 14th Dec 2011

The State-owned Rupali Bank Limited opened its 494th branch at Ghior Bazar in Manikganj district on Monday. 

Dr Ahmed Al Kabir, chairman of Rupali Bank, inaugurated the branch as chief guest.

Md Abdus Salam, director of the Bank, presided over the programme. Directors-- Sheikh Serajul Hoque Farazi, Quazi Murshed Hossain Kamal, Prof. Mohammed Moinuddin, Md Mahabubur Rahman Hiron, Abul Kalam Chowdhury and managing director of the Bank M Farid Uddin were also present.

Source: The Independent/ Bangladesh/ 13th Dec 2011

Bank takeovers should face deeper scrutiny and directors be more accountable for their actions, Britain’s finance watchdog said in a long-awaited report into Royal Bank of Scotland’s near collapse.

The Financial Services Authority (FSA) said in a 452-page report on Monday that RBS managers, like former chief executive Fred Goodwin, were most at fault in the bank’s brush with bankruptcy, which was only averted by a 45 billion pound ($70 billion) government bailout in 2008.

The regulator, which is due to be broken up next year with much of its remit returning to the Bank of England, was also critical of its own actions and of former Prime Minister Gordon Brown for encouraging a “light touch” regulatory regime.

The report, like earlier investigations, said there was no prospect of successful legal action against former RBS executives as there was no evidence of criminal wrongdoing, although they had made a series of bad decisions.But it said they could still be disqualified from being directors in future, pending a decision by the government, and suggested the law could be changed.

“The question I have raised for the future is whether the balance of the law is right,” FSA Chairman Adair Turner told Sky News, arguing that new rules could ensure directors face personal financial consequences if a bank failed.“The point about banks is banks are different. When things go wrong in banks you can screw up the whole economy rather than just shareholders’ interests.

Source: The Independent/ Bangladesh/ 13th Dec 2011

IFC, a member of the World Bank Group, provides support to Bangladesh International Arbitration Centre (BIAC) to expedite industrial disputes through arbitration, says a press release. At a recently arranged dialogue held in the city, the importance of fast resolution of disputes for boosting investment environment in Bangladesh was underlined. 

Present as chief guest, law minister Shafique Ahmed said, “adversarial method of dispute resolution results in buildup of cases and delays disposal.” “Government is therefore bringing about changes in the laws to make Alternative Dispute Resolution (ADR) mandatory where possible,” added the minister. 

Keynote speaker professor Arif Ali, head of the International Arbitration Practice of the Washington based law firm Crowell and Moring, elaborated on the international process of arbitration, the key issues that need to be identified and specific problem based recommendations. 

Chairman of the BIAC Board Mahbubur Rahman stressed that business related cases can be disposed through arbitration, relieving pressure on the judicial system.’

Source: The Independent/ Bangladesh/ 13th Dec 2011