Bank seeks hike in threshold for line ministry approval of procurement and recruitment

DHAKA, Sept 24: The Asian Development Bank (ADB) wants the threshold for line ministry (LM) approvals of procurement and recruitment to be increased,

and only larger packages to be sent for approval to the Cabinet Committee on Government Purchases. The aim of this move is to reduce delays in the process. Similarly

it also wants packages to be delegated in greater numbers to levels lower than that of LM. The ADB raised this at the summary of the Bangladesh tripartite portfolio review meeting (TPRM), held on September 1, sources at the Economic Relations Division (ERD) said.

According to the summary, addressing project issues in a timely and proactive manner would minimise delays in the delivery of project outcomes, and positively affect the performance-based allocation of ADF funds. 

It is critical to step up efforts to ensure full achievement target of projections and to minimize the number of projects in the red and amber categories, the ADB added.

Meanwhile, the ADB has identified 24 projects with issues that require action.

The quality of approved detailed project plans (DPPs) or/and technical project plans (TPPs) is often low as approved budgets, especially for land acquisition, are often insufficient, it said.

According to the ERD, the ADB should provide more support in preparing high-quality DPPs or TPPs at the project preparation stage and its processing missions should hold meetings with relevant Planning Commission members and staff from the start of project preparations during all missions.

The Manila-based lender also suggested that compliance with the financial agreements and associated monitoring and reporting need to be improved. 

“Monitorable time-bound actions were agreed to improve project implementation to achieve development targets,” said ADB country director M. Teresa Kho. “The TPRM exercises have already helped improved project implementation,

but we will continue to work with the government to further unlock aid flows.”

Actions agreed at the TPRM include addressing the root causes of project start-up delays, accelerating procurement actions by ensuring the quality of bid documents, reducing time for completing high-quality evaluation reports, and processing fund disbursements quickly and in a timely manner.

The TPRM also discussed early preparation and approval of development project proposals (DPPs), raising capacity for DPP preparation and procurement, and strict adherence to project readiness filters before loan approvals.
ADB assistance to Bangladesh currently amounts to over USD 900 million a year. As one of the lead

development partners in energy, water supply and sanitation, agriculture and natural resources, education, and transport sectors, the ADB’s cumulative lending to Bangladesh amounts to USD 14.1 billion for 234

loans, while the technical assistance grants for 425 projects stood at USD 230.80 million until August 2013. 
The ADB portfolio for Bangladesh currently includes 55 loans and 17 grant projects amounting to USD 5.20 billion.

DHAKA, SEPT 24: Bangladesh Bank governor Dr. Atiur Rahman on Tuesday called upon all banks to provide quality services of the customer aiming to enhance the clients’ interest protection.

Both customer and banks can attain a win-win situation through providing standard services to the clients, said the governor.

He was addressing a general meeting on the annual report on ‘Financial Integrity and Customer Services Department 2012-13’ at Jahangir Alam Confrrence room in central bank.

Bangladesh Bank, the central bank of Bangladesh, always safeguards the interests of the depositors and customers of banks and financial institutions of the country, said the governor.

As the regulator as well as the supervisor of the banks and financial institutions, Bangladesh Bank has, therefore, established a full-fledged department known as "Financial Integrity and Customer Services

Department (FICSD). The governor has underscored the need for protecting the interests of the customers related to banks and 

financial institutions within the legal and regulatory frame-works.

The Anti-Corruption Commission (ACC) is yet to make any progress in its investigation into the alleged Tk 3,500 crore-scam at state-run BASIC Bank, launched in October last year.

“The inquiry into the scams of Bismillah Towels Group has been given priority. After completion of this investigation, the ACC team will start work with the BASIC Bank issues,” M Badiuzzaman, chairman of ACC, told The Daily Star yesterday.

Bismillah Towels Group has allegedly taken away nearly Tk 1,200 crore from five banks—Prime, Shahjalal, Jamuna, Premier and Janata—on forged documents.

The same team that is investigating the Bismillah Towels’ case will look into the BASIC Bank irregularities, Badiuzzaman said.

An ACC official said the Bismillah Towels’ investigation is nearing completion, and a report is likely to be submitted by the end of this month or early next month.

“Another reason the BASIC Bank inquiry is being delayed is that we are yet to receive the information that we sought on money laundering from the central bank,” said the official who is a member of the corruption watchdog’s investigation team.

BASIC Bank, however, has given all the information that ACC asked for, the official added.
“We are also observing the developments under a deal (memorandum of understanding) between BASIC Bank and Bangladesh Bank,” Badiuzzaman said.

The irregularities worth nearly Tk 4,424.93 crore came to public knowledge last year after a central bank inspection in four of BASIC Bank’s branches—Motijheel, Shantinagar, Dilkusha and Gulshan branches—between December 2009 and November 2012.

Of the amount, Tk 1,594.73 crore alone was given by the Gulshan branch, and majority of the loan was issued without proper documentation and scrutiny.

The bank gave loans to nonexistent companies and promptly approved loans to clients, right after they had opened accounts.

The central bank yesterday asked all banks not to charge more than 12 percent on credit for onion import in an effort to ensure adequate supply and keep the prices of the cooking item stable.

Banks, in some cases, were charging more than 14 percent for such imports, Bangladesh Bank officials said.
The BB in a notice also advised the banks to keep the loan-margin ratio at the minimum level based on the banker-client relationship.

The central bank directive will remain effective till December 31.

The local market was destabilised of late due to a surge in prices in the international markets, the BB said.
The central bank move came a day after the commerce minister’s request for reducing the credit interest and LC margin for onion imports.

The prices of imported onion in Bangladesh soared 270 percent year-on-year to Tk 90 a kg yesterday after bad weather in India — the country’s main source of the vegetable — created a supply crunch. India hiked its export price to $900 a tonne on Saturday, from $250 a month ago.

The Trading Corporation of Bangladesh on Sunday started selling onion at Tk 55 a kilogram in open markets across the country to cool the prices.

However, consumers cannot buy more than a kg at one time from the state-owned TCB, which is selling the vegetable item through its dealers via trucks.

Md Mofazzal Husain, Managing Director of RAKUB, is seen at the opening of school banking account at a function at Dinajpur Zilla School Auditorium in Dinajpur on Monday.

Rajshahi Krishi Unnayan Bank (RAKUB) launched the school banking account for the students at a function at Dinajpur Zilla School Auditorium in Dinajpur on Monday.

Md Mofazzal Husain, Managing Director of RAKUB, inaugurated the school banking account as chief guest, said a press release.

Md Abu Hanif Khan, Deputy Managing Director, and Md Habibur Rahman, General Manager of RAKUB's Rangpur Division, attended the function as a special guest.

Md Shahin Akter, Head Master of the Dinajpur Zilla School, spoke at the function.

Tariqul Alom, Zonal Manager of Dinajpur Zone (North) and Birendro Nath Roy, Zonal Manager of Dinajpur Zone (South), were present on the occasion.

Managing Director urged the students, teachers, guardians and all concerned to come forward to make the programme success.

News:Daily Sun /25-Sep-2013