A four-day workshop on ‘Islamic Economy’ will kick off in city today (Monday).

Bangladesh Bank (BB) and Islamic Financial Services Board (IFSB) are jointly organising the workshop on Prospects and Challenges in the Development of Islamic Finance for Bangladesh” and “Facilitating the Implementation of the IFSB Standards”, said a press release.

Bangladesh Bank Governor Dr Atiur Rahman will inaugurate the seminar as chief guest at a local hotel in Dhaka on Monday.

High officials of Islamic Financial Services Board (IFSB) and Bangladesh Bank will attend the seminar.

Divided into five sessions, the seminar will be held on the first two days (Monday and Tuesday).

Some 40 eminent economists from UK, Malaysia, Pakistan, Turkey, Japan, Bahrain,, Sri Lanka and host Bangladesh will participate in the international seminar.

Md. Abul Quasem, Deputy Governor of Bangladesh Bank and Project Director, and Mohammed Nasir Uddin Chowdhury, Managing Director of LankaBangla Finance Limited, exchange documents after signing an agreement at BB Head Office in Dhaka recently.

LankaBangla Finance Limited signed a Master Facility Agreement (MFA) as a participating Financial Institution (PFI) in the Investment Promotion and Financing Facility (IPFF) Project run under the Bangladesh Bank.

Under the agreement, LankaBangla Finance will enjoy financing facility from the World Bank administered by Bangladesh Bank, for extending credit facilities to infrastructure projects under Public Private Partnership (PPP).

Md. Abul Quasem, Deputy Governor of Bangladesh Bank and also Project Director and Mohammed Nasir Uddin Chowdhury, Managing Director of LankaBangla Finance Limited signed the agreement on behalf of their respective organisations at Bangladesh Bank Head Office recently, said a press release.

Husne Ara Shikha, Deputy General Manager and Deputy Project Director of Bangladesh Bank, Quamrul Islam, Senior Vice President and Head of Treasury and FIs of LankaBangla Finance Limited with other officials from both the organisations were present at the occasion.

Finance minister AMA Muhith Sunday said the country’s pioneer microcredit institution Grameen Bank (GB) will be brought under Bangladesh Bank’s regulation as per the recommendations of the inquiry commission.

“We have come to know about the content of the inquiry commission’s report and are working to bring changes in recommendations placed in the report for more effective regulation of the microcredit bank,” he told reporters while emerging from a meeting of the cabinet committee on public purchase at the Secretariat. 

Muhith said the commission’s report will be handed over to him (finance minister) on September 30. 

Since its founding under a special ordinance 1983, Grameen Bank has been regulated under a governing body of the microcredit bank comprising its member-directors. 

Grameen Bank and its founder Dr Mohammad Yunus jointly won Nobel peace prize in 2006 for contribution to poverty reduction, women empowerment and socio-economic development of the country. 

However, the government has been in tussle with Dr. Yunus following his removal from the position of managing director of the bank over age-limit and allegations of financial irregularities.

The central bank dissolved the GB committee headed by microcredit guru and Nobel laureate Dr Mohammad Yunus on March 2 in 2011. 

The government in May last year formed a three-member commission to review the GB’s governing structure and its relations with the independent associated companies founded by Dr. Yunus.

Ajmalul Hossain QC, a member of the commission, told the media on August 16 that the commission as per it terms of references instructed them to recommend an authority to regulate and supervise Grameen Bank.

The interim report of the commission submitted to the government in February 2013 largely focused on Grameen Bank and provide options for the government to restructure the microcredit bank, he said.

The finance minister said that the Grameen Bank Commission would submit its final report on the microcredit bank and its 48 associated organisations.

Earlier in May this year, the central bank recommended amendment to both the Micro-credit Regulatory Authority (MRA) Act 2006 and Grameen Bank Ordinance 1983 in order to bring the latter under the MRA regulation.

The central bank’s recommendations have been incorporated in GB Review Committee aiming to ensure transparency by proper monitoring and evaluation of its assets. 

A central bank source then told daily sun that the Bangladesh Bank authority sent the recommendations to the GB Inquiry Commission for next course of action.

The GB inquiry committee in its review report observed that the GB needs proper regulation as it serves a large population across the country in its drive for poverty alleviation by promoting entrepreneurship for poor women in the rural areas. 

A central bank source said regulation of the GB has become complicated following removal of Dr. Yunus as there was a self-guided separate body for regulating the microcredit bank as per GB ordinance 1983.

“The review committee in its report pointed out that the GB is a micro-credit organisation and it should be regulated under MRA. But the existing MRA rules do not cover it. So, the amendment is essential,” sources said.

The inquiry commission was formed under Section 3 of the Commission of Inquiry Act 1956. Government notification was made in this regard on May 15, 2012 and published in Bangladesh Gazette on May 27 of the same year.

The Grameen Bank Review Committee (Monwaruddin Committee) formed earlier in its April 25, 2011 report pointed out various ‘conflict of interest’ transactions of Prof. Yunus with GB and its associated organisations which was seemingly ignored or approved by the GB’s previous board of directors.

Mohammed Solaiman has unanimously been re-elected the chairman of Shahjalal Islami Bank Securities recently, said a press release.

While Mohammad Farooq and Abdul Halim were unanimously re-elected vice-chairmen.
Solaiman, who holds a masters degree in public administration from Chittagong University,

is a sponsor director and former chairman of Shahjalal Islami Bank and a founder director of Central Hospital.

Farooq is the managing director of Famous Group of Companies and a sponsor director of Shahjalal Islami Bank while Halim is a sponsor shareholder of Shahjalal Islami Bank and the chairman of Halim Group.

Corruption is endemic in the Probashi Kallyan Bank while nepotism is an old story in the specialised government bank set up to deliver services to the migrants, officials said, seeking anonymity.

Since its establishment on April 20, 2011 with Tk950m from the Wage Earners’ Welfare Fund and only Tk50m from the government exchequer, the bank failed to run commercially.

A section of the Probashi Kallyan Bank (PKB) officials expressed concern that the bank became unsuccessful not only to lend money to the overseas job seekers but also to bring remittance home from migrants.

From April 2011 to August 2013, the bank provided loans for only 2,500 people to go abroad while less than 100 returnees received rehabilitation loans.

During the same period, around 1.3 million people migrated to different countries, according to the Bureau of Manpower, Employment and Training. 

The officials said the bank provides a loan of only Tk84,000 to a job seeker while a job seeker has to spend Tk2,00,000 to Tk3,00,000 to go abroad.

Lack of skilled manpower with banking experience has been attributed to the failure of the bank which came into being for relieving overseas job seekers of sale of their property or borrowing to repay the moneylenders debt.

Instead of enhancing its capacity, the PKB authorities without any advertisement have recruited less qualified persons allegedly in exchange of bribe.

Relatives close to high officials and board members have also been given appointments.

Sources at the bank said a total of 121 people have been recruited while more than 100, mostly students, are now working at the bank as interns.

Of the 121 employees, many possess 3rd classes in their academic career.

As per the rule, a job seeker with 3rd class cannot apply for the post of an officer in the bank, but the authorities hired many with 3rd class degrees in their academic standing violating the rules and regulations. 

If a new organisation has no service rule, it is to follow the service rules of a similar organisation.

Despite having one 3rd class, A PKB employee Syed Mehedi Hasan has been recruited, and he is now working in Barisal branch of the bank.

Another employee – Rangalal Bala – with a similar result is now working in the bank’s principal branch.

Atiqur Rahman also falls in the same category and works at the Barisal branch.

Seeking anonymity, a PKB employee said he got the job in exchange of a bribe.

The employee said he was supposed to pay Tk2,00,000 for getting the job in the post of a junior officer, but he paid only Tk35,000 as he was not given the post he wanted.   

The employee alleged that he was still being pressurized to pay the rest of the amount.

Another employee working in the bank’s Khulna branch said he got the job paying a bribe of Tk200,000.

He said he had not given the money, but his brother “managed” it.

About 100 people are working in the bank as interns. Of them, 45 are students who are working as junior executives.

Nusrat Jahan has passed merely HSC and is now working as junior executive while Mahfuzur Rahman, an HSC, is a junior executive officer.

Sources said PKB branches in Bogra, Sirajganj, Hathazari, Cox’s Bazar are being run mostly by interns having no minimum required experience.

Probashi Kallyan Bank opened its principal branch and Rangamati branch without the permission of Bangladesh Bank.

PKB Chairman and Expat Welfare Secretary Zafar Ahmed Khan said: “I don’t know everything of what had happened.”

“I will take steps if rules are violated in the bank,” Zafar told the Dhaka Tribune on Friday.

But PKB Managing Director CM Koyes Sami defended the recruitment process of the bank.

“As a new bank we have to do many things at the outset, but next time the jobs seekers have to sit for recruitment tests,” he told the Dhaka Tribune Thursday.

“We cannot run the bank commercially as it requires Bangladesh Bank permission which we are trying for,” said Koyes Sami who was the chief executive of Oriental Bank that collapsed due to mounting bad debt.