BB removes PK Halder-linked International Leasing MD

Bangladesh Bank has removed Mohammad Emdadul Islam as managing director of International Leasing and Financial Services Ltd, an institution closely associated with the financial irregularities linked to disgraced businessman Prashanta Kumar Halder, better known as PK Halder.

The central bank said the action was taken over allegations of irregularities at Emdadul’s previous workplace and for submitting a false affidavit by concealing those matters.

The order was issued in a letter on Monday by Bangladesh Bank’s Financial Institutions and Markets Department.

According to the letter, he was “removed with immediate effect” under Section 19 of the Finance Company Act, 2023.

International Leasing was also instructed to take the necessary steps accordingly.

The letter, signed by Bangladesh Bank Director Hasan Tarek Khan, was sent to the chairman and board of directors of International Leasing. Before issuing the order, Bangladesh Bank served Emdadul with a show-cause notice on Jan 25.

He responded on Jan 28, but nearly three months later the central bank found his explanation unsatisfactory and issued the final removal order.

According to the letter, he had been asked to explain why he should not be removed from the post of managing director of International Leasing.

Bangladesh Bank said several irregularities were identified during Emdadul’s tenure as managing director and chief executive officer of GSP Finance Company (Bangladesh) Ltd.

These included classifying a Tk 499 million loan to Keya Cosmetics Ltd as unclassified without obtaining a no-objection certificate from Bangladesh Bank.

As a result, GSP Finance’s classified loan ratio fell from 16.04 percent to 8.86 percent, the letter said.

He was also accused of restructuring the loan facilities of GSP Investment Ltd in violation of circular guidelines.

In addition, during the COVID-19 period, penal interest was charged on loans to Doreen Hotels & Resorts Ltd in violation of Bangladesh Bank circulars and circular letters.

Despite repeated instructions from the central bank, the matter was not corrected.

Bangladesh Bank said Emdadul was “clearly responsible” for these irregularities during his tenure at GSP Finance.

The letter said he later concealed these matters in the application and affidavit he submitted to secure the post of managing director of International Leasing.

According to the central bank, he was removed for “his involvement in the aforementioned irregularities and for submitting a false affidavit”.

The letter also referred to allegations that he falsified board meeting minutes and dismissed five officials, including the chief financial officer, on Jan 1 in violation of HR policy and DFIM Circular No. 01/2024.
�"bdnews24.com