How BB Dy Governor Kabir Ahmed continuing office after ACC case

Questions are being raised over Bangladesh Bank Deputy Governor Dr. Md. Kabir Ahmed continuing in office despite being named in a corruption case filed by the Anti-Corruption Commission (ACC) over an alleged Tk 9.0367 billion (Tk 903.67 crore) loan fraud and embezzlement involving National Bank Limited.

Observers say his continued tenure at the central bank could raise concerns about the transparency and impartiality of the ongoing investigation.

The ACC has charged 26 individuals, including Dr. Kabir Ahmed, in connection with the alleged fraudulent disbursement and misappropriation of loans obtained through forged documents. According to the case, a fictitious company, Bloom Success International Limited, secured a Tk 6 billion (Tk 600 crore) overdraft loan from National Bank's Dilkusha Branch by submitting forged subcontract agreements claiming involvement in the Bangladesh Railway's Chattogram-Cox's Bazar dual-gauge railway project.

Investigators allege that the loan was approved within just four working days (six calendar days) without proper due diligence, adequate collateral, or compliance with banking regulations. The ACC said Tk 5.9965 billion (Tk 599.65 crore) was released within seven days, while another Tk 350 million (Tk 35 crore) was disbursed on January 6 and March 8, 2020. Of the total amount, Tk 5.25 billion (Tk 525 crore) was allegedly withdrawn in cash through 37 bearer cheques before being transferred and laundered. Including accrued interest, the bank's total financial loss now stands at approximately Tk 9.0367 billion (Tk 903.67 crore).

According to the ACC investigation, Ahmed Jalal Khan Majlish, Managing Director of Bloom Success International Limited, and director Khadija Akter opened an account at National Bank's Dilkusha Branch in December 2019 and applied for the loan on the same day. The investigation found that the subcontract agreement submitted in support of the loan application was forged.

At the time of the loan approval, Dr. Kabir Ahmed was serving as a Bangladesh Bank-appointed observer at National Bank under Section 49(1) of the Bank Company Act, 1991, following concerns over the bank's deteriorating financial condition and corporate governance.

The ACC alleges that Dr. Kabir attended National Bank's 433rd Board Meeting as a BB observer, where the loan was approved. As the central bank's representative, he was expected to provide an independent assessment of the credit risk and, if necessary, record a "note of dissent." Instead, investigators claim he failed to object to the approval process and facilitated the rapid sanctioning of the loan despite apparent irregularities.

The ACC further alleges that Dr. Kabir submitted his report to Bangladesh Bank's Department of Off-site Supervision (DOS) nearly a month after the loan proceeds had already been withdrawn and allegedly embezzled, raising additional questions about possible negligence or collusion.