PB under SEC scanner on allegations of abuse, misuse of funds

Viewed as a blot in Bangladesh’s financial sector,  Padma Bank is back into sharp focus after it trade charges with founding chairman Muhiuddin Khan Alamgir ranging from abuse of office and embezzlement of money.

After receiving the complaints, Bangladesh Securities and Exchange Commission says it will look at the charges, reports bdnews24.com.

Dogged by loan scam and irregularities, the ownership and management of The Farmers Bank changed in 2018 before it was rechristened Padma Bank the following year apparently to restore its image.

MK Alamgir, founding chairman of the bank and former home minister, now says incumbent Chairman Nafeez Sarafat invested Tk 1.0 billion of the bank in a fund which is “in breach of rules”.

The Padma Bank was quick to hit back at Alamgir, saying it was him who “misused” the bank’s funds when he was chairman.

Both sides sought redress from the regulators.

Mohammad Rezaul Karim, spokesman for BSEC, said they have received a written complaint from Alamgir.

“We will call the accused person to have his statement. Steps will be taken after scrutiny,” said the executive director of the market regulator.