MK Alamgir dismisses all allegations over Farmers Bank loan scam

Former chairman of Farmers Bank Muhiuddin Khan Alamgir today denied all allegations of irregularities brought against him in distributing loans of the bank.

The recent media report on loan scam in the bank is based on imaginary, he said speaking on a point of order in parliament.

“Three newspaper of Dhaka in the last three days have published false news against me with an ill motive. They first said I have taken commission while distributing loan when I was chairman of the bank. I never heard such lie in my 77 years life,” he said.

The ruling AL senior MP also called upon Speaker Shirin Sharmin Chaudhury, who was presiding over the sitting at that time, to take necessary measures so that Bangladesh Bank cannot reveal private commercial bank’s loan distributing information to media.

Amid widespread criticism in financial scams of Farmers’ Bank, set up around four years ago, Alamgir, on November 27, last year resigned from its board after Bangladesh Bank asked him to quit.

Non-performing loans at the bank increased significantly in recent months as the board continued to sanction and disburse loans in breach of the rules.

Between September and November in 2015, the BB conducted special inspections at three branches of the Farmers Bank in the city's Gulshan, Motijheel and Shyampur, and found a gross violation of the banking rules in disbursing loans of around Tk 400 crore.

Some directors of the bank were allegedly involved in sanctioning loans, violating the credit rules.

The Farmers Bank doesn't have the capacity to pay back the depositors' money and refund the credit taken from other banks, the BB report mentioned.

Alamgir, also chairman of Public Accounts Committee of parliament, said he was also managing director of Shilpo Bank, president of Basic Bank and Shilpo Rin Sangstha. But nobody could raise allegations of corruption or irregularities against him.

Pointing to the media report on loan scam, he said Farmers’ Bank did not distribute any loan without proper approval.

He also said an observer of Bangladesh Bank also remains in the governing body of Farmers Bank. They are evaluating the matter.

He sought Speaker’s interference so that media cannot make such imaginary report on the financial sector which Alamgir said will put the negative impact in the financial sector.

Alamgir said media in their report mentioned that they got information on Farmers Bank from Bangladesh Bank. But according to Bangladesh Bank order, none can provide private bank’s information to media.

He sought Speaker’s intervention in this regard.

Alamgir also claimed he just only taken bank his share in the bank, not any others share.

Alamgir said as a result of their “Jonotar Mancha” movement in 1996, Khaleda Zia was bound to step down from power. “And now she is in jail. That’s why a section of media is publishing false and imaginary news against him centring the Farmers Bank loan scam.”