Finance minister AMA Muhith on Thursday admitted the existence of persistent political influence and corruption in the banking sector but he claimed that, under the present government, such practices were less than before.
In his speech at a workshop in the city he argued that it was a social reality that political governments could not prevent political influence in the banking sector.
Other speakers at the workshop however said corruption in the state-owned banks was rampant, with trade unions and political appointees to the bank boards violating rules and ethics.
The finance minister said, ‘It is a fact that under all political governments trade union leaders backed by political parties and members of the boards exercise much influence and instigate corruption but such practices are less under the current regime.’
‘It has become a custom that almost every one seeks involvement of politicians in all social and organisational activities and that is why things have come to such an end,’ he argued. He said, ‘It is a social reality that even if a political government wants to bring things back on the right track, it cannot deal with the trade unions harshly.’
His government is putting much effort to bring back discipline in the banking sector and trade unionism, the minister claimed, adding, ‘The government will ensure that the same persons cannot continue to act as trade union leaders for years by deliberately rejecting their due promotions.’
Muhith told the function that his government would implement a separate pay scale for the state-owned banks within this year.
He also expressed the hope that increased remunerations would help the employees of the state-owned banks enhance their capacity to compete with the highly-paid private-sector bankers.
The International Business Forum of Bangladesh organised the workshop to discuss the state of corruption in accessing industrial credits, especially from the state-owned banks.
IBFB executive director retired brigadier general Mofiz said interference of high government officials and political leaders were rampant in loan processing by the state-owned banks.
Bangladesh Krishi Bank managing director Khondkar Ibrahim Khaled narrated a number of cases revealing how trade union leaders misappropriated funds and, being close to top politicians, influenced the management of the banks concerned.
Khaled held political appointees to the bank boards responsible for instigating widespread corruption in loan processing and providing other services.
Interests of trade union leaders backed by politicians and political appointees to the boards have turned the banks into breeding grounds of corruption, he alleged.
IBFB president Mahmudul Islam Chowdhury, who chaired the function, suggested that there should be meticulous monitoring of the management of the state-owned banks.
