A strong nexus between trade union and political party acts as a major obstacle to reining in corruption in the state-owned banks, said a research paper published yesterday.
“Trade union leaders are fabulously rich and refuse promotion to remain labour leaders. They dictate transfer, posting and promotion on monetary consideration,” said the paper.
“They (trade union leaders) also work as dalals [agents] for getting loans sanctioned.”
Khondkar Ibrahim Khaled, chairman of state-owned Bangladesh Krishi (agriculture) Bank, carried out the study for International Business Forum of Bangladesh (IBFB) that arranged a discussion on the research findings.
The nationalised commercial banks (NCBs) are getting narrowed down both in deposit mobilisation and lending of funds due to inefficiency and corruption.
The state banks now maintain only 40 percent of the total deposits although they have the largest network of branches. They had maintained 90 percent of the deposits in 1980s. Access to NCB loans still remains narrow, while scope is wider, said the study.
“The trade unions should not be affiliated with any political party,” said Ibrahim Khaled.
Economist Prof Mozaffar Ahmed criticised the government for writing off the interests for many loans.
Chairman of Agrani Bank Prof Khondkar Bazlul Haque said persuasion by influential people is the main problem for the NCBs. He said Agrani Bank is in a pressure to write off Tk 100 crore loans given to the jute sector.
Former top bureaucrat Suhel Ahmed Choudhury said the state banks are hurt not only for the trade unions, but also for corrupt officials.
Dr Iftekharuzzaman, executive director of Transparency International Bangladesh, found a triangle of political authority, officials and the private sector responsible for corruption in the NCBs.
The study suggested that the trade unions should be delinked from the political parties, and only one union should be allowed.
