BB won’t probe Shahabuddin individually over graft allegations: Spokesperson

The former president had been associated with Global Islami Bank and Islami Bank, and any investigation by the central bank would focus on the institutions concerned, says Arief Hossain Khan.

Highlights

• Bangladesh Bank clarifies stance on Shahabuddin allegations
• Central bank says it does not investigate individuals separately
• Bank inspections will continue as part of sector reforms
• Action promised if irregularities or involvement are established

Bangladesh Bank has said it will not conduct a separate investigation into financial irregularity allegations against former president Mohammed Shahabuddin, stressing that its investigations are carried out as part of regulatory oversight of banks rather than targeting specific individuals.

The central bank’s spokesperson Arief Hossain Khan made the clarification while speaking to journalists today (26 July), following a report by private channel Ekhon TV claiming that the central bank would not investigate allegations against Shahabuddin.

Speaking to The Business Standard, Arief said the TV channel’s report had misinterpreted his remarks.

He explained that Shahabuddin had been associated with Global Islami Bank and Islami Bank, and any investigation by the central bank would focus on the institutions concerned.

“We will investigate if there is any irregularity in the bank. We will not target any individual for investigation,” Arief told TBS, adding that he would ask the television channel to remove its report.

Talking to reporters, the spokesperson reiterated that Bangladesh Bank’s investigations are conducted as part of its supervisory and regulatory responsibilities.

“If any irregularity is found during investigation, Bangladesh Bank takes action regarding that. If an individual commits an irregularity, whether the board is involved in that irregularity is also looked into,” he said.

Arief said investigations into banks, currently underway as part of reforms in the financial sector, would continue, and anyone found to have been involved in irregularities would face legal action.

He also noted that commercial banks are subject to audits by their own internal auditors, Bangladesh Bank and external auditors.

“The central bank will not do this targeting any specific individual. There is no scope for it to be working with special priority or by targeting someone,” he said.