He alleged that funds had been taken out of banks through money laundering and misrepresentation, often involving board members themselves.
Finance and Planning Minister Amir Khosru Mahmud Chowdhury. Sketch: TBS
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Finance and Planning Minister Amir Khosru Mahmud Chowdhury. Sketch: TBS
Finance Minister Amir Khosru Mahmud Chowdhury has said companies that entered the stock market through “false representation” now dominate trading activity, undermining confidence and creating unfair competition in the capital market.
“Through false representation, companies were listed on the stock market, and the falsely listed shares became highly traded,” the minister said while speaking at the FAR Summit titled “Trustworthy Financial Reporting: What Really Matters” at Pan Pacific Sonargaon Hotel in Dhaka today (20 May).
The summit was organised by the Financial Reporting Council in collaboration with Institute of Chartered Accountants of Bangladesh and Institute of Cost and Management Accountants of Bangladesh.
The finance minister said widespread financial indiscipline had affected both the banking sector and capital market. “Money has been taken out of banks because of financial indiscipline. Companies have been listed in the stock market through false representation.”
According to him, fundamentally strong companies that could otherwise offload quality shares are being discouraged from entering the market because they do not want to compete in an uneven environment.
The minister also said Bangladesh’s private sector is currently facing a serious capital deficiency, while many successful companies are struggling with financing shortages.
He alleged that some bank board members were involved in approving loans and later taking money out of the banking system through misrepresentation and money laundering.
“Personally, I think this is a conflict of interest,” he said, questioning why board members involved in such decisions remain in positions of authority.
Khosru said Bangladesh now stands at a “crossroads” and must move toward an economic system based on transparency, accountability and institutional responsibility.
Criticising the performance of the Financial Reporting Council, established in 2015, he said he was unsure what the regulator had achieved over the past 11 years.
The minister also urged professional accounting bodies to strengthen self-regulation within the auditing profession.
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