BPC forms seven-member probe panel over Tk 4,813 crore deposits in troubled private banks

A seven-member inquiry committee has been formed to investigate possible irregularities in keeping Tk 4,813.32 crore of Bangladesh Petroleum Corporation (BPC) and its subsidiary organisations deposited in several financially troubled private banks.

The committee was formed by BPC amid growing concern over the safety of such a large amount of public money kept in banks in financial distress.

The committee will examine how the money was deposited in the banks, which individual or party recommended depositing the money, and what factors were considered in making the decision.

It will also examine whether any unethical transaction took place behind the banks' offers of unusually high interest - whether personal benefit or bribes were taken, or any commission was received.

The formation of the committee was announced in an office order signed by BPC Secretary Shahina Sultana on November 3. The order also tasked the committee with recommending how the money deposited as fixed deposit receipts (FDR) can be recovered.

BPC Director (Finance) Naznin Parvin has been made the convener of the committee. Secretary Shahina Sultana will serve as a member of the committee.

The other members of the committee are Reza Md Riazuddin, general manager (marketing) of Meghna Petroleum Limited; Md Shafiul Azam, deputy general manager (audit) of Padma Oil Company PLC; Kabir Uddin Ahmad, deputy general manager (cost and management) of Eastern Refinery PLC; and Mohammad Abu Sayeed, manager (accounts) of Jamuna Oil Company PLC.

BPC Manager (Accounts/Funds) Md Al-Amin has been made the member secretary of the committee.

The committee has been instructed to submit a full report to the BPC chairman within one month.

Under its terms of reference, the committee must examine the entire process of deciding to deposit the money in the banks. It must also identify the officials who recommended these transactions and find out what logic lay behind choosing banks in financial distress.

The committee will also recommend measures to keep the fixed deposits of BPC and its subsidiary organisations safe in future. In this regard, it will propose a framework for selecting banks on the basis of their financial condition and reliability.