Chattogram port's Tk 1,200 crore stuck in six liquidity-starved banks; action against culprits recommended

The parliamentary Committee on Government Institutions has expressed strong dissatisfaction over the Chattogram Port Authority keeping fixed deposits (FDRs) in various commercial banks, especially in private banks suffering from a liquidity crisis.

Expressing anger over the failure to withdraw the deposit money even after maturity and over investing extra money beyond the policy, the committee recommended action against those responsible. It also recommended that all of the port authority's money be kept in government banks in future.

These recommendations were made at a meeting of the committee held at the Parliament building on Sunday. The information was given in a press release from the Parliament Secretariat after the meeting.

Earlier, at a committee meeting on 12 October, a report from the Chattogram Port Authority said that more than Tk 1,200 crore in fixed deposits had been kept in six banks facing a liquidity crisis.

The banks are Padma Bank, Global Islami Bank, First Security Islami Bank, Social Islami Bank, Export Import Bank of Bangladesh and Union Bank. There is a risk over getting the deposited money back from these banks.

However, the port authority has not kept any accounting provision against the possible loss in line with international standards. At present, the money in these deposits is not being recovered.

Sources said the matter was also discussed at Sunday's meeting. The meeting was told that the rule at the time for keeping fixed deposits in banks was to keep 75 percent of total deposits in government banks and 25 percent in private banks.

The condition for keeping deposits in a private bank was that the bank had to be at least five years old and reputable. But the audit objection said these rules were not followed when the deposits were kept.

The Parliament Secretariat press release said the meeting discussed the compliance audit report on the Chattogram Port Authority's accounts for fiscal year 2020-21 and the compliance audit report on the Mongla Port Authority's accounts.

The committee recommended identifying those involved in financial irregularities committed under the previous government and taking necessary legal and administrative action against them. It made clear its firm position that no one involved in wasting government money or corruption should go unpunished.

At the same time, it warned that no corruption or irregularity will be tolerated under the current government either.

The meeting stressed the use of international platforms and artificial intelligence (AI)-based technology to prevent over-invoicing and under-invoicing in import-export activities. It also recommended steps to introduce e-billing and e-payment systems so duties are paid automatically and goods are cleared quickly.

The committee also recommended settling, by December, the long-standing problem of auctionable containers and vehicles lying at Chattogram port. It further recommended identifying those involved in taking loaded containers out of the port in the name of empty containers and in container theft, and taking action against them.

The meeting was chaired by the committee's president and Chief Whip Nurul Islam Moni. Committee members Whip Mia Nuruddin Ahmed Apu, Whip Md Akhtaruzzaman Mia, Tahsina Rushdir, Khandaker Abu Ashfaq and Mustafizur Rahman Bhuiyan took part.