Rupali Sale-off - HC order stayed for a week

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The Supreme Court (SC) yesterday suspended for a week the execution of the High Court’s (HC) stay on the process of selling the state-run Rupali Bank.

The Appellate Division chamber bench of Justice Amirul Kabir Chowdhury issued the rule in response to an application filed by the Privatisation Commission.

The court also asked the original petitioner ABM Abu Taher to file by this time a regular application for leave to appeal seeking overturning of the HC decision.

Attorney General AJ Mohammad Ali moved for the government and barrister Ajmalul Hossain QC for the Privatisation Commission. Dr M Zahir stood for the Rupali Bank while Dr Shirin Sharmin Chowdhury appeared for the petitioner.

The SC ruling means the Privatisation Commission can now resume its process regarding the sale of Rupali Bank.

“We have already opened the technical offers by four bidders,” said Enam Ahmed Choudhury adding that he is confident that the commission will be able to wrap up the selling procedure within the stipulated time.

Earlier on Monday, the last day for tender submission, four bidders–Saudi Prince Bandar Bin Mohammad Bin Abdul Rahman Al Saudi, Maa International Investment Ltd of Malaysia, JJ Finance Ltd of the UK, and Domestic Investors Consortium–filed tender for the state-owned bank.

The same day the HC in a ruling put a stop to the sell-off procedure for three months. It also issued a rule on the government, Privatisation Commission and Rupali Bank to explain why their activities to sell the bank should not be declared illegal.

An HC division bench comprising Justice M Joynul Abedin and Justice Mushtaque Hossain Ahmed issued the rule following a writ filed by Abu Taher, an employee-cum-shareholder of the bank.

The Privatisation Commission chairman said some vested interests are out to hinder the privatisation of Rupali Bank.

“Earlier stay orders were issued on privatisation of the bank for as many as three times, but the process could not be stopped,” he said adding that the commission will continue working towards the sell-off.

The government that owns 94 per cent of the bank’s shares has decided to sell 67 per cent of its shares in order to appease the World Bank and the International Monetary Fund, who had set the reforms in banking sector as a condition for loans.

The assets of the Rupali Bank totalled $1.07 billion as showed in December 2005, and it has over 493 branches across the country.

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