BB cancels Litu’s shares

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Bangladesh Bank (BB) yesterday cancelled 16.47 percent of Oriental Bank’s shares bought by Abul Khair Litu of Bengal Group against fictitious names of individuals and some of his companies in breach of the banking company laws.

In another directive, the central bank asked different commercial banks to submit reports by February 28 on financial transactions of 24 accused in the Oriental Bank scam who include Obaidul Karim, chief of Orion Group, ex-managing director of the bank Koyes Sami and its 22 other present and former officials.

In a letter to the managing director of Oriental Bank yesterday, the central bank ordered cancellation and forfeiture of the shares with immediate effect and asked the scam-tainted private bank to inform its current shareholders accordingly.

A BB probe found that Abul Khair Litu held 16.47 percent shares listed against 11 fictitious names and some companies owned.

The BB has asked Oriental Bank authorities to issue fresh shares in its [central bank's] favour to replace the forfeited ones and send those to it forthwith.

It has also directed Oriental Bank to immediately inform the registrar of Joint Stock Companies and Firms and the Securities and Exchange Commission of the actions against the benami shares [the ones held by proxy].

The BB letter said the directive has been issued under Section 45 of the Banking Companies Act, 1991 to advance the monetary and banking policy and also to ensure proper management of Oriental Bank Ltd.

Section 14A (3) of the Act says shares would be forfeited and cancelled if it is found that the shareholder has given false statement.

The BB investigation found that SA Kabir owned 10,461 shares amounting to 2.01 percent of the total shares, Asaduzzaman owned 11,071 shares or 2.13 percent, Syed Tariqul Islam 1,585 shares or 0.31 percent, Biplob Kumar Saha 2,777 shares or 0.53 percent, Mohammad Salahuddin 2,000 or 0.39 percent, H Ahsan Khan 3,216 shares or 0.62 percent, IPCO Securities Ltd 31,269 shares or 6.02 percent, Oceania Securities Ltd 13,618 shares or 2.62 percent, QED Securities Ltd 4,633 shares or 0.89 percent, Quantum Securities Ltd 4,555 shares or 0.88 percent and Abul Khair Litu himself owned 385 shares or 0.07 percent of the total.

The probe report said Abul Khair Litu showed the shares in different names and companies to avoid legal limitations. He took loans from Prime Finance and Investment Ltd against the shares.

Earlier, the central bank had cancelled 69.87 percent of Oriental Bank’s shares after its probe found that Obaidul Karim bought ‘benami’ shares through his family members, nominee companies and individuals.

The BB yesterday also asked different banks to submit by February 28 detailed information on financial transactions of Obaidul Karim, Koyes Sami and 22 other present and former officials of Oriental Bank for embezzling Tk 596.44 crore. The banks will have to submit reports on the accounts, if those were found closed.

BB sources said the directive has been given in response to a request from the Criminal Investigation Department (CID), which has been investigating the Oriental Bank scam case.

Apart from Karim and Koyes, the accused now working with the bank are senior assistant vice president (SAVP) Mohammad Yameen, assistant vice presidents (AVPs) Mohammad Fazlur Rahman and Abul Hossain Chokder, executive officer (EO) Mohammad Emdad Hossain Bhuiyan and senior officers Touhiduddin Khandaker and Mohammad Firoz Kabir.

The former officials are senior vice president (SVP) SM Harun, AQM Mahmud Ullah, SAVP, Tariqul Alam, EO, Manjurul Alim, SAVP, AVPs Alamgir Kabir, Mohiuddin Ahmed and Syed Mahmud Hasan, executive vice president (EVP) Quamrul Islam, Istiaq Ahmed Chowdhury, former EVP Mustaq Ahmed, who is now working as deputy managing director of Trust Bank Ltd, former AVP and now manager of One Bank Ltd Syed Sarfaraj Shah, former AVP and now working in State Bank of India, Dhaka, AZM Saleh, former VP and now manager of One Bank Khandaker Shahruk Ahmed, former AVP and now working in IFIC Bank Arifur Rahman, former EO and now working in One Bank ANM Asifur Rahman, former SAVP of Oriental Bank and now absconding and Saiful Aziz Pavel, former AEO.

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