BB removes First Finance MD over irregularities

Written by on March 27, 2021

Regardless of the Bangladesh Financial institution rejecting the NBFI’s utility for his appointment as soon as on January 20, First Finance utilized once more on March 4

Ailing non-bank monetary establishment First Finance’s insistence on having Md. Tuhin Reza, who has a monitor file of irregularities behind him, as its managing director and chief govt officer is moderately baffling.

Regardless of the Bangladesh Financial institution rejecting the NBFI’s utility for his appointment as soon as on January 20, First Finance utilized once more on March 4.

On March 15, the central financial institution rejected the applying for the second time.

Within the letter to First Finance Chairman Khan Mohammad Moinul Hasan, the BB known as for taking the mandatory steps for appointing a daily MD and CEO to the NBFI on the earliest. Dhaka Tribune has a replica of the letter. 

Reza joined First Finance as extra MD in 2016. A yr later, some critical allegations towards him got here to gentle. 

Of them, two main allegations have been: hiding Credit score Info Bureau (CIB) standing and elimination of the CIB copy from the non-public paperwork by abusing energy; and recruiting 22 officers to the NBFI with none notification, examination or interview, which violates the service guidelines of the organisation.

An inner investigation committee of First Finance even discovered these allegations to be true and the board of administrators pressured him to resign in Might 2017. 

It was shocking that the NBFI then re-appointed Reza as the extra MD with out the BB approval, which was a direct violation of guidelines, mentioned a BB probe report. 

When the BB requested for an evidence in regards to the problem, the board replied to the central financial institution that the allegations towards Reza have been deceptive and unproven, which was why he was re-appointed. 

Then in October of 2019, he was given the present cost of the put up of the MD and CEO after the put up grew to become vacant. 

In March final yr, the board of administrators of the NBFI determined to nominate him to the put up of MD and forwarded its choice to the BB for approval. 

The BB probe report mentioned the monetary situation of the NBFI has progressively deteriorated from 2017 to 2019. 

First Finance was going to the pink zone through the interval and its profit-after-tax has change into destructive from 2017 to 2019, as per the BB probe report. 

Then on January 7, the Anti-Corruption Fee (ACC) interrogated Reza in regards to the allegations of embezzling cash by irregularities and corruption. 

Reza couldn’t be reached over the telephone for remark. 

The central financial institution inspection crew discovered at the least 10 NBFIs have been concerned in mortgage rip-off and big irregularities, which impacted the sector’s total monetary well being. 

On the finish of the third quarter of 2020, the 33 NBFIs’ dangerous loans accounted for about 15.5 per cent of their whole excellent loans of Tk 66,215.Four crore, in accordance with knowledge from the central financial institution.

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