Dhaka: Managing Directors (MDs) of six private banks have been placed on mandatory leave to ensure transparency during ongoing audits, according to Husne Ara Shikha, Executive Director and spokesperson of Bangladesh Bank (BB). The decision was made by the banks' boards of directors to facilitate a conflict-free environment during the audit process.
According to Bangladesh Sangbad Sangstha, the central bank's taskforce, established for banking sector reforms, initiated forensic audits on these banks. The audits aim to investigate massive loan scandals and irregularities that have led to liquidity crises. The decision to send MDs on leave is intended to avert any potential conflict of interest and to maintain transparency as the audits proceed.
The first to be affected by this decision was Syed Waseque Md Ali, MD of First Security Islami Bank (FSIB), who was placed on mandatory leave starting yesterday. Following this, orders were issued for the MDs of EXIM Bank, Global Islami Bank, Social Islami Bank, ICB Islamic Bank, and Union Bank to also commence their leaves.
Waseque's leave is scheduled to last until April 4, during which Abu Reza Md Yeahia, the additional MD, will assume the responsibilities of the MD.