Special audit of Bangladesh Bank

It is perhaps the first of its kind that a special audit on Bangladesh Bank has been asked for the parliament's Public Accounts Committee (PAC). Although the parliamentary committees are all powerful and can bring anyone and everything under their purview, and the PAC can do so of any public institution and agency, the timing of it raises several questions.

The committee raised the issue of the central bank's functioning by asking for a special audit of the bank within four days of the Bangladesh Bank appointing an observer to scrutinise operations of Farmers Bank and slapping a fine on alleged illegal payment and loan irregularities. It certainly raises eyebrows since the head of the Public Accounts Committee happens to be also the chairman of the executive committee of Farmers Bank. 

The matter of special audit will naturally raise question in one's mind as to the motive behind the move against the central bank in the light of the personal involvement of the chairman of the Farmers Bank. Are we then not looking at a conflict of interest here? We feel that the credibility of the committee depends on a judicious resolution of the matter. 

As for the Farmers Bank, the issue of Tk 400 crore anomalies over the sanctioning of loans from three branches speak of gross transgressions. Rules broken in giving credit to bank defaulters, bypassing the head office on the issue of such contentious loans, cooking of books, etc., are all serious offences. We would like a thorough investigation into Farmers Bank which has only been in operation for a few years.