The New Nation - Internet Edition

Staff Reporter

Trust Bank Limited yesterday informed that there was no case of misappropriation or laundering of the Bank's money by any chairman or director since its inception.

In a press release issued by the Company Secretary yesterday, the Bank made it clear that as per the demarcation of power between the Board of Directors and the management as provided by the Bangladesh Bank, directors cannot take part in the operation activity of the Bank.

Hence, the question of misappropriation or laundering of the Bank's money by the chairman does not arise, the press release said.

The press release was issued in the wake of questions raised about the role of a former chairman of the Bank, Lt Gen (Retd) Hasan Mashhud Chowdhury.

It said the factual position is that Trust Bank suffered a loss of TK.23.07 crore in its foreign exchange dealing operation during January 2002 to July 2003. Launching of foreign exchange dealing operation was approved by the Board of Directors in September 2001 while Lt Gen (Retd) Hasan Mashhud Chowdhury became Chairman of the Bank in July 2002.

The operation of foreign exchange dealing commenced in January 2002 and had in incurred loss right form the beginning of the said operation. However, the then Managing Director of the Bank did not disclose the loss to the Board of Directors and the Bank's annual accounts of 2002 were prepared without showing the loss, it mentioned.

According to the press release, the making venture continued till July 2003 but was kept hidden by the then Managing Director from the Board until the occurring of loss was detected in early August 2003 after Bangladesh Bank conducted an inspection of the Bank's foreign exchange operation and asked for explanation from the Bank's Management regarding un-reconciled balances of Bank's overseas foreign currency accounts (usually NOSTRO accounts). Thus, the Board of Directors came to know about huge loss, which accounted toTK.23.07 crore.

The press release stated that the Board then immediately suspended the then Managing Directors and terminated his service contract with necessary approval of the Bangladesh Bank. The Management also took disciplinary action against the former employees.

It also referred that as per decision of the Board of Directors, headed by Lt Gen (Retd) Hasan Mashhud Chowdhury, the management filed criminal case in the court of chief metropolitan magistrate, Dhaka, against the former Managing Director Mr Zahid Hossain Chowdhury and two other former officers of the Bank for concealment of the facts and for breach of trust.

The Bank also filed money suit in the Court of 1st Joint District Judge, Dhaka for recovery of the Bank's money. The criminal case is pending in the Appellate Division, and the other case is pending in the trial court, it revealed.

The press release noted that the Bank recognises the loss as a purely transactional loss like any other business loss and the Bank's annual accounts of 2002 were rectified later on. That form the form above facts, supported by documents and court records, it is clear that there was no case of money laundering or misappropriation of Bank's money.