Janata Bank PLC has issued a clarification in response to recent reports aired by several private television channels concerning its banking operations in the United Arab Emirates (UAE), disputing several claims and providing explanations on loan write-offs, staff recruitment and overseas operations.
In its statement, the bank said the reports discussed the write-off of loans approved in the names of Finance Morris and Metropolitan Enterprise, companies associated with the Sheikh Khalifa Group, and Sheikh Khalifa bin Mohammed Al Nahyan, a former ruler of Dubai.
The bank pointed out that the television reports had aired a photograph of the late UAE President Sheikh Khalifa bin Zayed Al Nahyan, although the actual borrower was Sheikh Khalifa bin Mohammed Al Nahyan. It stressed that the two individuals are entirely different.
According to Janata Bank, a review of the relevant documents shows that the final liability relating to the loans was settled in 2003, in accordance with a 1989 arbitration court ruling and with approval at the highest levels of the governments of both countries.
Regarding reports about the recruitment of three Indian nationals without approval from the central bank, Janata Bank said its UAE operations follow the Employees Service Regulations-1982, which govern local recruitment at the bank’s UAE branches.
The bank maintained that prior approval from Bangladesh Bank is not mandatory for recruiting employees locally at its overseas branches.
The statement also addressed reports about Bangladesh Bank’s directive to shut down Janata Exchange Company (JEC) SRL in Italy.
Janata Bank said that after the central bank’s directive was communicated to the Financial Institutions Division of the Ministry of Finance, the division instructed the bank to keep the company operational rather than liquidate it. The decision was based on concerns that closure could negatively affect remittance inflows to Bangladesh and damage the country’s image.
The bank added that it has already introduced agent banking in Italy to expand remittance collection and is working to gradually make the operation profitable.
Responding to allegations concerning six allegedly non-existent laptops, Janata Bank said the devices do exist and are being used for official banking activities.
The bank further stated that several other issues mentioned in the television reports, based on a Bangladesh Bank investigation conducted in 2023, have already been resolved.
Expressing concern over the reports, Janata Bank warned that broadcasting information about a settled matter involving a member of the UAE royal family could negatively affect bilateral relations between Bangladesh and the UAE.
It also cautioned that such reporting could put at risk the livelihoods of nearly 1.2 million Bangladeshi expatriate workers in the UAE, one of Bangladesh’s major overseas labour markets.
The bank urged media outlets to exercise greater caution and ensure accuracy and fact-based reporting when covering matters involving the bilateral interested of the two countries.
