B Mirror Report: At Bangladesh Krishi Bank’s Srinagar branch in Munshiganj, loans worth Tk 250 million (Tk 25 crore) were created by opening 73 fake accounts. The money was withdrawn by stealing the password of another officer at the same branch.

Meanwhile, at the bank’s Patherhat branch in Chattogram, a fake deposit receipt of an expatriate customer was used as collateral to obtain a loan of Tk 6.25 million (Tk 62.5 lakh). Altogether, around Tk 260 million was allegedly embezzled through fraud at the two branches of the state-owned specialised bank.

Bank sources said that despite preliminary evidence of irregularities, Patherhat branch manager Md. Lokman Hasan was not subjected to disciplinary action; instead, he was transferred to the loan recovery department at the head office. On the other hand, Md. Sakhawat Hossain, the officer involved at the Srinagar branch, has only been temporarily suspended. A five-member investigation team from the head office recently submitted its report on the incidents. Allegations have also surfaced that a section within the bank’s head office is attempting to cover up the two incidents.

According to sources, an expatriate customer named Mohammad Shahjahan deposited Tk 7.086 million in January 2021 under the bank’s Double Profit Scheme at the Patherhat branch. Branch manager Md. Lokman Hasan allegedly created a fake deposit slip resembling the original receipt. By forging the customer’s signature, he obtained a loan of Tk 6.25 million from the same branch and misappropriated the money. The fraud came to light when the customer recently returned to Bangladesh and discovered that a loan had been taken against his deposit.

Following the customer’s complaint, the bank’s head office issued a certificate on February 8 stating that the deposit remained secure. The letter said that while the depositor was abroad, the branch manager independently created a fake deposit receipt resembling the original one, forged the customer’s signature, and used it as collateral to approve and disburse the loan. The preliminary investigation confirmed these allegations. To maintain the branch’s reputation and prevent rumors, the bank was instructed to issue a certificate confirming the safety of the deposit. With accrued interest, the customer’s account now holds nearly Tk 10 million.

When contacted, Md. Lokman Hasan told Media  that the customer had not suffered any loss and that the matter was a case of fraud that the bank was working to resolve quickly. He said some money had already been recovered. Regarding the allegation that he himself took the loan, he denied it, saying such a thing was impossible and that the incident occurred due to some kind of fraud.

In another incident, Sakhawat Hossain, an officer at the Srinagar branch, allegedly stole the login credentials of the branch’s second officer and used the core banking software (CBS) to create 73 fake loan accounts. Loans worth about Tk 250 million were generated against these accounts and transferred to an account in a private bank. After the fraud was detected, he reportedly resorted to further manipulation to conceal it.

Initially, he showed the loans as adjusted from the procurement account of the Shreepur Upazila Food Controller in Munshiganj. Later, he again adjusted the amount from the branch’s general ledger (GL) to balance the food controller’s funds. Eventually, after pressure from the bank, the loans were adjusted using the money that had been withdrawn through the fraudulent accounts. A five-member investigation committee confirmed the fraud, leading to his temporary suspension.

The investigation order stated that the General Manager of the Dhaka divisional office was informed about the fraud and embezzlement committed by Sakhawat Hossain. A five-member team led by Abid Ahmed Afzal, Assistant Manager of the bank’s Vigilance Squad, was formed to conduct an impartial inquiry. The team was tasked with determining whether irregularities occurred in accounts beyond the 73 identified, whether similar fraud took place in other branches, and whether other officials were involved.

The investigation team, formed on January 22, submitted its report with evidence of fraud. Following the report, the money taken through the fake loans was adjusted. The investigation team also found information suggesting that Sakhawat Hossain had been involved in similar irregularities earlier while serving at two branches in Gazipur.

When asked about the matter, Sakhawat Hossain told Media  that it was an internal issue that had now been resolved. Asked about creating 73 loan accounts and withdrawing Tk 250 million, he responded that such problems can occur during work and that it happened by mistake but has since been resolved. Regarding allegations of similar incidents in Gazipur, he said that a group there had tried to harm him.

Attempts to contact Bangladesh Krishi Bank Managing Director Sanchia Binte Ali for comments were unsuccessful. However, another bank official, speaking on condition of anonymity, told Media  that a section within the bank is trying to protect those involved in such irregularities and corruption. Due to internal complications, action has not yet been taken in the two incidents. The official expressed hope that with the new government in place, appropriate action would soon be taken according to regulations.