Former BASIC Bank Chairman Bachchu Sued Over Major Financial Scandal

The Anti-Corruption Commission (ACC) has filed a case against Sheikh Abdul Hai Bachchu, former chairman of BASIC Bank Limited, along with former managing director Kazi Fakhrul Islam and 15 others, for embezzling funds by approving a loan of Tk 30 crore in the name of a fake company.

This information was disclosed on Monday during a press briefing at the ACC headquarters in Segunbagicha, Dhaka, by Akhter Hossain, ACC Director General (Prevention).

According to the ACC, in 2013, a fictitious company named Messrs Four S Steel opened an account at BASIC Bank’s Gulshan branch and applied for a loan of Tk 50 crore within just three days. Eventually, the company was granted a Tk 30 crore loan, in clear violation of the bank’s lending policies.

Loan applicant Md. Masud Rana pledged 18.15 kathas of land in Badda Mouza as collateral. Despite the bank’s credit committee opposing the loan, branch manager Shipar Ahmed sent the proposal to the head office.

On June 10, 2023, then Managing Director Kazi Fakhrul Islam presented the loan proposal in the bank's 323rd board meeting. The meeting was attended by then chairman Sheikh Abdul Hai Bachchu and nine directors, who conditionally approved the Tk 30 crore loan.

The ACC investigation revealed serious violations of banking policies and governance in the loan approval process. As a result, a case has been filed against the accused under sections 409 and 109 of the Penal Code, and section 5(2) of the Prevention of Corruption Act, 1947.

The accused are:

• Sheikh Abdul Hai Bachchu – Former Chairman
  
  

• Kazi Fakhrul Islam – Former Managing Director
  
  

• Subhashish Bose – Former Director
  
  

• Shyam Sundar Sikder – Former Director
  
  

• Nilufar Ahmed – Former Director
  
  

• Kamrun Nahar Ahmed – Former Director
  
  

• A.K.M. Rezaur Rahman – Former Director
  
  

• A.K.M. Kamrul Islam (FCA) – Former Director
  
  

• Md. Anwarul Islam (FCMA) – Former Director
  
  

• Anis Ahmed – Former Director
  
  

• Md. Shah Alam Bhuiyan – Company Secretary
  
  

• Shipar Ahmed – General Manager and Branch Manager
  
  

• Omar Faruq – Deputy General Manager
  
  

• S.M. Zahid Hasan – Credit In-charge
  
  

• Md. Masud Rana – Proprietor, Four S Steel
  
  

• Kamal Hossain Selim – General Customer
  
  

• Sahida Akhter Shimu – Wife of Kamal Selim
  
  

The ACC Director General further mentioned that investigations into other irregularities at BASIC Bank are ongoing, and more cases may be filed in the future if necessary.