Court rebukes Janata Bank board’s 'unprecedented' role in money laundering case

Commenting on the ongoing graft case against former Janata Bank chairman Abul Barkat, a Dhaka court has opined that the bank's board had facilitated the laundering of funds abroad, calling it an "unprecedented" event.

Dhaka Metropolitan Senior Special Judge Zakir Hossain Galib made the remark during Barkat's bail hearing on Wednesday.

Barkat was brought to the Dhaka Metropolitan Sessions Judge’s Court lockup at 10:40am and produced before the court at 11:07am. He sat on a bench inside the dock, appearing visibly distressed.

Lawyer Shahinur Islam moved the bail plea on behalf of Barkat in a case over a Tk 2.97 billion loan fraud involving AnonTex.

Defending Barkat, Shahinur said: “In 2013, a subsidiary of AnonTex Group, Suprabha Spinning Mills, applied for a loan. Their application was placed before the bank’s board following due process. The loan was approved in compliance with Bangladesh Bank guidelines. Dr Abul Barkat did not neglect his duties. He did not violate any policies.”

“Previously, the Anti-Corruption Commission investigated this matter and cleared it, saying no corruption took place. Filing a new case over the same matter now is nothing but duplicity. Therefore, the allegations brought by the ACC against Barkat have no merit. We are seeking his bail, considering the overall context.”

Opposing the bail petition, ACC prosecutor Mahmud Hossain Jahangir said: "As chairman of Janata Bank, Barkat must take responsibility for any irregularities committed by employees under his watch. The Bangladesh Bank governor has also been named in this case due to involvement in the offence. We oppose his bail.”

At that point, the judge said: “After the Tk 50 billion scam in Sonali Bank, the then finance minister Abul Maal Abdul Muhith famously said, ‘50 billion is not a big amount.’ Since then, scams of Tk 50 billion, Tk 100 billion, Tk 200 billion, Tk 500 billion, even Tk 1 trillion have occurred in different institutions.”

“These funds have been laundered abroad. During the 1/11 caretaker government, a Truth Commission was formed. Those who had engaged in corruption admitted their crimes before the commission and surrendered illegally obtained assets to the state.

He continued, “We had hoped the current interim government would take similar steps to recover laundered money and return it to the state. But that hasn’t happened.”

Judge Galib noted that even an agency like the ACC cannot possibly bring all these corruption cases to justice or ensure punishment for all. “The few cases they do bring rarely result in harsh sentences. Someone might embezzle Tk 50 billion and get just five years in prison.”

Addressing Barkat and the ACC prosecutor, the judge said: “The allegations involving Janata Bank are likely far more serious. Though I’m not saying you [Barkat] are involved in all of them, please be patient. Laundering money abroad with help from the bank’s board -- this is unprecedented. It has broken the backbone of our economy.”

The judge then rejected Barkat’s bail petition and ordered the case to be transferred to the Chief Metropolitan Magistrate’s Court for a hearing on the ACC’s request to place Barkat on a three-day remand. He was subsequently taken back to the court lockup.

On Feb 20, ACC Deputy Director Nazmul Hussain filed a case against former Bangladesh Bank governor Atiur Rahman and 23 others on charges of embezzling Tk 2.97 billion from Janata Bank in the name of the AnonTex Group through fraud.

According to the case dossier, M/s Suprabha Spinning Limited, an affiliate of Anontex Group, took loans from Janata Bank at various times between Feb 5, 2013 to December 2024. However, the disbursement of large sums mainly took place during the period 2013-14, when former president of the Bangladesh Economic Association Barkat was the chairman of Janata Bank.

Barkat, an economics teacher at Dhaka University, first took the post on Sept 9, 2009. He was the chairman of the bank for a second term until September 2014.

It is alleged that Janata Bank, which was once financially stable, became weak under Barakat.

The other accused in the case are Jamal Uddin Ahmed, former director of Janata Bank, and M/s Suprabha Spinning Limited's Managing Director Md Anwar Hossain and Director Md Abu Talha, Janata Bank branch manager and general manager (later managing director and CEO) Abdus Salam Azad, former deputy general manager Ajmul Haque, former assistant general manager (AGM) Ajay Kumar Ghosh, former manager (industrial loan-1) Md Golam Azam, SME Department executive engineer Md Shahjahan, SEO Md Emdadul Haque, former deputy general manager Md Abdul Jabbar, former general manager and former deputy managing director (DMD) Md Golam Faruk, former deputy managing director Omar Faruk, FCA Md Imdadul Haque, Nagibul Islam Dipu, RM Debnath, Md Abu Naser, Sangita Ahmed, and Nitai Chandra Nath.

In addition, the list of accused includes the Chairman and Managing Director of Anontex Group Md Yunus Badal, former assistant director of Bangladesh Bank Ismat Ara Begum, and former deputy governor Abu Hena Mohammad Razi Hasan.