‘Janata Bank posted record profit under me’ claims former chairman Barakat amid loan fraud probe

Former Janata Bank chairman Abul Barkat has claimed that the state-owned lender recorded its highest-ever profits during his tenure.

At Wednesday’s hearing, he said: “Janata Bank made the highest profit during my tenure, and now it is being said that I ruined it.”

The hearing in the loan fraud case was held at the court of Dhaka Metropolitan Senior Special Judge Zakir Hossain Galib.

On the night of Jul 10, the Detective Branch (DB) of the Dhaka Metropolitan Police arrested Barkat at his Dhanmondi residence.

The following day, the case's investigation officer, Anti-Corruption Commission (ACC) Assistant Director Mohammad Shahjahan Miraj, presented him at Dhaka’s CMM Court and applied for three days to question him in custody.

However, as the CMM Court lacks jurisdiction to hear bail or remand pleas in the case, Dhaka Metropolitan Magistrate Md Jewel Rana ordered him be sent back to jail.

Later, the ACC moved the case to Judge Galib's court for hearing, and Barakat was produced on Wednesday for remand and bail hearings.

However, Judge Galib accepted only the bail hearing, rejected the remand petition, and later denied bail before transferring the case to the CMM Court for the remand hearing.

He was taken to the CMM Court around 3:40pm, and the remand hearing began at 3:48pm.

During the hearing, ACC Public Prosecutor Mahmud Hossain Jahangir argued that Barkat had grossly abused his authority.

“He approved loans worth billions against assets valued at only Tk 30 million. Rather than strengthening the bank, he drove it into severe debt,” Jahangir said. “His remand is essential to uncover the full extent of the irregularities.”

In response, Barkat maintained his innocence.

“I first heard about this case on television on the 20th of February. As chairman, I chaired over 200 board meetings. This particular loan issue came up, and I sent it to Bangladesh Bank for a no-objection certificate,” he said.

“I’ve heard the names of those allegedly involved, but I don’t personally know them. In 2013, Janata Bank recorded its highest-ever profit and growth. I did not knowingly commit any wrongdoing.”

State lawyer Shamsuddoha Sumon went further, accusing Barkat of damaging both Janata Bank and Bangladesh Bank.

“If he is remanded, names of other high-profile individuals (Sajeeb Wajed) Joy, Subhash Singha Roy, (Sheikh) Hasina and (Sheikh) Rehana, will emerge in connection with the loan scam,” he told the court.

Later, the court said: “This is a massive loan fraud. The properties against which the loan was granted are minimal.

“As the chairman of the institution, he should have taken action, but he failed to do so. A two-day remand has been granted, which must be completed within five working days.”

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.