Day-long agitation ends with demand for resignation of BSEC top brass

Employees of the securities regulator have demanded the resignation of the chairman and all commissioners following their decision to send an executive director into forced retirement.

After a day-long agitation on Wednesday, they placed the demand at a press briefing. Earlier, employees of the Bangladesh Securities and Exchange Commission (BSEC) held the top executives hostage for more than four hours until army personnel stormed into the office and got them released.

"We will continue work abstention from tomorrow [Thursday] if the whole commission does not step down," said BSEC executive officer Md. Mahbubul Alam at the press briefing.

Meanwhile, the commission in a press release issued last evening said the BSEC officials who had come under investigations in recent regulatory actions against irregularities and corrupt practices ganged up against the chairman and commissioners.

"Some unruly BSEC officers held the chairman and commissioners hostage, when there was a meeting going on in the boardroom, for taking measures against them," reads the press statement.

On behalf of the BSEC employees association, Mr Alam at the briefing urged the government to appoint "qualified" persons to the top positions of the BSEC as "was done in the central bank".

Asked by reporters whether a section of officials were against the commission, Mr Alam insisted that all demanded resignation of the BSEC top brasses.

BSEC executive directors Anwarul Islam, Mohammad Rezaul Karim, and Mahbubur Rahman Chowdhury, among others, were present at the press briefing.

Before the press briefing, BSEC chief Khondoker Rashed Maqsood and three commissioners -- Md. Mohsin Chowdhury, Md. Ali Akbar and Ms. Farzana Lalarukh -- were seen escorted out of the office around 4:30pm by army personnel.

The escalation of tension and anxiety that the BSEC witnessed on Wednesday was the first of its kind since its inception in 1993.

The commission on Tuesday sent executive director Md. Saifur Rahman into forced retirement. The following morning, BSEC officials placed a four-point demand before the commission.

The demands are the withdrawal of the decision on Mr Rahman's retirement, no show-cause letters to BSEC officials based on "controversial" inquiry reports, appointment of lawyers on behalf of the BSEC to contest the case filed challenging the appoints of 127 employees, and an end to "unprofessional behavior" towards BSEC officers and employees.

The hostage situation arises when there was no response to the demands.

At the press briefing, BSEX executive director Mr. Alam said the commission had issued an order regarding forced retirement under the government service rules, not BSEC's own service rules, which was unexpected.

Moreover, a total of 15 show-cause notices had been issued to BSEC employees, based on reports submitted by the inquiry committee formed by the present commission.

Mr Alam claimed that the show-cause notices were issued with trivial accusations.

At the press briefing, BSEC director Lutful Kabir said the commission did not ensure the protection of officials when they carried out probes into suspected activities of influential market intermediaries.

Recently, a market player compelled the BSEC to stop an investigation against him by exerting pressure with support of law enforcers, he added.

According to the press release issued by the commission, the regulator had formed an inquiry committee to look into irregularities of 12 listed companies. The regulator so far received seven investigation reports. It has been undergoing a process to frame changes against some market stakeholders and some BSEC officials, based on the reports.

Besides, Executive Director Saifur Rahman was sent into forced retirement on completion of his 25 years of service following several "complaints against him".

"The [hostage] situation indicates that some unruly BSEC officers and employees created such an alarming situation as the incumbent commission took a strong position against irregularities and corruption in the capital market," reads the press release.

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