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Khandaker Ibrahim Khaled, a High Court appointed independent director and chairman of the International Leasing and Financial Services Limited (ILFSL), opined in the Supreme Court that it was very difficult to keep viable this non-bank financial institution at this stage.
He was not getting courage to bring the institution back to its normal situation. But if Bangladesh Bank takes any special scheme to save the institution then it might be possible, also opined the veteran banker.
He also said, “People’s Leasing has been declared wind up earlier. Now if the International Leasing carries the same consequence then the financial sector may collapse. Whatever the government may say, the non-bank financial condition of the country is very fragile.”
“About Tk 16.00 billion of ILFSL has been embezzled by some people. But there was no permission to look into the reasons of misappropriation of the ILFSL money and we don’t know about the last man who received the money,” he added.
To comply with an earlier order of the appellate division of the Supreme Court, former Bangladesh Bank deputy governor appeared in the court on Tuesday.
During holding hearing on an appeal petition, the apex court on February 16 this year asked Ibrahim Khaled to explain the condition of the International Leasing and Financial Services Limited in writing. It also asked an official of the central bank, not below the rank of executive director, to appear before the court at 9.00 am on February 25.
Bangladesh Bank Executive Director Md Shah Alam also appeared in the court complying with the apex court order. The executive director submitted a written statement in the court regarding the International Leasing and Financial Services Limited.
Quoting from the statement the official said they found that Tk 15.96 billion has been transferred from the institution in extra legal system against 48 accounts of various organisations related to the directors and shareholders of ILFSL.
Then the chief justice said, “We heard that only one person took Tk 35.00 billion from the company. Then is there any dodging in your tally?”
In reply the official said, “I don’t want to make any comment about the newspaper reports. PK Halder was involved with the misappropriation of the amount of Tk 15.96 billion. But we don’t have any information of misappropriation of Tk 35.00 billion from this company.”
Then the apex court asked the BB executive director what steps they had taken then. In reply Md Shah Alam said Bangladesh Bank gave dictations to ILFSL time to time. But all the dictations were not followed by the ILFSL authorities.
Following a petition filed by seven depositors of ILFSL, the HC on January 19 this year imposed ban on leaving the country of all the present shareholder-directors and the top executives of the International Leasing and Financial Services Limited (ILFSL), including much-talked-about PK Halder.
The court also directed the authorities concerned not to transfer any of their movable and immovable properties, including stock, cash-money, cars etc, to any person or entity till disposal of the case filed with the High Court in this regard.
Secretary of the Ministry of Home Affairs was directed to seize the passports of all the present shareholder-directors and the top executives of the company and to collect the detailed information of all of them the secretary was directed to inform the court within 15 days.
The High Court also appointed Ibrahim Khaled, former deputy governor of the Bangladesh Bank, as an independent director and chairman of the International Leasing and Financial Services Limited.
Later, two shareholder-directors of the ILFSL filed an appeal petition with the appellate division against the High Court order. After primary hearing on the appeal petition, the apex court on February 16 sought explanation from Ibrahim Khaled.
Concluding the hearing on the appeal petition on Tuesday, a three-member bench of the appellate division headed by Chief Justice Syed Mahmud Hossain fixed Wednesday (today) for passing order. Advocate Ahsanul Karim appeared in the court for the two shareholder-directors of ILFSL, Barrister Tanjib-ul Alam appeared for Bangladesh Bank and Attorney General Mahbubey Alam represented the state.
Advocate Ahsanul Karim said, “There were some good shareholder-directors along with the bad one. But the High Court order to freeze bank account and imposing ban on travelling also included the good shareholder-directors. Then how will they try to revive the organisation?”