Muhith hints at further reform in BB


Finance minister AMA Muhith on Wednesday hinted at further reform in the Bangladesh Bank saying the atmosphere at the central bank was not ‘healthy’.

He said process has started with the removal of two BB deputy governors.

Muhith was talking to reporters one day after Atiur Rahman on Tuesday stepped down as the governor of the BB over the theft of $101 million from the country’s foreign exchange reserve.

Abul Quasem and Nazneen Sultana who looked after the BB administration and IT respectively as deputy governors, were fired later on the day.

Muhith said appointment of new deputy governors would take time.

He said his personal opinion was that BB needed big reforms of its different systems.

He said the inquiry committee appointed by the banks and financial institutions division will come up with recommendations for reform.

Former BB governor Farashuddin Ahmed will probe the theft of $101 million from the BB reserve in the US Federal Reserve by the suspected Chinese hackers.

The committee has been asked to examine how the payment instructions from the BB went to the Federal Reserve in New York.

Muhith said he might meet with the inquiry committee members in the next two days.

He said the reform process will intensify with the the new governor taking over charge of the BB.

Former finance secretary Fazle Kabir, who has been named as the new governor, is likely to join the BB in the next week.

Muhith said the appointment Rakesh Astana, managing director and CEO of World Informatix, a U.S.-based cybersecurity firm, to investigate into the BB reserve theft, would be reviewed.

He said the new governor would review the appointment.

The government also made banks and financial institutions division secretary M Aslam Alam officer on special duty (OSD) on the eventful day.

Muhith defended the government decision saying Aslam should have known of the incident. Unfortunately, he did not know anything about the incident.

The theft of the BB reserve took place on February 5 while Atiur informed Muhith about the incident on March 7, after the incident had already grabbed the headlines in local and foreign media.

source : the new age

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