The Bank Asia Ltd. has decided to revoke a loan worth Tk 140 crore sanctioned for the renowned paint manufacturing company, Elite Paint, after it was disclosed that the company hired a lobbyist firm to pursue the loan, official sources said.
Elite Paint, managed to get the loan sanctioned by hiring a lobbyist or consulting firm, whose chief executive, Mahbubuzzaman, is the elder brother of the bank’s additional managing director, Shafiuzzaman.
The Elite Paint & Chemical Industries Ltd. hired the Inspirigence Services Ltd. to lobby for the loan as the company fell short of the requirements to get such a big loan. A copy of the agreement signed between the companies is available with The News Times.
Under the agreement, signed by Elite Paint’s Director Shajir Ahmed and Inspirigence Services MD Mahbubuzzaman, the paint manufacturing company agreed to pay 2 percent commission to the consulting firm for loans of up to Tk 50 crore and 1.5 percent commission for loans above Tk 50 crore.
As the loan amount sanctioned was worth Tk 140 crore, the Elite Paint owed Tk 2.1 crore to the consulting firm.
Sources said the firm has already been paid Tk 45 lakh in cheques in two phases (Tk 30 lakh and Tk 15 lakh) and the remaining amount in cash, the sources said.
When contacted, Bank Asia managing director Adil Chowdhury refused to comment on the issue and asked The News Times to contact its additional managing director.
Asked, Shafiuzzaman said, “I am not involved in sanctioning the loan. We had no idea that Elite Paint hired a consulting firm to pursue the loan, as the company dealt directly with the bank. The MD of the consulting firm being my brother doesn’t mean I am involved in it.”
He also said certain quarters are trying to harm his career for reasons beyond his knowledge. The bank has already decided to revoke the loan, he noted.
Elite Paint’s Director Shajir Ahmed could not be reached for comment despite repeated attempts as his cellphone was switched off.
Md. Serajul Islam, Executive Director and spokesperson of Bangladesh Bank (BB), was not available for comment immediately.
However, another BB official, requesting anonymity, said hiring lobbyist or consulting firm to get bank loans may not be acceptable under banking rules, as loans are sanctioned on the basis of certain criteria and requirements of the clients.
He said banks are eager to invest their money in good projects. Lobbying for loan means the client has shortcomings in certain areas and chances are high that of such loan will be defaulted, he added.
