March 29, 2024, 3:58 am


SAMI

Published:
2020-03-11 16:46:00 BdST

Tk 51m found missing from US-based Janata Exchange


FT ONLINE 

Financial discrepancies amounting to Tk 51 million (US$ 603,947) have been detected recently in the Janata Exchange Company Inc (JECI) USA, a subsidiary of state-run Janata Bank, officials said.

The discrepancies came to the surface after the newly appointed CEO of the subsidiary took over the charge of the company.

On February 11, Md Mahbubur Rahman, the newly appointed president and chief executive officer (CEO) of the JECI, took over the charge from immediate past officer in-charge Sushmita Tabassum.

While taking over the charge, the new CEO initially found the mismatch between the recorded fund balance and the practical fund balance by reviewing the books of account of the company.

He informed the head office of the inconsistencies in the cash position via e-mail on February 15. The head office then instructed him to submit a detailed report after a proper investigation.

At the time of his takeover, the new CEO found only US$ 45,847 in cash while the recorded cash balance shows $649,021 in cash, denoting a cash deficit of US$603,947, according to the Janata Bank documents.

Immediate past officer in-charge Sushmita Tabassum informed the new CEO that she could not update the cash position of JECI due to her sickness and her work in preparing the year-ending account balance for 2019, according to the e-mail.

She assured the CEO of updating the cash position properly by February 22, 2020. She also gave a written undertaking in this regard to the CEO.

On February 17, 2020, Ms. Tabassum claimed to have deposited US$ 509,820 into the bank account of JECI and produced three deposit receipts dated 14/01/2020, 15/01/2020 and 21/01/2020 in the regard. But the latest bank statement of JECI did not show any such deposits as claimed by Sushmita Tabassum, according to the e-mail.

On February 18, Md Mahbubur Rahman and Sushmita Tabassum met with the assistant manager of Hab Bank, Jackson Heights branch, the banker of the JECI, showed him the deposit receipts and wanted to know why the money was not shown on the bank statement.

The assistant manager of Hab Bank said there were no records of the money in their accounts and that they would inform the JECI of the issue after an investigation.

On the same day, Sushmita Tabassum lodged a written complaint with the head office of the Hab Bank, the e-mail reads.

After receiving her complaint, the Jackson heights Branch of Hab Bank called a meeting with Ms Tabassun on February 21 and after the meeting told her that an investigation report will be sent to her through e-mail by February 25, 2020.

On the same day, the head office of the Hab Bank informed her that they conducted an investigation and examined the transaction records but they found that no money was deposited in the relevant bank account on the dates mentioned in the receipts.

So, the claim of depositing the money is not acceptable to them and that is why they have closed the matter, according to the Janata bank documents.

The board of directors of the Janata Bank has now decided to appoint a lawyer in the USA to recover the money.

The board also decided to address all other relevant legal issues, including reporting the matter to the competent regulator in New York as per the advice of the lawyer.

Besides, the bank has already informed the financial institutions division and the central bank of the matter, seeking their necessary guidance and advice.

A Janata Bank official said, "We have instructed the current president and chief executive officer (CEO) of the JECI to appoint a lawyer."

When contacted, CEO and Managing Director of the Janata Bank Md. Abdus Salam Azad said the matter is under investigation.

"There is nothing to say about the issue right now and we will be able to know about it after completion of the investigation," he added.

There are three exchange companies of the state-owned Janata bank. They are Janata Exchange Co. SRL, Milan Branch, Italy, Janata Exchange Co. SRL, Rome Branch, Italy, and Janata Exchange Company Inc. USA.

JECI USA started its operation in 2015.

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