November 29, 2021, 5:05 am


Special Correspondent

Published:
2021-10-04 13:31:27 BdST

Question of Good Governance


When Abdul Kader Mollah is a Bank Chairman?

 When Abdul Kader Mollah is a Bank Chairman the
question come fervor of good governance.
The mismanagement of the country's financial sector, corruption and various
debates surrounding good governance are not leaving us behind. It cannot be
said that there is no effort of the concerned institutions including Bangladesh
Bank in establishing good governance. But there are endless opportunities to
question their efficiency and sincerity. If he becomes the chairman of a bank
after introducing himself as a top defaulter without taking money from a bank
and returning it! Then the general question may arise as to how safe the bank
deposit will be. And what should it be?
Why are the regulators of the financial sector failing to resolve these eye-
catching controversies? Or is there any fuck in the law? If so, it is important to
demand that the government's initiatives to amend the law be made public.
.
Abdul Qadir Mollah, one of the top defaulters in the country, has recently been
elected chairman of South Bengal Agriculture and Commerce (SBAC) Bank.
Abdul Qadir Mollah was unanimously elected chairman at the 127th board
meeting of the bank. He has been the Entrepreneurial Director of the Bank
since its inception. Abdul Quader Mollah recently replaced Amjad Hossain as
chairman of the bank after widespread allegations of money laundering,
corruption and nepotism surfaced. But the history of Abdul Quader Mollah,
who has been criticized and criticized in the history of the country's financial
sector, is also not happy. Businessman Abdul Qadir Mollah is the Chairman
and Managing Director of Thermex Group Limited, a leading garment and
textile company. His appointment as chairman of the bank has received mixed
reactions from those associated with the finance sector. Searching for
information about Abdul Quader Mollah, it is known that he has been fighting
poverty since childhood. He worked as a day laborer on someone else's land.
Immigrant workers were in search of fortune. When he returned, he took a job
as a general employee. But intoxicated with being an entrepreneur, he quit his
job and joined the readymade garment business. Builds huge groups from

scratch. This is the story of Abdul Qadir Mollah, the chairman of Thermex
Group. Not only is he a good entrepreneur, he is also well known as a giant.
Abdul Qadir Mollah, who could not take part in the higher secondary
examination due to lack of only 360 rupees, later donated a lot of money to
the education sector. He has built numerous schools, colleges and madrasas.
He has also bought buses at several universites. However, as much as he is
interested in charity, he is unwilling to repay bank loans. Danbir Abdul Qadir
Mollah's Thermex Group has become a thorn in the side of at least a dozen
banks for not repaying large loans for a long time.
The amount of bank loans of Thermex Group has now exceeded Tk 6,000
crore. About Tk 4,000 crore of this loan has gone from state-owned Sonali,
Janata, Agrani and Rupali banks. Besides, Thermex has borrowed around Tk
2,000 crore from Al-Arafah Islami Bank, Social Islami Bank, Islami Bank
Bangladesh Limited, United Commercial Bank (UCB), Dutch-Bangla Bank,
Bank Asia and several other private and foreign banks. Banks are now
worried and anxious about the recovery of this huge amount of loans.This
information has come up in the research and monitoring review of various
banks that have given loans to Thermex Group, Bangladesh Bank. It can be
seen that in the first decade of the journey, Thermex Group has developed at
a normal pace. At the same time, the bank's bank loans and business
turnover have increased in parallel. But after 2010, Thermax suddenly felt the
wind. Abdul Qadir Mollah used to borrow hundreds of crores of rupees from
half a dozen private banks, including four state-owned banks. The number of
Thermex Group industries also increased. Besides exporting readymade
garments, his business expanded to various sectors including textile, yarn,
denim and oven. He invests the loan money taken as working capital of one
organization in another organization. In this way he formed about two dozen
companies. But in the end the amount of bank loans has increased so much
compared to the size of the business that now the loan means a situation has
arisen in Lezgobar in the whole industrial group. According to statistics, the
amount of bank loans of Thermax was less than Tk 3,000 crore till 2015. At
that time the turnover of the industrial group was about 3 thousand crore
rupees. In the next five years, Thermax's debt doubled, but its business did
not grow. The loss of hundreds of crores of rupees in reverse cloth and yarn
has brought the group to the brink of collapse. The payment of bank loan
installments of Thermex Group was also irregular for three years. Almost all
the debts were on the way to default. However, thanks to the generosity of the
central bank and lending banks, Abdul Qadir Mollah has repeatedly benefited
from rescheduling. Meanwhile, the global epidemic coronavirus has hit this
year. Although the epidemic has brought disaster to the country's economy

and trade, it has been a blessing for Thermax. Bangladesh Bank has relaxed
its obligation to repay year-round bank loan installments due to Corona.
Abdul Qadir Mollah has used this opportunity to give up the policy. In addition,
it has received a low interest incentive of Tk 200 crore from public and private
banks. The group is currently lobbying for another Tk 150 crore. Bankers in
policy-making roles, including the top executives of banks lending to Thermex
Group, say they are caught in the sand by lending to Thermex Group without
any discrimination. Despite many attempts, it is not possible to collect money
from the group now. The loan amount of Thermax is constantly increasing
with the addition of unpaid interest. In contrast, the group's business situation
is deteriorating. Despite the claims of Abdul Qadir Mollah, the head of
Thermax Group, the companies of Thermax Group are on the right track.
Even in the midst of an epidemic, the group's turnover has increased. He told
Banik Barta that before Corona, Thermex Group had a turnover of Rs 4,200
crore. Now this turnover has increased to Tk 4,600 crore. I have paid the
salaries, allowances and gas and electricity bills of the employees with the
money I have received from the incentives. The rest of the money is still
deposited. Asked why he was not returning the money to the bank if the
business was good, Abdul Qadir Mollah said, "It is not that I am not giving
money at all." I am trying to pay some money. Good and bad business is
going on. At present it is not possible to return the money as per the demand
of the bank. The moratorium on debt repayment obligations should be
extended till June 2021. The existing loans have to be rescheduled.
Otherwise, everything will end in default. Although Qadir Mollah claimed that
the companies of Thermex Group are on the right track, the information
obtained from the investigation says that there is no growth in the business of
the companies of Thermex Group. On the contrary, negative growth in exports
has been observed for two years.
Thermex Group was established as an export oriented industry. Most of the
companies in this group belong to the backward linkage export oriented textile
industry in the garment sector.This figure is seen in the statistics of the hidden
export turnover of the group. According to bank and sector sources, in the
three years from 2016 to November 2020, the export turnover of Thermex
Group's yarn and textile companies did not exceed 130 million or Tk 1,100
crore. According to the Export Policy 2017-21, at least 60 percent of the
products produced by export-oriented industries have to be exported. The
remaining 20 per cent of the products are marketable in the local market

subject to payment of duties and taxes. As such, Thermax does not have the
opportunity to sell products worth more than Tk 263 crore in the local market
as against exports worth Tk 1,100 crore. Thermex Group's product exports
have been growing negatively for two years. According to the investigation, in
2016, the covert export of yarn from five factory units of Thermex Group's yarn
production and dyeing was about 59.4 million dollars. The following year, in
2019, the export of yarn produced in those five units decreased by about 16
percent. The trend of export reduction has continued this year as well. As of
November this year, the company's hidden yarn exports amounted to 41.9
million. Aduri Apparels Limited is one of the garment exporters of the group.
An analysis of the statistics of the sources related to the sector shows that
from 2016 to November 2020, the company exported an average of 45.7
million worth of garments annually. Two decades ago, Abdul Qadir Mollah joined
the garment industry by importing machines with a loan of Tk 94 lakh from
Sonali Bank. Until 2010, the banking activities of its institutions, including
import and export, revolved around the state-owned bank. At present, Sonali
Bank's loan to five companies of Abdul Qadir Mollah stands at Tk 1,250 crore.
The five companies that have taken these loans are Thermex Check Fabrics
Limited, Thermex Milanj Spinning Mills, Thermex Knit Yarn, Thermex Spinning
and Indigo Spinning Limited.
Sonali Bank is in danger with this huge loan from Abdul Qadir Mollah's
institutionsThe bulk of these loans have been created due to non-adjustment
of back-to-back LC liabilities. In the meantime, these loans have been
rescheduled in several phases. Bangladesh Bank's policy of giving loans to
the group and rescheduling it from time to time has also been neglected.
Irregularities have also come up in multiple inspections of the central bank.
But no disciplinary action was taken against Thermex Group for unknown
reasons. Earlier, an inspection report by the central bank said that a large part
of the loans given to Thermax Group were risky. The central bank has also
identified the group's debt rescheduling through the latest irregularities. In a
letter sent to the managing director of Sonali Bank on November 25, the
bank's inspection department-2 said, The defaulted loans of Thermex Group
companies have been rescheduled without fulfilling the conditions of the no-
objection letter of BRPD and off-site supervision. It was directed to take
administrative action against those involved in the rescheduling process and
those involved in providing false information to the CIB of Bangladesh Bank.
However, the Thermex Group has received Tk 74 crore from the state-owned

Sonali Bank. Sonali Bank Managing Director. Ataur Rahman Pradhan said
that the loans of Thermax Group were not given in my time. After joining
Sonali Bank as the chief executive, I asked the board of directors to repay the
previous loan without giving the group a new loan. In the meantime,
Thermax's debt has been reined in. Forced loans have been created mainly
due to non-adjustment of debt obligations. We are deciding on the group's
loan as per the instructions of the central bank. Judging by the situation, the
group had to give incentives. Another state-owned bank, Janata, owes about
Rs 1,500 crore to Thermex Group. The state-owned bank is also in danger of
recovering this loan. However, the bank had to pay another Tk 47 crore as a
new incentive.
Abdul Qadir Mollah's institutions have loans of Rs 600 crore from state-owned
Agrani Bank and Rs 350 crore from Rupali Bank. The amount of this loan is
constantly increasing due to non-payment of loan installments. Agrani Bank
has given Rs 57 crore to Thermax as an incentive. Rupali Bank has also
sanctioned Tk 52 crore, but the money has not been released yet. Agrani
Bank Managing Director said that Thermex Group is pulling the reins of debt.
Shams-ul-Islam. He said the group's business has expanded so far. Now it's
time to sort everything out. Thermax will now adjust liabilities by exporting. We
are not giving any new loan. Hopefully, the group will turn around in the post-
Corona situation. Janata Bank Managing Director Md. Agrani Bank MD
expressed his views on Thermax. Abdus Salam Azad and Managing Director
of Rupali Bank. Obaid Ullah Al Masood. The top executive of Rupali Bank said
that the roots of the culture of non-repayment of loans from banks have gone
deep. Now even good customers do not want to return the money to the bank.
Entrepreneurs doing business with reputation are also being added to the list
of willful defaulters. This cannot be allowed to continue. Like state-owned
banks, loans from private banks to Abdul Qadir Mollah's companies are on the
list of the poorest. The loans of these banks have to be rescheduled again
and again. The amount of loans from private banks to the group is constantly
increasing due to the addition of unpaid interest. Although they expressed
their concerns about the group, the top executives of these banks did not want
to be named. The top executive of a large private bank said, "I have been in
danger with Thermax's loan for five years." It has become a habit of Abdul
Qadir Mollah to pay the loan installments on the verge of becoming a defaulter
by leaning against the wall. Now in the Corona situation he is taking full
advantage of the opportunity

. Abdul Qadir Mollah, the managing director of another private bank, said he
often took pride in not taking any loans to set up five institutions. But there is
no answer as to where he got the money to do these institutions. Originally,
the current capital taken in the name of one organization was diverted to
create another organization. That's why the group's disaster has increased.
The banks that had earlier lent to Thermex Group have taken a policy of not
giving new loans. Besides, the top executives of almost all the banks have
said that they are trying to do business with the grouLike state-owned banks,
loans from private banks to Abdul Qadir Mollah's companies are on the list of
the poorest. The loans of these banks have to be rescheduled again and
again. The amount of loans from private banks to the group is constantly
increasing due to the addition of unpaid interest. Although they expressed
their concerns about the group, the top executives of these banks did not want
to be named. The top executive of a large private bank said, "I have been in
danger with Thermax's loan for five years." It has become a habit of Abdul
Qadir Mollah to pay the loan installments on the verge of becoming a defaulter
by leaning against the wall. Now in the Corona situation he is taking full
advantage of the opportunity. He has created another organization by
diverting the working capital money taken in the name of one organization.
That's why the group's disaster has increased. Abdul Qadir Mollah, the
managing director of another private bank, said he often took pride in not
taking any loans to set up five institutions. But there is no answer as to where
he got the money to do these institutions.

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