UCB asks 40 officials to resign

United Commercial Bank PLC has asked 40 senior officials to resign amid allegations of corruption and professional misconduct.

Half of these officials held branch manager roles, while the others were responsible for overseeing crucial operations at the bank’s headquarters, UCB officials said.

They have been informed that failure to resign voluntarily could lead to termination, impacting their access to benefits.

Therefore, most of them immediately resigned on Thursday.

This action has fuelled widespread concern among UCB staff, as over 100 employees are reportedly on a list slated for removal.

UCB has faced allegations of mismanagement under the influence of the family of the late Awami League leader Akhtaruzzaman Chowdhury, who wielded significant control over the bank’s operations for years.

Previously, UCB’s board included representatives from Partex Group and Akhtaruzzaman’s family, but this changed in 2017 when Akhtaruzzaman’s son, former land minister Saifuzzaman Chowdhury, leveraged his government connections to oust Partex representatives and consolidate control within his family.

He appointed his wife, Rukhmila Zaman Chowdhury, as chairperson of the bank.

They had allegedly taken out significant amount of money from the bank through names and anonymous names.

Both were accused of amassing huge assets at home and abroad, leading the bank toward severe crisis due to mismanagement and embezzlement.

In a recent report, the Criminal Investigation Department detailed that between 2016 and 2021, Saifuzzaman acquired 620 properties across the US, UK and UAE, valued at roughly $48 million.

Rukhmila allegedly acquired two luxury flats in Dubai’s Al Barsha South-3, with an estimated cost of 22,500,300 dirhams.

Following the downfall of the Awami League-led government in August, the Bangladesh Bank restructured UCB’s board, thereby removing it from the influence of Saifuzzaman’s family.

With the change in political landscape following prime minister Sheikh Hasina’s departure, the central bank appointed Ananta Group’s Sharif Zahir as new chairman, while former deputy managing director Mohammad Mamdudur Rashid stepped in as the bank’s new managing director.

The restructured board subsequently enlisted independent auditors to assess the bank’s actual financial condition.

This overhaul mirrors similar steps taken by other banks previously influenced by politically connected business groups.

On November 1, Social Islami Bank dismissed 579 assistant officers reportedly appointed under the influence of S Alam Group.

Bank officials confirmed that these appointments were made without job notifications or recruitment exams, and their documents were not verified.