Home ›› 13 Sep 2022 ›› Front
Janata Exchange Company INC, a subsidiary of state-run Janata Bank in New York, closed its operation due to huge irregularities and scam.
Janata Exchange Company INC, USA, known as JECI, USA has counted huge loss over the last few years due to financial irregularities and scam.
The state-run bank closed the operation of JECI, USA in November last year to comply with the central bank’s instruction, said a high official of the central bank.
The Bangladesh Bank (BB) official said Janata Bank informed the matter to the central bank recently.
Bangladesh Bank Executive Director and spokesperson Md Serajul Islam also confirmed the matter. The central bank in June last year instructed Janata Bank to stop its operation of two exchange houses in the USA and Italy because they were counting loss over the years.
Then, the lender closed the operation of JECI, USA but it did not take any measures to close its two exchange companies in Italy.
The state-run lender also has four overseas branches in United Arab Emirates (UAE) - Abu Dhabi Branch, Dubai Branch, Al Ain Branch and Sharjah Branch.
Both Janata Bank Chairman and Managing Director are directors of JECI, USA.
Contacted, Janata Bank Chairman SM Mahfuzur Rahman told the Business Post, “We were forced to close the operation of the subsidiary because Federal Bureau of Investigation (FBI) of USA instructed us to close it due to irregularities of one of the employees of the company.”
Now the operation of the company is closed but the case is going on in New York, he added.
What happened in JECI, USA?
Financial discrepancies around US$603947 or Tk5.13 crore were detected in the company in February 2020.
The discrepancies came to the light when newly appointed CEO of the subsidiary took over the charge of the company in that year.
On 11 February 2020, 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.
After taking the charge, Rahman found the mismatch between the recorded fund balance and the practical fund balance by reviewing the books of account of the company.
Janata Bank is suspecting Sushmita Tabassum, an employee of the company, who has been working as telephone operator cum teller at JECI. She is now on the run, as per the Janata Bank officials.
The exchange company filed a case in New York and engaged lawyer to recover the fund.
Bangladesh Bank officials said there is no way that Janata Bank high officials including its Managing Director can escape the responsibility for the irregularities and scam.
Financial expenses of Janata Bank for JECI, USA
The JECI, USA started its operation in 01 September 2015. The company took US$8, 50,000 from Bangladesh including US$50,000 as primary cost and US$500,000 was taken as per the demand of the Federal Reserve Bank.
Not only its subsidiary Janata Bank itself became the worst bank in the country due to huge loans irregularities and scam.
At the end of June of this year, Janata Bank non-performing loans stood at Tk17263.05 crore, which is 24.91 percent of the total disbursed loans as per the latest data from the Bangladesh Bank.
