Reza Mahmud :
Massive allegations found against Nurun Newaz, the Chairman of the National Credit and Commerce Bank (NCC) including loan fraud and other irregularities, but yet he continues to hold his position.
Besides, NCC Vice-Chairman Moinuddin Monem has also been accused of defaulting on loans.
Officials of the bank alleged that the central bank failing to take action despite documented misconduct. This has fueled speculation of political influence within the banking sector.
When contacted, Bangladesh Bank spokesperson Husne Ara Shikha told The New Nation on Saturday, “As per the bank company law, the central bank has no power to change private bank’s chairman. It is the board of directors who appoint a chairman of the bank.”
Husne Ara Shikha, however, said she will scrutinize the allegations against the NCC bank’s chairman.
Sources said, Bangladesh bank sent a letter signed by its Deputy Director Md. Nuruzzaman on October 14 this year to the Managing Director of the NCC bank seeking his reply over several documented allegations against several higher officials of the bank including Nurun Newaz, Sazzad Un Newaz.
Contacted, BB Deputy Director Md. Nuruzzaman admitted that he sent the letter but yet unaware over its reply saying he is no more in the same office now.
Meanwhile, Nurun Newaz could not be reached while trying several times over cell phone. He even failed to response after sending text messages in his mobile phone.
Sources reveal that Nurun Newaz and his son Sajjad Un Newaz attempted to secure a loan for Orchid LPG, a company they own, by concealing their identities.
They sought Tk 26 crore through Razzak Enterprise, a new client of the bank’s foreign branch, in a clear breach of the Banking Companies Act. Despite Bangladesh Bank being aware of the fraud, no action was taken.
Instead, Nurun Newaz was appointed chairman, raising questions about the central bank’s approval process. Allegations have also emerged of Nurun Newaz manipulating bank purchases, including the exclusive sale of overpriced ACs from his own company to the bank without tenders.
In September 2022, a loan application was made to acquire LPG machinery and working capital under the guise of Razzak Enterprise, concealing ownership ties to Orchid Energy Limited. This violation of Section 27 of the Banking Companies Act sparked outrage in the sector.
Legal experts argue that such conduct is a punishable offense, yet Nurun Newaz leveraged political connections to avoid consequences. Known as an ally of the ousted ruling Awami League, he has reportedly used his influence in the Prime Minister’s Office to shield himself from accountability.
Despite letters from the Central Bank Governor’s Office in September and October calling for an investigation, Nurun Newaz disregarded directives and secured his position as chairman during an October 28 board meeting. When some directors raised concerns, they were silenced by his associate, Khairul Alam Chakladar.
Furthermore, Vice Chairman Moinuddin Monem, whose company Igloo has defaulted on loans, continues to hold his role, adding to the bank’s governance crisis. Both Nurun Newaz and Moinuddin Monem were unavailable for comment.
