Bank governance under strain
Questions over governance, transparency and accountability at Palli Sanchay Bank have intensified following allegations of widespread irregularities in a 2024 recruitment process, including suspected manipulation of examination scripts, breach of district quotas and financial misconduct involving a senior bank official who has since received a promotion.
The allegations have emerged from internal bank sources and investigative findings, including a Bangladesh Bank inspection report on the recruitment process.
The findings have raised concerns over whether adequate safeguards were in place to ensure a fair and transparent recruitment process at the state-owned financial institution.
The allegations centre on General Manager Md Alauddin, who was appointed member secretary of a six-member recruitment committee formed to oversee the hiring process.
Despite two Senior General Managers being available at the time, Alauddin was given the key responsibility, according to documents reviewed in connection with the allegations.
Palli Sanchay Bank issued a recruitment notice, Memo No. PSB/Pub/Admin-1(15)/2022-23/1486, on June 12, 2023, seeking to recruit 492 office assistants and 72 security guards.
Based on the notice, 372 office assistants and 69 security guards were appointed in 2024.
The recruitment committee was constituted under bank Memo No. PSB/Pub/Admin-1(15)/2022-23/725, dated May 11, 2023, with Alauddin serving as its member secretary.
Allegations have surfaced of financial irregularities or illicit transactions involving an estimated Tk25-30 crore during the recruitment process, with Alauddin alleged to have played a key role. The allegations, however, require independent investigation and verification.
Bangladesh Bank findings
A Bangladesh Bank inspection report obtained in connection with the recruitment process has identified several irregularities.
The report was forwarded to the current Managing Director of Palli Sanchay Bank under Memorandum No. FICSD/2021/2025-1967, dated October 29, 2025.
According to the report, 230 candidates gave identical answers to all questions in the written examination.
Investigators also found handwriting apparently belonging to the same person on the answer scripts of multiple candidates.
Some candidates reportedly told investigators that the handwriting appearing on their scripts was not theirs.
The inspection also found an exact match between answers in the 230 scripts and material contained in a Job Solution guidebook published by Agradut Publications in the month following the examination.
The report further noted that, according to the bank’s former Managing Director, the key to the trunk containing the examination answer scripts was held by GM Md Alauddin.
Based on these findings, the inspection raised concerns that the 230 candidates may have secured recruitment through fraudulent means out of the 492 positions ultimately selected for office assistants.
The report indicated that responsibility could potentially extend to both the bank management and the candidates concerned.
Quota concerns
The investigation also raised questions over compliance with prescribed district quotas in four districts of the Mymensingh division.
According to the complaint, Alauddin was from the Mymensingh division and candidates from the region allegedly received appointments beyond the sanctioned quota.
Available information indicates that 40 people were appointed against 27 sanctioned posts across the four districts, meaning 13 appointments were allegedly made in excess of the prescribed number.
The allegations further state that Alauddin had a direct role in collecting and distributing funds allegedly generated through irregularities in the recruitment process.
Asset, money-laundering allegations
Further allegations have been raised against Alauddin over the acquisition of land and luxury apartments allegedly using money generated through recruitment irregularities.
An investigative reporter is said to have obtained information concerning a luxury apartment allegedly purchased by him in the Manikata-Bhashantek area.
There are also allegations that a substantial portion of the funds was transferred to his son, who lives in Canada, for the purpose of laundering the money.
These allegations have not been independently established and warrant investigation by the relevant authorities.
The latest allegations come against the backdrop of earlier action involving Palli Sanchay Bank’s former Managing Director Sheikh Md Jaminur Rahman.
On August 20, 2024, the Financial Institutions Division of the Ministry of Finance issued a notification cancelling the remainder of his contractual tenure.
The decision followed allegations concerning a planned counter-revolution involving officials aligned with the then Awami League government, as well as broader concerns over alleged irregularities, corruption, political influence and discrimination at the bank.
The allegations surrounding the recruitment process have now placed renewed focus on the bank’s internal controls and the effectiveness of its oversight mechanisms.
Attempts to contact GM Md Alauddin by telephone for his response to the allegations were unsuccessful as he did not answer the call.
Given the nature of the allegations and the findings cited in the Bangladesh Bank inspection report, stakeholders have called for a prompt and impartial investigation.
They say any inquiry should be conducted independently and transparently, without allowing those facing allegations to influence the process.
Such an investigation would also be important for strengthening governance, accountability and employee confidence at Palli Sanchay Bank, while establishing responsibility, if any, on the basis of verified evidence.
