The Finance Adviser, Dr Salehuddin Ahmed, has sent a stern warning to the auditing profession, confirming that the government is preparing to take punitive action against firms that certified the financial health of five troubled banks. Speaking to the press at the Secretariat on Tuesday, following a session of the Government Purchase Committee, Dr Ahmed revealed that an intensive probe is underway to determine how these institutions reported profits while their capital bases were, in reality, being hollowed out.
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Investigative Focus: The Five Targeted Banks
The scrutiny centres on five major private lenders, many of which were previously under the control of the S. Alam Group. The government is examining the “backdrop” of share acquisitions and the validity of the financial disclosures that prompted public investment.
The institutions currently under the microscope include:
First Security Islami Bank
Social Islami Bank Limited (SIBL)
EXIM Bank
Global Islami Bank
Union Bank
Accountability for Financial Misreporting
A primary grievance of the general public is that these banks published glowing financial statements prior to the political transition on 5 August 2024, showing healthy profits that encouraged retail investors to buy shares. In reality, these banks were grappling with severe liquidity crises.
When asked if the auditors who signed off on these “fabricated” reports would face consequences, Dr Ahmed was firm. “Action will be taken against them,” he stated, adding that while the process is sensitive, the government is committed to examining the context of these audits to determine if there was criminal negligence or complicity.
Depositors vs Shareholders: The Recovery Matrix
| Stakeholder Group | Protective Status | Official Government Outlook |
| Depositors | High Priority | Guaranteed to recover their savings; a simple liability. |
| Shareholders | Complex | Status as “owners” makes compensation difficult; currently under review. |
| Auditors | Under Investigation | Face sanctions for certifying misleading financial reports. |
| Market Integrity | Under Reform | Focus on transparency and removing “artificial” profit reporting. |
Governance and Global Standing
The Finance Adviser also addressed broader issues of national governance and international perception. He dismissed recent reports by Transparency International Bangladesh (TIB) regarding bureaucratic overreach, suggesting such power shifts are historically common.
On the issue of inflation, Dr Ahmed argued that “market police” are not a long-term solution. “Governance is the primary factor. You cannot control the price of essential goods by merely stationing magistrates in markets; it requires political will and structural integrity,” he explained.
He concluded by addressing comments from nations like Nepal and Iran regarding Bangladesh’s current state, noting that while the country’s path may not be a “straight line,” the multidimensional nature of its political evolution is a natural part of national development.