Written by The Banking Post
Social Islami Bank PLC (SIBL), now under the merger process, has plunged into fresh controversy following the resignation of its founder and sponsor director Dr Md Rezaul Haque . He stepped down at 11:00 a.m. on Sunday, alleging governance failures and rule violations at the Shariah-based bank.
Rezaul Haque told that, under the bank’s Memorandum of Association, the board must have at least five directors. “In that context, the current board is no longer valid,” he said.
The Bangladesh Bank, however, dismissed the claim, saying the Bank Company Act overrides all other rules or memorandums.
“The Act does not specify any minimum number of directors. Therefore, there is no scope to declare the board void,” Shahriar Siddiqui, acting spokesperson of the central bank, told.
In his resignation letter to the chairman, Rezaul Haque accused the current board and independent directors of drawing salaries and perks in violation of banking law, while genuine founders and shareholders have been denied any benefit. He said the board’s control shifted after S. Alam Group chairman Saiful Alam Masud brought in five new shareholders in 2017, effectively taking over the bank.
“The real sponsors and old shareholders have been completely sidelined. The bank’s policy and management are now dictated by a group that puts personal interest above ethics and law,” he wrote.
Rezaul Haque, who served as chairman from June 2002 to October 2012, said he was forced to resign in 2012 under pressure from some directors. Later, under central bank supervision, the board was restructured in 2013 with eight new shareholders.
He alleged that independent directors continued to receive pay and allowances unlawfully over the past year, while founding shareholders were excluded from all decision-making. The situation, he said, had driven the bank deeper into crisis.
“Even after five years as a founding shareholder, I have no influence over the bank’s current operations,” he wrote, adding that despite being under central-bank monitoring, control has not returned to the legitimate owners.
“In this situation, I can no longer carry on my responsibilities. For the sake of the bank’s interest and my personal integrity, I am resigning,” he concluded.
