BB forms high-level panel to probe hiring, layoffs at 6 Islami banks

Bangladesh Bank has formed a high-level investigation committee to examine alleged large-scale irregularities in recruitment over the past several years and the dismissal of employees from six Shariah-based Islamic banks.

The seven-member committee, headed by an executive director of Bangladesh Bank, will review controversial recruitment carried out in recent years and assess the legality of the layoffs that began after the political changeover on 5 August 2024.

The banks under investigation are Islami Bank Bangladesh PLC, Social Islami Bank PLC, First Security Islami Bank PLC, Al-Arafah Islami Bank PLC, Union Bank PLC and Global Islami Bank PLC.

The committee’s main task is to examine the transparency of the recruitment of thousands of employees during the period when the banks were under the control of S Alam Group and to determine whether the present authorities were justified in terminating them.

According to protesting employees, around 10,000 officers and staff members have been dismissed from the six banks since the change in the political situation on 5 August 2024 without specific reasons or prior notice.

On 19 April, several thousand dismissed employees staged a human chain in front of Bangladesh Bank headquarters in Motijheel, demanding reinstatement.

The protesters alleged that the so-called “purge” was carried out without due process and was entirely discriminatory.

Bank authorities, however, claimed that many appointments made between 2017 and 2024 during the period of control by S Alam Group were influenced politically and were made without any circular or competitive examination.

There are also allegations that the banks were filled with unqualified candidates from a specific area of Chattogram. The authorities said only those found to have submitted forged certificates or failed to pass minimum evaluation tests had been dismissed.

The seven-member panel has been asked to submit a detailed report within the next few weeks. Based on its findings, a decision will be taken on whether the dismissed employees will be reinstated or whether their termination will stand if recruitment irregularities are proven.