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UNFPA report says

By Staff Correspondent
The government suspended all activities of the Bangladesh Commerce and Investment (BCD Ltd on Wednesday with Immediate effect, official sources said.
Bangladesh Bank Issued the order under the directive of the Finance Ministry and asked the company authorities to suspend activities of all the 24 branches.
Earlier. Bangladesh Bank engaged an audit team to investigate the accounts of the banks
BCI. a non-banking lending institution, was functioning as a Commercial bank violating the banking rules, a Finance Ministry official said.
Meanwhile, none of the
other 17 wanted directors of the company was arrested till late Wednesday night.
Ort Tuesday the government lodged a complaint with the court of the Chief Metropolitan Magistrate against BCI for Ilk-gal banking transaction and the CMM issued warrants of arrest against all the 19 dlrcc-. tors of the institution.
Two of the directors were arrested and detained )n Dhaka Central Jail on Tuesday.
The collapsed BCI borrowed about Taka 200 crore from lenders and Investors of which it made advance to the tunc of Taka 180 crore without keeping statutory reserve and Bangladesh Bank security, the central bank sources said.
Informed sources said that the lending, institutions like BCI must keep six per cent in liquid cash and 18 per cent in treasury bill with the Bangladesh Bank.
But the* BCI never followed, that rule and neither the-Bangladesh Bank dor the Finance Ministry took any action against the company earlier. it is alleged.
When contacted over telephone Finance Secretary said that the Ministry was wafting for the audit report of Bangladesh Bank to take fur thcr steps.
I don't know the extent of anomalies the BCI has made, the Finance Secretary said adding that "this will not affect our normal banking functions."
Earlier yesterday morning, the BCI account holders demonstrated in front of Its head office, according to UNB.
A contingent of police has been put on guard near the BCI head office at Tarango Complex in Motijheel Commercial Area