REJAUL KARIM BYRON

The new government’s finance minister got off to a controversial beginning almost immediately after taking office, with the abrupt departure of Bangladesh Bank Governor Ahsan H Mansur setting an uncomfortable tone.

During the interim government’s tenure, the then-governor had initiated several significant reforms to rescue Bangladesh’s badly damaged banking sector. But he was removed in such a way that shocked economists and observers. Mansur reportedly learned he was no longer governor from a television news ticker despite having met with the finance minister just the day before, when he was given no hint whatsoever of what was coming. People close to him say that even a small signal would have been enough for him to resign gracefully and leave on his own terms.

No one disputes that a government returning to power after two decades with a strong mandate has every right to decide who occupies the most important post in the financial sector. But the process of the governor’s removal was a bad signal that severely undermined institutional governance.

“The way it was handled completely ignored the autonomy of the Bangladesh Bank. There is a specific process for removal, and for an appointment, there should be a search committee, a shortlist, and interviews. Instead, someone was appointed within two hours without following any rules or regulations,” said Zahid Hussain, former lead economist at the World Bank’s Dhaka office.

A second controversy followed shortly after. A clause inserted into the Bank Resolution Act drew sharp criticism both inside and outside parliament. Originally introduced during

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