The way Sonali Bangladesh UK officials bent the rules

Highlights

• Sonali Bangladesh UK Limited is a subsidiary of Sonali Bank
• Controlled from Dhaka with a board based there
• It has 24 employees – 5 from Dhaka, rest UK permanent residents
• Established in 2022 after restructuring Sonali Bank UK Ltd
• Irregularities concerning posting officials surfaced

Two officials were posted at Sonali Bangladesh UK Limited from Dhaka, a subsidiary of Sonali Bank, four years ago, but both left their jobs earlier this year after obtaining permanent resident status in the UK – one in April and the other in June.

Despite this, both have now been reappointed as foreign workers at the same branch.

According to the Financial Institutions Division of the Ministry of Finance sources, explanations were demanded from Sonali Bank's managing director, Afzal Karim, in early July regarding these appointments. However, Sonali Bank has yet to provide a response.

Allegations of irregularities have also been raised regarding the posting and appointment of officials at other foreign branches and representative offices of Sonali Bank.

Officials say these issues have been disrupting operations of the bank and causing financial losses.

Sonali Bangladesh UK Ltd is a subsidiary of the state-owned Sonali Bank, controlled from Dhaka. The bank's CEO and four other officials are appointed from Dhaka, while the rest of the staff are UK permanent residents. The board of directors is also formed in Dhaka.

According to Sonali Bank sources, Farzana Haque, an assistant general manager at Sonali Bank, voluntarily resigned from her position at Sonali Bangladesh UK Limited, with her resignation taking effect on 1 April. Similarly, Senior Principal Officer Suja Uddin Al Reza resigned from the UK office on 26 June, with his resignation effective from 1 July.

Both are now employed in the same positions at the bank in the UK as permanent residents of the country, sources say.

A Sonali Bank human resources official said employees posted to the UK from Dhaka are allowed to bring their families, including spouses and children, to support their duties.

Sonali Bank covers their travel and accommodation expenses, and the postings last for at least three years. Attempts were made to contact Sonali Bank's managing director Afzal Karim for comment, but no response was received.

A senior official from Sonali Bank's head office, speaking anonymously, claimed that some officers are exploiting their permanent residency status in the UK after being posted there, which he deemed unethical.

He noted that the most significant issue is that these officers are then reappointed as foreign workers.

He also pointed out that other foreign branches of Sonali Bank are not adhering to proper posting rules, with officers close to top executives, including the managing director, often receiving these posts.

"As a result", he said, "these officers prioritise their own benefits over the bank's interests, leading to financial and operational losses for the bank."

When asked about this, Sonali Bank General Manager (Personal Division) Md Safayet Hossain Patwary told TBS that employees can resign according to employment rules, and their resignation applications should be accepted if there are no objections.

However, he added that in light of the situation, some changes to the posting or recruitment rules at Sonali Bangladesh UK Limited are being considered.

In addition to Sonali Bangladesh UK Limited, the bank has branches in Kolkata and Siliguri, India, and representative offices in Jeddah and Kuwait.

The senior official raised concerns about non-compliance with posting rules at these branches and offices.

He alleged that a former managing director appointed his two unqualified nephews to positions in Jeddah and the UK.

"Although the current managing director has been verbally informed by the human resources department about this issue, he has taken no action and has allowed them to remain abroad," he said.

Excess manpower, financial pressure 

Sources say that Sonali Bank UK Limited was restructured into Sonali Bangladesh UK Limited due to financial losses over the years. Based in London, the company provides trade finance support to the Bangladeshi community there.

Sonali Bank's head office and Wage Earners Branch have deposited $58.76 million with this institution. Despite repeated requests from Sonali Bank, which is facing a foreign exchange crisis, the funds have not been returned. Deposits are being renewed compulsorily at 3.50% interest, as per sources.

In 2023, the subsidiary reported a profit of £1.9 million. However, sources indicate that the overall lack of skills and sincerity among officers is placing financial pressure on Sonali Bank.

According to Sonali Bank's Human Resources Department, Sonali Bank UK Limited was established in 2001 with a staff of 24 employees. The company consistently operated at a loss, leading to its closure and the launch of Sonali Bangladesh UK Limited in August 2022.

One reason for the losses was the excessive manpower structure, which remained unchanged. The new entity does not engage in deposit collection or investment but only coordinates foreign bills and bonds, people concerned said.

Currently, 24 employees work there, with plans to send two additional officials from Dhaka. On 13 May, the Financial Institutions Division conducted interviews to appoint these two new officers.

People concerned say Sonali Bank's foreign branches and representative offices are often more occupied with providing protocol services for senior management, board members from Dhaka, and Ministry of Finance officials during their visits than with banking operations.

Additionally, Sonali Bank operates another entity in the UK called Sonali Pay, which was licensed as a remittance house in 2022. The company employs five people and continues to operate at a loss.

The initial capital of £1 million has been depleted on salaries and other expenses. Sonali Pay has since requested an additional £1 million in capital. Sonali Bank has submitted a proposal to the Bangladesh Bank to seek approval for this additional funding, according to sources.