BSEC Still Under Awami Grip

• Most of the 13 Promoted Directors Were Active Workers of the Banned Political Party

Hasan Sohel

The Bangladesh Securities and Exchange Commission (BSEC), the stock market regulator, has promoted an unusually large number of officials from the Awami camp to director posts. Despite various allegations against them, the current commission promoted these Awami cadre associates to director posts on September 1 without any proper screening. Most of the 13 officials who received promotion were active workers of the now banned political party.

Earlier, 19 other officials also received promotion from deputy director to joint director posts. Many of them face allegations of involvement in Awami politics and abuse of power. However, BSEC Chairman Mr. Masud Khan told Inqilab that as far as he knows, the promotion committee reviewed everything properly before granting the promotions, and that the committee likely would not have recommended the promotions if it had found irregularities.

According to sources, irregular practices began after Mr. Khairul, Mr. Nizami, Mr. Arif Khan, Mr. Abdus Salam Sikder and Mr. Amzad Khan took charge of BSEC in 2011. Mr. Khairul and Mr. Nizami, described as associates of the Awami fascist camp, ignored proper rules and appointed people of their choice to grade 5 deputy director posts in 2012.

Four departmental candidates, Mr. Md. Yousuf Bhuiyan, Mr. Md. Hossain Khan, Mr. Md. Wahidul Islam and Mr. Hafiz Md. Harunur Rashid, applied for the deputy director posts. All four held the rank of assistant director at the time of their application. Although they ranked lower than other assistant directors on the merit list, they still secured the higher posts.

The post required a master’s degree in accounting, finance, management or statistics, along with six years of experience in a first class government or autonomous body post, or as an executive in a private financial or commercial organization. An investigation found no gap in their academic qualifications, but found a significant gap in their required experience.

To cover this gap, the four candidates resorted to serious fraud. With the help and direct involvement of the Khairul Nizami commission, and at the regulator’s own request, they collected fake experience certificates from various organizations and used these certificates to apply for the deputy director posts.

Some submitted experience certificates from brick kilns, some from rod and cement shops, and some presented third class jobs as first class jobs. The Khairul Nizami commission accepted these fraudulent experience claims and also allowed unfair means in the written and oral exams, giving these four candidates top marks and placing them high on the merit list.

At the same time, the Khairul Nizami commission asked other assistant directors, who ranked higher in merit and seniority, to submit similarly fake experience certificates. When these senior officials refused to take part in this fraud, the commission later denied them promotion. The affected officials filed a case in the High Court, but the Khairul Nizami commission, with support from the then authoritarian Awami government, got that case dismissed as well.

The irregularities did not stop there. The Khairul Nizami commission used the same method to appoint Mr. Abul Kalam Azad, a known associate of the Awami fascist camp and former vice president of the Bhashani Hall unit of Chhatra League at Jahangirnagar University, to a deputy director post through fake experience certificates.

On September 23, 2022, Mr. Azad laid wreaths together with Mr. Tariqu Zzaman, former managing director of Dhaka Stock Exchange and former BSEC commissioner, and Mr. Anwarul Islam, current executive director of BSEC, at Sheikh Mujib’s shrine in Tungipara. In 2024, Mr. Azad took two straight months of leave from office to campaign for the Awami League in what critics call its farcical election, and took part in the campaign.

Government service rules treat this kind of political activity as misconduct, yet Mr. Azad continues to serve without consequence. He draws his power mainly from the protection of current executive director Mr. Anwarul Islam and Mr. Monsur Rahman. He also reportedly harasses other staff members.

With backing from Mr. Khairul, Mr. Nizami, Mr. Anwar and Mr. Monsur, Mr. Azad allegedly behaved badly toward both junior and senior colleagues while serving as deputy director in the administration department. He was also known as a close associate of Mr. Chowdhury Nafiz Sharafat, one of the country’s top money launderers during the Awami government.

Through this connection with Mr. Sharafat, Mr. Azad reportedly helped his wife secure a post as investment officer at the then Bangladesh Investment Development Authority, formerly BIDA, using the same fraudulent method. In addition, Mr. Delwar Hossain, a direct student of Mr. Khairul Islam and younger brother of a former Awami League ward commissioner in Mohammadpur, Dhaka, along with another student of Mr. Khairul named Mr. Kawsar Ali and Ms. Umme Salma, who works at Premier Bank, also received posts through similar fraudulent methods under the Chhatra League quota.

Ms. Umme Salma reportedly failed her written exam during recruitment but was passed using grace marks and given the job. Many staff members quietly discussed these irregularities during the Awami fascist government’s rule, but no one dared to speak openly.

Sources say a total of 19 deputy directors were appointed in 2012. After the fall of the Awami fascist government, the Anti Corruption Commission (ACC) took notice of these fraudulent written and oral exam appointments at BSEC and began an inquiry.

On August 27, 2024, ACC Deputy Director Mr. Mustafizur Rahman summoned these officials along with necessary documents to appear before the ACC on September 8, 2024. They later appeared again on another day. However, for mysterious reasons, this investigation never moved forward.

It is widely believed that these officials have already managed to influence the ACC. They also hold large amounts of illegal wealth, earned through various lucrative departments during their service. All of them enjoyed strong trust from Mr. Farhad and Mr. Saifur Rahman, two influential former executive directors, as well as from Mr. Monsur Rahman, the current executive director for administration and finance.

Despite all these allegations, the current commission promoted these Awami fascist associates to director posts on September 1 without proper screening, even though it was aware of the allegations. Members of the selection committee formed for the promotions received full records of these officials but did not consider any of the allegations.

Even though the fraudulent recruitment of these officials remains under investigation at the ACC, the commission granted promotions without seeking any clearance or report from the ACC or any other agency. Government service rules require officials to obtain clearance from the ACC or another relevant agency before receiving a promotion, but this requirement was also ignored in this case.

Mr. Monsur Rahman, the current executive director for administration and finance, and Mr. Nazrul Islam, a joint secretary from the administration cadre serving on deputation as commission secretary, played the key role in pushing through these promotions. Chairman Mr. Masud Khan and several other commission members reportedly did not want to approve the promotions because of the allegations.

However, following intervention by these two officials, Chairman Mr. Masud Khan and the commission eventually approved the promotions for these officials accused of fraud and corruption.

Meanwhile, although other officials received their promotions, Mr. Abul Kalam Azad has not yet been promoted. He is reportedly waiting for another director, Mr. Sheikh Mahbub Ur Rashid, to be promoted to executive director. Once Mr. Rashid becomes executive director, Mr. Azad is expected to receive his promotion to director as well.

Several BSEC officials expressed frustration, saying that Awami League loyalty still dominates the institution. They said the capital market stands on the brink of collapse. They alleged that these associates of Ms. Sheikh Hasina now sit inside BSEC and are working to create instability in the country through the capital market.

They noted that these officials have already been placed in several important departments through their promotions, which is why Awami fascist era policies continue to shape BSEC’s operations.

Several BSEC officials also said the Masud Khan commission itself now appears to operate under the shadow of Mr. Khairul and Mr. Nizami, both associates of the Awami fascist camp. They said Chairman Mr. Masud Khan, who recently took charge, along with the entire commission, appears helpless against this fraudulent network.