Course Code: EEE 404

Course Name:
Engineering and Professional
Ethics
Topic Name:
Basic Bank Scandal

Submitted by:
Group No : 07
Group Members:
Mowsumi Bhattacharjee
#ID: 2011-1-80Abu Sayed
#ID: 2011-1-80Zuwel
#ID: 2011-1-80Golam Mostafa
#ID: 2011-1-80-

Outline
Background information
What Happened?
Analyzing the case with the theory
of ethics
Conclusion
Reference

Background Information

BASIC Bank is a government ruled commercial bank

The chairman of this bank sanction loan violating
bank rule.
The chairman of the bank was involved in corruption
with different companies issuing loan without proper
documents
The amount of money he sanction is about TK.6000
core.
Name of the Chairman of the
Board

Mr. Sheikh Abdul Hye Bacchu

Name of Managing Director

Mr. AKM. Sajedur Rahman

What Exactly Happened

The Chairman,MD and board member of Basic
Bank involved in sanctining loan about TK.6000
without peoper document

About TK.3500 core was given in breach of

banking rules and regulations.

Different companies produced fake documents

and negotiated with band office

Case Analyzing Using The

Theory of Ethics
Virtue ethics-

Honesty:
MD and board members of Basic Bank took bribe for
approving the fake loan.

The chairman and the officials knowingly grant loan

aganist the fake document.

Many iligial industries produced fake documents and

fake loan to Basic bank which do not exit.Therefore,
there were lack of honesty from both of the sides.

Case Analyzing Using The

Theory of Ethics (Cont.)
Truthfulness:
Managing Director of state-owned BASIC Bank Limited

Kazi Fakhrul Islam approved fake loan to fake named

industries.
He has been sacked by the central bank for his alleged
involvement in corruption after the proper
investigation. Therefore,he was not agreed to accept
the complain on him.
Basic Bank officials approved the loan aganist the fake
documents. So both are failed to maintain truthfulness.

Case Analyzing Using The

Theory of Ethics (Cont.)
Integrity, Responsibility, Professionalism Basic bank produces fake documents in an unprofessional

way by bribing and producing fake documents, failed to

maintain their moral integrity.
Basic bank did not consider the future consequences of this
fraudulent act.
It was their responsibility to keep minimum information
about a group or industries which they are going to give
loan but they didnt do that. and it shows serious lackings of
responsibity.
After police case and before the hering of court basic bank
pays his loan surprisingly. Hence clearly the task was
unethical.

Case Analyzing Using The

Theory of Ethics (Cont.)
Utilitarianism
Benefit:
The board of chairman and board of directors officials took illegal
bribe.
Many industries took false loan after that they change their local
offices.
Cost:
Banking reputation falls, the Director has been sacked by the central
bank
Basic bank lost the interest of clients, and other bank partnerships.
The original enterpreneurs didnot got loan from the Bank.
Basic Bank created liquidity crisis. So, the Basic bank Bank officials
and companies violated the ethics of act.

Case Analyzing Using The

Theory of Ethics (Cont.)
Duty ethicsBasic Bank:
Established fictitious companies.
Officials did not resist MD and Board of directors and chairman
about fake loan.Even did not consider reputation of the bank.
Branches didt provieds loan through customers got loan above 75
core.
The distance of a brance of basic bank and the compains was not
so far but before givinga big amount of loan Basic bank did not
feel the necessity to examine the company office.
By the rules of Bangladesh bank there are some conditions that
have to be fulfillied by the customers for further judgement but
basic bank did not hold anything.

Case Analyzing Using The

Theory of Ethics (Cont.)
Bangladesh Bank
Fault of government and strong lacking of bangladesh
bank for not taking any steps to prevent.
Did not report the case to superior authority.
Did not look after on the activities of basic bank in
order to ensure a proper banking system.

Case Analyzing Using The

Theory of Ethics (Cont.)
Rights ethics:
Violated Bangladesh Banks rights of getting true

documents
The country and its clients has right to know about
what's going on in it and to know the truth & proper
information from the company.
The employees were betrayed.
Violated account holders rights of safety of money .

Case Analyzing Using The

Theory of Ethics (Cont.)
Conclution:
From the above four theories, it is seen to us that Basic Bank

has

done illegal and unethical works.

The Bank has done a dishonest job for a long period of time
without being aware of the future impact.
This dishonest job hampered the image of their own bank and
banking system of country.
Bangladesh Bank authority sued Basic Bank for recovering money
and before the hering of court, basic bank pays his loans
surprisingly.
Almost all of the money was supposed to be smuggled to abroad by
the high authority of basic bank.
Thus Basic bank scandal is till now under in police judegemnet.