BB governor quits over cyber heist

PM terms Atiur's resignation a bold decision; 6 other central bank officials removed

Atiur Rahman talks to journalists after stepping down as Bangladesh Bank governor at his official residence in the city's Gulshan yesterday. Photo: Sk Enamul Haq

Rejaul Karim Byron and Md Fazlur Rahman

Setting a rare example, Atiur Rahman stepped down as Bangladesh Bank governor yesterday amid strong criticism over his handling of the $101 million cyber theft.
Following huge pressure from the government, Atiur tendered his resignation to Prime Minister Sheikh Hasina in the morning.
“It's a bold decision. It will remain a rare example of moral strength and courage,” the PM said in her reaction.
And the events that followed Atiur's resignation shook the regulators in the financial sector. Within hours, six other central bank officials found their jobs on the line.
Meanwhile at the finance ministry, Banking Secretary M Aslam Alam lost his portfolio and was made an officer on special duty.
The government also decided to cancel the contracts with two BB deputy governors Md Abul Quasem and Nazneen Sultana for their failure to prevent the cyber theft from the BB account with the New York Federal Reserve Bank.
A finance ministry official said the ministry would ask the BB soon to remove two executive directors and two general managers of the BB.
But the names of the BB officials couldn't be known immediately.
Asked about the decision to remove the four BB officials, Finance Minister AMA Muhith told reporters that he was unaware of it.
He, however, confirmed that the contracts of the two deputy governors would be terminated.
Asked why Aslam was made an OSD, Muhith didn't mention any reasons.
“Now, he [Aslam] is going to another ministry,” said the minister at the National Economic Council after a meeting with the representatives from different NGOs on the upcoming budget.

A number of finance ministry officials said Aslam, a member of the BB board and the BB audit committee, was made an OSD as the government thinks he had failed to discharge his duties properly.
Yesterday afternoon, Atiur told reporters that he was “ready with his resignation letter” after Muhith hinted on Monday that there would be a major change in the BB management.
Atiur said he wanted to submit the resignation letter to the PM and brief her about the entire situation. But it was delayed as he couldn't get her appointment.
On Monday night, Atiur met Muhith at the latter's official residence on Mintoo Road in the capital.
At the meeting, Muhith told Atiur to resign without any delay, and that he didn't need to wait to meet the PM, said sources at the finance ministry and the BB.  
Atiur got an appointment with the PM yesterday morning and tendered his resignation to her.
The premier accepted it, and lauded his decision as a rare example of courage and honesty, reports state-run BSS.
During Atiur's stint as the governor, the BB's reserves rose to a record high and the banking services expanded, noted the PM.
She said action would be taken against the BB officials responsible for the heist.
Atiur didn't talk to the media after coming out of the PMO in the morning.
Later in the afternoon, he spoke to reporters at his official residence in Gulshan.
Atiur said he opted to quit out of moral responsibility. “I did not want the country and the prime minister to face any image crisis.”
He said he is not a “technical guy" and was “puzzled" by the theft.
Atiur said the BB took some time to understand the situation. “But more importantly, I tried to save what was left in the reserves and prevent any further damage.”
He demanded trial of the culprits -- both locals and foreigners -- following investigations.
Atiur drew flak from the government high-ups and a number of ruling party leaders for keeping the government in the dark about the cyber theft.
The finance minister was supposed to brief the media at 11:00am. But it was deferred thrice and finally cancelled.
Later in the evening, the minister said he wouldn't talk further on the issue.
Finance ministry sources said the government didn't brief the media as Atiur had already resigned.

The government decided to make changes in the top management of the central bank for two reasons: BB's failure to inform the government immediately (the PM was informed about it on March 1 and Muhith on a later date); and for the sake of a fair probe, said the sources.
The government thinks that the heist took place because of management failure in the payment system and the IT department.
If the just-formed probe committee and the new BB management recommend taking action against any BB official, the government would act accordingly, they said.
Meanwhile, the government formed a three-member committee, headed by former BB governor Mohammed Farashuddin, to probe the cyber theft.
The BB filed a case over the cyber heist, accusing several unknown persons.
Jubair Bin Huda, joint director of BB's accounts and budgeting department, lodged the lawsuit with Motijheel police under the Money Laundering Prevention Act and the ICT Act.