Allegations of Mismanagement in Banking Training Fund

Four senior officials of Bangladesh Bank are under scrutiny over alleged irregularities in the disbursement of the Small and Medium Enterprise (SME) training fund. Sources indicate that BDT 2 billion (approximately USD 20 million) was withdrawn in cash under the pretext of foreign training programmes. However, reports suggest that the funds were never transferred abroad and were allegedly distributed among the officials themselves.

Under project guidelines, any funds allocated for overseas training must be processed through official government banking channels with proper documentation. A recent report reveals that the officials bypassed this process and withdrew the cash directly. Multiple senior executives at the central bank have confirmed details of the alleged irregularities.

Officials Involved and Training Details

With approval from top management, four officials participated in training programmes across five countries over a two-month period. Their names, positions, and travel details are summarised in the table below:

Sources claim that instead of processing the funds through the Forex Reserve and Treasury Management Division, the officials withdrew cash and allegedly distributed it themselves. The Accounts and Budget Department has initiated an internal investigation into the matter.

Bangladesh Bank spokesperson Arif Hossain Khan stated:
“The withdrawals were carried out with top management approval. However, standard procedures for transferring funds abroad were not followed. The officials have claimed that all arrangements were managed through third parties. We will examine all allegations thoroughly.”

Background of the Training Fund

The fund was established in 2017 under the SME Development Project-2 (SMEDP-2) Refinance Scheme, with a total allocation equivalent to around USD 24 million. Its primary aim was to provide low-interest loans to rural and urban small entrepreneurs and promote employment. The initial project concluded in 2024, and a fresh allocation of BDT 12 billion was set aside in 2025.

A summary of the fund’s utilisation is provided below:

So far, the four officials have not commented directly; all statements have been issued through the bank’s spokesperson.

This incident has raised serious concerns regarding fund management and transparency at Bangladesh Bank, and the ongoing internal investigation is being closely monitored, as its outcomes may have significant implications for governance and accountability within the institution.