Great Rumor In Bangladesh 8

A stalwart of Bangladesh's ruling party, who is also the principal accused in a high-profile murder case, is alleged to have forcibly taken control of a bank five years after he was ousted from its board on charges of defalcation and irregularities.

Akhtaruzzaman Chowdhury Babu, the industry and commerce secretary of the Awami League and a close confidant of the prime minister, Hasina Wajed, yesterday declared himself the new chairman of the United Commercial Bank Limited (UCBL), a leading private sector bank.

Mr Babu insisted that the bank's directors had resigned voluntarily. But the former chairman, Zafar Ahmed Chowdhury, speaking from a hideout, told Ittefaq newspaper that the directors were forced to submit their resignations at gunpoint after being assaulted by hired thugs.

According to eyewitnesses, some 40 armed men led by Mr Babu stormed the bank's headquarters in Dhaka on Thursday and forced their way into the boardroom, where the directors were meeting. Police ignored directors' pleas for protection, according to the ex-chairman, Mr Chowdhury.

The bizarre episode has further eroded public confidence in the banking sector. "The incident has dealt a serious blow to Bangladesh's efforts to integrate into the global economy at a time when we're gradually restoring our credibility in the financial world," said Wahiduddin Mahmud, professor of economics at Dhaka university.

Mr Babu was the principal accused in a sensational murder case six years ago when a business rival and fellow UCBL director, Humayun Zahir, was killed. To escape arrest, he fled to the United States, returning home after the Awami League came to power in 1996. He is on bail.

The judge in the murder trial shocked observers early this month by referring the case to a higher court instead of delivering judgment.