Govt to make further probe into share scam: Muhith

FE Report

The government will make a further investigation into the recent share market scam as the report of the Ibrahim Khaled-led committee has been found to be based on assumptions rather than facts, Finance Minister AMA Muhith told the reporters Saturday.

The Finance Minister said this at his secretariat office while making officially the report of four-member probe committee public.

He said the government is officially releasing the probe committee report without any kind of editing.

The probe committee was earlier formed January 26 under some specific terms of references (ToR) following a severe fall in the prices of the share prices in the stock market.

The committee submitted its 284 pages report to the government on April 7.

Mr Muhith said: "The report had been prepared, being based on some assumptions. Such a report is not sufficient to bring allegations against any foul game by share traders. We consider that it needs more detailed investigations."

He said it not desirable to go for any character assassination merely on assumptions.

He also said: "The government does not want the genuine 'culprits' to evade the laws of the land."

The Finance Minister said the government will form a task force to help translate different recommendations, made by the probe committee, into some real actions.

This task force will not only monitor and evaluate the recommendations of the probe report but also look after the restructuring process of the capital market, Mr Muhith added.

"We're expecting to announce the terms of reference and composition of the task force shortly," he added.

He said: "We do not believe the capital market regulator, Securities and Exchange Commission (SEC), had totally failed to tackle the situation."

He said there was a lack of coordination among all concerned agencies including Bangladesh Bank, the SEC and stock exchanges.

He said: "We've to stop lack of coordination. For this, we're taking institutional measures with the central bank, SEC and stock exchanges to help avert such a situation."

The Finance Minister said the probe committee had recommended to investigate further into many more issues relating to share market scam, adding: "The government is also following their instructions."

Mr Muhith said the Ibrahim Khaled-led committee identified criminal offences involving two aspects of things. "The government is following their recommendations as well," he added.

"The government has already acted upon some of the recommendations made by the probe committee and measures in other areas are also under consideration," Mr Muhith told the reporters.

He also said: "The country's stock exchanges will be demutualised shortly in accordance with the recommendation of the probe committee."

"We are making a roadmap for demutualisation of the stock exchanges through consultations with all stakeholders," he added.

He said: "We're expecting that the process of demutualisation will begin in the next fiscal."

Muhith, however, said the SEC should be restructured to bring confidence among the investors. "We're working on it."

The Finance Minister said a massive campaign is necessary to raise the level of awareness among the investors.

"This is a very risky area. Here both profits and losses can occur. For this, it needs right and prudent decisions," he noted.