Bank insiders indicate that most employees impacted by recent decisions were hired between 2017 and August 2024.
Islami Bank Bangladesh has laid off 200 employees, while simultaneously designating 4,771 individuals as “Special Service Officers” (OSDs).
A senior official explained that initially, 4,971 employees were placed on OSD status to bypass an examination. Subsequently, 200 employees were dismissed due to alleged violations of Service Rules. Those designated as OSD will still receive salaries and allowances, but they won’t have any responsibilities or active roles.
The special competency test took place on September 27 under the guidance of the Institute of Business Administration (IBA) at the University of Dhaka. Out of 5,385 employees, only 414 were told to attend the exam, yet most of them chose to boycott it.
Insiders mentioned that many of those affected were recruited during a period lacking open announcements or competitive exams. Rather, recruitment applications were funneled through SALAM’s offices and Dropbox in Chattogram.
Over 7,200 individuals were reportedly hired from Chattogram, with around 4,500 from Patiya. The bank’s statement revealed that about 2,500 employees had submitted degrees from institutions like BGC Trust University and Port City International University, but some were found to have provided fake certificates, leading to disciplinary actions.
Earlier, on August 29, the bank had announced a competency test, coinciding with a group of employees filing a warrant petition in court on August 27 to nullify it. The court later directed Bangladesh Bank to oversee the process.
In response, Bangladesh Bank asserted that issues regarding recruitment, retention, and evaluation ultimately fall under the Islamic bank’s authority.
Following this, the exam date was reset to September 27. Bank officials indicated the necessity for accountability, especially given the widespread allegations of irregular recruitment influenced by SALAM.
Aliyev Hossein Khan, an executive director and spokesperson for Bangladesh Bank, mentioned that while regulators aren’t directly involved, there are significant concerns about past recruitment processes and the recent firings linked to the assessment.
After the Awami League government fell following a student-led uprising on August 5, Bangladesh Bank intervened to diminish Alam’s control over Islami Bank and appointed a new board. This new management initiated competency testing for all levels of executives.
Internal reports suggest that the SALAM group has apparently siphoned off TK1.31 Larkcroix from Islamic banks through various tactics, plunging lenders into a financial quagmire. These staffing reforms appear to be a part of a larger strategy to regain trust and stability within the nation’s leading Sharia-compliant bank.
