MD-Chairman conflict in Islami Bank

Both the chairman and managing director of Islami Bank have taken on new responsibilities. In the meantime, a conflict has arisen between the two. This conflict mainly centered on the appointment of Dr. Kamal Uddin Jasim, the additional managing director (AMD) of Islami Bank.

Dr. Kamal Uddin Jasim was appointed as the AMD of Islami Bank on September 1. Kamal Uddin Jasim has been the Deputy Managing Director (DMD) for less than a year. He was appointed AMD, surpassing at least three DMDs in terms of seniority.

There are allegations that the appointment process was completed on the sole decision of the chairman, leaving the bank's MD in the dark. This information has been revealed by sources related to Islami Bank.

Sources said that at the 372nd board meeting of Islami Bank on August 31, Chairman Professor M. Jobaidur Rahman asked to urgently bring the memo regarding the appointment of AMD. He got the appointment without any competition on the sole will of the Chairman.

However, Omar Farooq Khan, who was the managing director (MD) of the bank, was not informed about this appointment in advance. The chairman suddenly told the MD, "Bring the memo (memorandum) of the AMD appointment."

When the MD informed the board that no such memo was being presented, the chairman said, "See memo number 738."

Sources said that due to the hasty discussions, the board members did not get enough time to review the AMD appointment. As a result, the process of appointing the AMD was completed in a hurry.

A director of Islami Bank, speaking on condition of anonymity, said, "Kamal Uddin Jasim is considered qualified. That is why everyone has agreed to appoint him as AMD."

However, other directors criticized the chairman's unilateral decision to appoint the MD, leaving him in the dark. They said that it was the MD's responsibility to prepare the memo and present it to the board. He was not aware of the memo. This was not right at all.

There are allegations that AMD Kamal Uddin Jasim, having received the blessings of the chairman, does not follow the instructions of the MD. And in order to ignore the instructions of the MD, the chairman strategically gave Jasim the responsibility of the human resources department. As a result, even if an employee commits a wrongdoing, MD Omar Farooq Khan cannot take action against him. In this case, when the MD ordered AMD to take action, AMD disobeyed it. As a result, tension has started between the management authorities of the bank.

Bangladesh Bank reconstituted the board as part of the bank's reforms after the government was overthrown in a mass uprising on August 5, 2024. Md. Obaid Ullah Al Masud, former MD of Sonali and Rupali Bank, was appointed as the chairman of the reconstituted board.

But he was forced to resign after a year due to conflicting allegations and pressure from a special group. Bangladesh Bank and the Anti-Corruption Commission (ACC) are investigating him. He was also recently arrested.

Then on July 25, the bank's independent director, Jobaidur Rahman, was elected chairman. There are allegations that he tried to create his own circle in the bank by becoming chairman. He created this circle with two other directors on the board of Islami Bank. As a result, the chairman is able to approve any decision on the board with the support of those two directors.

Several attempts were made to contact with Oslami Bank chairman on his mobile phone to get his opinion on the matter, but he did not pick up the phone.

Meanwhile, Md. Omar Faruk Khan was appointed as the new MD of Islami Bank on August 3. When asked to comment on the matter, he refused to talk as he was busy.