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Catholics unite for rescue mission at graft-tainted Bangladeshi cooperative

Organization set up by missionary in 1956 is facing crisis over massive corruption and fund embezzlement
Catholics unite for rescue mission at graft-tainted Bangladeshi cooperative

Catholics gather for a meeting to discuss ways to rescue graft-tainted Christian Cooperative Thrift and Credit Union in Chittagong city on Sept. 18. (Photo supplied)

Published: October 04, 2020 03:20 AM GMT
Updated: October 04, 2020 03:33 AM GMT

Newton Biswas almost lost hope of retrieving his money deposited at a Christian cooperative in southeast Bangladesh's Chittagong city after failed attempts for nearly a year.

Biswas, 44, a Catholic father of three daughters, has 392,000 taka (US$4,612) in his savings account with the Christian Cooperative Thrift and Credit Union.

“About 10 months ago, I wanted to withdraw some money but they declined, telling me that it was not possible to provide cash right away. Then I faced a crisis as my second daughter had been seriously sick and I wanted to take her to India for better treatment. I sought to withdraw 200,000 taka from the account, but they refused again,” Biswas, an employee under a project of the Leprosy Mission International, told UCA News.

After months of dillydallying, the board issued a check worth 380,000 taka. As he went to the bank to cash in, the check was dishonored as there was no money in the bank.

Frustrated, Biswas filed a case over check forgery against office manager Probal Dio about two months ago, but there was no headway.

“I kept hearing rumors about massive corruption and fund embezzlement, and later I found out these rumors to be true. There are no funds in the cooperative and it has become bankrupt,” he said.

Biswas is one of thousands of frustrated members of an organization facing an existential crisis over massive corruption and fund embezzlement.

The cooperative was set up in 1956 by Catholic Holy Cross missionary Father Henry Paul Obet, who aimed to develop a savings mentality among the local Christian community where Catholicism arrived in 1518.

By 2019, the cooperative had 3,900 members, mostly Catholics from three parishes — Our Lady of Holy Rosary Cathedral Church of Patherghata, Church of the Immaculate Conception of Jamal Khan and Miriam Church of Diang. Total movable and immovable assets stood at 230 million taka.

However, in March an audit team from the Cooperative Credit Union League of Bangladesh (CCULB), an independent apex body of cooperatives in Bangladesh, found massive corruption and fund misappropriations in the organization.

The report concluded the society has run while literally bankrupt and accused office manager Probal Dio as well as current and previous board members of massive corruption including fund embezzlement, loan defaulting and withdrawal of fake loans. It also alleged that the current board led by Pinto Leonard Dias made no efforts to bring back embezzled money and instead collaborated with manager Dio in anomalies.

The allegations of corruption and bankruptcy made headlines in several national media outlets, causing a storm on social media as well as protests and division among the Christian community in Chittagong.

Fight for justice

While individual members like Biswas filed fraud cases, a group of aggrieved members formed a forum called The Movement for Rescue of the Christian Cooperative Thrift and Credit Union to fight for justice and revival of the organization.

On Sept. 18, the forum held its first meeting with 360 members and representatives at Chittagong Catholic Archdiocesan Center. An open letter detailing the current state of affairs with the organization was read out and presented at the gathering. A seven-member convening committee was formed and representatives were selected with approval from participating members.

A Facebook group has been opened to share thoughts, plans and updates on the activities of the forum with members.

“We had a gathering of 360 members but they also represented their family members who are also members of the organization. Many couldn’t come due to restrictions over Covid-19. Their reaction is the same — they want their money back no matter what it takes,” Hubert Bepari, a Catholic and leader of the movement, told UCA News.

“Earlier, we had no forum and we acted individually and verbally. Now, we are stronger and united. We can hope for success.” 

Next week the forum will hold another meeting with area leaders and representatives to discuss and implement an agenda including lobbying with government officials, pressure on the board and mobilizing more members, he added. 

Following the formation of the forum and consequent pressure, the current board of the cooperative filed several cases against manager Dio, office staff and previous board members.

Lobbying has continued with local officials of the Cooperatives Department while a probe is underway.

“Last month we submitted a letter to the government and cooperatives officials asking to get hold on all movable and immovable assets of the society, and also to confiscate the passport of manager Probal Dio so that he cannot leave the country,” Bepari said, adding that another letter was being submitted on Oct. 4.

The probe team of the cooperatives department has already completed 30 days in scrutinizing accounts starting from 2009.

“Since the volume of work is huge, we realize they need at least 100 days as they are probing accounts from 2009, when all this corruption and anomalies started. We don’t want a quick and haphazard probe report as it would be useless,” added Bepari, an accountant with church-run St. Placid’s High School and College in Chittagong.

Pinto L. Dias, the current board president, said fellow board members are cooperating with the probe team even though they are not fully responsible for the crisis.

“We cannot escape the blame but it is not all our fault. We are cooperating with the probe team and taking actions against current and previous officials as well. Instead of blaming us, everyone should support us to find a solution,” Dias told UCA News.

The society has large amounts of default loans and defaulting members need to be responsible and repay the loans, he added.

Hope for better days

Like Biswas and Bepari, several members of the organization told UCA News that they are still pinning their hopes on getting back their money and seeing the society is revived and stable one day.

The five-member probe committee has been granted another 30 days to scrutinize accounts and have sessions with members, said Sheikh Kamal Hossain, deputy registrar of the Cooperatives Department in Chittagong

“Initially, they were entitled to 15 days and it was then extended for another 15 days. Considering the huge volume of work and some 3,900 members, we have granted another 30 days for them. The team is dedicated and scrutinizing everything one by one,” Hossain told UCA News.

“We have decided to form a five-member ad-hoc committee by Oct. 4 to oversee all the activities of the organization in this transition period.” 

Hossain declined to comment on possible punishments for offenders as the probe was underway.

“If proved guilty, offenders will face punishment as per the law and there is no scope to avoid justice and punishment. We believe the ad hoc committee will be effective. If it can fix problems and hand over responsibilities to an elected and acceptable board, it is possible to revive the organization,” he added.

Newton Biswas expects the movement to rescue the society will be successful.

“I am hopeful that the movement against corruption and for rescue of the organization will be fruitful. But the most important role can be played by the Cooperatives Department. If it is strong and enthusiastic, I believe all the money lost can be returned and the organization can survive,” he said.

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