Chattogram, Sep 1 (UNB)-Chittagong Port Authority (CPA) has imposed a ban on transactions with nine private banks, including six affiliated with Chattogram-based business group S Alam Group, prohibiting them from accepting pay orders, cheques and bank guarantees.
 
The shipping agents have not been accepting pay orders from these nine private banks, including the six owned by S Alam Group for last 15 days.
 
The CPA has now officially extended this ban including a prohibition on using cheques or bank guarantees for port services and related activities.
 
On Thursday, an office order, signed by the port's Chief Financial and Accounting Officer Mohammad Abdus Shakur, was sent to all departments of the organization.
 
Following the directive, the banks involved with port-related transactions or tenders will no longer be able to provide pay orders or cheques.
 
The banks are Islami Bank, First Security Islami Bank, Global Islami Bank, Union Bank, Bangladesh Commerce Bank, Social Islami Bank, Padma Bank, National Bank, and ICB Islami Bank. The first six are part of the S Alam Group.
 
Following the fall of Sheikh Hasina-led government recently, the Bangladesh Bank is reforming the boards of these banks.
 
It was learned that the banks have been experiencing severe deficits in their current accounts and liquidity shortages. Previously, the central bank provided cash support to address liquidity issues, but due to ongoing deficits, this support has been withdrawn.
 
As a precautionary measure, the CPA has directed all departments to avoid accepting pay orders and cheques from these banks to prevent any operational disruptions.
 
CPA Secretary Md. Omar Faruk said in general pay orders are required as a guarantee during the tender submission process and bank guarantees are used for contracting with construction firms.
 
This precautionary measure has been implemented to ensure that the port does not face any issues with the redemption of these financial instruments, he added.
 
End/UNB/Corr/SU/F