Staff Correspondent

Finance Minister Amir Khosru Mahmud Chowdhury on Sunday said individuals accused of corruption could face legal proceedings and punishment for their personal wrongdoing, but this should not automatically lead to the closure of a company in which they have interests.

He said the government is pursuing legal action against individuals involved in corruption and that such proceedings would continue.

“At the same time, you have to keep the company separate and allow its activities to continue, whatever company it may be,” he said while responding to a supplementary question from NCP MP Abdul Hannan Masud in Parliament.

The minister said economic management cannot be driven by emotion and must instead be guided by laws and established principles, stressing that companies must be treated as separate legal entities from their individual owners.

“Economy cannot run on emotion. The economy has to run on law,” he said.

The Finance Minister said there are certain principles governing an economy and its financial sector, including the legal separation between a company and the individuals who own or manage it.

“A company’s identity is separate from the identity of individuals. It is a legal entity, a corporate entity,” he said.

The minister said shutting down a company because of alleged wrongdoing by an individual could have wider economic consequences, particularly for its employees, creditors and other stakeholders.

He noted that companies employ people, have liabilities and loans to repay, and contribute to the national economy.

“If you close down any company because of an individual and people are employed there, that company has liabilities and has to repay its loans. That company has a contribution to the economy,” he said.

He warned that no economy could function properly if companies are shut down without considering the impact on employment and economic activity.

Khosru, however, made it clear that separating a company from the personal wrongdoing of its owners or individuals associated with it would not mean granting them immunity.

“Those involved in corruption are not being spared. Cases are being filed against each of them and those cases will continue. They will face trial for their personal corruption,” he said.

On bank loans, the Finance Minister said Bangladesh Bank is  not providing loans to anyone in violation of the law.

He said companies could avail themselves of loan rescheduling facilities where permitted under existing laws and regulations.

“Where there is an opportunity for rescheduling, they are being allowed to reschedule. The companies that can avail themselves of the opportunity under the law will do so, and those that cannot will not,” he said.