Ex-bureaucrats welcome bar on stock trading by govt staff

Former bureaucrats yesterday welcomed the government's move to warn public servants against profit-making activities, including stock trading.
"Government officials should not be allowed to engage in stock trading where there might be scope for a conflict of interest," said Akbar Ali Khan, a former finance secretary.
"Even where there is no conflict of interest, the government still can impose a ban as their involvement could hamper government activities," Khan told The Daily Star.
His comments came a day after the cabinet decided to remind government employees of service rules that prohibit involvement in profit-making activities without permission.

The public administration ministry will issue a notification to this effect in a day or two.
There are about 10-12 lakh active beneficiary owners' accounts registered with the country's stockmarket. But the number of government officials involved in share trading is hard to come by.
Khan, who joined the Civil Service of Pakistan in 1967, said the rule against trading in speculative market by government officials exists in many countries. "In those countries, the ban is usually applicable to officials who may create a conflict of interest if they indulge in such activities."
But those countries have not imposed the ban on officials of other government agencies who have no conflict of interest with speculative markets, Khan said.

"In the past, government officials were not so much interested in the stockmarket. The number of clients from the government agencies as well as private individuals in the stockmarket was low at that time."
Former finance adviser to a caretaker government Mirza Azizul Islam echoed Khan.
He said he sees nothing wrong in the government decision to warn public servants against their involvement in the stockmarket.
"The decision reminding the government officials about the bar is not new. It is already there in the conduct rules of the public officials. The government has just given a reminder to the officials about the bar," he said.
Islam, who joined the Civil Service of Pakistan in 1964, said the government's plan to drive public employees out of the market should not affect the market as their number would be too small in terms of turnover or market capitalisation.

He also said the bourses' decision to keep trading closed in order to put pressure on the government is not a good one. He opposed the plea of the Dhaka bourse authorities for allowing the government officials' investment in the stockmarket.
"I don't support it. And the government should not bow down to such pressure," added Azizul, also a former chairman of the Securities and Exchange Commission.
Some incumbent government officials also welcomed the decision.
"I think the government has taken the right decision," said ATM Murtoza Reza Chowdhury, an additional secretary of the commerce ministry, without elaborating.


But some mid-level officials said there should be some opportunities for them to invest their money.
"We regularly submit income tax return where we mention our incomes and properties. So, the government has the opportunity to know the sources of the income," said an official.
He also said there are government officials who have withdrawn their money from provident funds and have invested in the market.
The cabinet decision came after a couple of ministers drew its attention to the huge number of government employees and their dependants being engaged in the stock business, saying this has been hampering public service