The Anti-Corruption Commission (ACC) has initiated legal proceedings against Mohammad Saiful Alam, chairman of S Alam Group and former chairman of First Security Islami Bank (FSIB) Syed Waseque Md Ali, along with 30 others, for allegedly embezzling over Tk 553.21 crore through fraudulent loans from the bank.
The case, approved on Monday, accuse the defendants of orchestrating loan scams via shell companies using forged documents and collusion with bank officials, reports UNB.
Saiful Alam and 36 others, including FSIB’s former managing director Syed Waseque Md Ali and former deputy managing director Md Zahurul Haque, are accused of embezzling Funds. The initial loan was sanctioned on November 9, 2016, amounting to Tk50 crore under Bai-Murabaha (Hypo) investment and Tk55 crore under LC facilities from FSIB’s Anderkilla branch in Chattogram.
The ACC alleges that these loans were approved without proper due diligence, including the absence of credit history verification, business address confirmation, insurance policies, trade licenses, legal opinions, or proper collateral valuation.
Investigations revealed that the funds were transferred to various fictitious companies, such as Venus Tradings Ltd, Reasonable Traders Ltd, Abdul Awal & Sons Ltd, and Union Pacific Source & Trade, before eventually being routed to entities linked to S Alam Group, allegedly violating the Money Laundering Prevention Act.
The loan facilities, despite irregularities, were renewed annually from 2018 to 2023, during which the sanctioned loan limits were exceeded multiple times, reaching a total misappropriation of over Tk553 crore.
Charges have been brought under Sections 409/109/420/467/468/471 of the Penal Code, Section 5(2) of the Prevention of Corruption Act, 1947, and Sections 4(2) and 4(3) of the Money Laundering Prevention Act, 2012.