The Anti-Corruption Commission (ACC) has decided to file cases against 67 individuals, including S Alam Group chairman Saiful Alam, over allegations of embezzling nearly Tk10,500 crore from Islami Bank in the name of loans and laundering a portion of the funds to Singapore.
According to the ACC’s complaint, Islami Bank Bangladesh Limited approved loans amounting to Tk9,283 crore in the names of S Alam Refined Sugar, S Alam Steels Ltd and S Alam Trading Company Ltd, disregarding the regulations of IBBL and Bangladesh Bank.
“With accumulated interest and dividends, the sum has now risen to Tk10,479.62 crore. A portion of the funds was later laundered abroad, including to Singapore,” said an ACC statement on Sunday.
The lawsuit also names senior officials from several subsidiaries of the S Alam Group, as well as some current and former officials of Islami Bank.
The complaint states that after S Alam Group took control of Islami Bank in 2017, widespread irregularities surfaced in the bank’s investment activities.
On 7 September 2020, the bank’s board of directors increased the credit limit of S Alam Refined Sugar Industries Limited from Tk2,400 crore to Tk3,800 crore, exceeding 35% of the bank’s paid-up capital – which is a violation of banking laws.
The ACC investigation further found that chairman Saiful Alam appointed family members and close associates to key positions within the bank, enabling him to exert influence over the investment administration, IT division, and the board of directors.
The statement also said that more than Tk9,283 crore was transferred in 134 transactions to shell companies such as Ahsan Enterprise, Impress Corporation, Unique Traders, Agro Corn International, and Dulary Enterprise.
The companies that subsequently received the funds are all linked to Saiful Alam’s business interests.
The ACC alleges that the accused colluded with each other to violate regulations, policies, and circulars issued by Islami Bank and Bangladesh Bank over time, and engaged in abuse of power, criminal breach of trust, fraud, and forgery – embezzling bank funds and laundering them abroad.
