Bangladesh Bank will not initiate any new investigation targeting the recently resigned president Mohammed Sahabuddin. However, legal action will be taken if his involvement is identified during ongoing bank-based probes, the central bank has said.
Arief Hossain Khan, spokesperson and executive director of Bangladesh Bank, told reporters on Sunday, “Bangladesh Bank does not conduct investigations targeting the president or any specific individual.
“However, if anyone’s involvement is found in any bank-based investigation, decisions will be taken according to the law.”
He further clarified that as Sahabuddin held the highest constitutional office of the state, no separate inquiry would be launched against him. Nevertheless, any involvement found during the ongoing investigations into various banks as part of financial sector reforms will be taken into consideration.
Sahabuddin served as the vice-chairman of Islami Bank Bangladesh until February 2023. He joined the bank’s board of directors in June 2017 as a representative director of Chattogram-based JMC Builders.
This occurred a few months after the S Alam Group took control of Islami Bank.
According to Islami Bank records, JMC Builders is identified as a shadow firm of the S. Alam Group. There are allegations that the institution became a director by purchasing shares of Islami Bank using funds borrowed from another private bank.
Sahabuddin served as the representative director for this company.
A special forensic audit by Bangladesh Bank has uncovered extensive financial irregularities and loan scams in several banks controlled by the S Alam Group, including Islami Bank.
During the investigation, the Bangladesh Financial Intelligence Unit (BFIU) found the involvement of 24 institutions, which are accused of taking control of 81 per cent of the bank’s shares through loan scams.
Subsequently, when the BFIU report was submitted to the High Court, the court directed the Anti-Corruption Commission (ACC) to investigate the matter. Travel bans were also imposed on the accused during the investigation.
The next hearing for this case is scheduled for the coming Wednesday.
Given that Sahabuddin is a former director of Islami Bank, his name has surfaced in discussions related to these investigations.
Arief Hossain Khan reiterated, “Bangladesh Bank does not target any specific individual for investigation. Irregularities are identified through regular inspections of commercial banks, internal audits, and necessary special audits.
“If an individual’s role is found in an investigation, the involvement of the board of directors in that irregularity is also scrutinised.”
He added that there is no scope to conduct investigations by targeting someone intentionally. Each bank undergoes its own audit, external audits, and inspections by Bangladesh Bank. Investigations are always based on events, not individuals.
Sahabuddin resigned from the board of directors of Islami Bank in 2023 after receiving the nomination for the post of president. At the same time, Ahsanul Alam, son of the S. Alam Group chairman, took over the chairmanship of the bank.
Following the political change in 2024, Bangladesh Bank dissolved the boards of directors of several private banks, including Islami Bank, and formed new boards.
However, even after two rounds of restructuring, a full board of directors has yet to be formed at Islami Bank; the bank’s activities are currently being managed through a one-member committee.
