Bangladesh will challenge the international arbitration case filed by the S Alam Group in Washington, Bangladesh Bank Governor Ahsan H Mansur said on Wednesday.
Speaking to reporters after a meeting with Finance Adviser Salahuddin Ahmed at the Secretariat in the afternoon, the governor said the S Alam Group has filed an arbitration case against Bangladesh in Washington.
Commenting on the move, he said, “The thief shouts the loudest. They have filed an arbitration against us in Washington. We will fight the case.”
According to reports, the arbitration case has been lodged with the International Centre for Settlement of Investment Disputes (ICSID) under the World Bank Group. In the case, the S Alam Group has claimed that asset seizures, investigations and other legal actions taken by the Bangladesh government have harmed its business interests.
The government, however, views the matter as an abuse of investment protection mechanisms and has decided to mount a full legal defence on behalf of the state.
Turning to the case involving former minister Saifuzzaman Chowdhury, the governor said Bangladesh has a real opportunity in the London proceedings, as the accused party did not contest the case.
“Saifuzzaman did not fight the case at all. As a result, he has effectively lost by default,” he said. Mansur added that there is a possibility of recovering funds once the case is resolved, but it is not possible to specify when the money may be returned. It could take until February, March, April, May or June, he said.
On overall progress in recovering laundered funds, the governor said significant advances have been made and the government is working sincerely on the issue. Asked how many cases have been identified, he said he could not recall the exact number at the moment, but multiple cases have already been filed.
He cautioned, however, that bringing back money siphoned abroad usually takes a long time. The process does not take less than four to five years, he said. The progress of other cases depends on legal applications and procedures in the respective jurisdictions, which are inherently lengthy. “It is a long process, and there is very little we can do to speed it up,” the governor said, adding that patience and sustained legal battles are the only way to recover laundered funds.
