An Islami Bank Bangladesh (IBBL) official has been suspended after filing a complaint with the Anti-Corruption Commission (ACC) against former president Mohammed Shahabuddin, S Alam and 36 others over the alleged embezzlement of Tk500 crore through fraudulent loans.
Mohammad Yeasin Ali, first assistant vice president of the bank’s Foreign Exchange Corporate Branch, was suspended for filing the complaint without approval from the bank’s managing director, according to the bank authorities.
Islami Bank has also formed an investigation committee over the matter. The authorities said further action would be taken after receiving the committee’s report.
However, an official bank document reviewed by TIMES appears to contradict the bank’s stated reason for suspending Yeasin.
In a “Letter of Authority” dated 27 July, Islami Bank explicitly authorised Yeasin to appear before the ACC and file a complaint against Suprov Composite Knit Ltd, its sister concern Galaxy Sweater and others.
“As decided by the management, we do hereby authorize Mohammad Yeasin Ali… to appear before the Anti Corruption Commission, Dhaka to file a complaint against Suprov Composite Knit Ltd. and its sister concern Galaxy Sweater and others, an investment client of our branch,” the letter said.
The document further stated: “Mohammad Yeasin Ali will conduct the matter.”
Acting on that authorisation, Yeasin filed the complaint with the ACC on Monday on behalf of Islami Bank, requesting the anti-graft agency to investigate the allegations and take necessary legal action.
Before approaching the ACC, Islami Bank had engaged four audit firms to examine the alleged loan fraud. The audits identified various irregularities and discrepancies in the approval and disbursement of the loans.
According to the complaint, after S Alam Group took control of Islami Bank in 2017, the credit limit of Suprov Composite Knit Ltd, described in the complaint as a financially weak company, was fraudulently increased from Tk100 crore to Tk500 crore.
The bank alleged that the loan proceeds were subsequently withdrawn and misappropriated.
Before becoming president, Mohammed Shahabuddin served as a director and vice-chairman of Islami Bank Bangladesh. He joined the board constituted after S Alam Group took control of the bank in 2017.
Islami Bank alleged that it was during this period that Suprov Composite Knit Ltd’s credit limit was increased fivefold, from Tk100 crore to Tk500 crore.
