As Bangladesh moves forward from the ashes of the July Uprising, a question still lingers within political and administrative circles – is S Alam Group, a controversial industrial conglomerate, seeking a path back into the Bangladesh’s economy?
After the fall of the Awami regime, several contentious business tycoons closely associated with the former administration fled the country. Among the most infamous was S Alam Group Chairman Mohammed Saiful Alam.
This speculation is fuelled by several incidents and indicators.
Since the tenure of the interim government, whispers emerged within political spheres, suggesting that S Alam Group is attempting to restore its business influence through connections with influential quarters of BNP.
A web of suspicion
These suspicions intensified after a member of BNP Standing Committee reportedly made a secret purchase of shares in a telecommunications company linked to S Alam’s interests. Concerns deepened when that leader was subsequently appointed to a key ministry in the incumbent government.
S Alam Group is currently facing severe legal and financial scrutiny. The Criminal Investigation Department (CID) is investigating allegations of money laundering amounting to nearly Tk1.13 lakh crore.
Various assets and shares belonging to S Alam family have already been frozen, and several cases remain sub-judice.
The group’s relationship with BNP faced further scrutiny following the return of Standing Committee member Salahuddin Ahmed from exile. On his return to his constituency in Cox’s Bazar, he was seen using a vehicle owned by the S Alam Group, drawing widespread criticism.
Salahuddin later clarified at a press conference that he was unaware of the vehicle’s ownership, stating it was used by a staff member who manages certain business matters related to the group.
Meanwhile, an abrupt change in the leadership of the central bank has added a new dimension to the controversy.
On 25 February, without prior announcement, the government cancelled its contract with Ahsan H Mansur and appointed Md Mostaqur Rahman, a businessman, as the new governor of Bangladesh Bank.
Industry insiders suggest this change may be linked to significant interests within the banking sector.
Specifically, four of the five troubled banks slated for merger – Union Bank, First Security Islami Bank, Social Islami Bank, and Global Islami Bank – were previously under the control of the S Alam Group.
The fifth, EXIM Bank, was controlled by another controversial businessman, Nazrul Islam Mazumder.
In this context, potential conflicts of interest involving the new governor have also come to light. Records indicate that since 2010, Mostaqur has been a sponsor shareholder of Intech Limited, a listed company, holding approximately a 0.5 per cent stake.
Several directors and shareholders of Intech Limited are reported to have business ties with individuals associated with S Alam Group. There are further allegations that the S Alam family exerted influence over Intech Limited by acquiring a significant portion of its shares.
Analysts argue that the appointment of a regulator with links to major financial groups raises serious questions regarding neutrality.
Zahid Hussain, former lead economist at World Bank Dhaka office, told TIMES that the change in the Governor’s office could be tied to the bank merger issue. He noted that questions regarding a potential conflict of interest are “logically raised.”
‘Mired in conflict of interest’
Civil society has also been vocal. Transparency International Bangladesh (TIB) Executive Director Iftekharuzzaman stated in a press release on 26 February that appointing an individual “mired in conflict of interest” as governor is a “clear violation of the BNP’s electoral pledges.”
The day of leadership change was marked by unrest within Bangladesh Bank. Hundreds of officials staged demonstrations and threatened a “pen-down” strike.
Following these events, Ahsan H Mansur claimed during a press conference that the protests were orchestrated by a “certain, organised quarter.”
It should be noted, Mansur spearheaded the plan to merge five troubled banks into a “Sammilito Islami Bank,” a move that included declaring the share values of the concerned banks as zero.
News of his replacement was released just one hour after his press conference, leading to his immediate departure from the office.
Some central bank officials suggested to TIMES that the government may have capitalised on the internal unrest to expedite the leadership change – a situation that some officials later expressed regret over.
Meanwhile, signals from the S Alam Group suggest a planned comeback.
Sources close to Chairman Mohammed Saiful Alam told TIMES that the conglomerate is preparing to resume full-scale business operations in Bangladesh.
Mohammad Borhan Uddin, a spokesperson for the S Alam Group, said, “Our chairman [Saiful Alam] wanted to return to the country during the interim government’s tenure and still intends to do so. We are in contact with various levels of government regarding how to lift restrictions and keep all factories operational.”
This aligns with the new governor’s early policy statements, which emphasised the importance of restarting closed industrial units.
However, when TIMES sought a response from Governor Mostaqur regarding these allegations, he remained unreachable for a week.
Arief Hossain Khan, spokesperson and executive director of Bangladesh Bank, said, “As the governor’s personal matters are outside my jurisdiction, it is not possible to comment on this.”
Acid test for new government?
The S Alam issue is no longer a mere corporate controversy; it is evolving into a major test of the new government’s financial accountability, governance, and economic policy.
The conglomerate, headquartered in Khatunganj, Chattogram, once built a vast network spanning banking, commodity trade, energy, shipping, and production.
Following the regime change on 5 August 2024, the group’s bank accounts were frozen and import-export activities suspended. However, the group claims it has continued to pay its staff.
Speaking from Canada, Borhan Uddin stated that none of their approximately 20,000 employees had been laid off as of August 2024, despite production being halted at most factories due to LC-related restrictions.
He did not specify the source of these funds, remarked that for a large financial group like S Alam, paying salaries is “not a major problem.”
In Chattogram, local traders report increased activity at the group’s headquarters. Analysts warn that any policy leniency towards a group facing such serious allegations could trigger a negative public reaction.
There is a view in the business community that the government might seek a “middle path” to avoid total collapse, considering the group’s impact on employment and financial stability.
The group is also preparing for international legal battles, having reportedly appointed international arbitrators to challenge recent regulatory actions. It is not being ruled out that the group may seek compensation under international investment frameworks.
Employment and social pressure
The crisis has had a significant impact on the field level, particularly in areas like Patiya, where many families remain dependent on S Alam Group’s operations. Sources indicate that approximately 11,500 employees across the group’s banks and subsidiaries have lost their jobs following the crackdowns.
Mohammad Enamul Hoque Enam, BNP lawmaker for Patiya, told TIMES that nearly 5,000 people in his area have lost employment, leading many to quietly hoping for S Alam’s revival. Local resident ATM Toha noted that the group had created a massive economic sphere, leaving a “large vacuum” upon its collapse.
Former bank official Mizanur Rahman added, “It is not just a question of protecting an individual. The livelihoods of many people are involved here. We want stability.”
Ultimately, whether the S Alam Group returns or permanently loses its influence, the test lies in how the government handles the crisis. The outcome will determine the credibility of the new administration’s commitment to reform, accountability, and financial discipline.
