Islami Bank files ACC complaint over alleged Tk 500cr embezzlement

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Islami Bank Bangladesh PLC has filed a complaint with the Anti-Corruption Commission (ACC) against 38 people, including former president Mohammed Shahabuddin and S Alam Group Chairman Saiful Alam, over the alleged embezzlement of around Tk 500 crore.

The bank alleged that the irregularities occurred while Shahabuddin was serving as the bank’s vice-chairman and a member of its board of directors.

Mohammed Yasin Ali, assistant vice-president of the bank’s Foreign Exchange Corporate Branch, submitted the complaint to the ACC this afternoon on behalf of the bank.

According to the complaint, after S Alam Group took control of Islami Bank in 2017, the loan limit of Suprov Composite Knit Ltd was allegedly increased from Tk 100 crore to Tk 500 crore through irregularities. The bank alleged that the money was later withdrawn and embezzled.

Islami Bank alleged that businessman S Alam helped facilitate the illegal allocation of loans to Suprov Composite Knit Ltd, which the bank identified as an associate company of AnnonTex Group.

The complaint said Shahabuddin, who was a board member at the time, along with three former managing directors of the bank—Monirul Mawla, Abdul Hamid Mia and Mahbub Ul Alam and other individuals were involved in approving the loan.

It further alleged that those involved financially benefited from irregularities in the approval and disbursement of the loan.

The bank said four audit firms were appointed to investigate the matter and found various irregularities in increasing the loan limit, approving the loan and disbursing the funds.

Islami Bank also alleged that the loan limit was raised without properly assessing Suprov Composite Knit Ltd’s financial capacity and repayment ability.

The bank requested the ACC to investigate whether the funds were subsequently used in a way that harmed the bank’s interests.

Source: The Daily Star