Calls grow to oust ‘illegal recruits’ from Islami Bank, retrieve funds stolen by S Alam Group

A group of businessmen, under the banner of the Conscious Businessmen's Forum, has demanded that Islami Bank Bangladesh dismiss "illegally recruited" employees and recover funds allegedly embezzled and laundered by the S Alam Group.

The demands came at a press conference held today (9 October) at the Dhaka Reporters Unity.

They also warned that if the bank failed to remove the illegal recruits within the day, they would lay siege to the bank's headquarters and announce further protest programmes.

The forum's demands included the immediate termination of all officers and employees allegedly appointed by the S Alam Group without due process; fresh recruitment of qualified candidates across the country through public advertisements; and the prompt repatriation of funds reportedly siphoned abroad.

They urged Bangladesh Bank and the finance ministry to take necessary measures to recover the funds, as well as to liquidate S Alam's confiscated shares in Islami Bank to help settle the institution's liabilities. The businessmen also called for the sale of mortgaged assets held against S Alam's loans to offset the bank's losses.

Reading out a written statement, businessman Md Mostafizur Rahman claimed that on 5 January 2017, the S Alam Group, "using state influence," forced the resignation of the bank's chairman and managing director and subsequently took control of its board.

He alleged that the group appointed loyalists to key positions, weakening the bank's administration and allowing the misappropriation of over Tk1 lakh crore through anonymous and proxy accounts. "This has caused a severe liquidity crisis and forced major industrial groups and valued clients to withdraw from the bank," he said.

Mostafizur further claimed that the S Alam Group appointed 8,340 people without recruitment tests in exchange for large sums of money, with some using fake certificates to secure their jobs.

According to the businessmen, these illegal appointments have cost Islami Bank around Tk1,500 crore annually in losses, exceeding Tk10,000 crore over seven years, while the total embezzled funds surpass Tk1 lakh crore. The bank is now struggling for survival, they added.

Abdul Haque, chairman of Haq's Bay and president of the Bangladesh Reconditioned Vehicles Importers and Dealers Association (Barvida), said despite more than a year having passed since S Alam allegedly fled the country, the bank's management had yet to dismiss the "illegally appointed" employees, citing humanitarian reasons.

The speakers also claimed that 82% of Islami Bank's shares remain under the ownership of the S Alam Group. While Bangladesh Bank has seized these shares, it has not yet initiated their liquidation, a delay the forum described as "mysterious."

The press conference was attended by several business figures, including Barvida adviser and New Auto Gallery proprietor Nazrul Islam Alam and industrialist Al Mamun.