ACC files its largest-ever case against S Alam over Tk10,480cr embezzlement, laundering
Funds allegedly laundered to Singapore
The Anti-Corruption Commission (ACC) has filed a case against 67 individuals, including Chattogram businessman S Alam (Saiful Alam), his wife, five brothers, over embezzling Tk10,479.62 crore from Islami Bank and laundering the funds to Singapore.
ACC Assistant Director Mahmudul Hasan filed the case today (9 November) at the agency's Dhaka Integrated District Office-1, according to Assistant Director (Public Relations) Tanzir Ahmed.
A senior official told The Business Standard that this case is the largest in the history of the anti-graft body.
Keep updated, follow The Business Standard's Google news channel
Sources said investigations began after last year's 21 August, over allegations that S Alam and his family laundered over $1 billion to countries including Singapore, the British Virgin Islands, and Cyprus.
On 19 December, ACC filed its first case against S Alam and 57 others, including his son Ahsanul Alam, over Tk1,092.46 crore in loan fraud. Since then, 19 additional cases have been lodged against S Alam, his family, and related associates.
The cases collectively involve allegations of embezzlement, loan fraud, illegal accumulation of assets, and money laundering amounting to nearly Tk21,000 crore.
What ACC probe finds
The ACC probe has found extensive irregularities in Islami Bank's lending following S Alam Group's takeover in 2017.
The bank's board approved a loan limit increase for S Alam Refined Sugar Industries from Tk2,400 crore to Tk3,800 crore in 2020, exceeding 35% of the bank's capital, violating the Bank Companies Act 1991 and Bangladesh Bank guidelines.
The report states that despite the borrower's liabilities being high and internal risk scores below 50%, loan increases were approved. Renewals were granted even though business income was unsatisfactory and collateral covered only 40%-70%.
ACC said S Alam influenced the bank by appointing loyal staff in key positions, including investment, IT, and board roles.
Investigators found that through 134 loans, a total of Tk9,283.93 crore was routed through nominal companies, including Ahsan Enterprise, Impress Corporation, Aperture Trading, Unique Traders & Business House, Agrocorp International, and Ansar Enterprise.
Funds were subsequently channelled to S Alam's affiliated companies, such as Sonali Traders (owned by his brother Shahidul Alam), Global Trading Corporation (Rashedul Alam), S Alam Refined Sugar Industries Ltd, and SS Power.
A review of transactions showed that on 4 December 2023, Tk37 crore was moved from S Alam Trading Company to Global Trading Corporation, owned by Rashedul Alam, and the following day, Tk290 crore was transferred to an offshore account of SS Power-1 Limited in Singapore.
ACC said the accused misused power, committed fraud, and manipulated bank software to approve unauthorised loans, embezzling a total of Tk9,283.93 crore, which, with interest and dividends, now amounts to Tk10,479.62 crore.
Other accused include S Alam's brothers Mohammad Abdullah Hasan and Rashedul Alam; executives Abdus Samad and Osman Gani of S Alam Cold Rolled Steels; and 67 individuals, including S Alam's wife Farzana Parveen.
ACC Assistant Director Tanzir Ahmed said the loans were transferred to S Alam-affiliated companies through collusion and violation of bank policies, prompting cases under the Anti-Corruption and Money Laundering Prevention Acts.
Officials added that five ACC teams have investigated the group, with one ongoing, and while 20 cases have been filed, the number could exceed 100.
Investigations show S Alam and his associates embezzled funds from at least four of the eight banks under their control, with nearly half routed through shell companies. Islami Bank alone lost Tk1,05,483 crore.
Iftekharuzzaman, executive director of Transparency International Bangladesh, recently told The Business Standard that S Alam captured banks with insider support, treating public funds as personal wealth.
"In any democratic country, this would be impossible. Weak accountability enabled this embezzlement. While S Alam is primarily responsible, accomplices facilitated the laundering and must face justice," he said.
