How 7 companies helped S Alam gain control of Islami Bank
According to a BFIU report, the seven entities were used in the early stages of consolidating ownership in the country's largest Shariah-based bank.
The Bangladesh Financial Intelligence Unit has identified seven companies linked to S Alam Group that played a key role in the initial acquisition of shares in Islami Bank Bangladesh, using funds routed through group-affiliated entities and loans from multiple financial institutions.
According to the BFIU's report submitted to the High Court, the seven entities – Paradise International, First Security Capital and Investment, Armada Spinning Mills, Grand Business, ABC Ventures, Platinum Endeavours and Blue International – were used in the early stages of consolidating ownership in the country's largest Shariah-based bank.
The report says the funds used to purchase the shares originated largely from accounts belonging to S Alam Group companies and from loans obtained through entities identified as affiliated or fictitious.
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Among the largest transactions highlighted in the report, Paradise International acquired 2.23 lakh shares worth Tk71.33 crore.
The funds were routed through accounts of S Alam Super Edible Oil and supplemented by loans channelled through several entities, including Momentum Business Center, Epic Able Traders, Invention Trade International, Abdul Awal & Sons (Patiya), Nabir Trading and Existence Trade Agency, according to the BFIU.
Its report identifies Paradise International's Tanveer Ahmad as a nephew of S Alam Group Chairman Mohammed Saiful Alam.
In another transaction, First Security Capital and Investment acquired 6.43 crore shares through Excel Dyeing and Printing.
The BFIU found that financing had been routed through Sonali Traders, S Alam Super Edible Oil and S Alam Refined Sugar Industries.
Directors of Excel Dyeing and Printing, Badrunnesa and Wahidul Alam, were identified as close relatives of S Alam.
The report further noted that several entities involved in financing the acquisition were among Islami Bank's major loan defaulters.
Armada Spinning Mills acquired 3.37 crore shares through First Security Capital.
According to the BFIU, the purchase was financed through S Alam Super Edible Oil, S Alam Vegetable Oil and S Alam Refined Sugar Industries, as well as loans from Green Expose Traders, which investigators described as a fictitious S Alam-linked entity.
The report also points to family ties within the ownership structure. Armada Director Jesmin Arshad is identified as the wife of Md Arshad, a brother-in-law of S Alam.
Grand Business purchased 3.25 crore shares through Unicap Securities in 2017, while ABC Ventures acquired 2.23 crore shares through First Security Capital.
In both cases, the BFIU traced funding back to S Alam-linked entities, including S Alam Refined Sugar Industries and Sonali Traders.
Meanwhile, Platinum Endeavours purchased 3.22 crore shares through First Security Capital using funds allegedly routed through S Alam Steels, S Alam Super Edible Oil, Genesis Textiles Accessories and Apparels, S Alam Properties, and S Alam and Company.
Part of the financing also came from Paradise International, which the BFIU described as a shell entity.
The report identifies Platinum Endeavours Director Mostan Billah Adil as another nephew of S Alam.
Blue International acquired 3.23 crore shares through First Security Capital and Investment.
Investigators traced funding to Sonali Traders, Chemon Ispat, S Alam Steels, S Alam and Company, S Alam Properties and Genesis Textiles. Part of the financing was also linked to Platinum Endeavours.
According to records cited by the BFIU, Blue International Managing Director Mushfiqur Rahman is a relative of S Alam and an official of Unitex Group, a company run by S Alam's son-in-law.
These findings form part of a wider investigation into how the Chattogram-based conglomerate secured control of the bank through proxy shareholders and borrowed funds.
