Islami Bank accuses ex-president Shahabuddin, S Alam, 36 others of Tk500cr graft

Islami Bank Bangladesh PLC has filed a complaint with the Anti-Corruption Commission against former president Mohammed Shahabuddin, S Alam and 36 other individuals and entities over the alleged embezzlement of around Tk500 crore through loan fraud.

Mohammad Yasin Ali, first assistant vice-president of Islami Bank's Foreign Exchange Corporate Branch, recently submitted the complaint to the ACC.

According to the complaint, Shahabuddin was a member of Islami Bank's board of directors when the alleged irregularities occurred and colluded with others for personal gain. It alleges that the Tk500 crore in loans was subsequently laundered abroad, leaving the bank in financial distress.

The complaint says Suprabh Composite Knit Ltd was initially a distressed small industrial enterprise with an investment limit of Tk100 crore. With the assistance and influence of the accused, the limit was allegedly raised to Tk200 crore and eventually to Tk500 crore.

The loans were allegedly approved without adequate collateral or guarantees and without proper verification and assessment.

Loan proposals were sent from the branch to the head office and were approved at executive board meetings held between 2017 and 2023, according to the complaint.

Despite repeated reminders and final demand notices issued between 2019 and 2025, the loans were not repaid, it said.

Suprabh Composite Knit and its managing director Mohammad Yunus, also known as Alhaj Md Yunus Badal, have been named as the principal accused.

Galaxy Sweaters and Yarn Dyeing Ltd, ABM Shamsul Hasan, Saleha Shahin, Umme Salma Sharmin and several company directors are also named in the complaint.

S Alam Group chairman and managing director Mohammad Saiful Alam (Masud), commonly known as S Alam, has also been named in the complaint as an alleged beneficiary of the loan facility.

Several former Islami Bank directors, executive committee members, managing directors and CEOs, deputy managing directors and other bank officials have also been accused.

Yasin Ali told TBS that the bank had filed several cases over irregularities involving loans linked to S Alam.

"Based on a court directive, we provided the ACC with information on the loan irregularities to supply information related to a case," he said.

ACC Secretary Md Saidur Rahman Khan said he had not received the complaint since taking charge. He said the ACC could not act on such complaints until the commission is constituted.

"These allegations will be examined after the commission is constituted," he said.