ACC to sue 67 for embezzling nearly Tk10,500cr from Islami Bank funds

The Anti-Corruption Commission (ACC) has decided to file a lawsuit against 67 people including S Alam Group Chairman Mohammed Saiful Alam – linked to the business conglomerate on charges of embezzling and laundering Tk10,479.62 crore from Islami Bank’s funds to Singapore. The accused also include Saiful's wife and five brothers

The decision to sue was taken at a meeting of the corruption watchdog held at its headquarters in Agaraon, said ACC Assistant Director (Public Relations) Md Tanzir Ahmed.

A senior official told reporters that this case would be the largest in the history of the anti-graft body.

According to the allegations, loans amounting to Tk9,283.93 crore were irregularly approved in the names of S Alam Refined Sugar, S Alam Steels Ltd, and S Alam Trading Company Ltd, flouting the rules and regulations of Islami Bank Bangladesh Ltd (IBBL) and the Bangladesh Bank.

The amount, including interest and dividends, now stands at Tk10,479.62 crore, ACC officials said.

Mohammed Saiful Alam, one of the wealthiest individuals in Bangladesh, has filed an international arbitration claim, The Financial Times reported in October.

He contends that the interim government's actions aimed at recovering assets allegedly funnelled overseas have resulted in his family business losing "hundreds of millions" of dollars.

Ahsan H Mansur, governor of Bangladesh Bank, has accused the S Alam family of transferring approximately $12 billion out of the country's banking system. The S Alam Group, which operates in various sectors including food, construction, garments and banking, has denied these claims.

The government has frozen many bank accounts and seized assets tied to the S Alam family, conducting investigations into their business activities.

The S Alam family is currently based in Singapore, having obtained citizenship there between 2021 and 2023, after renouncing their Bangladeshi nationality in 2020.

The S Alam family and their associates also stand accused of engaging in diverting funds from the banking system through coerced takeovers of banks.

In October of last year, a court in Dhaka issued a travel ban on Saiful, his wife Farjana Pervin and 11 other family members.

The Anti-Corruption Commission (ACC) has also previously initiated separate cases against Saiful and others based on different accusations.