S Alam Group seeks govt support to sustain operations

Controversial business conglomerate S Alam Group has requested financial, legal, and social support from the government to maintain its operations.

In a letter sent to the Governor of Bangladesh Bank and the head of the Bangladesh Financial Intelligence Unit (BFIU), the group highlighted its struggles since the fall of the Sheikh Hasina government on 5 August.

The letter stated that multiple actions taken by Bangladesh Bank, including the suspension of S Alam Group’s bank accounts and removing their control over various banks, have severely hampered their ability to conduct business.

As a result, the group is unable to process transactions or pay employee wages on time, which risks triggering labour unrest in several industrial zones.

The Chattogram-based conglomerate further expressed concern that their inability to pay bills for essential services such as electricity, gas, and water could lead to a complete production halt.

Additionally, they are struggling to meet their tax, VAT, and customs duties, which could result in a loss of revenue for the government.

S Alam Group also claimed that forced cancellations of Letters of Credit (LCs), including those related to food imports, might exacerbate a national food shortage.

The letter emphasized the deteriorating relationships with suppliers and customers, coupled with the loss of workers who have begun quitting due to the financial instability.

Despite these claims, officials from Bangladesh Bank revealed that the group did not provide any information about the Tk2 trillion it allegedly withdrew from the banks.

The banks from which they took the money, are also failed to contact the leaders of S Alam Group. There is also no indication that S Alam Group plans to repay the amount, leading to skepticism about the validity of the letter.