October 9, 2025, 10:07 pm


Staff Correspondent

Published:
2025-10-09 18:54:51 BdST

Ex-Islami Bank chairman Obayed Ullah under ACC scrutiny


The Anti-Corruption Commission has opened an investigation into former Islami Bank Bangladesh chairman Obayed Ullah Al Masud over allegations of loan fraud, conflict of interest, unethical investment, and embezzlement.

The inquiry is being led by Assistant Director Md Nazmul Islam, ACC spokesperson and Deputy Director Akhtarul Islam confirmed.

Before joining Islami Bank, Obayed served as managing director of two state-owned banks -- Sonali Bank and Rupali Bank.

The Bangladesh Financial Intelligence Unit (BFIU) recently sent a detailed report to the ACC highlighting a series of irregularities and financial discrepancies during Obayed’s tenure, recommending “necessary” action.

Speaking on condition of anonymity, a senior ACC officer told bdnews24.com that the investigation was launched based on the BFIU report.

The officer added, “The report identified several financial irregularities during his time as managing director. The Verification and Analysis Committee reviewed the report and recommended an investigation. The probe has started based on that recommendation.”

According to the report, while serving as Rupali Bank’s managing director, Obayed was involved in abuse of power, nepotism, loan fraud and risky investments, resulting in “irregularities” worth hundreds of millions of taka.

In 2019, a cash credit loan of Tk 21 million was sanctioned in favour of a company named MAS Corporation. Later, a substantial portion of the loan was transferred to the personal accounts of the former MD and his son at UCB Principal Branch, it added.

The borrower Md Shamsul Salehin was Obayed’s cousin. The loan, now classified as “non-performing”, carries an outstanding amount of Tk 36.3 million.

The BFIU said the bank approved the loan “without conducting” proper customer due diligence (CDD) and “failed” to submit any Suspicious Transaction Report (STR).

The report revealed that in February 2020, Rupali Bank invested Tk 150 million in Candle Stone Investment Partners Limited’s mutual fund, where each unit was valued at Tk 10, though the market price was only Tk 5 per unit at the time.

In addition, dividends worth Tk 3.64 billion were waived for Orion Infrastructure Limited, after which Tk 2.05 million was transferred from the company’s account to Obayed’s personal account.

Despite a liquidity shortage in the treasury, Obayed reportedly approved an investment of Tk 2.5 billion in Beximco Communications Limited’s corporate bond, which yielded no interest returns.

The report also described investments of Tk 100 million in fixed deposits at Padma Bank PLC, Tk 3 billion in Best Holdings Limited’s pre-IPO shares, and Tk 2 billion in Beximco Green Sukuk bonds as “abnormal and suspicious”.

The BFIU said Rupali Bank’s ICT procurement under Oabyed’s leadership showed “favouritism and a lack of transparency”. Two unlisted firms were contracted, with payments exceeding Tk 19.5 million -- one owned by Obayed himself and the other by a former director of the bank.

After assuming the chairmanship of Islami Bank, more allegations of irregularities surfaced against him, including unauthorised foreign travel, personal trips shown as official visits, and meetings with correspondent banks without prior approval, the report said.

It also cited his detour to San Francisco instead of New York during one official trip, raising suspicions of “personal motives” behind the visit.

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