Switzerland-based ICB Financial Group Holdings has expressed strong anger over the loss of control of ICB Islami Bank, which is listed on the stock market. The company has alleged that its investment of more than Tk 3.5 billion is at risk due to not getting control of the bank as per the agreement. In this situation, if full control is not ensured, they want the investment back, otherwise the foreign group has threatened to go to international court.
Josephine Sivaretnam, Chairman of ICB Financial Group Holdings, made these allegations and demands in a letter sent to Bangladesh Bank Governor Dr. Ahsan H. Mansur on July 7. A copy of the letter has also been sent to Financial Advisor Dr. Salehuddin Ahmed and Bangladesh Investment Development Authority (BIDA) Executive Chairman Chowdhury Ashiq Mahmud Bin Harun.
The letter mentioned that ICB Financial Group had purchased 53 percent of the shares of the then Oriental Bank through an open auction by Bangladesh Bank in 2008. At the time of purchasing these shares, they had invested more than Tk 3.5 billion after receiving assurances of release from liability from Bangladesh Bank. But later, when the old shareholders of Oriental Bank filed multiple lawsuits, the bank’s share transactions were blocked, as a result of which ICB Financial Group lost control over the bank.
The letter also mentioned that Bangladesh Bank dissolved the board of directors of ICB Islami Bank in April this year as the bank’s financial condition deteriorated day by day. Instead, a central bank official was appointed as the chairman and managing director of the bank. ICB Financial Group alleged that this move left foreign investors with no voice or authority.
ICB Financial Group claims that Bangladesh Bank has not kept its promises and violated its contractual obligations. This has harmed the interests of foreign investors. The letter says, “Such steps by Bangladesh Bank are not only a violation of the contract, but also send a negative message in terms of creating an investment-friendly environment.”
They also pointed out that Bangladesh Bank has established central control instead of approving the new managing director they appointed, creating ownership uncertainty that will discourage new strategic investors from taking an interest in the bank.
When asked about this, Bangladesh Bank spokesperson Arif Hossain Khan said, “ICB Financial Group had invested in the bank with specific interest. Now it would be better if there is a legal solution with state support.”
With multiple cases pending in the High Court regarding the ongoing crisis and ownership complications of ICB Islami Bank, the question now is what kind of initiatives will Bangladesh Bank and the government take and how to restore the confidence of domestic and foreign investors.
