A massive financial scandal has unfolded involving the embezzlement of approximately Tk 1114 crore from the Islami Bank’s Jubilee Road branch in Chittagong, Bangladesh. The fraud, perpetrated in the name of loans, is led by Ahsanul Alam and Ashraful Alam, the sons of Mohammad Saiful Alam, Chairman of S Alam Group.
In a span of just three years, the group managed to siphon off the funds through forged documents, presenting relatives and salaried employees of their company as the owners of several businesses. Ahsanul Alam, a former chairman of Islami Bank, and Ashraful Alam, the owner of Infinity CR Strips Limited, are at the center of the operation. The bank’s officials, including the former managing director and director, are also implicated in the scandal. According to the Anti-Corruption Commission (ACC), an investigation has revealed the involvement of 52 to 54 people in the fraudulent activity.
This follows another embezzlement case filed earlier, where Tk 1,920 million was looted from the Chaktai branch of Islami Bank. The investigation team is now focusing on further proceedings, with an official decision on the second case expected soon.
The recent findings also highlight the involvement of several companies linked to the Alam family. Notably, Mohammad Golam Kibria Chowdhury, the owner of M/s United Super Traders, was shown as a supplier to Islami Bank, but it has been revealed that he collaborated with other business owners and bank officials to secure fraudulent loans. In December 2021, a loan facility worth Tk 890 crore was granted to United Super Traders, but no real business transactions occurred. Instead, fake documents were created to withdraw the money. The loan limit was later increased to Tk 1,000 crore through further corruption.
By 2023, additional funds, amounting to Tk 181 crore, were embezzled through similar fraudulent means. A total of Tk 1,748 crore was looted over 32 illicit deals between 2022 and 2023. The bank’s finances were severely compromised, as shown by the audit report and the ACC’s investigation.
As of January 2024, the investigation has revealed the complete embezzlement of Tk 1,113 crore, including Tk 993 crore as loan and Tk 120 crore as profit. This loss has been attributed to irregular banking practices and corruption at multiple levels.
The investigation continues to involve a broad range of individuals, including directors and owners of various companies, as well as officials from Islami Bank. The names of several key players, including those involved in banking and trade businesses, have surfaced in connection with the fraud.
The Anti-Corruption Commission has vowed to take swift action against those found responsible for the scandal, with more arrests likely in the coming weeks.
In a major financial scandal, several high-ranking officials from Islami Bank Bangladesh Limited (IBBL) are set to face charges in connection with the embezzlement of Tk 3300 crore in loans from the bank’s branches in Chittagong. The accused include Managing Director Mohammad Monirul Mawla, former Additional Managing Director Muhammad Qaiser Ali, former Director and Chairman of the EC Committee KQM Habibullah, and numerous other former and current officials.
The scandal involves loans waived over a period from 2019 to December 2023, allegedly under fraudulent pretenses, involving three major institutions: M/s Murad Enterprises, United Super Traders, and Century Food Products. These loans, given to these companies across the Chaktai, Jubilee Road, and Khatunganj branches of Islami Bank, were initially justified on the condition of purchasing raw materials locally and exporting the goods. However, fake documents were allegedly created to move the funds between accounts, and the money eventually disappeared when it reached the S Alam Group’s accounts.
The officials facing charges include former and current senior members of Islami Bank, such as Mohammad Salim Uddin (former DMD and Chief Human Research Officer), Mostafizur Rahman Siddiqui, Mohammad Ali, Mohammad Sabbir, Miftah Uddin, former DMD Abul Fayaz, and others. The investigation, led by the Anti-Corruption Commission (ACC), also targets former senior officials like Mohammad Kamal Uddin (former SEVP and AMD), Altaf Hossain (SEVP), and GM Muhammad Gias Uddin Quader. The head of the Jubilee Road branch, Sohel Aman, and his predecessor Ekjo Shahadat Hossain are also implicated in the case.
The charges against the accused include serious violations under the Penal Code (Sections 409/420/467/468/471/477A/109) and the Prevention of Corruption Act (Section 5(2), 1947), as well as the Prevention of Money Laundering Act (Sections 4(2) and 4(3), 2012). These charges stem from the allegations that the loans were waived fraudulently, and the money was misappropriated through a series of banking irregularities and falsified documents.
The case first came to light in early 2024, when the ACC took note of complaints regarding loan fraud from three of Islami Bank’s Chittagong branches. A special investigation team, led by ACC Deputy Director Yashir Arafat, was formed to probe the matter. Over 50 individuals, including senior officials from Bangladesh Bank, were summoned for questioning. Although Ahsanul Alam, the former chairman of Islami Bank and son of S Alam Group’s Mohammad Saiful Alam, was called to testify, he failed to appear.
Documents revealed that loans totaling Tk 3300 crore were granted to the aforementioned companies over several years, with the largest amounts - Tk 1054 crore to M/s Murad Enterprises, Tk 1084 crore to United Super Traders, and Tk 1119 crore to Century Food Products - waived through a series of questionable transactions. These loans were meant to facilitate the purchase and export of raw materials, but instead, they were funneled through a network of fake accounts and transactions, leading to the loss of the bank’s funds.
However, the ACC is preparing to bring charges against the accused officials and any other individuals involved in this extensive financial fraud. The case is expected to have significant ramifications, both for the bank and for the broader financial sector, as authorities seek to hold those responsible accountable for the embezzlement of public funds.
