Islami Bank accuses 38, including ex-president and S Alam Group chair, of Tk 500 crore loan fraud

Islami Bank Bangladesh PLC has lodged a formal complaint with the Anti-Corruption Commission (ACC), accusing 38 individuals of alleged embezzlement totaling around Tk 500 crore. Among those named are former bank president Mohammed Shahabuddin and S Alam Group Chairman Saiful Alam.

The bank alleges that significant irregularities occurred during Mohammed Shahabuddin's tenure as the bank's vice-chairman and a board member. Specifically, the complaint details how the loan limit for Suprov Composite Knit Ltd was purportedly increased from Tk 100 crore to Tk 500 crore through illicit means after the S Alam Group assumed control of Islami Bank in 2017. The bank claims the funds were subsequently withdrawn and embezzled.

According to the complaint, businessman S Alam allegedly facilitated the illegal allocation of loans to Suprov Composite Knit Ltd, identified as an associate company of AnnonTex Group. The bank further asserts that individuals, including Shahabuddin and three former managing directors, Monirul Mawla, Abdul Hamid Mia, and Mahbub Ul Alam, played roles in approving the loan, thereby financially benefiting from the irregularities in its approval and disbursement.

An investigation by four appointed audit firms reportedly uncovered various discrepancies related to the loan limit increase, approval process, and fund disbursement. The bank contends that Suprov Composite Knit Ltd's loan limit was expanded without adequate assessment of its financial capacity or repayment ability. The ACC has been requested to investigate whether the funds were ultimately used in ways detrimental to the bank's interests.