[🇧🇩] Everything about Hasina's misrule/Laundered Money etc.

[Saif]

Bangladesh Bank dissolves S Alam-controlled board of SIBL

Bangladesh Bank on Sunday dissolved the board of directors of Social Islami Bank Limited and appointed independent directors in an effort to free the bank from the controversial...

www.newagebd.net

Bangladesh Bank dissolves S Alam-controlled board of SIBL
Staff Correspondent 25 August, 2024, 20:10

| Collected photo

Bangladesh Bank on Sunday dissolved the board of directors of Social Islami Bank Limited and appointed independent directors in an effort to free the bank from the controversial control of the S Alam Group.

In a letter to the bank’s managing director, the central bank outlined its decision on the day to place the bank under a new board of directors.

Previously, the SIBL board was chaired by Belal Ahmed, son of Chattogram-based S Alam Group chairman Saiful Alam.

The newly formed five-member board includes one shareholder director and four independent directors.

Major (retd) Md Rezaul Haque, a founding shareholder of the bank, has been appointed as a director.

The four independent directors are former Bangladesh Bank executive director Maksuda Begum, Dhaka University finance professor M Sadiqul Islam, former Rupali Bank deputy managing director Md Morshed Alam Khandkar, and chartered accountant Md Anwar Hossain.

A new chairman will be selected from among these directors.

This marks the second instance of a bank being officially freed from the S Alam Group’s control.

On August 20, Bangladesh Bank similarly dissolved the board of directors of Islami Bank Bangladesh, controlled by the S Alam Group, and appointed independent directors.

The S Alam Group, with support from the former Awami League-led government, took control of SIBL in 2017, ousting several founding shareholders and directors in the process.

Since then, enormous sums of money were allegedly siphoned from the bank through various anonymous companies.

S Alam Group has been accused of engaging in widespread irregularities within SIBL, particularly in recruitment and loan disbursement.

Bank officials claim that the group withdrew around Tk 15,000 crore in loans, mostly under anonymous names.

These loan irregularities have pushed the bank into a severe liquidity crisis, leaving its current account with Bangladesh Bank in the red and forcing it to rely on central bank bailouts.

Additionally, SIBL concealed Tk 7,936 crore in defaulted loans, with allegations of collusion by senior central bank officials.

The inspection team discovered a shortfall of Tk 8,127 crore in provision at the end of December 2023.

But, the central bank reported that SIBL’s total provisioning requirement was Tk 1,370 crore, of which the bank had met Tk 1,306 crore, leaving a shortfall of only Tk 64 crore.

Therefore, most of the irregularities by the S Alam Group occurred under the watch of Bangladesh Bank, with some of its senior officials’ involvement in the misconduct.

Following recent political shift, some SIBL shareholders staged a protest on August 11, calling for the bank to be freed from S Alam Group’s control.

At a press conference, they accused Saiful Alam and his associates of siphoning off significant sums, endangering not just SIBL but the entire financial sector. Depositors have reportedly faced difficulties in withdrawing their funds, they said.

The protest and press conference were attended by several shareholders, including former chairman Rezaul Haque.​

 

[Saif]

S Alam barred from fund transfer, cashout, LC opening

The Bangladesh Bank yesterday instructed six S Alam-owned banks to stop any money going out of the accounts in the name of the Chattogram-based business giant, its associates’ companies and related persons.

www.thedailystar.net

S Alam barred from fund transfer, cashout, LC opening

The Bangladesh Bank yesterday instructed six S Alam-owned banks to stop any money going out of the accounts in the name of the Chattogram-based business giant, its associates' companies and related persons.

However, all types of deposits can be accepted in their accounts, according to the letter from BB's banking inspection department-7.

Islami Bank, First Security Islami Bank (FSIBL), Social Islami Bank (SIBL), Union Bank, Global Islami Bank (GIB) and Bangladesh Commerce Bank (BCB) have already passed on the BB instruction to their branches and sub-branches.

The instruction was given as the central bank has started to reconstruct the board of directors of the banks linked to the business group, said BB spokesman Md Mezbaul Haque,

Once the banks' boards are reconstituted, the instruction to bar any withdrawals from the accounts would be relaxed, he added.

The BB has verbally instructed the other banks to suspend fund transfer and withdrawal requests of S Alam Group, its associates' companies and related persons, The Daily Star has learnt from the managing directors of three leading banks.

Banks have been asked to not renew any investment facilities or stop any new investment. They have been instructed to suspend any new disbursement or withdrawal.

The lenders will not be able to disburse and withdraw any new investment from the investment accounts that are previously approved in their name, the BB letter said.

The banks have also been asked not to open letters of credit (LC) in favour of the companies of the business group and its associates' companies.

However, banks can open LC in favour of the companies at a 100 percent margin.

Banks have also been asked to disallow bill discounts or purchases in their name; not to make any application to the central bank for any refinance scheme; ban credit card transactions; and decline requests for fund transfers outside of Bangladesh in their name.

Founded in 1985 by Mohammad Saiful Alam, a relative of former Awami League politician Akhtaruzzanan Chowdhury Babu and former Land Minister Saifuzzaman Chowdhury, S Alam Group has grown into one of the largest conglomerates in Bangladesh.

For instance, S Alam is one of the four edible oil importers and processors along with TK Group, City Group and Meghna Group. Together, they control 80 percent of the total edible oil market in Bangladesh, according to import data from the National Bureau of Revenue.

Its subsidiary S Alam Refined Sugar Industries was the third-largest importer of sugar in 2023, accounting for a fifth of the country's demand.

S Alam Group and its associate companies took out Tk 95,331 crore between 2017 and June this year from six banks, with 79 percent of the sum coming from Islami Bank, data showed.

Documents pieced together by The Daily Star show that most of the loans were taken by bypassing banking rules and regulations, in a testament to how the Chattogram-based conglomerate exerted its influence on the country's banking sector.

In a separate letter, the Bangladesh Financial Intelligence Unit (BFIU) on Sunday sought detailed information on the overall banking activities of Alam, his 12 family members and their companies.

The 12 family members include his wife Farzana Parveen, his two older sons Ahsanul Alam and Ashraful Alam, and his brothers Osman Ghani, Abdus Samad, Rashedul Alam, Shahidul Alam, Mohammed Abdullah Hasan and Morshedul Alam, who passed away in May 2020 from Covid-19.

The account details of Ghani's wife Farzana Begum and Samad's wife Shahana Ferdous were sought too.​

 

[Saif]

Bank accounts of 4 firms linked with S Alam’s personal secretary frozen

The BFIU found Tk 99.7 crore at the accounts of four companies of Md Akiz Uddin, also a former deputy managing director of Islami Bank Bangladesh

www.thedailystar.net

Bank accounts of 4 firms linked with S Alam’s personal secretary frozen
The BFIU found Tk 99.7 crore at the accounts of four companies of Md Akiz Uddin, also a former deputy managing director of Islami Bank Bangladesh

The Bangladesh Financial Intelligence Unit (BFIU) has asked banks to freeze the accounts of four companies linked with Md Akiz Uddin, a former deputy managing director of Islami Bank Bangladesh and personal secretary of S Alam Group chairman.

The BFIU found Tk 99.7 crore in the accounts of the four companies: Rahman Rahman & Son's, Moshtaq Traders, Nazrul Enterprise and Alam Trading Builders.

The anti-money laundering agency also instructed banks to suspend the transactions at those accounts and sought an update on the accounts in the next five working days.

Akiz Uddin has not come to work at Islami Bank since Sheikh Hasina resigned from the post of prime minister and fled the country on August 5.

Recently, Islami Bank sacked its eight high officials, including Akiz Uddin, who influenced Islami Bank in various activities, including loan sanctions, industry insiders said.​

 

[Saif]

How a family grabbed multiple banks

The Bangladesh Bank is supposed to protect customers’ interests, but it did not do so when it permitted Mohammed Saiful Alam and his family to seize multiple banks and funnel enormous sums as loans.

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How a family grabbed multiple banks
S Alam and his family bypassed rules cleverly in capturing seven banks and two non-banks

The Bangladesh Bank is supposed to protect customers' interests, but it did not do so when it permitted Mohammed Saiful Alam and his family to seize multiple banks and funnel enormous sums as loans.

Alam, the chairman of S Alam Group, and his family members used the central bank's special permission to unprecedentedly possess large shares of seven banks and two financial institutions despite prohibition by the Bank Company Act.

For example, they have a 30 percent stake in Islami Bank while the law caps such shareholding by a family in a bank at 10 percent. That allowed Alam's relatives to take a total of Tk 25,000 crore loans from the bank with far less investment in it, official data shows. The actual amount is believed to be more than three times the official figure.

The Alams are the only family in Bangladesh with all members and some of their relatives sitting on the boards of several banks simultaneously. They deftly captured the banks' shares as the central bank relaxed the rules for them.

Analysts and experts have condemned such a practice as "totally unacceptable and absurd", as it has put the banks, and the entire financial sector at risk.

The experts have been calling for efforts to reduce family control over the banks for a long time. However, their suggestion fell on deaf ears with the central bank bypassing rules to let Alam and his family strengthen their control over the banks.

All the members of the family were directors of different banks until last week when the central bank dismantled the board of the Islami Bank to ensure good governance after the new interim government launched its efforts to fix the troubled sector as part of a broader reforms plan.

Alam is the chairman of First Security Islami Bank's board while his wife Farzana Parveen is a director. Their son Ahsanul Alam, daughter Maimuna Khanam, and son-in-law Belal Ahmed control the boards of Islami Bank, Global Islami Bank and Social Islami Bank respectively. Alam's brothers, sisters, and other relatives also sit on the boards of several banks.

The law bars a person with a significant shareholding in a bank from buying a substantial stake in another bank. The same rule applies to their family members and companies.

Alam, however, grabbed Islami Bank and Social Islami Bank in 2017 despite having significant shares of First Security Bank, and Union Bank.

A top official of the Bangladesh Bank confirmed that Alam's family received the central bank's approval to buy the stakes despite the banking regulator's obligation to block the process.

The law states that not more than three members of a family are allowed to hold the directorship of a bank. A family and their firms cannot acquire more than 10 percent of shares jointly.

However, besides the 30 percent stake in Islami Bank, Alam's family members and their firms together own about 22 percent of Social Islami Bank shares, 28 percent of First Security Islami Bank, and 30 percent of Global Islami Bank, according to the shareholding reports of the banks.

They also have 5 percent shares in each of Al-Arafah Islami Bank and Northern Insurance, and more than 70 percent in Aviva Finance and Union Bank each.

Shareholding data of Bangladesh Commerce Bank could not be obtained but the website of S Alam Group claims it owns the bank.

Toufic Ahmad Choudhury, director general of Bangladesh Academy for Securities Markets (BASM), described the control of Alam's family over the banks as "totally unacceptable".

Although legal restrictions were put in place to stop the family control in banks, S Alam had been allowed to wield its control over the banks for its own benefit, Choudhury said, referring to the loans taken by the Alam family and their relatives.

"The banking business is quite different. Depositors are the real owners of the banks," said Choudhury, also a former director general of the Bangladesh Institute of Bank Management (BIBM).

An analysis of Islami Bank's financial reports shows that the Shariah-based bank provided about Tk 25,000 crore loans to Alam's relatives. Social Islami Bank showed nearly Tk 5,000 crore loans to them in its financial reports.

The other banks followed in the footsteps of these two banks. Officials of these banks, who requested anonymity, said the loans given to Alam's relatives were bigger than what official data shows.

The total amount could be above Tk 75,000 crore from Islami Bank alone, one of the officials said.

A top official of a bank said many directors abused their power to save themselves from becoming loan defaulters by rescheduling loans year after year. So the criteria for directors should be changed in such a way that will not allow them to have their loans rescheduled when they face a default.

Data also showed how the S Alam family's presence on the board affected the banks, all of which except Al-Arafah Islami Bank remain in the yellow zone – meaning their financial health is between "good" and "fragile".

Fahmida Khatun, executive director of the Centre for Policy Dialogue, said this is "the best example of how a single family controls the banking sector".

As the regulatory body, the Bangladesh Bank is responsible for allowing this to happen while the government gave S Alam a free rein over the banks by amending the laws, she said.

Despite repeated requests from analysts, parliament allowed the increasing presence of families on a bank's board. It doubled the number of members of a family allowed on a bank's board to four before reducing it to three amid huge pressure from analysts. On top of that, a director was allowed to remain on the board for 12 years.

"This is absurd," said Fahmida.

When many family members remain on a bank's board, they can influence the board for the benefit of people or organisations linked to them. In some cases, directors with a much lower stake also obtain such benefits.

For instance, Alam's relatives received loans above Tk 25,000 crore from Islami Bank officially while their contribution to its paid-up capital was around Tk 300 crore, according to the financial report of the bank.

It shows how high their gain is compared to their investment in the bank, Fahmida said.

The economist recommended amending the law further to allow only one member of a family on a bank's board and limiting a bank director's tenure to six years.

A top official of a leading private bank, who preferred not to be named, questioned the Bangladesh Bank's role in allowing the S Alam family to control so many banks. "What did the central bank do when the family was grabbing the banks? It was their responsibility to stop the family," he said.

The Daily Star tried to contact Saiful Alam via text message, but he did not reply. BB spokesman Mezbaul Haque did not receive phone calls for comment.​

 

[Saif]

Possible graft in model mosque project to be probed: adviser

Religious adviser AFM Khalid Hossain today said the interim government will form an investigation committee to probe alleged corruption in the construction of model mosques

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Possible graft in model mosque project to be probed: adviser

Religious adviser AFM Khalid Hossain today said the interim government will form an investigation committee to probe alleged corruption in the construction of model mosques.

Speaking at a seminar at the Islamic Foundation in Dhaka's Agargaon area, the adviser also revealed plans for a high-powered committee to investigate the deterioration of the Islamic Foundation, stating that those responsible for its decline will be held accountable.

"The Islamic Foundation will be restructured and transformed into a vibrant institution," he said.

The adviser emphasized that changes would be made within the organization, including reassigning long-serving officers from the head office to the field and promoting qualified field officers to central roles.

Khalid also criticised the Islamic Foundation for deviating from its original mission and vision in recent years, attributing this shift to political interference.

"The Islamic Foundation must be kept above politics," he said.

The religious adviser further said that intelligence agencies would assist in investigating any illicit wealth accumulation by Islamic Foundation officials and employees over the past 15 years.

"If any irregularities or corruption are found, legal action will be taken," he added.​

 

[Saif]

Governor warns all not to purchase S Alam assets

Bangladesh Bank governor Ahsan H Mansur on Wednesday warned people not to purchase any assets linked to S Alam Group and said that the government planned to seize those assets to compensate depositors...

www.newagebd.net

Governor warns all not to purchase S Alam assets
Staff Correspondent 28 August, 2024, 17:20

Ahsan H Mansur | Collected photo

Bangladesh Bank governor Ahsan H Mansur on Wednesday warned people not to purchase any assets linked to S Alam Group and said that the government planned to seize those assets to compensate depositors.

At a press conference at the Bangladesh Bank headquarters, Mansur described the S Alam scam as the largest bank heist in the history, with the group allegedly siphoning off around Tk 2 lakh crore ($16.6 billion) using state mechanism.

‘I am unaware of anyone else globally who has looted banks on this scale and in this manner,’ he said.

‘The assets in S Alam’s name and under anonymous ownership will be sold to compensate depositors. No one should buy any of these assets now,’ Mansur said.

Allegations have it that S Alam Group, under the previous government’s protection, took control over seven banks and withdrew such vast sums, much of which were allegedly laundered.

The central bank recently froze bank accounts of S Alam and his associates, seized shares in six banks, and enforced a 100 per cent margin on all their LCs.

So far, the central bank has restructured the boards of six banks, four of which were directly controlled by S Alam, with the other two under its indirect control.

The group chairman, Mohammed Saiful Alam, and his family, now residing abroad, possess significant foreign assets.

Regarding the bank restructuring, the governor said, ‘The boards of six banks have already been restructured and more will follow soon. These new boards will act as government representatives, but they too will be replaced if they fail to perform at desired level.’

Mansur urged depositors to remain calm and avoid mass withdrawals, which could jeopardise the banks’ liquidity.

‘We don’t want depositors to lose their money, but we won’t print more currency as it would lead to hyperinflation, potentially reaching 100 per cent,’ he said.

Urging people to withdraw only what is be necessary, the governor said that the situation would stabilise in the next 5–6 months.

He added that inflation was being addressed and, with the dollar rate now stable, inflation should decrease within 6–7 months, although recent floods posed some concerns.

He assured that dollars were no longer being sold from reserves, with government demands being met through the interbank dollar market.

He said that a banking commission would be formed in a month and the central bank would be a part of it.

Foreign experts will be brought in and Sri Lanka’s model will also be considered, he said.

Mansur criticised the governance under the former two central bank governors, assuring that such failures would not occur under his leadership.

He also acknowledged the need for reforms within the Bangladesh Bank itself, admitting the central bank’s share of responsibility.

Asked about other criminal entities in the banking sector besides S Alam, Mansur vowed to investigate and take action against all of them as well, declaring, ‘No one will be spared.’​

 

[Saif]

Work underway to assess amount of money laundered, swindled: CAO

The Chief Adviser’s Office (CAO) on Wednesday said work is underway to assess the amount of money laundered abroad or swindled by some corrupt businessmen and influential people in the country. “Audit will begin to determine the money swindled by the corrupt people . . . (but) it can b

thefinancialexpress.com.bd

Work underway to assess amount of money laundered, swindled: CAO
FE Online Desk
Published :
Aug 28, 2024 21:49
Updated :
Aug 28, 2024 21:49

The Chief Adviser’s Office (CAO) on Wednesday said work is underway to assess the amount of money laundered abroad or swindled by some corrupt businessmen and influential people in the country.

“Audit will begin to determine the money swindled by the corrupt people . . . (but) it can be assumed that the amount could be over Tk 100 billion,” the CAO office said in a statement.

It said initiatives were taken by now to bring reforms in the banks and financial institutions involved in such corruption and money laundering while the interim government now reconstituted the governing boards of Islami Bank, Social Islami Bank, National Bank, United Commercial Bank, Global Islami Bank and Union Bank, reports BSS.

“Reforms in other banks and financial institutions will start as well. The actual information of the money laundered will be collected through new managements and audit will begin to determine the money swindled by the corrupt people,” the statement read.

It said the new management of the banks started works to seize the local swindlers’ assets and bring the laundered money back home with support from Bangladesh Bank’s Financial Intelligence Unit (BFIU), police’s Criminal Investigation Department (CID) and the Anti-Corruption Commission (ACC).

According to the statement, the authorities concerned already sought cooperation from foreign organizations in returning the laundered money to the country.

“The government will soon form a banking commission to unearth the true picture of each bank through investigations and formulate an implementable roadmap to reform banks within six months,” it said.

The aim of the Bangladesh Bank and the government is to build a strong banking sector which would be capable of following all the international standards.

The statement, however, said the task would require international technical assistance and funding.

Bangladesh Bank and the government have taken initiatives to restructure the banks by seizing the assets of embezzlers and bringing their laundered money home.

The restructuring of banks and structural reforms in the financial sector are a time-consuming matter but the government is committed to turning the country’s financial sector into an international standard one, the statement said.​

 

[Saif]

People's fortune doesn't reflect dev project's expenditures: adviser

Muhammad Fouzul Kabir Khan, adviser to the Ministry of Road Transport and Bridges, today said the expenditures of country's development projects doesn't reflect on people's fortune

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People's fortune doesn't reflect dev project's expenditures: adviser

Muhammad Fouzul Kabir Khan, adviser to the Ministry of Road Transport and Bridges, yesterday said people's fortune doesn't reflect expenditures of country's development projects.

While inspecting the Padma Bridge Rail Link Project, Fouzul, who is also an adviser to the Ministry of Railways, made the remarks to reporters at the Mawa Railway Station in Louhajang, Munshiganj, this evening, reports our local correspondent.

He further said, "There is no correlation between development expenditure and the benefits to the people. The reason for the public's frustration is that while it is claimed that the country's GDP is increasing, people are not experiencing the benefits."

He questioned, "How much benefit people will get from the Padma Bridge Rail Link Project? In how many days will the money spent be recovered? I will discuss these with the planning adviser."

"The money for the Padma Bridge project comes from the Chinese Exim Bank, and it must be repaid with interest," he added.

Fouzul Kabir said in future, planning would be done in such a way that development expenditures are more closely aligned with the fortunes of the people.

"The difference between this government and the previous one is that the previous government did not answer questions. Now, we have to address these issues," he said referring to the ministry's secretary.

He continued, "You will see how to maximize income from these projects through their best use. Otherwise, we will not benefit from these white elephant projects."

During this time, senior officials from the ministry were present with the adviser.​

 

[Saif]

CID opens investigation against S Alam, associates for 'laundering' Tk 1130b

An investigation has be launched against S Alam Group owner Saiful Alam (S Alam) and his associates into the allegation of laundering Tk 1.13 trillion (113,245 crore) abroad.

en.prothomalo.com

CID opens investigation against S Alam, associates for 'laundering' Tk 1130b
Staff Correspondent Dhaka
Published: 31 Aug 2024, 20: 32

An investigation has been launched against S Alam Group owner Saiful Alam (S Alam) and his associates into the allegation of laundering Tk 1130 billion abroad.

The Criminal Investigation Department (CID) of police has started the investigation.

The CID disclosed this in a press release sent to the media outlets on Saturday.

The press release said that there are allegations of organised crimes, frauds, scams and running Hundi activities against S Alam Group owner S Alam and his associates.

The Financial Crimes Unit of the CID has launched the probe on suspicion of S Alam and his associates being involved with laundering Tk 1130 billion abroad.

The CID says according to the news published in media, the suspects including S Alam himself have surrendered Bangladeshi citizenship and then through frauds and forgery collected permission for permanent residency (PR) in Bangladesh again within just a single day.

They have built assets through their own companies as well as through people and companies of their interests in Singapore, Malaysia, Cyprus and European countries by siphoning off money out of Bangladesh.

According to CID’s information S Alam and his associates have established a company named Canali Logistics Private Limited in Singapore with subscribed capital of USD 22.34 million (USD 2.23 crore) from the money laundered by S Alam.

They also took loans worth Tk 950 billion (Tk 95,000 crore) from six banks in the name of importing and exporting goods as well as investment abroad through fraud, and defaulted it.

Apart from this, it has been alleged that S Alam has siphoned off Tk 180 billion (Tk 18,000 crore) abroad through offshore banking by opening a company that exists only on papers.

CID says that they have committed money laundering crimes through various people of their interest including S Alam, his wife Farzana Parveen as well as their sons Ahsanul Alam and Ashraful Alam.​

 

[Saif]

Govt to form task force to recover money taken abroad illegally

The interim government will form a task force to recover money illegally taken out of Bangladesh, said Finance and Commerce Adviser Dr Salehuddin Ahmed yesterday.

www.thedailystar.net

Govt to form task force to recover money taken abroad illegally

Dr Salehuddin Ahmed

The interim government will form a task force to recover money illegally taken out of Bangladesh, said Finance and Commerce Adviser Dr Salehuddin Ahmed yesterday.

He made the comment while speaking to journalists after a meeting with a delegation of buying houses at his Bangladesh Secretariat office.

Earlier, Bangladesh Bank and other related authorities had informed of planning to take initiatives to bring back such money.

"We are speaking to the World Bank, the United States and the United Kingdom to bring back laundered money," Bangladesh Bank Governor Ahsan H Mansur said in a recent interview with The Daily Star.

Money from Bangladesh had also been illegally taken to Dubai and Singapore, he added.

When asked whether reforms have started to materialise since he took office, Salehuddin said, "Of course, there have been visible changes as many things are evident.

"Action has been taken against default loans, banks with issues are being reorganised, and the liquidity problem was addressed by the (central bank) governor," he said.

Following Mansur's appointment as governor on August 14, Bangladesh Bank reconstituted the boards of a number of banks.

They include Islami Bank Bangladesh, Social Islami Bank, Global Islami Bank, Union Bank, National Bank, First Security Islami Bank, Bangladesh Commerce Bank, Al Arafah Islami Bank, United Commercial Bank, Exim Bank and IFIC Bank.

Most of these lenders were controlled by S Alam Group, a Chattogram-based conglomerate.

Regarding trade and commerce, Dr Salehuddin Ahmed said, "We have reduced the duty on potatoes and onions, and instructions have been given to ensure their supply."

The National Board of Revenue (NBR) in a statement yesterday announced that it had reduced duties on the import of onions and potatoes to boost supply and curb rising prices of these essential items.

The tariff on onion import was reduced to 5 percent and on potato import to 15 percent. It will remain in effect till November 30.

"The NBR expects that the prices of both items will reach more tolerable levels following the reduction in import duties," said the revenue authority.

Dr Salehuddin Ahmed also informed that monitoring of kitchen markets, supply chains and prices would be strengthened.

On whether the interim government has been able to reduce the prices of goods, the finance adviser said, "No, the price of goods is not decreasing due to many reasons. The price has increased, it cannot be dragged down quickly."

He, however, assured that the prices would come down within a few months. Even if the prices of imported goods increase, the interim government will devise a way to ensure that consumers remain unaffected, he said.​

 

[Saif]

S Alam group withdraws Tk 90,000cr from IBBL

The controversial S Alam Group has withdrawn over Tk 90,000 crore loans from Islami Bank Bangladesh alone, accounting for more than 50 per cent of the shariah-based bank’s total loan...

www.newagebd.net

S Alam group withdraws Tk 90,000cr from IBBL
Staff Correspondent 05 September, 2024, 17:21

| Collected photo.

The controversial S Alam Group has withdrawn over Tk 90,000 crore loans from Islami Bank Bangladesh alone, accounting for more than 50 per cent of the shariah-based bank’s total loan portfolio, according to newly appointed chairman Md Obayed Ullah Al Masud.

He disclosed this shocking figure during a press briefing on Thursday, following a meeting with Bangladesh Bank governor Ahsan H Mansur. Other board members of the bank were also present.

By the end of August, Islami Bank’s total loans stood at nearly Tk 1.80 lakh crore, according to bank officials.

Masud stated, ‘The group secured over 50 per cent of the bank’s total loans, both in their name and through anonymous accounts, while the exact figure is still being determined.’

He added that it would take approximately a week to finalise the loan data. Three audit firms have been appointed to investigate all kinds of irregularities that occurred at the bank.

S Alam Group, under the patronage of the ousted Awami League-led government, seized full or partial control of eight banks, central bank officials said.

The group has been accused of rampant irregularities, particularly in recruitment and loan disbursement, they said.

Bank insiders allege that S Alam withdrew close to Tk 2 lakh crore from the banking sector, primarily from the eight banks under its control, with much of the amount funnelled through anonymous channels, they said.

These banks are First Security Islami Bank, Social Islami Bank, Union Bank, Global Islami Bank, Islami Bank Bangladesh, Al-Arafah Islami Bank, National Bank, and Bangladesh Commerce Bank.

The central bank has now reconstituted all eight banks and appointed independent directors to oversee their operations.

New Islami Bank chairman said that the S Alam Group allegedly inflated the value of their assets to secure massive loans, and the bank is now re-evaluating these assets.

The collateral offered was inadequate to cover the debts, therefore, the bank made a formal request to the Ministry of Law to track down other assets owned by the group.

On August 22, Bangladesh Bank freed Islami Bank from S Alam’s control, reconstituting the board and appointing Masud, former managing director of Rupali Bank, as the new chairman.

S Alam Group, reportedly with the backing of a state agency, forcibly took over the bank in 2017, side-lining its founding shareholders and directors.

Bangladesh Bank, under the leadership of former governor Abdur Rouf Talukder, provided all kinds of possible liquidity support to these banks despite knowing that these banks continued allowing the S Alam Group to withdraw money as anonymous loans.

This occurred even though the banks’ current accounts remained negative, leaving them incapable of making any transactions.

After exhausting all legal avenues, Bangladesh Bank resorted to unethical and illegal means to provide these banks with additional liquidity.

Despite the banks having no funds in their current accounts, the central bank printed money to keep them afloat, according to Bank Bank officials.


As criticism mounted from various corners, Bangladesh Bank was forced to halt this unsustainable practice and began searching for alternative methods to support the struggling banks.

At last, the central bank provided total $1.1 billion equivalent in financial support to Islami Bank Bangladesh since January based on a fake dollar purchase quotation.

On July 3, Bangladesh Bank falsely reported a $550 million purchase from Islami Bank, even though no actual dollars were transferred. In this fabricated transaction, Islami Bank received Tk 6,490 crore at a rate of Tk 118 per dollar, the officials said.

Islami Bank only returned $100 million, leaving $450 million unpaid. After the fall of Sheikh Hasina, Bangladesh Bank hurriedly adjusted the remaining amount in the bank’s current account which had already been negative.

This review underscored the severity of financial mismanagement and exposed the deep-rooted collusion between the central bank and a private institution wielding enormous power through political connections.

In the press briefing, Masud expressed hope that the bank would return to positive growth by the end of the year.

Addressing concerns about customer difficulties in withdrawing deposits, he reassured that the recent influx of deposits has exceeded withdrawals, leading to a net positive balance.

When questioned about punitive actions against officials who abetted S Alam, Masud clarified that while lower-level employees would not be removed immediately to avoid a destabilisation risk, removal of senior officials was already underway.

He promised that all those involved would face legal consequences with no exceptions.

There will be no more restrictions on the business operations and opening Letter of Credits (LCs) in Islami Bank from now on, he said.

Masud also unveiled a recovery roadmap for the bank. The first phase, running through December 31, focuses on identifying and addressing critical issues.

The second phase, from 2025 to 2026, aims at full recovery, while the 2027–2029 period is designated for progress and growth, according to the bank’s new chairman.​

 

[Saif]

CID to probe Bashundhara Group chair, MD over alleged money laundering

The Criminal Investigation Department on Thursday said that the agency launched an investigation against Basundhara Group chairman Ahmed Akbar Sobhan and managing director...

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CID to probe Bashundhara Group chair, MD over alleged money laundering
Staff Correspondent 05 September, 2024, 18:34

From left, Bashundhara Group chairman Ahmed Akbar Sobhan, managing director Sayem Sobhan Anvir. | BSS file photo

The Criminal Investigation Department on Thursday said that the agency launched an investigation against Basundhara Group chairman Ahmed Akbar Sobhan and managing director Sayem Sobhan Anvir for their alleged involvement in money laundering.

Superintendent of CID media wing Azad Rahman in a press release said that the CID had decided to investigate the allegations of embezzlement, laundering of thousands of crores of taka through fraudulence, forgery, tax evasion, VAT evasion, under-invoicing and over-invoicing against different organisations related to Bashundhara Group.

Bashundhara Group had allegedly bought land at Tk 20-25 lakh per bigha by cheating the land owners. But it borrowed more than TK 42,000 crore from bankshowing the price of per katha land at Tk 3 crore.

The company allegedly was implementing projects by filling up public and government properties like canals and rivers without the approval of RAJUK, the press release said.

It has been accused of illegally occupying a total of 1, 016 acres of land including 800 acres of government properties in Bashundhara residential area and 216 acres of Bhawal Raj Estate.

Besides, there are allegations of grabbing vast land by East West Properties Limited in different blocks of Bashundhara Residential Area, which is estimated to be worth more than Tk 1.5 lakh crore.

Ahmed Akbar Sobhan and his on Sayem Sobhan Anvir were involved in laundering money to Dubai, Singapore, Cyprus, London, Malaysia and other countries, the press release said.

Bashundhara Group›s Singapore office is being looked after by Ahmed Akbar’s elder son Sadat Sobhan Tanveer, who allegedly took thousands of crores of taka loan from different banks by showing one project after another, but never repaid the loans.

Meanwhile, Bashundhara Oil & Gas (Keraniganj, Dhaka) had been accused of importing bitumen worth approximately Tk 2,000 crores from abroad with the help of trade-based money laundering and later supplying the imported bitumen to different parts of Bangladesh through a monopoly business under the control of a powerful syndicate controlling the price.

The CID said that Sayem Sobhan Anvir allegedly controlled the syndicate of gold smuggling in Bangladesh.​

 

[Saif]

Hasina's anti-corruption drive was a farce

Before the fall of the autocrat Hasina's government, there was a flurry of sensational news in the media about the corruption of former IGP Benazir Ahmed, former army chief Aziz Ahmed and the NBR director Matiur Rahman. But the steps taken by Hasina were nothing but a farce, making a fool out of...

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Hasina's anti-corruption drive was a farce
Mainul Islam
Updated: 09 Sep 2024, 17: 27

Before the fall of the autocrat Hasina's government, there was a flurry of sensational news in the media about the corruption of former IGP Benazir Ahmed, former army chief Aziz Ahmed and the NBR director Matiur Rahman. But the steps taken by Hasina were nothing but a farce, making a fool out of the people. Hasina institutionalised corruption by entering corruption in the very pores of the economy.

The former inspector general of police (IGP) Benazir Ahmed came to limelight in 2009 as a favourite of Sheikh Hasina, one who enjoyed her full patronage. He was from Gopalganj. And he actively devoted himself to meeting all objectives of Hasina -- political and non-political, legal and illegal.

Benazir Ahmed's career graph shot up in no time, from Dhaka Metropolitan Police commissioner to director general of RAB and then IGP. His most despicable offence was during the 2018 election, orchestrating the stuffing of ballot boxes in most constituencies on the night before the election, with the direct participation of the police and civil administration.

The Hasina government took no action whatsoever against these thousand or so money launderers who brought the country to the brink of economic collapse by siphoning off thousands and thousands of crore of taka overseas

As he was instrumental in carrying out huge illegal activities of the Hasina government, while he was in service neither Hasina nor Anti-Corruption Commission or any other authority uttered a word about this unrestrained corruption and his amassing massive wealth.

It was only after he was no longer useful to the government that various details of his corruption and misappropriations were supplied to the media and published with much fanfare. But the media also exposed that it was only after Benazir and his family had made a safe exit overseas that these stories hit the headlines, a mere eyewash.

It was the same in the case of the former army chief General Aziz. Those who watched the Al-Jazeera documentary, "All the Prime Minister's Men" are aware of how General Aziz used his clout during Hasina's rule to get a presidential pardon for one of his brother's would was convicted for murder.

The Al Jazeera documentary revealed many more stories of Aziz's corruption. It was Aziz who was the army chief during the 2018 election rigging. Ever since the Sheikh Hasina government ascended to power back in 2009, Hasina had an extremely indulgent attitude towards corruption.
Hasina's government kept the country's banking sector in the throes of embezzlement. Of the total Tk 18 lakh crore loans taken from the banking system, at least Tk 5.5 lakh crore became defaulted and most of this was siphoned out of the country. (A recent report of The Business Standard claims that the default loans exceed 7 lakh crore).

Yet the Hasina government was totally oblivious about trying and punishing these kingpins of corruption, the few hundred who embezzled banks funds through deliberate default. (In 1998 President Justice Shahabuddin Ahmed had recommended a tribunal be set up for the trial of the top 10 loan defaulters of all banks.)

Quite to the contrary, the biggest loan defaulter of the country, Salman F Rahman, was appointed as an advisor to the prime minister. One of the main collaborators of the autocrat Hasina, Salman Rahman was nabbed on 13 August while trying to escape by river, in disguise. This pitiful predicament of the country's biggest bank embezzler and biggest loan defaulter Salman Rahman created a huge stir among the people.

He would go around with a white beard, white hair and white panjabi, dressed almost like as ascetic, for which the people would ironically call him 'Darbesh' (dervish). He would dress in this 'saintly' manner, sending a message out quite opposite to his constant devious misdeeds. And Hasina had kept him for a long time as her private investment and industries advisor.

Over the past 52 years, with government patronage, Salman Rahman became a synonym for money laundering. The Business Standard on 15 August 2024 reported that over the past 52 years, by means of loans and embezzlement, he misappropriated Tk 36,867 crore from seven banks. From Janata Bank alone he took loans exceeding Tk 23,000 crore. He reportedly unlawfully took loans totalling Tk 11,000 crore from IFIC Bank which he himself owned. Very little of this loan has returned to the bank or will ever be returned in the future.

The Hasina government took no action whatsoever against these thousand or so money launderers who brought the country to the brink of economic collapse by siphoning off thousands and thousands of crore of taka overseas. The country's foreign exchange reserves dwindled by USD 30 billion over the past three years, but the Hasina government remained unperturbed.

The Hasina government was not sincere at all about preventing corruption, halting the growth of non-performing loans or preventing capital flight. "Zero tolerance" towards corruption was mere rhetoric. Capital flight was fueled by corruption and unrestrained default loans. Embezzlers and money launderers are the top enemies of the country.

I strongly state that after restoring law and order in the country, the priority of the interim government will be to take all-out action against corruption and capital flight. I recall the success of the strong anti-corruption drive by the 2007-08 military backed caretaker government. The anti-corruption commission led by retired Lt Gen Hasan Mashhud Chowdhury managed to give the corrupt politicians, businessmen and civil servants a good shakedown, according to the next ACC chairman Golam Rahman.

Golam Rahman said that when she came to power in 2009, Hasina did not ratify the ACC ordinance drawn up by the caretaker government and simply made it a toothless tiger. General Hasan Mashhud resigned in despair.

I recommend that we revert to that ACC ordinance speedily. Also, a bold person must be appointed as the chairman of ACC, someone who can take stern measures against corruption. There are several persons in our administration who have won renown for their bold steps against corruption and who have won the respect and love of the people.

• Moinul Islam is an economist and former professor at the economics department of Chittagong University.
• This column appeared in the print and online edition of Prothom Alo and has been rewritten for the English edition by Ayesha Kabir

 

[Saif]

Spyware over scholarship: How Bangladesh's priorities shifted under Hasina

While national security is undoubtedly important, one must question whether the scales have tipped dangerously in favor of watching minds at the expense of nurturing them.

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Spyware over scholarship: How Bangladesh's priorities shifted under Hasina

VISUAL: STAR

In an era where Bangladesh desperately needs to foster critical thinking and innovation, a look at the spending priorities of the ousted Awami League government during its 15 years of rule paints a troubling picture. This analysis exposes the stark contrast between the government's lavish expenditure on spyware versus its paltry investment in academic research between 2009 and 2024. While national security is undoubtedly important, one must question whether the scales have tipped dangerously in favor of watching minds at the expense of nurturing them.

The numbers reported by various media and rights platforms over the years speak for themselves, revealing a government more interested in monitoring citizens than nurturing their intellect. For example, spyware spending skyrocketed from a mere $3 million in 2012 to an eye-watering $25 million in 2024—a staggering 733 percent increase. In stark contrast, academic research funding crawled from $50 million in 2010 to just $90 million in 2024—a comparatively anemic 80 percent growth.

This disparity becomes even more alarming when we dig deeper. Reportedly, a shocking 70 percent of so-called "academic research" funds over the past 15 years were squandered on construction and procurement in a trickle-down embezzlement model, keeping bureaucrats, pseudo-intellectuals, and other interest groups aligned with the interests of the regime that consequently leveraged managing elections, political upheavals and dissenters. This cronyism left actual empirical research across STEM, social sciences, and humanities with a budget so thin that it was practically transparent, so to speak. Is it any wonder that our scholarly output is so abysmal?

Meanwhile, the government's appetite for surveillance seemed to be insatiable. The period from 2015 to 2020 saw a particularly aggressive push for spyware acquisition: in 2016, $10 million was allocated for surveillance systems; in 2018, $15 million was poured into digital monitoring; in 2022, a whopping $20 million was budgeted for spyware and related technologies; and in 2024, the budget was projected to reach $25 million.

But even these (official) figures may just be the tip of the iceberg. Anonymous industry sources suggest a staggering $53 million in unreported spyware expenditure between 2019-2024 alone. This clandestine spending allegedly funded projects with Orwellian overtones (see Table), including i) Audio interception project (tapping 120,000 calls simultaneously); ii) National information portal (connecting 42 government databases to efficiently track down individuals); iii) Content blocking and filtering project; iv) Data retention system (updating all data every 15 minutes); and v) a nefarious spyware dubbed "Hello Pakhi" was covertly commissioned at the cost of approximately $2.2 million. This invasive tool, designed to brazenly infiltrate private communications on popular messaging platforms like WhatsApp, among others, represents a flagrant violation of citizens' privacy rights.

The Hacking Team, as an aftermath, pitched mined data to the Rapid Action Battalion (RAB), a unit described by Human Rights Watch as a "death squad" involved in torture and extrajudicial killings. Arguably, RAB enjoyed its own autonomous budget and its personnel, especially top-ranking officials, had an obligation to show expenditure on suppressing dissent within a given fiscal year. Equally alarming is the duplicitous manner in which these exorbitant expenses were concealed from public scrutiny.

Anonymous sources involved in data traffic have exposed the state's underhanded tactics, revealing that these costs were deliberately obfuscated within seemingly innocuous budget items. The government disguised these surveillance expenditures as mundane office events, routine supplies, construction materials, and basic technological equipment for various ministries and security agencies. It can be argued that the state concealed its cost for operating the torture cells, notably Aynaghar, in a similar fashion.

This was the hallmark of the former authoritarian government which was obsessed with control. So, the pressing questions for Bangladesh 2.0 will be: How to locate and remove these surveillance apparatuses? How to identify and bring to justice those who breached privacy and aided the old regime in its surveillance operations? And how to enact safeguards to ensure such intrusive surveillance is not reinstated to suppress the masses again?

Now, let's turn our focus to the Awami League government's lukewarm approach to academic research over the last decade. While there have been modest budgetary increases, they pale in comparison to the surveillance spending spree—i) 2016: $65 million for research and development; ii) 2018: $70 million; iii) 2022: $80 million; and iv) 2024: projected $90 million. The question that must be asked is, what tangible results have these investments yielded? Beyond new buildings and computers, Bangladesh's investment on research and knowledge generation remains worryingly inadequate and ineffective.

The above analysis lays bare a government that evidently favoured control over creativity, and surveillance over innovation. The long-term consequences of this misguided prioritisation could be severe, potentially stunting the nation's intellectual growth and competitiveness for generations to come. It's high time for a critical re-evaluation of our priorities.

Dr Mustahid Husain teaches at the Department of Anthropology, University of Toronto.​

 

[Saif]

Probe starts on how Tk 25cr vanished from Monirul’s office

The Police Headquarters has formed a three-member committee to investigate the allegation of looting Tk 25 crore from the room of the former Special Branch (SB) of Police chief Monirul Islam.

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Probe starts on how Tk 25cr vanished from Monirul’s office

The Police Headquarters has formed a three-member committee to investigate the allegation of looting Tk 25 crore from the room of the former Special Branch (SB) of Police chief Monirul Islam.

The Deputy Inspector General (DIG) of the Special Security and Protection Battalion Golam Kibria has been made the head of the committee.

There is no deadline to submit the report, but the committee has been asked to submit it as soon as, according to police sources.

Confirming the development, Moazzem Hossain, DIG (special affairs) of the SB, also a member of the committee, told The Daily Star last night, "We have started our investigation to find out what happened in the room of the former SB chief."

Asked about any suspects or findings, Moazzem refused to disclose details.

"We are trying to conduct an impartial investigation to find out what happened."

Sources alleged that Monirul, also the former additional inspector general of police, brought Tk 25 crore from the Sheikh Hasina government on August 3 and kept it in his room to spend on suppressing the Anti-discrimination Student Movement.

But before the money could be spent, Hasina's government fell on August 5.

Monirul did not go to the office since then.

But some SB officials knew that there was Tk 25 crore in his room and a number of them moved the money, sources alleged.

The PHQ formed the committee to investigate the incident following media reports about the incident.

Sources said intelligence agencies used to receive such money for which they did not have to provide expenditure details.

A police officer said Monirul was one of the most influential officers during the last regime. On August 13, the home ministry in a circular sent him into forced retirement. He has 11 cases filed against him.​

 

[Saif]

Past govt fuelled inflation by printing Tk 60,000cr: Yunus

People are grappling with high inflation because of the fresh injection of Tk 60,000 crore into the market by Sheikh Hasina’s government, Prof Muhammad Yunus, chief adviser to the interim government, said yesterday.

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Past govt fuelled inflation by printing Tk 60,000cr: Yunus

People are grappling with high inflation because of the fresh injection of Tk 60,000 crore into the market by Sheikh Hasina's government, Prof Muhammad Yunus, chief adviser to the interim government, said yesterday.

"One of the main goals of the interim government is to contain the unprecedented inflation," he said in a televised speech to the nation.

The chief adviser's comments came after inflation eased in August but remained at over 10 percent, reflecting that higher prices of goods and services are continuing to eat away at the purchasing power of consumers.

The inflation rate in Bangladesh has hovered above 9 percent since March 2023.

Last month, the Consumer Price Index (CPI), which measures changes in the prices paid by consumers over time, stood at 10.49 percent, according to data released by the Bangladesh Bureau of Statistics (BBS).

Yunus, who was sworn in after the Awami League government was toppled by a mass uprising on August 5, said the past 'fascist' government printed additional currency and released it into the market with the intention of 'looting'.

He added that the Bangladesh Bank had already hiked the policy rate to 9 percent to combat inflation.

"Distribution of essential commodities at fair prices through open market sales and food-friendly programmes are ongoing to cushion common people from inflation," he said.

The government has allocated Tk 5,800 crore to import rice and wheat. It has also allocated Tk 8,900 crore for domestic procurement of grains.

It also allocated Tk 7,360 crore in the current fiscal year to provide food subsidies to poor and low-income people under three programmes.

He said the central bank has made the exchange rate market-based to curb the volatility.

Yunus further said his government has cancelled the unethical provision to legalise black money. The previous government offered a unique amnesty that allowed anyone to whiten illegal gains without scrutiny by paying a 15 percent tax on assets, including cash, securities, deposits, financial schemes and instruments.

However, the interim government did not cancel the amnesty to whiten black money in case of investment in real estate -- flats, buildings and land -- on payment of a specific amount of tax depending on the size and location of the properties.

Yunus added that the government has also sought budgetary support from various development partners in order to bolster foreign exchange reserves.

It has sought an additional $3 billion from the International Monetary Fund, $1 billion from the World Bank, and $1 billion from the Japan International Cooperation Agency.

"Discussions with Russia are ongoing regarding advance payments for the construction of the Rooppur Nuclear Power Plant and clearing the dues," he said.

Yunus also said his government has taken the initiative to rationally cut operating and development spending to contain pressure on state coffers.

He added that extravagant projects were taken under the 'authoritarian' Hasina government.

"We have already started the process of reviewing all ongoing and proposed development projects. Depending on the stage of implementation, we will consider cutting spending. If necessary, we will cancel those."

Yunus, who won the Nobel Peace Prize in 2006, said the interim government would put an end to looting in the name of mega-projects and planned to increase allocations for the health and education sectors.

He said the government requested both Russia and China to reduce the interest rates of loans and extend the maturity period.

Moreover, the government has directed relevant agencies to publish actual data of economic indicators.

"We have taken steps to recover looted and laundered money," he said, adding that the government is going to form a banking commission to restore discipline to the financial sector.

"The boards of various banks have been restructured. Huge changes have taken place in the banking sector within a month. You must have noticed that."​

 

[Saif]

Laundered money can be retrieved even if the process is complex

As I said before, on 5 August one phase of the student-people’s uprising had ended. An end was brought to the autocratic rule. An unprecedented opportunity arose to run the country in a democratic manner. The building of a new Bangladesh, that is, state reforms, as envisaged by the leaders of...

en.prothomalo.com

Interview: Iftekharuzzaman
Laundered money can be retrieved even if the process is complex

Dr Iftekharuzzaman is the executive director of the anti-corruption organisation Transparency International Bangladesh (TIB). As part of the process for state reform, the interim government recently formed six commissions. Iftekharuzzaman has been given charge of the anti-corruption reform commission. In an interview with Prothom Alo’s Sohrab Hassan, he talks about the prospects of a corruption-free and democratic society.

Prothom Alo : Recently you said at a seminar that the objectives of the movement carried out by the Students against Discrimination have not been fulfilled as yet. Do you see some shortfalls in this regard?

Iftekharuzzaman As I said before, on 5 August one phase of the student-people’s uprising had ended. An end was brought to the autocratic rule. An unprecedented opportunity arose to run the country in a democratic manner. The building of a new Bangladesh, that is, state reforms, as envisaged by the leaders of the students’ movement, is essential and involves a matter of time. After the 1971 liberation war we had started our journey anew, but those dreams of ours were not fulfilled.

Many people from outside would ask me why there was no mass uprising against all the human rights violations that were being carried out, the corruption, the misrule. They would use Sri Lanka as an example. In the Sri Lanka movement a handful of people gave their lives. But not a single one of them was shot dead by the police. But we apprehended that if such a situation arose in Bangladesh, the police would shoot the protestors like birds. And that is exactly what happened. We cannot let these sacrifices of hundreds of people who gave their lives go in vain.

In our political culture, those in power cling on to power by whatever means. To that end, they render the state institutions ineffective. The students are talking about changing or reforming that system. The objective of state reforms must essentially be to take lessons from the essence of the movement against discrimination and free the country from the curse of power politics, to establish welfare-oriented politics. And it is the political parties that must take this basic responsibility.

Prothom Alo : 8 September marked one month of the interim government led by Dr Muhammad Yunus in power. What changes have you seen in this span of time?

Iftekharuzzaman One month is too short a period to assess the success or failure of any government, and particularly so for an interim government. Even so, we can see quite a few positive steps that they have taken. Firstly, the initiative taken to rehabilitate the families of those killed and injured in the July-August revolution and forming the July Biplob Smriti Foundation. The government has also taken initiative to bring to trial those responsible for the killings. We said that the investigations should be carried out under the supervision of the United Nations. The government has acquiesced. The government is trying to improve the law and order situation, though it is still not normal as yet.

After the change of power, there were many instances of mob justice. There were forced resignations. This is unwarranted. State reforms mean reforms in the system. The government has made quite a few announcements regarding a crackdown on corruption. Measures are being taken against those who have siphoned money overseas. The provision to whiten black money has been abolished, though it is not clear how complete that has been. These are certainly positive steps. The people have great expectations from the government. It will take time to meet these expectations. After all, multifaceted misrule has been institutionalised.

Prothom Alo : TIB works with corruption. Who do you think are more responsible for the massive proportions that corruption has taken on in Bangladesh -- the bureaucracy, businesspersons or politicians? Political leadership may have changed with the change of government, but the civil servants and businesspersons are as before.

Iftekharuzzaman Massive corruption has been carried out by the three categories you have mentioned. This is done with collusion among the three. But as politicians run the country, they have the greater liability. The bureaucrats and businessmen resort to corruption with political patronage and protection. With the change in power, legal action is being taken against the ministers and leaders of the former government. That does not mean that corruption has come to a halt or that it will come to a halt any time soon. We see that already extortion and forced occupation has started in various places. Those who think they have come to power or will be coming to power, are the ones involved in this. These are not good signs.

Those who think that this laundered money cannot be brought back, are very mistaken. But a long-winded and complex process must be followed if these funds are to be retrieved

Prothom Alo : How can corruption be uprooted from society?

Iftekharuzzaman It doesn't take rocket science to end corruption. We can apply the experience of other countries. Corruption hasn't happened simply over the past 15 years. Corruption has been institutionalised by all the governments. We saw Bangladesh becoming the champion of corruption both during the Awami League government and the BNP government. Measures must be taken against everyone involved in corruption.

The institutions like the Anti-Corruption Commission (ACC) and the National Board of Revenue (NBR) that work with corruption but be freed from politicisation and their capacity must be increased. These institutions must be made accountable. It doesn't make a difference whether someone is in the government or not.

ACC has filed cases against over a hundred leaders and ministers of the last government. We had submitted details of their corruption to them earlier. But when they were in power, ACC took no action against them. ACC's work culture is that they won't do anything against those in power. In the meantime, top criminals are being released from jail. I have no idea how this is being done. That is why we are stressing on institutional efficiency and integrity.

Prothom Alo : How far has ACC's activities changed after the change in government? On one hand cases are being lodged against Awami League leaders and ministers, and on the other hand the cases against BNP leaders are being withdrawn. Why can't ACC file lawsuits against those in power?

Iftekharuzzaman The change is now that they are displaying a flurry of activity. If the allegations brought about against the Awami League leaders and ministers are tenable, why were these not taken up all these days? ACC has had this propensity from the very beginning. They do not take note of the corruption of those in power. They only wake up when someone goes out of power. Actually ACC is held hostage by bureaucracy and have become a non-functional organisation. That is why we are calling for a restructuring of ACC.

Prothom Alo : Capital flight is one of the most talked-about issues in Bangladesh. Five institutions, including TIB, have sought assistance from various countries regarding the repatriation of funds that have been siphoned overseas. Have you received any response?

Iftekharuzzaman Bangladesh is now in the forefront of countries that siphon money overseas. Massive sums of money are being illegally trafficked out of the country. Those who think that this laundered money cannot be brought back, are very mistaken. But a long-winded and complex process must be followed if these funds are to be retrieved. We have good laws against money laundering. Other than a fine triple the amount of the laundered money, there is also prison sentence.

The problem is that those who siphon money abroad are immensely powerful people. We have written to the countries where the money has been smuggled to, requesting them to free the financial assets so that the money launderers cannot withdraw their funds. Previously Switzerland was the main destination for laundered money, but now the UK, US, Canada, Malaysia, Singapore and the United Arab Emirates have been added to the list.

We have sought cooperation from these countries and are following the matter up. We expect good results. But it is ACC and BFIU as well as other concerned agencies that have the main role to play.

Prothom Alo : The owner of S Alam Group and his entire family have relinquished their Bangladeshi citizenship. Will that be an obstacle in bringing back the money he has sent out of the country?

Iftekharuzzaman I do not think this is a problem at all. It does not matter of which country he is a citizen. What matters is whether he has illegally transferred money out of Bangladesh or not. Even if he has given up Bangladeshi citizenship, he will be tried if he has committed any crime. That applies to all other fugitive criminals. S Alam relinquishing his citizenship or Benazir Ahmed remaining a fugitive cannot be an obstacle to carrying out justice. Five organsations must work in coordination to bring back the laundered money. These are ACC, CID, NBR, Bangladesh Financial Intelligence Unit (BFIU) and the attorney general's office.

Prothom Alo : On behalf of TIB you have submitted certain recommendations for state reforms. For example, the same person cannot be prime minister for more than two terms. The same person cannot hold more than one top office. Then you have recommended an amendment of Article 70 of the constitution. Will the political parties agree to these proposals?

Iftekharuzzaman Some parties have already said that there are supportable recommendations. The interim government's view has been positive too.

But the main responsibility lies with the political parties. The interim government will create a legal and institutional framework. It is the political parties that will implement this, particularly those that ascend to power. In our recommendations we talk of political parties changing their culture. That has not been highlighted much. Most parties practice power-centric politics, politics centered on personal interests. They must break away from this.

We have said that the political parties must have a moral code of conduct. Leadership at all levels in a political party must be elected by means of open votes. Dynastic politics must come to an end. Autocratic leadership within the parties must be challenged. We have also spoken of proportional votes. This will put an end to the ruckus over candidates within the political parties.

Under the last authoritarian government there were multifarious instances of human rights violations. The demand for human rights was made into an offence

Prothom Alo : The anti-corruption reform commission is one of the six commissions created by the interim government for state reforms. You have been placed at the head of this commission. What are your plans in this regard?

Iftekharuzzaman We will formulate the plans in discussion with all the members once the commission is completely constituted. But importance must be placed on ensuring that the appointment of the ACC chairman and commissioner is kept free of politicisation. Also, ways must be devised to free ACC from the grip of bureaucracy. Importance will be given to reforming the laws and regulations that are an impediment to the ACC act and ACC's ability to function independently. Certain new laws must also be drawn up, such as resolution of conflicts of interest, ownership transparency law, compliance to common reporting standards, etc.

Ways must be devised to free these institutions that are vested with the duty of controlling corruption including money laundering, of all party influence and also to increase their capacity. Above all, there is no way that the matter of reforming ACC can be seen as anything separate from the intensive reforms to be brought to politics and bureaucracy. After all, even if it is possible to establish an ideal ACC, unless there are fundamental changes in politics and bureaucracy, it would be meaningless to expect that ACC will be able to fulfill its mandate.

Prothom Alo : The Awami League government has curbed that right by means of the Digital Security Act (DSA), the Cyber Security Act (CSA) and various other laws. These laws remain in place even with the change of government. In Khulna a case has been filed against a student under this law. What are your comments on this?

I would say that under the last authoritarian government there were multifarious instances of human rights violations. The demand for human rights was made into an offence. That was done to extend the government's term in power. They used these laws to snatch away people's freedom of speech, to repress the political opposition and more. This was used even more during the anti-government movement.

When the interim government came to power it said that they would review these repressive laws and bring about necessary amendments. I want to have confidence in this. We are not surprised at what happened in Khulna. The recent movement has created unprecedented opportunities, but certain apprehensions too.

Prothom Alo : Thank you.

Thank you too.​

 

[Saif]

S Alam seeks govt support to recover from business losses

Chattogram-based business conglomerate S Alam Group has requested that the government provide financial, social and legal support for recovering the business it lost due to the freezing of its different bank accounts.

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S Alam seeks govt support to recover from business losses

Chattogram-based business conglomerate S Alam Group has requested that the government provide financial, social and legal support for recovering the business it lost due to the freezing of its different bank accounts.

The business conglomerate made the request through a letter sent to the governor of Bangladesh Bank and the head of the Bangladesh Financial Intelligence Unit (BFIU) on September 12.

A copy of the letter, signed by Mohammed Delwar Hossain, general manager for accounts and finance at the S Alam Group, was also reportedly sent to the adviser to the finance ministry.

In the letter, the business conglomerate said different companies under the S Alam Group, owned by Mohammed Saiful Alam, have been maintaining accounts with banks and had sufficient funds to ensure business operations.

The group alleged that Islami Bank Bangladesh initially stopped providing services to the group's companies on August 8.

Gradually, other banks, including First Security Islami Bank PLC, Global Islami Bank PLC and Union Bank PLC, followed suit without providing prior notice.

"Those lenders have declined to send letters on the service suspensions and we believe that it is an arbitrary, discriminatory act on their part as well as a violation of the client-bank relationship," it said.

The letter said that after being contacted, the banks informed that the accounts were frozen as per verbal instructions from the BFIU.

Due to this, their companies are now facing difficulties and incurring huge losses.

The letter added that those companies were failing to pay salaries and wages timely, which may lead to labour unrest in many industrial areas.

Furthermore, the companies have been unable to pay utility bills, which could lead to line and service disconnections and consequently halt production in manufacturing units.

Moreover, the companies have been unable to deposit taxes and sales proceeds, transfer and receive funds from trade receivables, or pay for expenses, including for bank liabilities and foreign letters of credit (LCs), it said.

Contractual obligations with foreign and local suppliers and clients could not be honoured on time and interest is being charged for delayed payments, it said.

LCs relating to industrial raw materials for food and allied products have been cancelled by different scheduled banks, for which the country may face a crisis of food and other materials within a short time, warned the letter.

Non-payment of bank liabilities may lead to loan classification at any time, it said, adding that most employees were leaving.

A senior official of the BFIU confirmed to The Daily Star that they received the letter.

Husne Ara Shikha, executive director and spokesperson of Bangladesh Bank, confirmed that the central bank had received a letter after being contacted by The Daily Star.

The BFIU did not instruct banks to freeze or suspend the accounts of businesses or institutions of the group, she said, adding that it had instructed banks to freeze personal accounts related to the group.​

 

[Saif]

Al Jazeera investigation reveals former land minister Saifuzzaman's global property empire

Al Jazeera's Investigative Unit went undercover to reveal how a former government minister from Bangladesh built a half billion-dollar property empire on a modest official salary

www.thedailystar.net

Al Jazeera investigation reveals former land minister Saifuzzaman's global property empire

Former Land Minister Saifuzzaman Chowdhury

Al Jazeera's Investigative Unit went undercover to reveal how a former government minister from Bangladesh built a half billion-dollar property empire on a modest official salary.

Strict currency laws restrict citizens from taking more than $12,000 a year out of Bangladesh, and tough government rules ban ministers from holding directorships or profiting from private businesses.

Al Jazeera reveals that Saifuzzaman Chowdhury, then a minister of land and a close ally of the now deposed Prime Minister Sheikh Hasina, bought over 360 luxury properties in Britain alone worth $250m.

His appetite for real estate spread to Dubai, New York, Singapore and Malaysia.

The politician boasted of his powerful connections.

"My father was very close to the Prime Minister (Sheikh Hasina), actually, and I am also... She is my boss... She knows I have a business here (in Britain)."

His property buying gained pace in 2017 when he set up UK companies but accelerated in 2019 when he became a government minister.

Sheikh Hasina is in exile in India following her government's brutal crackdown on student protests in July, and many of her ministers, including Chowdhury, have fled the country. Bangladesh authorities are now investigating claims that he laundered millions of dollars in the UK; they have frozen his bank accounts and taken control of his family-owned bank, UCBL, to protect depositors' money.

Posing as property investors, Al Jazeera journalists met the minister last year in his $14m London home where he bragged about spending thousands of dollars on hand-made crocodile shoes and tailored Italian suits from top London stores.

The politician gave undercover reporters a tour of his London house featuring a cinema, gym, private elevator and secure underground parking for his new Rolls-Royce.

Chowdhury told Al Jazeera that his properties were purchased with funds earned by his legitimate businesses in the UK, the UAE and America, and that he is the victim of a political witch-hunt.​

 

[Saif]

Banks to freeze accounts of Orion chair, five others

The Bangladesh Financial Intelligence Unit (BFIU) has instructed banks to freeze accounts owned by Orion Group Chairman Obaidul Karim and its Managing Director Salman Obaidul Karim.

www.thedailystar.net

Banks to freeze accounts of Orion chair, five others

The Bangladesh Financial Intelligence Unit (BFIU) has instructed banks to freeze accounts owned by Orion Group Chairman Obaidul Karim and its Managing Director Salman Obaidul Karim.

Additionally, the bank accounts of Arzuda Karim and Zareen Karim, directors of Orion Group, as well as Mehadi Hasan and Rezaul Karim, relatives of the chairman with ties to the conglomerate, will be frozen.

The anti-money laundering agency recently sent a letter to the banks in this regard, directing lenders to keep those accounts frozen for the next 30 days. The BFIU also instructed banks to block them from locker and credit card facilities for 30 days.

The banks then asked the BFIU to provide updated information on the six individuals to find out if they are using any bank accounts under other names.

Orion Group, founded by Obaidul Karim, is one of the largest conglomerates in Bangladesh, with business interests in the pharmaceutical, chemical, infrastructure development, agribusiness, hospitality, textile and aviation sectors alongside many others.​

 

[Saif]

S Alam sons: They used fake pay orders even to legalise black money

Ashraful Alam and Asadul Alam Mahir, two sons of controversial businessman Mohammed Saiful Alam, deprived the state of Tk 75 crore in taxes by legalising Tk 500 crore in undisclosed income, documents obtained by The Daily Star have revealed.

www.thedailystar.net

S Alam sons: They used fake pay orders even to legalise black money

S Alam Sons Ashraful Alam and Asadul Alam Mahir

Ashraful Alam and Asadul Alam Mahir, two sons of controversial businessman Mohammed Saiful Alam, deprived the state of Tk 75 crore in taxes by legalising Tk 500 crore in undisclosed income, documents obtained by The Daily Star have revealed.

They even brazenly resorted to irregularities and exploited a bank controlled by S Alam Group, of which Saiful is the chairman, according to letters from tax officials to their higher authorities and the two brothers.

Ashraful and Asadul first used two pay orders, each worth Tk 25 crore, in a failed bid to whiten the black money within the fiscal year 2020-21, the documents show.

Their second attempt to make the payment again months after the expiry of the facility that fiscal year succeeded, which means the first two pay orders were erroneous.

Tax officials, however, gave them a clean chit, and the opportunity to whiten the black money after the deadline.

The Awami League government allowed legalising income from unknown sources by paying a 10 percent tax from July 1, 2020, to June 30, 2021.

A total of 2,311 taxpayers used the facility to whiten Tk 1,663 crore of black money in cash and bank deposits that financial year, according to the National Board of Revenue (NBR).

Tax officials said that if the maximum tax rate of 25 percent was taken into account at the individual level, the tax officials could have collected at least Tk 125 crore of income tax against the Tk 500 crore of undisclosed income of Ashraful and Asadul.

S Alam's two sons got the opportunity to legalise the black money in the tax file by paying only Tk 50 crore.

According to their tax returns, Ashraful and Asadul showed their net assets at Tk 250.15 crore and Tk 250.21 respectively in tax year FY21.

Ashraful's tin certificate mentions his status as "Bangladeshi without NID" while Asadul's as "Foreigner (non-Bangladeshi)".

S Alam, his wife Farzana Parveen and their three sons Ahsanul Alam, Ashraful and Asadul renounced their Bangladeshi citizenship on October 10, 2022, vernacular daily the Samakal reported last month.

The Bangla newspaper also said the family got approval for permanent residency in Bangladesh as foreign nationals on the same day.

Most of the family members had already been identifying themselves as foreigners or non-Bangladeshis in the tax files a year before they were granted permanent residency in Bangladesh as foreign citizens in October 2022, tax officials said.

The officials working under the circle, where the family submitted the returns, did not raise any questions on these issues.

Chattogram Tax Zone-1 Commissioner Md Samsul Arefin told The Daily Star on September 4 that he had no idea what happened before he joined in February.

"But recently I kept these two files in my custody for safety. After reading these two files, it seems that all sorts of procedures have been followed.

"But it is mysterious that two pay orders were not cashed within five to six months in a circle. It cannot be said if there was any irregularity without re-examining the entire matter," he added.

The 10 percent tax under the Income Tax Ordinance of 1984, which allowed individuals to legalise undisclosed income without facing any question, is only payable by pay order or by automated challan.

Ashraful and Asadul first applied for the facility with two pay orders on June 29, 2021, a day before the expiry of the facility.

The pay orders from the Khatunganj branch of Fast Security Islami Bank Limited (FSIBL) bounced after being submitted to Sonali Bank on July 1 for encashment and no money was deposited to the state coffer.

Tax officials then tried to contact FSIB and the two brothers several times but there was no response, officials said.

However, after nearly four months, Ashraful and Asadul submitted two new pay orders on October 18, 2021, to the same branch of the bank. That money was encashed on December 28, 2021.

Although the law had no opportunity to whiten black money after June 30, 2021, Assistant Tax Inspector Aminul Islam accepted and encashed these two new pay orders.

To justify the late collection, Joint Commissioner AKM Shamsuzzaman and Inspector Lokman Ahmed helped the two brothers make the first two pay orders appear correct by concealing the dates of the last two pay orders.

Shamsuzzaman issued a notice against the duo under section 120 of the Income Tax Ordinance 1984 as to why they delayed the payment of the taxes on June 27, 2022.

Three months after the issuance of the notice, Shamsuzzaman on September 29, 2022, suspended the notice based on an inspection report by Inspector Lokman.

Lokman submitted the report on July 3, 2022, stating that the first two pay orders were correct. He attached a statement from FSIBL's Khatunganj branch Manager Mohammad Helal Uddin to back his claim.

However, Lokman did not mention the date of the four pay orders submitted in two rounds.

FSIBL branch Manager Helal told The Daily Star on September 8, "We have informed the tax officials about the two pay orders that they wanted to know."

However, he did not give any answer when asked about the time when the money was deposited in these two pay orders.

Tax officials said that this happened because the matter was settled between the two parties.

Regarding the delay in receiving the pay orders, Assistant Tax Inspector Aminul who accepted the last two pay orders, confirmed to The Daily Star on September 10 that the money from the first two pay orders was not deposited after submission.

"Then we informed them (the two brothers) and they took some time and later gave two more pay orders," he said.

"Later, the joint commissioner issued a notice under section 120 of the Tax Ordinance since the money was not deposited within the stipulated time. I heard that the issue has also been settled," Aminul said.

He also claimed that he did not personally benefit from these incidents.

Joint Commissioner Shamsuzzaman hung up the phone, saying it was a "wrong number" when contacted for comments, although the tax officials' directory and other tax officials confirmed that it was Shamsuzzaman's number.

Inspector Lokman declined to comment.

Md Riazul Islam, Syed Mohammad Abu Daud, and Md Iqbal Bahar had served as commissioners in the tax zone in that time.

Riazul has been living abroad with his family since his retirement in 2022.

Contacted, Daud and Bahar said they were not informed about the matter by the circle, let alone receive any financial benefit from it.

"I was in charge of this tax zone both during the cashing of two pay orders from the circle office and later the issuance of the section 120 notices from the ranch office of the zone," Daud said.

He said he did not provide any advice to the relevant officials about such illegal activities nor did he benefit financially.

"I am surprised that even after the pay orders bounced, the matter was not reported to me as a commissioner," added the official, currently serving as a member of the NBR's International Tax Division.

Ashraful and Asadul did not receive calls for comments.​

 

[Saif]

Govt seeks UK assistance to investigate overseas assets of Hasina, allies

The interim government of Bangladesh has sought assistance from the United Kingdom to investigate the overseas wealth of allies of former prime minister Sheikh Hasina, as the new administration intensifies its crackdown on members of her ousted regime, according to a report by The Financial...

www.newagebd.net

Govt seeks UK assistance to investigate overseas assets of Hasina, allies
Staff Correspondent 19 September, 2024, 00:00

The interim government of Bangladesh has sought assistance from the United Kingdom to investigate the overseas wealth of allies of former prime minister Sheikh Hasina, as the new administration intensifies its crackdown on members of her ousted regime, according to a report by The Financial Times on Wednesday.

Ahsan H Mansur, Bangladesh’s new central bank governor, stated that the administration was probing whether Hasina’s government siphoned around Tk 2 trillion (£13 billion) from the banking system to foreign accounts. Mansur said that he had sought help from the UK and other countries, including the US, Singapore, and the UAE, to track these funds.

The British daily newspaper reported that Bangladeshi officials, in particular, were investigating a UK property portfolio worth £150 million, owned by former land minister Saifuzzaman Chowdhury.

The Financial Times found that the bulk of these properties were acquired between 2019 and 2022, coinciding with Saifuzzaman’s tenure as a land minister.

The properties include Emerson Bainbridge House in Fitzrovia, central London, 61 properties in Tower Hamlets, east London, and a Co-op supermarket site in Bristol.

The exact financing for these UK property purchases remained unclear, though charges registered at Companies House suggest the use of mortgage debt.

Earlier this year, Transparency International UK flagged Saifuzzaman’s British real estate portfolio as an example of ‘unexplained wealth’ that warranted further investigation, the report said.

Mansur praised the UK government’s cooperation, mentioning that British officials had offered technical support during discussions.

On the alleged laundering of nearly $17 billion, roughly Tk 2 trillion, Mansur remarked, ‘a heist of this scale could not have occurred without the prime minister’s knowledge.’ He, however, noted that the investigation was still in its early stages.

The inquiry came as Bangladesh’s interim leader, Nobel laureate Muhammad Yunus, prioritises recovering misappropriated funds.

Sheikh Hasina, who resigned as prime minister and fled to India on August 5 amid a student-led mass uprising, was under scrutiny for alleged corruption during her nearly two-decade rule.

The wealth of her allies, including Saifuzzaman, was under investigation.

Saifuzzaman denied any wrongdoing and claimed that his wealth was the result of legitimate business activities, according to the report.

The UK government, in line with its long-standing policy, declined to comment on whether any formal requests for legal assistance had been made by Bangladeshi authorities, the report said.​

 

[Saif]

Bangladesh's foreign debts soar by $80b in 15yrs

Bangladesh’s external debts skyrocketed to a staggering $103.78 billion by June 2024, a colossal leap from just $23.5 billion in 2009 when the Awami League-led government came to power...

www.newagebd.net

Bangladesh's foreign debts soar by $80b in 15yrs
Mostafizur Rahman 18 September, 2024, 22:37

Bangladesh’s external debts skyrocketed to a staggering $103.78 billion by June 2024, a colossal leap from just $23.5 billion in 2009 when the Awami League-led government came to power.

This represents a staggering 341 per cent increase over the past 15 years, amounting to over $80 billion in new foreign loans.

Such an astronomical rise in external debts not only signals deepening financial mismanagement but also exposes the country’s alarming overdependence on foreign loans to finance its so-called development ambitions.

In Bangladeshi currency, these debts now stand at nearly Tk 12.45 lakh crore, a devastating burden compounded by a rapidly devaluing local currency.

The shocking data has come to the fore after Sheikh Hasina resigned as prime minister and fled to India on August 5 amid a student-led mass uprising.

Experts warn that such an unprecedented surge in foreign debts is a glaring sign of mismanagement.

By comparison, the exchange rate in July 2021 was Tk 84.80, underscoring the rapid depreciation of the taka in recent years.

The weakening currency exacerbates the debt crisis, as more takas are now required to service the dollar-denominated loans, further straining the national economy, experts said.

The most dramatic increase occurred between June 2020 and June 2023, when foreign debts skyrocketed by 51 per cent, rising from $65.27 billion to $98.93 billion in just three years — an alarming $33.6 billion increase in such a short period.

The accumulation of debts, driven by questionable fiscal policies and widespread inefficiency, has sent per capita debt soaring to $604 by June 2024 from $283 in June 2017, and ordinary citizens now bear the brunt of this financial misadventure, experts said.

The country›s external debt-to-GDP ratio hit 22.6 per cent by June 2024.

Bangladesh usually receives foreign loans from multilateral institutions such as the World Bank, the International Monetary Fund, the Asian Development Bank, the Islamic Development Bank, and major overseas commercial banks.

Of the $103.78 billion in external debts, $83.21 billion was borrowed by the public sector, with $71 billion borrowed directly by the government and the rest by government institutions.

The private sector›s short-term foreign loans also remained substantial, rising to $20.57 billion in June 2024, according to Bangladesh Bank data.

Meanwhile, buyers’ credit — an arrangement in which companies use foreign loans to finance imports — has also increased, with figures rising to $5.76 billion in June from $5.69 billion in March.

Experts have raised concerns about the sustainability of this debt load.

As external liabilities continue to mount, a growing portion of Bangladesh›s revenue must be allocated to service its debts, leaving fewer resources for critical social services, infrastructure, and development initiatives.

The crisis was compounded by allegations of massive corruptions and inefficiency in managing foreign loans during the Awami League regime.

Many of the large-scale development projects financed through foreign borrowing were marred by accusations of over-invoicing, project delays, and kickbacks to government officials and contractors.

Project returns continued to fall short, failing to justify the enormous cost.

Experts stressed the need for Bangladesh to carefully manage and prioritise its resources to ensure sustainable economic development, reducing excessive dependence on foreign borrowing.

The country’s foreign exchange reserves, already under immense pressure, plummeted to a dismal $20 billion as of mid-September, according to IMF guidelines.​

 

[Saif]

Bangladesh in search of Tk 2tn laundered during Sheikh Hasina regime

A heist of this order could not have taken place without the knowledge of the prime minister, says the BB governor

en.prothomalo.com

Bangladesh in search of Tk 2tn laundered during Sheikh Hasina regime
Prothom Alo English Desk
Updated: 18 Sep 2024, 22: 23

Bangladesh Bank governor Ahsan H Mansur Prothom Alo

The governor of Bangladesh Bank, Ahsan H Mansur, has reportedly sought help from authorities in the United Kingdom to recover money laundered to the country by members of the Sheikh Hasina government.

According to a report in the London-based broadsheet Financial Times, the governor had a meeting with the British high commissioner in Dhaka at his office, and the latter offered significant technical support in this regard.

The new administration in Bangladesh is investigating if the Sheikh Hasina regime diverted at least Tk 2 trillion abroad, particularly to the UK, the US, Singapore, and the UAE, from the country's banking system.

“We will seek help from the UK government to the extent these assets can be recovered,” the governor told the Financial Times.

He specifically mentioned that they aim to identify the source of funds used to purchase a UK property portfolio worth £150 million, owned by a former minister in Sheikh Hasina’s cabinet.

The governor also expressed suspicion that the top leadership in Bangladesh might have been aware of the issue, as “a heist of this order could not have taken place without the knowledge of the prime minister.”

In a press conference on 5 September, Ahsan H Mansur made similar remarks about money laundering and announced that the process to bring back the laundered money had been initiated.

He stated, “The corrupt people mainly laundered money to Dubai, Singapore and the US. We have already communicated with the US to bring back their foreign assets.”

The governor particularly highlighted money laundering to the UK, noting that a family of smugglers owns 500 to 600 homes in the country. “We will try to acquire their local assets and then we will bring back their foreign assets.”

Before the last parliamentary election in Bangladesh, anti-corruption watchdog Transparency International Bangladesh (TIB) revealed that a particular minister had more than Tk 23 billion in investments and business ventures overseas.

This minister was later identified as former land minister Saifuzzaman Chowdhury. It was discovered that he had opened companies in the name of his wife, Rukhmila Zaman, and daughter, Zeba Zaman.

According to a Prothom Alo report on 13 August, former minister Saifuzzaman Chowdhury and his wife Rukhmila Zaman Chowdhury had amassed substantial wealth and property in the United States and Dubai too.

They have huge sums of money deposited in foreign banks. Neither Saifuzzaman nor any member of his family have taken permission from Bangladesh Bank to take money abroad, giving rise to questions about this huge wealth amassed overseas.​

 

[Saif]

Singapore seeks asset details of S Alam Group in Bangladesh

Singapore’s Financial Intelligence Unit has urged the Bangladesh Financial Intelligence Unit to provide details on the local and foreign assets of S Alam Group and its owners.

www.newagebd.net

Singapore seeks asset details of S Alam Group in Bangladesh
Staff Correspondent 20 September, 2024, 00:23

Singapore’s Financial Intelligence Unit has urged the Bangladesh Financial Intelligence Unit to provide details on the local and foreign assets of S Alam Group and its owners.

Bangladesh Bank spokesperson and executive director Husne Ara Shikha said on Thursday that BFIU received a letter from FIU of Singapore about the issue.

BFIU officials said that they had been preparing the details on the controversial group and would send the information to the FIU of Singapore.

The BFIU, responsible for combating money laundering, terrorist financing, and the financing of weapons of mass destruction, is tasked with exchanging intelligence on illicit financial activities with foreign counterparts, they said.

Media reported that S Alam Group had amassed nearly $1 billion in suspicious assets in Singapore alone, despite having no significant business operations there, raising serious concerns about the legality of these properties.

S Alam group, under the patronage of the ousted Awami League-led government, allegedly withdrew around Tk 2 lakh crore from Bangladesh’s banking system and a large amount of these loans were allegedly laundered to foreign locations including Singapore and the UAE, BB officials said.

The group exploited its influence to seize control of eight banks, namely First Security Islami Bank, Social Islami Bank, Union Bank, Global Islami Bank, Islami Bank Bangladesh, Al-Arafah Islami Bank, National Bank, and Bangladesh Commerce Bank.

The group allegedly engaged in rampant irregularities in recruitment and loan disbursement while controlling the banks.

After Sheikh Hasina’s fall on August 5, these banks were freed from S Alam’s grip.

S Alam Group owner Saiful Alam and his family members had reportedly obtained citizenship in Singapore and Cyprus.

Bangladesh Bank, under the leadership of former governor Abdur Rouf Talukder, provided all possible kinds of liquidity support to these banks despite knowing that these banks continued to allow S Alam Group to withdraw money as anonymous loans.

After exhausting all legal avenues, Bangladesh Bank resorted to unethical and illegal means to provide these banks with additional liquidity.

Though the banks had no funds in their current accounts, the central bank then printed money to keep them afloat, according to Bangladesh Bank officials.

As criticism mounted from various corners, Bangladesh Bank was forced to halt this unsustainable practice and began searching for alternative methods to support the struggling banks.

At last, the central bank, based on a fake dollar purchase quotation, provided a total of $1.1 billion equivalent in financial support to Islami Bank Bangladesh between January and July.

The interim government, Bangladesh Bank, BFIU, and the Bangladesh Securities and Exchange Commission have recently taken some strict measures against the group.​