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

[Saif]

ACC revives investigation into S Alam’s S’pore wealth

The Anti-Corruption Commission has decided to resume its investigation into the alleged money laundering by S Alam Group Chairman Mohammed Saiful Alam alias S Alam.

www.thedailystar.net

ACC revives investigation into S Alam’s S’pore wealth
It comes year after Star report

The Anti-Corruption Commission has decided to resume its investigation into the alleged money laundering by S Alam Group Chairman Mohammed Saiful Alam alias S Alam.

A recently held meeting at the ACC headquarters decided this, a senior ACC official said.

An investigation by The Daily Star last year found that S Alam built a US $1 billion empire in Singapore.

ACC sources said all relevant records regarding the allegations will be collected, including how much money he borrowed from banks, what assets he might have acquired illegally, and in which sectors the money was invested.

Citing an Appellate Division's ruling, Supreme Court lawyer Khurshid Alam Khan told The Daily Star, "The ACC could have investigated the money laundering allegations against S Alam before. Given the current circumstances, starting the investigation now is a positive step."

On August 13 last year, the ACC began investigating the money laundering allegations against S Alam after The Daily Star on August 4 last year published a report titled "S Alam's Aladdin's Lamp".

The report said S Alam built a business empire in Singapore worth at least $1 billion, although there was no record of him taking any permission from Bangladesh Bank to invest or transfer any funds abroad. It said S Alam bought at least two hotels, two homes, one retail space, and other properties over the last one decade, all the while seeking to remove his name from the paper trails.

On August 6 last year, the High Court directed the authorities to investigate the allegations of him owning businesses abroad without Bangladesh Bank's permission.

On February 5 this year, the Appellate Division of the Supreme Court scrapped the HC suo moto rule that had ordered an investigation.

However, the apex court said the ACC, the CID, and Bangladesh Financial Intelligence Unity (BFIU) can take legal steps on the matter on their own.

On August 18 this year, the ACC received a copy of the Appellate Division's order. Following the order, the ACC reopened the case on Tuesday.​

 

[Saif]

Bangladesh Bank frees Islami Bank from S Alam control

The Bangladesh Bank on Wednesday dissolved the Islami Bank Bangladesh board to free it from the control of S Alam Group and decided to appoint independent directors temporarily to manage the bank...

www.newagebd.net

Bangladesh Bank frees Islami Bank from S Alam control
Staff Correspondent 21 August, 2024, 18:19

The Bangladesh Bank on Wednesday dissolved the Islami Bank Bangladesh board to free it from the control of S Alam Group and decided to appoint independent directors temporarily to manage the bank.

The government has also seized all shares held by the Chattogram-based S Alam Group and its associates in Islami Bank and plans to sell those shares later to recover the group’s liabilities to the bank.

Bangladesh Bank governor Ahsan H Mansur announced the decision at a press conference, stating that nearly all of Islami Bank’s shares were held by the S Alam Group and its connected individuals.

He said that all the other banks would gradually be freed from S Alam’s control amid the seizure of all of their shares under government control.

The Bangladesh Securities and Exchange Commission has already restricted the transfer or sale of shares in six banks controlled by the group.

On August 20, the commission imposed the restriction on 26 individuals and 56 companies linked to the S Alam Group.

The Bangladesh Financial Intelligence Unit also froze the bank accounts of S Alam and his family members on August 18.

In 2017, S Alam Group took control of Islami Bank, allegedly with the help of a state agency, on the pretext of ousting individuals linked to Jamaat-e-Islami.

The government agency oversaw the whole operation when some individuals were forced to sign documents to facilitate the transfer of the bank’s ownership.

Over the past seven years, the group allegedly took Tk 75,000 crore from the bank under various anonymous names, accounting for half of the bank’s total loans.

Sources revealed that these loans were taken without following standard banking rules by companies linked to S Alam Group chairman Saiful Alam, his wife Farzana Parveen, his son Ahsanul Alam, their relatives, and employees.

Ahsanul Alam is the current chairman of Islami Bank.

Since 2017, S Alam Group, backed by the government, has also gained control of five other banks similarly. These banks are Social Islami Bank, First Security Islami Bank, Union Bank, Global Islami Bank, and Bangladesh Commerce Bank.

On May 7, the BB also handed over the control of the National Bank to individuals connected with the S Alam group.

The BB restructured the board of the bank on August 20 to free it from S Alam control.

The group, with the support of former governors Abdur Rouf Talukder and Fazle Kabir, reportedly withdrew around Tk 2 lakh crore from the banking sector.

Most of these loans were siphoned off and never used for business within the country, BB officials said.

Over 82 per cent of Islami Bank’s shares are held by S Alam Group and its associates, often under anonymous and forced acquisitions.

According to Dhaka Stock Exchange data, Islami Bank has a total of 1.6 billion shares, of which 82 per cent, valued at Tk 5,162 crore at current market rates, were acquired by the group.

Despite banking regulations that prohibit any group from owning more than 10 per cent of a bank’s shares, the central bank had previously not intervened in S Alam Group’s substantial share acquisition.

All of the banks under S Alam’s control are grappling with severe liquidity shortages and are surviving solely on an ‘illegal’ lifeline provided by Bangladesh Bank.

The latest action against the errant group came after Sheikh Hasina resigned as prime minister and fled to India on August 5, amid an unprecedented student-led uprising.

During Wednesday’s press conference, Mansur said that the investigation into the money laundering allegation against S Alam Group might be reopened soon.

He emphasised that no leniency would be shown to those who took loans and failed to repay them, with legal measures being pursued to recover funds.

He also mentioned that weak banks’ boards would be dissolved, as was recently done with National Bank, and the same would be applied to Islami Bank.

Mansur clarified that the government would not take over the operations of these banks.

Instead, independent directors would be temporarily appointed, and any shareholders, excluding S Alam Group, holding more than 2 per cent of shares and deemed capable might join the board in the future.

Regarding the loans taken by S Alam Group, Mansur said that exact amounts, including those obtained under false names, were still being investigated but would be uncovered in time.

Addressing the broader financial scandals in the banking sector, Mansur noted that resolving these issues would take time and could not be accomplished quickly.

He stressed that the central bank’s focus is now on protecting the economy, preventing defaults, and ensuring that Bangladesh’s international transactions remain stable.​

 

[Saif]

ACC begins probe into S Alam money laundering allegation

The Anti-Corruption Commission started an inquiry against S Alam Group chairman Mohammad Saiful Alam over allegations of laundering money to Singapore...

www.newagebd.net

ACC begins probe into S Alam money laundering allegation
Staff Correspondent 21 August, 2024, 23:30

The Anti-Corruption Commission started an inquiry against S Alam Group chairman Mohammad Saiful Alam over allegations of laundering money to Singapore.

ACC on Tuesday formed a three-member inquiry team led by its money laundering wing deputy director Md Nur-E-Alam to probe the allegations, confirmed a director of the commission.

He said S Alam is accused of laundering $ 1 billion to Singapore and they started the inquiry and were collecting records related to the complaint to facilitate the inquiry.

‘How much money has borrowed by S Alam from banks and in which sector the money was invested -- everything will be investigated along with his illegal assets,’ he added.

There are allegations against S Alam and his wife Farzana Parveen that they invested and laundered money through offshore banking to Singapore.

S Alam Group owner Saiful Alam has built a business empire in Singapore worth about $ 1 billion, although there is no record of taking any permission from Bangladesh Bank to invest or transfer any fund abroad.

The central bank has so far allowed 17 companies to invest outside the country but the business giant is not on that list.

The Chattogram-based S Alam group bought at least two hotels, two homes, one retail space, and other properties in Singapore over the last one decade.

Earlier, on February 4, the Appellate Division of Supreme Court scrapped a High Court suo moto order for inquiring into the reported money laundering and offshore investment of Tk 11 thousand crore by S Alam Group chairman Mohammad Saiful Alam and his wife Farzana Parveen within two months.

A six-judge bench, chaired by chief justice Obaidul Hassan, however, observed that there would be no bar for the ACC and Bangladesh Financial Intelligent Unit for inquiring into the allegation against the couple, if they feel so.

The Appellate Division rebuked the ACC for not to hold inquiry into the allegations against the couple immediately after publication of a report carried out by a English daily on August 4, 2023.

It scrapped the entire High Court ruling and directive issued on August 6, 2023 after taking into cognisance the newspaper report which said that the couple made offshore investment of Tk 11 thousand crore without permission.

The Appellate Division passed the order after disposing of a petition filed by the couple challenging the High Court ruling.

The HC had asked the ACC, BFIU and the Criminal Investigation Department to inquire into the reported allegations and submit the probe report to High Court in two months.​

 

[Saif]

Prof Yunus seeks UK govt’s support to bring back laundered money

Interim government Chief Adviser Prof Muhammad Ynus has sought support from the British government through its envoy in Dhaka to track and get back the money laundered to the UK allegedly by the people linked to the Sheikh Hasina-led previous government. “Huge people from the previous regime

thefinancialexpress.com.bd

Prof Yunus seeks UK govt’s support to bring back laundered money
UNB
Published :
Aug 21, 2024 21:52
Updated :
Aug 21, 2024 21:52

Interim government Chief Adviser Prof Muhammad Ynus has sought support from the British government through its envoy in Dhaka to track and get back the money laundered to the UK allegedly by the people linked to the Sheikh Hasina-led previous government.

“Huge people from the previous regime laundered money. Prof Yunus sought support to track those incidents and bring back the laundered money,” Chief Adviser’s press secretary Shafiqul Alam told reporters on Wednesday referring to Prof Yunus’ discussion with British High Commissioner to Bangladesh Sarah Cooke.

Alam said some of them owned houses in the UK and the questions are how this money went there.

Regarding works ahead to rebuild Bangladesh, Prof Yunus told the British High Commissioner that they have no option but to succeed.

Both sides acknowledged the deep relations between the two countries and the role of British Bangladeshis.

The UK is a longstanding partner and friend of Bangladesh and the two countries share a strong and enduring relationship, solidified by their deep people-to-people links and shared Commonwealth values.

The UK government earlier welcomed the appointment of the interim government in Bangladesh, led by Professor Yunus.

In the meeting, the High Commissioner and Chief Adviser discussed the breadth and depth of the Bangladesh-UK relationship.

They discussed how the UK government can support the interim government, as it charts a new inclusive and democratic future for Bangladesh. Discussions also covered the importance of youth engagement to navigate the challenges that lie ahead.

British High Commissioner Sarah Cooke said as Prime Minister Sir Keir Starmer wrote in his letter to Chief Adviser, the UK government warmly welcomes the appointment of Prof Yunus and the interim government.

“The interim government has the UK’s full support as it works to restore peace and order, ensure accountability and promote national reconciliation. We look forward to working with Professor Yunus and the interim government as they chart a peaceful transition to an inclusive, prosperous and democratic future for Bangladesh.”​

 

[Saif]

How big is the challenge of loan recovery from S Alam Group?

S Alam Group and its associates took out loans from Islami Bank ten times its equity whereas a single party or group should not be given more than 25 per cent of a bank's capital in loans. The Bangladesh Bank enforced the exposure limit in a directive issued in 2022 but overlooked its violat

thefinancialexpress.com.bd

How big is the challenge of loan recovery from S Alam Group?
MOHAMMAD MUFAZZAL AND FARHAN FARDAUS
Published :
Aug 22, 2024 00:34
Updated :
Aug 22, 2024 00:34

S Alam Group and its associates took out loans from Islami Bank ten times its equity whereas a single party or group should not be given more than 25 per cent of a bank's capital in loans.

The Bangladesh Bank enforced the exposure limit in a directive issued in 2022 but overlooked its violation by Islami Bank.

The group that has become infamous for defaulting on huge amounts of loans exceeded the exposure limit with four other banks too -- Social Islami Bank, Janata Bank, Union Bank, and Global Islami Bank.

Altogether, S Alam Group borrowed Tk 953.31 billion from six banks whereas the lenders' aggregated equity is Tk 200.35 billion. First Security Islami Bank is the only one among the six banks which lent 10 per cent, within the limit, of its capital to the group.

This is the backdrop against which the securities regulator imposed restrictions on purchase, sales and transfer of shares by entities of S Alam Group, its owners and family members of the banks.

The move will help recover loan money - at least partially, said Md. Moniruzzam, managing director of Prime Bank Securities.

"The government will have to set rules to sell out the shares of S Alam Group and his associates," he added.

However, the loan amounts are much higher than the banks' total equity, which means the money, if recovered, from selling S Alam's stakes in the banks will be negligible.

The problem was made worse as the lenders kept on rescheduling loans over the years, taken by S Alam Group and its associates.

Banks usually keep 1 per cent general provision against regular loans while they are supposed to keep 100 per cent provision against bad loans. Loans become sour when 12 installments are missed in a row.

Thanks to rescheduling, defaulted loans of S Alam Group were shown as regular loans. So, any support from the provision against the loans is unlikely.

Moreover, the central bank's relaxation of loan classification policy and rescheduling process made it harder to understand the magnitude of the problem.

Lets' consider an example to illustrate the matter in hand.

Suppose, a listed bank X has equity worth Tk 22, the amount invested by owners.

Deposits received by the bank amount to Tk 200 and S Alam Group took out a loan worth Tk 42 from this bank.

If the borrower defaults on loan repayments, the equity will be Tk 20 in the negative, meaning shareholders' equity will get wiped out.

In consequence, the actual value of the deposits will come down to Tk 180 from Tk 200.

In that case, depositors will have to sacrifice 10 per cent of their funds kept under the custody of X unless the government takes any measure to compensate for the loss.

The bank's provisioning, if any, against the bad loan can be an instrument to tackle the negative impact on the depositors. If the bank can get a support worth Tk 20 from the provision account, depositors will remain unaffected.

Apart from the lack of proper provisioning, the Shariah-compliant banks are facing absence of other support mechanisms as well.

The scheduled banks are required to maintain cash reserves equivalent to 4 per cent of total deposits and 13 per cent statutory liquidity with the Bangladesh Bank.

Statutory liquidity remains invested in government bonds.

The banks which maintain these compliances properly get support from the tools during a crisis period.

But Shariah-compliant banks maintain compliances at a reduced ratio for their limited scope of operations.

Hence, Islami Bank, Social Islami Bank, First Security Islami Bank, and Global Islami Bank will not have the support at this critical juncture.

Besides, industry experts are skeptical about the collateral used for the loans since in most cases S Alam Group had its own men deployed in the boards of the banks when the loans were sanctioned. The business conglomerate had forcefully taken over control of the boards of Islami Bank and Social Islami Bank. Its ownership of First Security Islami Bank and Global Islami Bank is also marred by corrupt banking practices.

S M Galibur Rahman, head of research & strategic planning of Shanta Securities, said the loans granted to S Alam Group had been approved based on political grounds rather than project merits.

"We expect the new governor will ensure the proper reporting and provisioning in accordance with international standards," he said.

The banking commission, a proposed body, is expected to take proper steps to solve the issue of non-performing loans.

Asif Khan, chairman of EDGE Asset Management, said an audit is required to address the problems with the troublesome banks.

If the equity of a bank is wiped out, depositors may not get back a portion of their money.

To revive a bank, small depositors should be paid back fully while large ones can be offered equity against deposits.

"A further inclusion of fresh funds and management efficiency can turn a troublesome bank into a profitable entity. This is the strategy that helped Eastern Bank to get in the good books of the financial sector."​

 

[Saif]

ডাইনি হাসিনার মুখের গন্ধ | শেখ হাসিনার ফানি কার্টুন। শেখ হাসিনা বনাম ইবলিশ শয়তান

 

[Saif]

‘Bring back Islami Bank’s misappropriated funds’

Customers of Shariah-based banks yesterday urged the authorities concerned to bring back funds of Islami Bank Bangladesh which have allegedly been misappropriated by S Alam Group and ensure legal steps against the group’s owner Mohammed Saiful Alam and those who abetted him..The customers,

www.thedailystar.net

‘Bring back Islami Bank’s misappropriated funds’
Says a customers' forum of Shariah-based banks

Customers of Shariah-based banks yesterday urged the authorities concerned to bring back funds of Islami Bank Bangladesh which have allegedly been misappropriated by S Alam Group and ensure legal steps against the group's owner Mohammed Saiful Alam and those who abetted him.

The customers, arriving from different parts of the country and under the banner of "Shariah-Based Islamic Banking Customer Forum", made the demand by organising a conference at the Hotel Purbani International in Dhaka.

The demands come against the backdrop of the Bangladesh Bank dissolving the Islami Bank Bangladesh board on August 22.

Documents show S Alam Group owns as much as 82 percent stakes in Islami Bank Bangladesh, but the conglomerate maintains it has 32 percent stakes.

The central bank took over S Alam's shares against its liabilities and the shares would be returned if the conglomerate repays the amount it owes to the Shariah-based bank.

Between 2017 and June this year, the Chattogram-based conglomerate and its associates' companies took Tk 74,900 crore, which is 47 percent of Islami's total outstanding loans as of March.

Documents pieced together by The Daily Star show that most of the loans were taken by bypassing banking rules and regulations.

Nearly 10 crore people of the country are directly and indirectly associated with Islamic banking and about 80 lakh expatriates from the Middle East send remittances to the country through Islamic banks, said speakers at yesterday's conference.

But over the years, the remittance inflow has decreased significantly, they alleged.

The small and medium enterprise sector and economy have been severely affected by the misappropriation of a huge amount of funds of Islami Bank Bangladesh, said Mohammad Abdul Majeed, former secretary and chairman of the National Board of Revenue (NBR).

The speakers proposed appointing Islami Bank Bangladesh customers as its directors alongside those who were there prior to the group taking on its stakes.

They also demanded reinstatement of officials sacked by S Alam and termination of employment of around 10,000 people employed by S Alam.

Some customers also urged rescheduling their loans for 10 years, citing that they have suffered financially.

In the event, the customers also announced formation of a 15-member committee to run the forum.

Abdul Haque, former director of the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) and a businessperson in the automobile sector of the country, was made the convener of the forum.

This forum will work to "bring back the lost glory and accountability of Islamic banks", monitor their activities and protect the interests of customers.

Economist Prof Abu Ahmed was the chief guest at the event.

S Alam is apparently on the run. He did not receive calls yesterday.​

 

[Saif]

Govt cancels MoU with S Alam for modernising state sugar mills

A memorandum of understanding (MoU) signed between the Bangladesh Sugar and Food Industries Corporation (BSFIC) and S Alam & Co, aimed at modernising ailing state-run sugar mills, has been cancelled by the government.

www.thedailystar.net

Govt cancels MoU with S Alam for modernising state sugar mills

A view of the state-owned Setabganj Sugar Mills in Dinajpur. The government decided to close down some sugar mills at the end of 2020 as they were continually incurring losses and were in desperate need of modernisation. Photo: Star/file

A memorandum of understanding (MoU) signed between the Bangladesh Sugar and Food Industries Corporation (BSFIC) and S Alam & Co, aimed at modernising ailing state-run sugar mills, has been cancelled by the government.

The agreement was signed on July 4 with initial plans to conduct a feasibility study before implementing projects to boost sugar production.

"The Ministry of Industries (MoI) cancelled the MoU that was signed with S Alam yesterday," said Zakia Sultana, senior secretary to the MoI.

According to her, the MoU was non-binding, for which it was possible to cancel it.

However, she did not offer any reason for the cancellation. Currently, just nine of the 15 sugar mills under the BSFIC are operational.

The government decided to close down the six others at the tail end of 2020 as they were continually incurring losses and were in desperate need of modernisation.

In a government order issued on December 2, 2020, the BSFIC said production at the state-owned sugar mills in Pabna, Shyampur, Panchagar, Setabganj, Rangpur and Kushtia would be halted until further notice.

That same month, companies from Japan, Thailand and the United Arab Emirates placed their final proposal to the MoI for a project that would see them team up to upgrade and ensure profitability of the six shuttered mills and export by-products.

Sutech Engineering Co of Thailand, Sharkara International of the UAE and Sojitz Machinery Corporation of Japan planned to invest Tk 5,000 crore under a joint venture.

With the Japan Bank for International Cooperation and Exim Bank of Thailand keen to finance the project, final approval from the Prime Minister's Office was expected by 2022.

However, this never materialised.

With the government moving slowly to implement the joint venture, S Alam and Co convinced the MoI to sign the MoU for modernising the mills, the BSFIC officials alleged.

According to the MoU, sugarcane production would have been boosted through the training of farmers in the use of different technology.

Alongside that, modern sugarcane processing plants, 6 MW agrovoltaic solar power plants, by-product processing plants and packaging factories would have been constructed.

Furthermore, cold storage and agricultural product processing industries would have been developed.

The concern voiced by the BSFIC officials aligns with numerous allegations against Mohammad Saiful Alam, head of S Alam and Co, which are going around in the aftermath of Sheikh Hasina's resignation as prime minister on August 5.

The Bangladesh Securities and Exchange Commission (BSEC) on Tuesday barred S Alam, his family members and the companies they own from transferring or selling their shares in six banks.

Meanwhile the Anti-Corruption Commission (ACC) decided to resume its investigation into S Alam in connection with money laundering.

An investigation by The Daily Star found that S Alam had built a US $1 billion empire in Singapore. On August 4, 2023, a report was published by the same daily highlighting the allegations.

Nine days later, the ACC launched an investigation in line with instructions from the High Court to find out if S Alam had taken money out of the country without approval from the central bank.

However, the Appellate Division of the Supreme Court scrapped the suo moto rule that had ordered the investigation in February this year. It added that the ACC could take legal steps of its own accord.

As such, the ACC decided to resume its investigations on August 22.

The ACC sources said all relevant records regarding the allegations will be collected, including how much money he borrowed from banks, what assets he might have acquired illegally, and in which sectors the money was invested.​