Photo: Collected
A decade and a half ago, as the country's economy began to gain momentum, its progress was impeded by several prominent industrial conglomerates, such as Beximco and S Alam Group. Prioritising their own interests, these groups jeopardised the country's overall economic stability.
Due to their strong connections with the ruling Awami League government at the time, they acquired ownership of various banks and financial institutions one after another. Through these holdings, they embezzled thousands of crores of taka under the guise of their various organisations and anonymously. They are also accused of smuggling this money out of the country, leaving those banks and financial institutions in poor condition.
Salman F Rahman of Beximco Group, who was formerly Prime Minister Sheikh Hasina's private industry and investment adviser, was out of touch. He and his family members reportedly looted various financial institutions at will. Rahman was also involved in numerous government development projects. Despite committing various irregularities, no one dared to speak out against him for fear of repercussions.
Similarly, Saiful Islam Masud of S Alam Group took control of more than ten banks by leveraging his power. He also dominated various non-bank financial institutions (NBFIs) and the power sector. He is also accused of money laundering.
However, they have been facing difficulties since the fall of the Awami League government on August 5. On Thursday, the National Board of Revenue (NBR) summoned the accounts of 91 banks and financial institutions belonging to S Alam and his family members. The NBR's income tax department issued a letter to all banks on Wednesday from the capital's Tax Zone-15.
According to NBR sources, there are allegations against this industrial group involving various forms of unethical activities, including bank robbery and money laundering. Tax Zone-15 sources indicate that the bank accounts of S Alam's (Saiful Alam) wife Farzana Parveen, mother Chemon Ara Begum, and brother Abdullah Hasan have been summoned. Additionally, details of bank accounts held by their parents, spouses, children, or siblings, whether joint or in the names of business establishments, have also been requested.
Information regarding all types of bank accounts and credit cards maintained in banks and financial institutions in the name of the taxpayer or joint names has also been sought. Apart from banks and financial institutions, the National Savings Directorate and the Postal Department have been asked to provide information on accounts held by Tax Zone-15.
Farzana Parveen, S Alam's wife, and Abdullah Hasan, his brother, are directors of S Alam Luxury Chair Coach Service and S Alam Cold Rolled Steel Limited. Chemon Ara Begum, S Alam's mother, is also a director at Luxury Chair Coach Service. Details of their bank and financial accounts have been requested.
The most significant complaint against S Alam is his acquisition of various banks. Even ten years ago, Islami Bank Bangladesh Plc was the top bank in the country. However, in 2017, the S Alam Group, which was close to the then-ruling Awami League government, took control of the ownership and management of Islami Bank, citing a political decision to 'liberate' the bank.
Since then, over seven and a half years, this business group and the Nabil Group of Rajshahi have reportedly withdrawn about Tk 50,000 crores from the bank anonymously. This amount constitutes one-third of the bank's total loans. It is believed that the actual amount of money laundered from the bank exceeds the current loan information available.
This money was withdrawn in the names of S Alam Group Chairman Saiful Alam, his wife, his daughter's husband, relatives, and other officials and employees. New institutions were created to secure loans. These financial institutions are now on the verge of closure, and depositors are not getting their money back.
The money laundered from Islami Bank is not being recovered, resulting in a liquidity crisis for the bank. The regulatory body is imposing daily fines on Bangladesh Bank for failing to maintain the required liquidity.
In this context, Zahid Hussain, former chief economist of the Dhaka office of the World Bank, told The Daily Messenger, “The bank was handed over to the S Alam Group with the intention of exploitation.”
He said that they have indeed destroyed the bank and that the money from this bank has been taken abroad in dollars. He also thinks that the assets of S Alam Group and those in whose names the loans were issued should be seized, and efforts should be made to recover the money.
According to the data, the regulatory capital of Islami Bank is Tk 10,414 crore. This allows Islami Bank to issue a maximum funded loan of Tk 1,562 crore and a non-funded loan of Tk 1,042 crore to a group, totalling Tk 2,604 crore. However, a review of the documents shows that S Alam's name is associated with loans amounting to Tk 14,167 crore from Islami Bank. Additionally, Saiful Alam's daughter's husband, Belal Ahmed, has a debt of Tk 454 crore with Unitex. Loans related to S Alam total Tk 32,172 crore, and the Nabil Group of Rajshahi has a loan of Tk 3,545 crore across various institutions.
Not only Islami Bank but also five other banks have been placed under the control of the S Alam Group through extensive looting. These banks have been unable to deposit the required money with the Central Bank for one and a half years due to the smuggled funds not returning.
Regarding the current state of these banks, Mustafa K. Mujeri, former chief economist of Bangladesh Bank, said that it is unwise to sustain any bank artificially. Weaker banks should be independently audited to ascertain their true condition. Assistance should only be provided if there is a potential for recovery. Otherwise, sustaining weak banks in this manner could adversely affect the health of stronger banks.
S Alam Group took control of Islami Bank in January 2017. Currently, one-third of the bank's loans are held by group interests. In the same year, the S Alam Group also took over Social Islami Bank. The previous year, they acquired Bangladesh Commerce Bank. Since its inception in 2013, Global Islami and Union Bank have been under S Alam Group's control. Additionally, control of First Security Islami Bank transferred from Sikdar Group to S Alam Group in 2004.
Another significant figure in the country's financial sector is Salman F Rahman. He is accused of unprecedented corruption, looting, fraud, and money laundering over the past 15 years. Beximco Group, which he owns, is also accused of failing to repay loans and not repatriating money earned from exports.
There has been no major stock market scandal in recent decades without Salman F Rahman's involvement. He has visibly withdrawn Tk 6,600 crore from the market in the past three years alone, with Tk 20,000 crore being misappropriated in an opaque manner.
Furthermore, Rahman secured a loan of Tk 36,000 crore anonymously from seven public and private banks. These loans did not adhere to central bank regulations, and most lack sufficient collateral. Additionally, these loans have been rescheduled repeatedly without repayment for years, leading to significant risks and a high likelihood of default. Overall, this former investment adviser to the Prime Minister has created a reign of terror in the banking sector.
Salman F Rahman took out the largest loan from state-owned Janata Bank, with most of the loans being anonymous. Previously, he showed a loan of Tk 10,000 crore from Janata Bank in his name. Recently, a Bangladesh Bank report revealed that the funded and non-funded loans amount to Tk 21,681 crore across 29 institutions.
According to Janata Bank's annual report for the end of 2023, the bank has a loan balance of Tk 23,070 crore across two institutions owned by Salman F Rahman. Of this, Beximco Group's debt amounts to Tk 20,752 crore, including Tk 1,994 crore in funded debt and Tk 324 crore in non-funded debt.
Salman F Rahman also secured substantial loans from IFIC Bank. These include Tk 1,020 crore in unfunded loans in the name of Sreepur Township Institution, Tk 615 crore in the name of Sunstar Business, Tk 614 crore in the name of Forest Business, Tk 612 crore in the name of Cosmos Commodities, Tk 455 crore in the name of Apollo Trade International, Tk 449 crore in the name of Ultron Trading, Tk 421 crore in the name of Northstone Construction & Engineering, Tk 569 crore in the name of Alpha Enterprises, and Tk 463 crore in the name of Absolute Construction and Engineering. Most of these institutions are anonymous.
Additionally, from National Bank, there are funded loans of Tk 836 crore for Bloom Success International Limited, Tk 823 crore for Beximco Group, Tk 1,234 crore for Beximco LPG Unit 1 and 2, and unfunded loans of Tk 59 crore.
From Agrani Bank, Beximco Limited has secured a funded loan of Tk 663 crore, Beximco Pharmaceuticals Ltd has taken a funded loan of Tk 375 crore, and Beximco Communication Ltd has obtained a funded loan of Tk 300 crore and an unfunded loan of Tk 71 crore. Beximco Limited also has a loan of Tk 965 crore from Rupali Bank. Additionally, Beximco Group’s loan from Sonali Bank amounts to Tk 1,838 crore.
Salman F Rahman has also taken out four institutional loans from AB Bank, which were restructured in 2015. Currently, the debt status of these four institutions stands at Tk 605 crore, including Tk 120 crore for Beximco Ltd., another loan of Tk 55 crore for the same company, Tk 83 crore for International Knitwear and Apparel, and Tk 345 crore for New Dhaka Industries.
Managing directors (MDs) of several banks, who requested anonymity, said that Salman F Rahman’s political influence was so significant that even if installments were not paid, they could not address the issue. Bangladesh Bank also remained silent on the matter. As a result, these debts have remained uncollected for an extended period. Most of these loans are at risk of default, and there is concern about recovering the money as the loans were granted without adequate collateral.
Messenger/Disha
