Islami Bank official suspended after filing ACC complaint against S Alam, ex-president Shahabuddin

Islami Bank Bangladesh has suspended an official who filed a complaint with the Anti-Corruption Commission against businessman S Alam, former president Mohammed Shahabuddin and 36 others over the alleged fraudulent embezzlement of 500 crore taka from the bank, according to a senior central bank official.

Mohammad Yasin Ali, a First Assistant Vice President at Islami Bank’s Foreign Exchange Corporate Branch, was suspended shortly after submitting the complaint.

Zahir Hossain, a Bangladesh Bank executive director serving on Islami Bank’s board, confirmed the suspension to journalists. He said Yasin had not been dismissed but was temporarily suspended because he approached the ACC on his own initiative without obtaining permission from the bank’s managing director.

An investigation committee has been formed and further action will depend on its findings, he said.

Islami Bank’s acting Managing Director Mohammad Altaf Hossain, however, denied that Yasin had been suspended, saying the information was incorrect. Yasin declined to comment when contacted.

Internal bank documents reviewed in connection with the case appear to contradict the claim that Yasin acted without authorisation.

The documents show that the management of Yasin’s branch formally authorised him to approach the ACC over alleged corruption involving Suprov Composite Knit Limited and its affiliated companies. 

The authorisation was based on a decision dated July 26 and followed by an official letter on July 27 granting him the necessary authority to lodge the complaint.

Yasin subsequently filed the complaint on behalf of Islami Bank following the resignation of Shahabuddin as president. The allegations were based on irregularities and discrepancies identified by four audit firms.

The complaint names S Alam, Shahabuddin and 36 others in connection with an alleged scheme involving a loan facility for Suprov Composite Knit.

According to the complaint, after S Alam Group took control of Islami Bank in 2017, the credit limit of Suprov Composite Knit, described as a financially weak company, was fraudulently increased from 100 crore taka to 500 crore taka.

It alleges that the entire amount was subsequently withdrawn and embezzled through collusion among those involved.

Shahabuddin was a member of the Islami Bank board formed when S Alam Group took control of the lender in 2017. Before becoming president, he served as a director and vice-chairman of the bank.

The ACC complaint alleges that the loan irregularities occurred during that period.

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