Auction S Alam's seized shares to pay Islami Bank's debts, forum urges

The Conscious Business Forum has demanded that the seized shares and assets of S Alam Group, accused of embezzling funds and irregularities at Islami Bank, be sold through auction to settle the bank’s liabilities. The organisation also urged that ownership of the bank be returned to the previous board of directors to restore normal operations and transparency.

On Thursday, October 9, at a press conference held at Dhaka Reporters Unity auditorium, leaders of the forum called for the immediate removal of illegally appointed officials and employees under S Alam Group, the formation of an internal audit and investigation committee to publish full accounts of transactions and share transfers, and the recruitment of qualified professionals through open announcements based on merit.

The written statement was read out by Md Mustafizur Rahman, member secretary of the forum and a business leader. He alleged that by misusing the Bangladesh Securities and Exchange Commission’s (BSEC) mandatory two per cent shareholding requirement, genuine sponsor directors were removed from the board, allowing S Alam Group to gain control of the bank.

Mustafizur Rahman said Islami Bank, the country’s first Islamic commercial bank, had long maintained its leading position. However, in recent years, its reputation and stability had been severely damaged due to the occupation by an influential group, share fraud, illegal appointments, and money laundering.

Abdul Haque, chairman of Hawks Bay and president of Barvida, said, “We do not want to see any more economic oligarchs. The shares under S Alam’s control must be auctioned quickly to repay the bank’s debts. At the same time, the bank’s ownership should be returned to its former board of directors.”

He added that Bangladesh Bank must play an active role in selling other assets of S Alam that are tied up in court to ensure repayment of the bank’s liabilities.

At the conference, industrialist Al Mamun and businessman Ataullah said Islami Bank faces annual losses of around Tk 1,500 crore due to illegal appointments and transactions, which over the last seven years has totalled more than Tk 10,000 crore. In addition, embezzlement of nearly Tk 1,00,000 crore and other irregularities have left Islami Bank struggling to survive.

The forum leaders believe that without timely and effective measures, one of the country’s largest private banks will face ruin.