Islami Bank files ACA against former President Shahabuddin

Islami Bank Bangladesh has filed a complaint with the Anti-Corruption Commission (ACC) against 38 individuals, including outgoing President Md. Shahabuddin and S. Alam Group Chairman Saiful Alam, over allegations of embezzling nearly Tk 500 crore through loan irregularities.

Mohammad Yasin Ali, Assistant Vice President of the bank's Foreign Exchange Corporate Branch, submitted the complaint to the ACC on behalf of Islami Bank on Monday afternoon.

According to the complaint, the alleged irregularities stem from increasing the loan limit for a company named Suprov Composite Knit Limited and the subsequent withdrawal of those funds.
Islami Bank stated that after S. Alam Group took control of the bank in 2017, Suprov Composite Knit's loan limit was expanded from Tk 100 crore to Tk 500 crore. The bank claimed that the company's financial capability, business standing, and repayment capacity were not properly assessed prior to increasing the limit.

The increased funds were subsequently drawn down and allegedly misappropriated through fraudulent means. The complaint also identified Suprov Composite Knit as an associate entity of Yunus Badal's AnonTex Group.

Islami Bank alleged that S. Alam Group Chairman Saiful Alam played a direct role in approving and expanding the loan limit. Former President Md. Sahabuddin was named in the complaint due to his involvement in the loan approval process during his tenure as Vice Chairman and a member of the bank's Board of Directors.

The complaint further names several former managing directors of the bank—including Monirul Maula, Abdul Hamid Mia, and Mahbub ul Alam—along with other officials and individuals. The bank alleged that the implicated parties financially benefited by violating regulations during the approval and disbursement of the loan.

Islami Bank noted that four audit firms were previously commissioned to investigate these loan irregularities. Their reports revealed evidence of procedural violations at various stages of the loan limit expansion, approval, and disbursement.

The bank requested the ACC to investigate the ultimate destination and purpose of the funds, urging the anti-graft watchdog to examine whether the money was diverted into sectors conflicting with the bank's interests and to re-verify the borrower's financial capacity.

Md. Shahabuddin assumed the presidency on April 24, 2023. He resigned on July 24 before completing his five-year term, citing health reasons.