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

Islami Bank Bangladesh has suspended a senior officer after he filed a complaint with the Anti-Corruption Commission (ACC) alleging that nearly Tk 500 crore was misappropriated from the bank through a loan granted to a company linked to the S Alam Group.

Mohammad Yasin Ali, first assistant vice-president of the bank’s Foreign Exchange Corporate Branch, filed the complaint on Monday against former president Mohammed Shahabuddin, S Alam Group Chairman Saiful Alam and 36 others.

According to the complaint, the loan limit of Suprab Composite Knit Ltd was raised from Tk 100 crore to Tk 500 crore during the period when Shahabuddin was a director of Islami Bank and later when the S Alam Group gained control of the bank. Yasin alleged that the funds were subsequently siphoned off through collusion among those involved.

The bank suspended Yasin the following day, with a senior official saying disciplinary action was taken because he had approached the ACC without prior approval from management. The bank has also formed an internal committee to investigate the allegations.

Islami Bank’s acting Managing Director Mohammad Altaf Hossain said bank officials were not authorised to file complaints directly with the ACC and claimed legal action should be pursued through the courts.

However, internal documents reviewed in connection with the complaint appear to contradict that position. Records show Yasin was authorised on July 26 to initiate necessary proceedings with the ACC concerning Suprab Composite Knit, its affiliate Galaxy Sweater and alleged irregularities involving the companies. A letter signed by branch manager Abdul Quader Sardar the following day formally delegated the authority to him.

The apparent discrepancy between the bank’s stated grounds for the suspension and its own records has raised questions as an internal probe into the allegations gets underway.