Bangladesh's Controversial Business Group S Alam Embezzles 1.9 Lakh Crore Taka from Four Banks

News Desk    |    ০৬:৩২ পিএম, ২০২৫-০১-২১

The controversial business conglomerate, S Alam, has embezzled a staggering 1.9 lakh crore taka in loans from four out of the eight banks under its control. Among this amount, 93,364 crore taka was embezzled through fraudulent loans to nominal, paper-based companies across these four banks. This information has been obtained from financial intelligence sources, with the confidential documents in possession of Bangla Outlook.

The loans embezzled from the banks are as follows:

• Islami Bank: 15,483 crore taka
• First Security Islami Bank: 47,610 crore taka
• Union Bank: 23,525 crore taka
• Global Islami Bank: 13,250 crore taka

The financial intelligence report states that S Alam and its affiliated companies have taken this significant amount of money from these four banks through both direct and indirect involvement. S Alam had direct and indirect links with the transactions.

Since 2009, the Awami League has ruled the country for over 15 years. However, after the people's uprising on August 5, the government was overthrown. Following this, the interim government has begun taking measures against corruption and financial crimes committed by influential individuals, including S. Alam, who had close ties to the former government. This revelation comes as efforts to strengthen accountability intensify.

Previously, in October, the central bank governor mentioned that close associates of the Awami League government had siphoned off approximately 17 billion dollars from the banking sector, with S Alam alone being responsible for at least 10 billion dollars in this amount.

Dr. Iftekharuzzaman, Executive Director of Transparency International Bangladesh (TIB), stated that with the help of DGFI, S. Alam managed to capture these banks. As a result, the money in the vaults of these banks was looted and siphoned off, with the banks themselves being complicit. He emphasized that in a civilized democratic country, such acts would not be possible, and those involved must be brought to justice.

Embezzlement from Islami Bank

S. Alam embezzled 15,483 crore taka from Islami Bank through fraudulent loans. Of this, 85,445 crore taka was direct financial involvement, and the group also gained indirect benefits worth 20,038 crore taka.

Indirect benefits included loans from various branches to companies controlled by S Alam and his family, totalling 34,254 crore taka. Foreign currency loans from the bank's offshore banking unit amounted to 19,744 crore taka. Additionally, 8,675 crore taka was taken from the uncoordinated Inter-Bank Debit Advice (IBDA), and 22,770 crore taka was borrowed under fake company names.

Embezzlement from Union Bank

S. Alam also looted 23,525 crore taka from Union Bank. This amount includes 20,784 crore taka in direct involvement and 2,741 crore taka in indirect involvement. The report reveals that S. Alam took loans from different branches of the bank in the names of various companies controlled by his family, as well as under the names of nominal companies.

Embezzlement from First Security Islami Bank

S. Alam's group took 47,610 crore taka from First Security Islami Bank. Out of this, 39,185 crore taka was looted by companies affiliated with S Alam. The Financial Intelligence Unit (BFIU) report states that S Alam transferred substantial amounts of money to foreign countries, including Singapore, through over-invoicing.

Embezzlement from Global Islami Bank

S Alam took 13,250 crore taka from Global Islami Bank, both directly and indirectly. The report shows that the group took 829 crore taka in direct loans and 11,933 crore taka through fake companies. Furthermore, 488 crore taka was embezzled through indirect methods such as investments and CSR fund manipulation.

Ongoing Investigations

The Anti-Corruption Commission (ACC) is investigating S. Alam's financial crimes. A report published in August 2023 revealed the embezzlement, which was later investigated by the ACC. However, the investigation was halted due to an order from the Supreme Court’s Appellate Division. Following a recent High Court order, the ACC has resumed its investigation, and a three-member team led by Deputy Director Mohammad Abu Sayeed has been formed to look into the matter.

This ongoing investigation and the revelations highlight the significant scale of financial crimes committed by S Alam and others involved.