Bank files complaint with ACC seeking investigation into alleged fraud

TDS Desk:

Islami Bank Bangladesh has filed a complaint with the Anti-Corruption Commission (ACC) against former president Mohammed Shahabuddin and 37 others over alleged embezzlement of Tk 500 crore.

The bank alleged that the fraud took place while Shahabuddin was serving as its vice-chairman, reports BBC Bangla.

Islami Bank submitted the complaint to the ACC and requested an investigation into the allegations.

Mohammad Yasin Ali, assistant vice-president of the bank’s Foreign Exchange Corporate Branch, recently filed the complaint on behalf of the bank following Shahabuddin’s resignation as president.

According to the complaint, after the S Alam Group took control of the bank in 2017, the loan limit of a financially weak company, Suprabh Composite Knit Ltd, was fraudulently increased from Tk100 crore to Tk500 crore.

The funds were subsequently withdrawn and allegedly embezzled, the complaint said.

The complaint further alleged that businessman S Alam played a role in securing the loan allocation for Suprabh Composite Knit Ltd, an associate company of Yunus Badal of Anontex Group.

Mohammed Shahabuddin, who was then a member of the bank’s board of directors, along with three former managing directors – Monirul Mawla, Abdul Hamid Mia and Mahbub Ul Alam – and other individuals allegedly approved the irregular transaction and benefited financially.

Islami Bank said it identified the irregularities after investigating the matter through four audit firms, according to the complaint.