ACC to sue S Alam Group chairman over Tk553cr loan scam

Staff Reporter :

The Anti-Corruption Commission (ACC) has approved the filing of a case against Mohammad Saiful Alam, Chairman of S Alam Group, and 30 others for their alleged involvement in the embezzlement of Tk 553.21 crore from First Security Islami Bank (FSIB) through fraudulent loan schemes.

According to the ACC, the massive scam was orchestrated through a non-existent company—M/S Huda Enterprise—headed by one Mohammad Alamgir Huda. The case alleges that senior officials of FSIB, both past and present, colluded with Huda to facilitate the disbursement of large loans without following proper due diligence.

The initial disbursement took place on November 9, 2016, when Tk 50 crore was sanctioned under Bai-Murabaha (Hypo) investment and another Tk 55 crore under Letter of Credit (LC) facilities. Investigations revealed that the approval process bypassed standard banking protocols, including creditworthiness checks, verification of business legitimacy, valuation of collateral, and legal assessments.

Over time, the borrowed funds were funneled through several fictitious entities—such as Venus Tradings Ltd, Reasonable Traders Ltd, Abdul Awal & Sons Ltd, and Union Pacific Source & Trade—before eventually being transferred to companies linked to the S Alam Group. This was allegedly done in clear violation of the Money Laundering Prevention Act.

Despite multiple red flags and procedural violations, FSIB continued to renew and extend the loan facilities annually from 2018 to 2023. During this period, the original sanctioned limits were exceeded several times, ultimately culminating in a misappropriation of more than Tk 553 crore.