Ex-chair of Southeast Bank Alomgir Kabir’s corruption
Gazi Anowar :
In a shocking revelation that has sent ripples through the financial sector, former Southeast Bank Chairman Alamgir Kabir, is accused of establishing a two-decade-long reign of corruption, embezzlement, and financial mismanagement.
Kabir, who served as the Chairman of the bank from 2004 to 2024, has been implicated in a series of illegal activities, including fraudulent loans, share manipulation, money laundering, and the siphoning off of vast sums of money from the bank. The repercussions of his actions have left thousands of bank customers’ deposits in jeopardy.
His path to power within Southeast Bank began in 2002, when he joined the board as a professional accountant, despite not being one of the bank’s original promoters. From 2004 onwards, Kabir remained unchallenged as Chairman for a staggering 20 years, a tenure unparalleled in the country’s banking history.
During this period, Kabir allegedly manipulated the bank’s operations for personal gain, bypassing regulations set by Bangladesh Bank, and abusing his position to grant loans to politically connected individuals and his own family businesses.
Corruption and Financial Irregularities
According to an internal report from Bangladesh Bank’s Financial Integrity and Customer Services Department, Kabir’s reign was marked by systematic corruption.
The report, released in April 2024, highlighted numerous instances where Kabir wielded unchecked power to grant loans to his allies, sometimes waiving interest and providing loans under fake names.
Even when other board members raised objections, Kabir allegedly used his influence to override these concerns and approve high-risk loans to individuals and companies with no capacity to repay.
The scandal extended far beyond just loan approvals. Kabir also exercised authority over various other aspects of the bank’s operations, including the procurement of bank equipment, branch expansions, and even the selection of software suppliers.
These widespread abuses allowed Kabir to funnel large sums of money into personal ventures, both in Bangladesh and at abroad. He is accused of using embezzled funds to purchase luxury properties in Canada, Australia, Dubai, Singapore, and Malaysia, along with several high-end properties in the affluent areas of Dhaka, including Gulshan, Bashundhara, and Banglamotor. Locally, Kabir is said to own several houses in Gazipur and vast tracts of land in Sripur, Bhawal, and Kanchpur.
Manipulating the Stock Market and Personal Investments
In addition to his banking activities, Kabir also used his position to manipulate the stock market. He is linked to a syndicate involved in share manipulation, a network that has reportedly affected thousands of investors.
Kabir, alongside his associates, allegedly acquired large amounts of stock in companies such as National Life Insurance, Bay Leasing, and Asia Insurance, with the aim of taking control of these institutions. Kabir’s family members, including his son Raihan Kabir, are said to have been instrumental in acquiring these shares under the pretext of bank investments, further consolidating their influence over multiple businesses.
Ongoing Legal Battles and Financial Crisis
In 2024, the Bangladesh Securities and Exchange Commission (BSEC) fined Kabir Tk 12 crore for his involvement in share manipulation. The BSEC’s investigation into Bay Leasing and Investment Limited revealed that Kabir was directly responsible for a massive financial scandal involving improper loans and fictitious transactions.
Additionally, Kabir is accused of waiving off debts amounting to Tk 54 crore for companies tied to his close relatives, resulting in severe financial strain on Southeast Bank.
Despite his resignation from the position of Chairman in 2024, after intense public pressure and the student-led protests against authoritarian rule, Kabir continues to hold a directorial position at the bank. His involvement in the day-to-day operations, especially in granting loans and approving financial transactions, has raised alarms about the ongoing risk to Southeast Bank’s financial stability.
Southeast Bank employees have expressed concerns that, for two decades, the bank operated under Kabir’s personal agenda, with financial decisions being made according to his whims and preferences. The bank’s assets have been severely impacted by Kabir’s questionable practices, leaving it on the brink of a financial collapse.
The Legacy of a Banking Mafia
The most concerning aspect of Kabir’s alleged actions is the long-lasting damage caused to Southeast Bank’s reputation and financial health. The bank now faces severe liquidity issues, with several financial institutions, including Bay Leasing, failing to repay Tk 232 crore in loans provided by Southeast Bank. Other funds, including the foundation’s and green school’s accounts, are currently stuck in these institutions.
In a statement regarding the ongoing investigations, Nuruddin Md. Sadeque Hossain, Managing Director of Southeast Bank (current charge), stated, “When these irregularities took place, I was not the MD of the bank. However, we are making every effort to recover the embezzled funds.”
In response to the allegations, Alomgir Kabir, now residing in Singapore, denied all accusations, claiming that he was no longer Chairman and stating that the current board would handle any further investigations into the alleged wrongdoings.