State-linked fraud drained billions from banks, says BB chief
Staff Reporter :
Bangladesh Bank Governor Ahsan Mansur disclosed that approximately $17 billion was transferred out of Bangladesh’s banking sector during the previous Awami League government’s tenure, allegedly facilitated by powerful business figures and close associates of former Prime Minister Sheikh Hasina.
According to Governor Mansur, members of the Directorate General of Forces Intelligence (DGFI), Bangladesh’s military intelligence agency, played a significant role in enabling the takeover of key banks, leading to unauthorized fund transfers abroad.
“Around Tk 2 lakh crore, or $16.7 billion, was extracted through tactics like loans to new shareholders and inflated import invoices,” Mansur explained in an interview with the Financial Times.
Governor Mansur emphasized that this represents one of the largest instances of financial misappropriation in Bangladesh’s history by global standards.
He also asserted that the alleged state-supported nature of these actions would not have been possible without the involvement of intelligence officials, who reportedly pressured bank executives into compliance.
Specifically, Mansur pointed to Mohammad Saiful Alam, founder and chairman of S Alam Group, as a key player in the scheme, with claims that at least $10 billion was siphoned from the banking sector with the DGFI’s assistance.
“Every day, loans were being approved for themselves from banks under their control,” Mansur noted.
Following Sheikh Hasina’s departure to India on August 5, Nobel laureate Professor Muhammad Yunus, who now heads the interim government, has committed to retrieving funds reportedly misappropriated during the prior administration.
Governor Mansur further disclosed that Bangladesh Bank has sought international cooperation, including from the UK, to investigate overseas assets associated with allies of the former administration.
He recounted incidents during the previous regime where intelligence officials allegedly forced bank board members to sell shares under duress, sometimes removing board members from their homes to facilitate these transactions.