Governance Conflict: ICB group warns of int’l lawsuit
Special Correspondent :
Switzerland-based ICB Financial Group has threatened to pursue international legal action against Bangladesh Bank if the long-standing dispute over control of ICB Islamic Bank is not resolved promptly.
In a letter dated 7 July to Bangladesh Bank Governor Ahsan H. Mansur, the Group’s Chairperson, Josephine Sivarajah (also known as Sivaretnam), expressed deep frustration over continued legal and regulatory obstacles that, according to the Group, have effectively denied it operational control of the bank-despite holding a 53% majority share acquired through a Bangladesh Bank-conducted public auction in 2008.
Copies of the letter were also sent to Economic Adviser Salehuddin Ahmed and Bangladesh Investment Development Authority (BIDA) Executive Chairman Chowdhury Ashiq Mahmud bin Harun (Ashiq Chowdhury).
The Group claimed that its Tk 3.5 billion investment in the then-Oriental Bank was made on the assurance that the shares would be free of liabilities.
“However, this assurance proved to be inaccurate, as former shareholders of Oriental Bank filed multiple lawsuits against Bangladesh Bank-cases that remain pending before the Supreme Court,” the letter noted.
ICB Financial Group alleges that Bangladesh Bank has failed to protect its shareholder rights and has breached its contractual commitments, undermining both investor confidence and the integrity of the original agreement.
The situation escalated in April this year when Bangladesh Bank dissolved the board of ICB Islamic Bank, citing financial instability, and installed one of its own officials as Chairman and Managing Director.
This move, according to ICB Financial Group, sidelined its appointed executives and further eroded its ability to exercise ownership rights.
The Group warned that, unless swift measures are taken to resolve the impasse and restore full operational control, it would be compelled to seek redress through international legal mechanisms.
“No strategic or institutional investor would consider further investment in a bank where ownership rights are uncertain,” the letter stated.
When contacted, Bangladesh Bank spokesperson Arif Hossain Khan acknowledged the Group’s investment and expressed hope that the dispute could be resolved through state-supported legal channels.
The ongoing conflict underscores the challenges faced by foreign investors in Bangladesh’s banking sector, particularly when legacy legal disputes, regulatory interventions, and governance issues converge.
It also raises broader questions about investor protection and the long-term viability of foreign direct investment in the country’s financial institutions.