S Alam, family withdrew Tk 500m even after fall of Awami League govt
S Alam Group’s head Saiful Alam and his family members withdrew money from Union Bank even after the fall of Awami League government. Besides, they transferred money from their bank accounts to the accounts of other persons and other banks. Thus they withdrew around Tk 500 million from the Union Bank after Awami League government's fall.
This was revealed in an inspection report of Bangladesh Bank. S Alam Group was in control of Union Bank when this withdrawal of money took place. Bangladesh Bank on 27 August dissolved the board of directors of the bank to appoint independent directors. It also imposed a ban on withdrawal of money by the S Alam family.
According to the BB report Union Bank extended Tk 172.3 billion (17,229 crore) in loans to 247 entities affiliated with S Alam Group. This amount makes up 62 per cent of the bank's total lending. The 247 entities provided the loans did not repay the money to the bank. Meanwhile, 76 per cent of total manpower of the bank is from Chattogram, S Alam’s hometown, who were recruited in the bank without any entry test. As a result, despite dissolution of the board, the Union Bank continues to be operated by the people connected with S Alam Group.
Union Bank was controlled by S Alam Group since its inception in 2013. The chairman of the group Saiful Alam was very close to the then prime minister Sheikh Hasina. After the fall of the Awami League government in the student uprising, Bangladesh Bank freed nine banks from the control of S Alam Group.
Meanwhile, Union Bank's managing director (MD) ABM Mokammel Haque Chowdhury has gone into hiding with allegations of various financial crimes. Before that, he withdrew all his money from the bank. Some other officials of this bank are also in hiding.
How much money the Alam's withdrew
According to the report, on 11 August, Saiful Alam transferred money from Union Bank's Muradpur and Bandartila branches to his Khatunganj account under the name of S Alam & Co. The same day, Tk 42 million was transferred to Russell Enterprises at the Chittagong DT Road branch and Tk 40 million to a company called Crobe Trading in the Bahaddarhat branch client.
On 8 and 14 August, Tk 80 million was transferred from the account of Rashedul Alam, S Alam’s brother, at the Kadamtali branch and re-deposited the money under the names Azizunnesa and Rashedul Karim Choudhury. On 28 August, S Alam’s brother-in-law Arshad Mahmud withdrew Tk 42.2 million of term deposit before maturity and transferred the money to other banks through pay-order.
According to the BB report Ansarul Alam linked to S Alam Group withdrew Tk 150 million from OR Nizam Road branch on 20 August and transferred under the names of Rokeya Begum and Hasna Hena. On 18 August, a person named Golam Sarowar Chowdhury withdrew his time deposit worth Tk 32.6 million and transferred it to S Alam Cold Rolled Steel Mill account.
On 11 August, S Alam’s associate company Top Ten Trading House withdrew Tk 122.9 million out of Tk 322.7 million from Khatunganj, Agrabad, and Muradpur branches. The remaining funds were deposited in accounts in the names of different individuals at the Agrabad and Muradpur branches. Top Ten Trading House is not repaying a loan of Tk 605.6 million in the bank’s Gulshan branch.
62pc of loans went to S Alam
According to the BB data, Union Bank’s loan was Tk 273.83 billion (27,383 crore) last June. Of the amount, 62 per cent or Tk 172.3 billion (17,229 crore) was sanctioned to S Alam Group and entities linked to it.
The central bank said S Alam Group took loans in the names of 247 entities. Henceforth no money was deposited in the accounts of these entities. A customer of Dhaka’s Panthapath branch was given Tk 1.18 billion without permission from the head office. Most of the institutions in the name of which S Alam took loans are not traceable. The mobile numbers used have also been blocked.
Loans can be granted up to 80 per cent of any termed deposit but the Union Bank gave a loan of Tk 8.53 billion against deposit of Tk 790 million. Besides, it granted loan of Tk 11.75 billion against fake deposits.
On 24 September, Bangladesh Bank's inspection team said in a letter sent to the bank's MD, “S Alam Group's debt to Union Bank is about Tk 180 billion, most of which are fictitious transactions. There is not enough collateral against these loans.”
Meanwhile, the bank is now suffering from liquidity crisis. Cash transactions are suspended in many branches of the bank. The new board is also not able to take any initiative.
Farid Uddin Ahmed, Union Bank’s chairman, told Prothom Alo, “We are constantly trying to improve the situation of the bank through supervision. Only when the central bank gives the final report will it be clear who has taken how much money.”
76pc manpower from Chattogram
As per the BB inspection report 76 per cent manpower of the bank is from Chattogram and they were recruited without any examination. S Alam hails from Chattogram’s Patiya.
The inspection report said although the board was dissolved on 27 August, senior officials and manpower recruited at different layers by the former board are still in place. These senior officials are directly linked with withdrawal of money through various tricks.