Saifuzzaman's associates withdraw Tk 20b from UCB

Four companies owned by Genex Infosys chairman Mohammad Adnan Imam have illegally withdrawn Tk 20 billion from the United Commercial Bank (UCB).

Although the bank's management committee did not recommend the loan, it was approved by the board of directors.

Moreover, UCB faced losses after purchasing shares of Genex Infosys without following the proper process.

These irregularities occurred between September 2018 and July 2024.

At the time of these irregularities, UCB's chairman was Rukhmila Zaman, wife of Saifuzzaman Chowdhury, a former land minister. His brother Anisuzzaman Chowdhury was the executive committee chairman.

Mohammad Adnan Imam is a British citizen with business interests in the UK housing sector.

Investigations reveal that Saifuzzaman Chowdhury owns 360 properties in the UK, worth over Tk 38.24 billion.

He and Imam have close links in the real estate sector. In 2018, Saifuzzaman’s family took control of UCB, and after the fall of the Awami League government, the central bank changed UCB’s board.

Afterwards, multiple audits were conducted to investigate irregularities.

UCB chairman Sharif Zahir in a letter sent to the Anti-Corruption Commission (ACC) stated that irregularities in the bank's loan disbursements have been detected in the audits.

Sharif Zahir has made a request to carry out investigations and actions against Saifuzzaman Chowdhury, Genex Infosys share seller Amir Rasul and Jahanara Rasul, Adnan Imam and bank's former deputy managing director Alamgir Kabir.

UCB sources said that the loan provided to Genex Infosys has become risky after the fall of the Awami League government.

Despite several attempts to contact Adnan Imam for his comments via WhatsApp, he did not respond.

Sharif Zahir in the letter outlines how Saifuzzaman Chowdhury played his role as chairman after the bank was taken over by his family. From 2019 to 2023, he served as the land minister, but according to the country’s laws, a minister cannot hold a position in a bank's management.

According to the letter, the audit report highlights that large loans were disbursed in 2019 without following regulations.

Loans amounting to nearly Tk 20 billion were approved for the benefit of Genex Infosys Limited, Genex Infrastructure Limited, A&P Ventures Limited, AWR Development and AWR Real Estate Limited. These loans were granted without any recommendations from the management. The chairman of AWR Development and AWR Real Estate Limited is Adnan Imam's father, Chowdhury Fazle Imam.

The letter also mentions that Saifuzzaman’s cousin Alamgir Kabir (Apu) was promoted from the position of First Vice President to Deputy Managing Director without justification. Later, he created pressure on bank officers to approve and distribute loans illegally. After the government’s fall, Apu fled abroad and submitted his resignation via email. He has been dismissed.

The letter also mentions that in 2021, UCB purchased 60,83,626 non-marketable (locked-in) shares of Genex Infosys for a total of Tk 1.04 billion, at Tk 172.50 per share. However, the market value of these shares dropped to Tk 38 each by September, causing a loss of about Tk 780 million for UCB. The shares were sold by Zahara Rasul, Adnan Imam’s sister, and her husband Amir Rasul. Adnan Imam is also an ex-director and founding member of NRBC Commercial Bank, a bank formed by expatriates.

Despite several attempts to reach UCB chairman Sharif Zahir by phone, he did not respond.

Since its inception, UCB has been controlled by the family of the late Awami League leader Akhtaruzzaman Chowdhury.

His son Saifuzzaman Chowdhury took over the management.

The Partex Group and Ananto Group were involved in the bank in the beginning. But the Partex Group was forced to leave in 2017. During this period, Rukhmila Zaman became the chairperson, and Saifuzzaman managed the bank in her absence. Irregularities occurred during the period, according to the audit report.