‘We understand the pain of losing control of a bank that has been seized’

Without naming anyone directly, Home Minister Salahuddin Ahmed has said, in reference to Islami Bank, that he understood the distress felt by those who feared losing control of a bank they had once seized.

He made the remarks on Tuesday during a discussion in Parliament on a notice titled “Returning Islami Bank shares to their legitimate owners and ending undesirable interference in the bank’s management.”

Shafiqur Rahman, leader of the opposition and ameer of Jamaat-e-Islami, submitted the notice under Rule 68 of the Rules of Procedure of Parliament.

Salahuddin Ahmed said, “Now they are saying that you are not the owners of the bank. Jamaat-e-Islami is not the owner of the bank. Yet they are also saying, do not interfere with Islam.”

Referring to this issue, he added, “Islami Bank is not Islam. Our Mr Fakhrul Islam is not Islam, and Jamaat-e-Islami is not Islam either.”

The home minister further stated, “A bank that was seized with chants of the azan and Takbeer-e-Allah will now be taken out of their control. We understand that distress, honourable speaker.”

During the discussion, the home minister presented a list of alleged irregularities that had occurred at Islami Bank after 5 August 2024.

He said that the bank’s Rural Development Scheme (RDS), one of its flagship projects, had disbursed Tk 220 billion (22,000 crore) under the scheme.

Previously, Tk 110 billion (11,000 crore) had been distributed. After 5 August, another Tk 110 billion was disbursed in an effort to secure electoral advantage.

The home minister stated that, after 5 August, Islami Bank had extended a loan of Tk 7 billion (700 crore) to Nabil Group against a letter of credit (LC).

He alleged that, after selling the imported goods, the group failed to repay the bank. He added, “Some mischievous people claim that the money found its way into the election fund of a certain political party.”

Referring to Nabil Group, he said that its total liability to the bank stood at Tk 160 billion. “Why has there been no investigation into this? There will be an investigation,” he said.

The home minister also alleged that, prior to the election, a group received a loan of Tk 400 million (40 crore) without approval from Islami Bank’s head office.

He further stated that authorities would investigate cases in which individuals had allegedly used funds allocated for Corporate Social Responsibility (CSR) purposes, including obtaining airline tickets from Dhaka to Cox’s Bazar at the bank’s expense.

Salahuddin Ahmed stated that, after the bank had been taken over “with chants of the Takbeer”, the authorities dismissed 9,000 employees.

They removed those employees in violation of established rules and procedures and without reference to any applicable laws or regulations.

Subsequently, they recruited 6,000 new employees, all of whom, he alleged, shared the same political affiliation. In addition, the bank granted 13,000 promotions.

He claimed that many employees received as many as three promotions, advancing to positions and grades for which they would not ordinarily have been eligible.

The home minister said, “These irregularities have indeed taken place, honourable Speaker. It appears that they were carried out in the name of Islam. Therefore, if these matters are investigated, perhaps some of our names may also emerge in the process.”

Addressing the issue of Islami Bank’s shareholders, the home minister said that how the shareholders acquired their shares was “a different debate”.

He noted that the matter could become the subject of an investigation by the Anti-Corruption Commission (ACC) or legal proceedings, but a shareholder is a shareholder.

Responding to allegations from the opposition that shares in Islami Bank had been unlawfully taken, the home minister said that Ibn Sina Trust held a 2 per cent stake in the bank and had sold its shares through the block market at three times their value.

According to the current shareholding structure, he said, approximately 81 per cent of the shares appeared to be held by a single group.

He stated that the government would take appropriate measures to return ownership to the lawful and genuine shareholders.

He also called for the disclosure of the identities of shareholders and the percentage of shares held by each.

Referring to allegations that S Alam Group had laundered hundreds of billions of taka abroad, Salahuddin Ahmed said, “We demand, Honourable Speaker, that all allegations of money laundering be investigated. Let Bangladesh Bank lead those investigations. Investigate everyone who has transferred Bangladesh’s money and the people’s money abroad.”

The home minister also addressed allegations concerning the appointment of a chairman.

He said that Bangladesh Bank had responded by stating that no allegation against the officer concerned had been proven and that no investigation was currently under way.

He added, “If any new allegations arise, they will be investigated.”