Bangladesh Bank hires Big Four audit firms for banks it says lost $17b, FT reports

Bangladesh Bank has hired Big Four accountancy firms EY, Deloitte and KPMG to run an “asset quality review” of banks it claims lost $17 billon to businesspeople close to the regime of former prime minister Sheikh Hasina, London-based Financial Times reports on Sunday quoting bank governor Ahsan H Mansur.

In an interview with the Financial Times, central bank governor Ahsan H Mansur said the Bangladesh Financial Intelligence Unit (BFIU) had also formed 11 joint investigation teams to track down laundered money from banks and reclaim assets, and help to prosecute those responsible.

Financial Times quoted the governor as saying the investigations would look at 10 leading Bangladeshi businesses as well as the ousted former leader and her relatives.

He also said the asset quality review was looking at six banks, in which five had shares held by S Alam, a conglomerate headed by Singapore-based Bangladeshi tycoon Mohammed Saiful Alam.

“As part of that investigation, the old MDs of these banks have been asked to take leaves of absence so that quality is unhindered and the asset review is not interfered with,” Mansur said.

The governor said the three international accountancy firms had already begun work on the asset quality review. “We will determine how much assets are performing, who’s not performing, who took that asset, and simultaneously we will do a forensic audit.”

KPMG confirmed its Sri Lanka firm had been contracted to support the review. EY and Deloitte did not respond to a request for comment, Financial Times reports.

Ahsan Mansur, a former IMF official, has been tasked with helping to stabilise Bangladesh’s economy and beginning the process of recovering what he estimates is at least Tk 2 trillion ($16.4 billion) “robbed” from banks during the 15 years of Sheikh Hasina and Awami League governments.

Meanwhile, the Anti-Corruption Commission this month filed a case against 58 people people, including two of S Alam’s sons, on allegations of embezzling Tk11.3bn in the form of loans.